Newton v. Gardner

225 S.W.2d 598, 1949 Tex. App. LEXIS 1844
CourtCourt of Appeals of Texas
DecidedDecember 2, 1949
DocketNo. 2763
StatusPublished
Cited by9 cases

This text of 225 S.W.2d 598 (Newton v. Gardner) 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
Newton v. Gardner, 225 S.W.2d 598, 1949 Tex. App. LEXIS 1844 (Tex. Ct. App. 1949).

Opinion

GRISSOM, Chief Justice.

Paul Gardner sued W. F. Newton and J. K. Hughes Oil Company, Inc. Gardner alleged that Newton was engaged in the business of drilling and prospecting for oil; that Gardner and Newton entered into a joint undertaking to acquire oil and gas leases in Br'own, Comanche and Eastland Counties; that it was orally agreed that Newton was to pay for the leases and Gardner’s expenses in acquiring them; that Gardner was to devote his time and effort to locating and acquiring desirable leases; that the leases were to be jointly owned, with Gardner’s interest being a l/32nd overriding royalty. Gardner alleged that pursuant to that agreement he acquired oil and gas leases in the name of Newton. He alleged, as to the leases in controversy, that in August, 1948, in continuance of said joint undertaking, Gardner acquired leases owned by the Central Texas Gas Company and E. E. Kirkpatrick in Brown County; that during the negotiations for the leases a trade was made between Newton and Hughes Oil Company whereby Hughes Oil Company became a part owner of said leases; that Gardner caused the purchase of said property in the name of Newton and Hughes Oil Company and that Hughes Oil Company knew of his agreement with Newton and of his right to a l/32nd overriding royalty in said leases when Hughes Oil Company purchased their interest. Gardner further alleged that Newton and the Hughes Oil Company were denying that he had any interest in said leases. He sought judgment declaring his ownership of a l/32nd overriding, royalty in said leases and for recovery of 'such interest out of the production from the leases since they were transferred to Newton and Hughes Oil Company.

Defendants excepted to Gardner’s petition, among other things, because such •contract “being an oral one for the acquisition and obtaining an interest in oil royalty in the future, which is an interest in real estate, was in violation” of the Statute of Frauds. Vernon’s Ann.Civ.St. art. 3995. Said defendants denied that as to the Central Texas Gas Company and Kirkpatrick leases there was an agreement between Newton and Gardner that Gardner was to have an interest.' Defendants also ■ answered that they each owned an undivided one-half interest in said leases; that the Hughes Oil Company did not know of the alleged interest of Gardner when they acquired an interest in the leases and that Gardner was not entitled to recover any part of the interest of Hughes Oil Company.

The issues submitted to the jury, and the answers thereto are as follows:

“1. Do you find from a preponderance of the evidence that in May, 1948, Paul Gardner and W. F. Newton entered into an agreement for the acquisition of oil and gas leases in Brown and Comanche Counties, in which it was agreed between them that Newton would pay all .expenses incurred by Gardner and furnish the money necessary to acquire the leases, and Gardner would give his time and effort to locating and acquiring such leases, and that such leases, when acquired, would be jointly ■ owned, and that the interest of Gardner therein would be an undivided l/32nd overriding royalty? Answer: Yes.

“1-A. Do you find from a preponderance of the evidence that Central Texas Gas Company and E. E. Kirkpatrick lease was acquired under such agreement, if any you have found in answer to Special Issue No. 1, between Paul Gardner and W. F. Newton. Answer: Yes.

“2. Do .you find from a preponderance of the evidence that near the commencement of negotiations for the Central Texas Gas Company and E. E. Kirkpatrick lease, W. F. Newton advised Paul Gardner that if he acquired the lease that Gardner would not have .an undivided l/32nd overriding royalty interest in said lease? .Answer: No.

“3. Do you find from a preponderance of the evidence that either Johnnie Kennon or L. H. Simpson, at the time J. K. Hughes [600]*600Oil Company paid its part of the consideration for the Central Texas Gas Company and E. E. Kirkpatrick lease, knew that Paul Gardner was claiming a l/32nd overriding royalty in said lease? Answer: Yes.”

The court rendered judgment that Gardner recover from Newton and Hughes Oil Company, jointly and severally, an undivided l/32d overriding royalty in an undivided 49/64ths leasehold interest in the Central Texas Gas Company and E. E. Kirkpatrick leases assigned to Newton and Hughes Oil Company.

. Newton and Hughes Oil Company have appealed.

Appellants contend that the alleged agreement between Gardner and Newton is within the Statute of Frauds. Appellants quote the testimony of Gardner to the effect that Newton had executed written assignments to Gardner of a l/32nd overriding royalty in all leases acquired by Gardner in the name of Newton except those in controversy and that when such assignments were executed Newton said to Gardner, relative to the leases in controversy, “ * * * when we pay off we will straighten that up. At that particular time, -the Central Texas Gas Company deal had not been paid off.” They quote further from Gardner’s testimony to the effect that Newton executed assignment of such royalty interest to Gardner in other leases “ * * * since he was getting ready to start developing them,” and that Newton said, relative to the leases in controversy, “ * * * as soon as we pay that off, we will make your assignment on that.” Gardner also testified that after Hughes Oil Company received and paid for its interest in the Central Texas Gas Company and Kirkpatrick leases he told Newton he had heard that Hughes “ * * * paid it off” and Newton said, “Yes, we have paid it off,” and Gardner then said, “Well, how about making my assignment on that now.” Appellants contend that this and other testimony of like effect conclusively shows that under the agreement Newton, was bound to convey to Gardner his interest as soon as a, deal was' closed-. They argue that this was done on all other leases and that Newton’s failure to assign to Gardner a l/32nd overriding royalty in the leases in controversy when the deal for them was closed brought about the filing of this suit. They conclude that Gardner’s testimony conclusively shows that the agreement between Newton and Gardner was an oral contract to convey land in the future and, therefore, in contravention of the Statute of Frauds.

Since the jury has found that the contract between Newton and Gardner was that Gardner was to devote his time and efforts to locating and acquiring leases and that Newton agreed to pay for the leases and Gardner’s expenses and that, when acquired, the leases were to be jointly owned, with Gardner’s interest being a l/32nd overriding royalty, we are required to look only to the evidence tending to support this finding in determining whether there is sufficient evidence to sustain it.

The evidence is sufficient to support the finding. Gardner testified, in effect, to the facts found by the jury. He also testified that Newton “ * ⅜ * was merely holding in trust for me a l/32nd override interest.” He specifically denied that there was any agreement in -advance that Newton would transfer an overriding royalty to him when the leases were acquired. The agreement was made in May, 1948. The fa-ct that on September 10, 1948, Newton did transfer to Gardner such an interest in all leases so acquired, other than those in controversy, does - not conclusively show that the oral agreement was for the sale or conveyance of land in the future. Gardner testified:

“Q. It was an oral agreement? A. Yes, sir.

“Q. That was to convey to you future interest in royalty on land or leases that :might be acquired; is that right? A.

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Bluebook (online)
225 S.W.2d 598, 1949 Tex. App. LEXIS 1844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newton-v-gardner-texapp-1949.