Moran v. Wotola Royalty Corp.

123 S.W.2d 692
CourtCourt of Appeals of Texas
DecidedDecember 9, 1938
DocketNo. 13842.
StatusPublished
Cited by6 cases

This text of 123 S.W.2d 692 (Moran v. Wotola Royalty Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moran v. Wotola Royalty Corp., 123 S.W.2d 692 (Tex. Ct. App. 1938).

Opinion

BROWN, Justice.

We adopt the statement of the nature and result of the suit as made by appellants.

On the 26th day of July, A. D. 1933, J. J. Moran and the Wotola Royalty Corporation, being the joint owners in the ratio of one-half each of a certain producing leashold estate, entered into the following contract:

“State of Texas, County of Wichita
“Know all men by these presents:
“Whereas, Wotola Royalty-Corporation and J. J. Moran are each the owner of an undivided one-half of the lease estate in and to the following described tract of land:
******
“And, Whereas, there are now upon said lease four producing wells equipped and producing oil; and,
“Whereas, it has been the custom and understanding that J. J. Moran has the management and operation of said lease and has had same since the same has produced oil, but that same has never been reduced to writing:
“It is, therefore, the understanding and agreement between the parties hereto, that is, between the Wotola Royalty Corporation and J. J. Moran, that J. J. Moran is to -have the complete management, control and operation of said wells as- he has exercised since same have been producing and that for looking after the same he is to receive Five ($5.00) Dollars, oer *693 month, per well, and if and when there are any other wells drilled he shall receive a like amount for each well.
“It is further agreed and understood that this contract is to be permanent as long as said parties are joint owners of said lease and J. J. Moran is to have management of the operation and development of said lease during the life of joint ownership.
“It is further agreed and understood that if other wells are drilled on said lease that the said J. J. Moran shall have the option of drilling same at the prevailing prices.
“In testimony whereof, witness oui hands this 26th day of July, A. D,. 1933.
“Wotola Royalty Corporation
“By: (signed) B. L. Fain, President.
“Attest:
“(signed) Mrs. Maude Rainwater,
Asst. Secretary.
“J. J. Moran.”

For approximately three and one-half years, J. J. Moran supervised and looked after the leasehold estate for said joint ownership, which period extended up to the time of his death, February 5, 1937. J. J. Moran died intestate, leaving his wife, Ellen Moran, and seven boys and one girl, all of whom were of age except Robert Moran, who had his disabilities removed so that the surviving wife and the children might keep the estate all together and conduct the business as it had been conducted by the deceased father, and forego any partition of the estate. There were no debts due by said estate and no necessity existed for administration. The mother 'and- surviving wife of J. J. Moran and children entered -into the following agreement on the 26th day of June, A. D. 1937:

“State of Texas, County of Wichita.
“This memorandum of Agreement, this day made and entered into by and between Mrs. Elizabeth Ellen Moran, Ethel D. Moran, J. A. Moran, C. F. Moran, Clarence Moran, Edward W. Moran, Joseph Moranj Robert Moran and John W. Moran, being all of the heirs and only heirs at law of J. J. Moran, deceased, and being the same parties that constitute the business style and name known as J. J. Moran Trust of Wichita County, Texas, and hereby designate Clarence Moran to look after and conduct the joint adventure and oil and gas business, and carry oút the terms and conditions of a certain contract entered into on July 26, 1933, between J. J. Moran, deceased, and Wotola Royalty Corporation.
“Therefore, it is agreed by all parties hereto that Clarence Moran is hereby designated to supervise and look after the lease owned jointly by the said J. J. Moran Trust and the Wotola Royalty Corporation, and which was formerly looked after and supervised by J. J. Moran, deceased, the purpose and intention of this agreement being that the said Clarence Moran, who is an experienced oil operator, is hereby designated to act for us and in our stead in said joint enterprise, and to do the character" of work that was being done by J. J. Moran at the time of his death, and to carry out the terms and conditions of said contract, with full power and authority to act for us and in our stead, we‘hereby ratifying and confirming all of his acts in the faithful performance of the obligations and duties with reference to the joint enterprise- covering the following leasehold estate, located in Young County, Texas, being described as follows: ’
* - * * * * *
“Witness our hands, this the 26th day of June, A. D. 1937.
“Clarence Moran
“Mrs. E. E. Moran
“J. A. Moran
“C. F. Moran
“Joseph Moran
“Edward W. Moran
“Robert Moran
“Ethel D. Moran
“John W. Moran.”

During the lifetime of J. J. Moran, and covering the period that he supervised the leasehold estate mentioned in the first contract above set out, Edward W. Moran kept the books, prepared the monthly, or semi-monthly statement, of the expense'incident' to the operation of said leasehold estate, and furnished copies thereof to the defendant, Wotola Royalty Corporation, upon which statements the said Wotola Royalty Corporation would remit its one-half, or pro rata part, of the expense incident to the operation of said leasehold estate.

After the death of J. J. Moran, Clarence Moran, a competent and qualified supervisor of leasehold estate's, took charge of the lease in question and supervised and operated it as his father had been doing *694 during his lifetime; Edward Moran kept the books and the expenses, and mailed statements of the same to the Wotola Royalty Corporation, as he had been doing during his 'father’s lifetime, and the Wotola Royalty Corporation paid said bills for some three months on semi-monthly statements. These statements included $5, per well, for supervision by Clarence Moran, the amount being the same amount that was allowed J. J. Moran, deceased, fo.r the same character of work during his lifetime.

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123 S.W.2d 692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moran-v-wotola-royalty-corp-texapp-1938.