Nichols v. Anderson

164 S.W.2d 268, 1942 Tex. App. LEXIS 463
CourtCourt of Appeals of Texas
DecidedJune 15, 1942
DocketNo. 5442.
StatusPublished
Cited by8 cases

This text of 164 S.W.2d 268 (Nichols v. Anderson) 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
Nichols v. Anderson, 164 S.W.2d 268, 1942 Tex. App. LEXIS 463 (Tex. Ct. App. 1942).

Opinion

FOLLEY, Justice.

This is an appeal by T. G. Nichols from an order sustaining a motion to dismiss his suit, in which motion the sufficiency of his petition was attacked. The appellant sued the appellee, A. R. Anderson, for damages alleged to have been sustained by reason of appellee’s breach of an agreement made with appellant in connection with appellee’s purchase of the royalty interest in 178.8 acres of land in Hutchinson County.

The appellant alleged, in substance, that he and the appellee were each engaged in the oil and gas business, handling leases in the Panhandle of Texas; that in 1941 appellant informed appellee that he knew of a profitable royalty interest for sale in certain lands in Hutchinson County but that the owners would not deal with him; that he informed appellee such royalty would cost about $350 per acre but that it could be resold at a profit of $25 to $50 per acre; that appellee indicated his interest in the *270 royalty and his willingness to enter into said transaction; that appellee agreed with appellant to purchase the royalty and that the same would be sold by them and the profits realized would be divided equally between them; that appellant then informed appel-lee the royalty was owned by the Mc-llroy Oil Company; that upon learning of the ownership of the royalty appellee informed appellant that he was acquainted with said lands and might want to keep the royalty if it could be purchased; that thereupon it was agreed between appellant and appellee that if the latter desired to keep such royalty, if purchased, appellant would have the right to acquire 25 acres of the royalty at the same price at which it was purchased and in addition thereto appellee would pay appellant on the remainder of the royalty retained by him a sum equal to five per cent commission on the purchase pxfice thereof; that such contract having been definitely made and agreed to, negotiations were begun immediately with the Mcllroy Oil Company for appellee to meet with said owners and attempt to purchase such royalty by arranging interviews and fixing the time for appellee to meet with the officers of the company to discuss the purchase thereof; that appellee, in response to, and in keeping with, the agreement made for such meetings by appellant with the owners and their agents, immediately met such engagements and began negotiations with the Mcllroy Oil Company which resulted in the appellee’s offering the Mcllroy Oil Company $300 per acre for the 178.8 acres of royalty; that some few days later, on or about April 22, 1941, the Mcllroy Oil Company agreed to accept appellee’s offer; that a deed of conveyance was thereafter received from such company by ap-pellee, conveying the 178.8 acres of royalty to him; that after such purchase appellee repudiated his agreement with appellant and advised appellant that he did not intend to sell the royalty or recognize the interests óf appellant therein; that such royalty was of the reasonable value of $375 per acre and could be readily sold at such price which would net a profit of $13,400, one half of which belonged to appellant; and that by the terms of the contract appellee would have the right to retain such royalty if he desired to do so, but he would be obligated to transfer and assign to appéllant 25 acres of the same at the original purchase price of $300 per acre and to pay appellant a five per cent commission on the remainder of the royalty. The appellant prayed for judgment for $6,700 as his share of the profits that could be realized by a resale of the royalty or, in the alternative, for judgment for the title and possession of 25 acres of such royalty upon his payment of $300 per acre therefor, and for $2,295 for the commission due and payable on that portion of the royalty retained by appellee.

The appellee filed a motion to dismiss the suit because the appellant had failed to allege a cause of action. As grounds for such motion appellee alleged that the petition of appellant showed on its face that appellant was acting as a real estate dealer within the meaning of Article 6573a, Vernon’s Ann. Civ. St.; that it was a suit to recover compensation or other valuable consideration for services allegedly-performed in violation of Section 2 of such Article; that appellant wholly failed to allege he was a duly licensed real estate dealer or salesman as required by Section 13 of the Article; that there was no allegation that the alleged promise or agreement sued upon was in writing; and that such alleged contract, being an oral one for the acquisition of an interest in land, was in violation of the statute of frauds and unenforcible. This motion was sustained and, upon appellant’s refusal to amend, the cause was dismissed.

The appellant contends that the contract sued upon was not one to recover commissions or compensation for the sale of real estate, but that he is seeking recovery for damages for appellee’s breach of' the contract and agreement to purchase-the land in a joint adventure with appellant for the benefit of both parties, and that such-suit is not affected by the Real Estate Dealers License Act or by the statute of frauds.

Other than that which may be-presumed or implied from the above recitations from appellant’s petition, there are no express allegations as to whether the agreement sued upon was written or oral. We think it is settled, however, that although the contract comes within the statute of frauds the pleading need not allege the agreement to have been in writing, this being a matter of proof and not of pleading; and it is the further rule that when such a contract is declared upon generally, without stating whether it is in writing or not, it will be presumed. *271 to be in writing. Lewis v. Alexander et al., 51 Tex. 578, 585; Gonzales et al. v. Chartier, 63 Tex. 36, 37; Cross v. Everts, 28 Tex. 523, 524; Goen et al. v. Hamilton, Tex.Civ.App., 159 S.W.2d 231. Under such rules we must therefore presume that the contract herein declared upon was in writing. The court having dismissed the suit by reason of the alleged insufficiency of the pleadings, we must also assume the truth of the facts alleged and resolve every reasonable in-tendment in favor of the sufficiency of the appellant’s petition. Sanderson v. Sanderson, 130 Tex. 264, 109 S.W.2d 744. Of course, our conclusions hereinafter expressed are governed by this rule and are not to be construed as findings of fact upon the merits of the case.

It is apparent from the above allegations of appellant that two distinct agreements were made between the parties. The first was to divide the profits in the event the property was resold. The second was that if appellee desired to retain the royalty he agreed to transfer 25 acres thereof, to appellant .at the same price at which it was purchased from the Mcllroy Oil Company, and to pay appellant a sum equal to a five per cent commission on the remainder retained by ap-pellee, In view of the further allegations to the effect that appellee had refused to sell the royalty or to recognize the rights of appellant therein, we think the first agreement as to the division of profits from a resale of the royalty passes out of the case, and appellant is thus relegated to the second agreement relative to the transfer of the 25 acres from appellee and to the collection of the five per cent commission on the remainder of the royalty.

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Bluebook (online)
164 S.W.2d 268, 1942 Tex. App. LEXIS 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nichols-v-anderson-texapp-1942.