Noxon v. Cockburn

147 S.W.2d 872
CourtCourt of Appeals of Texas
DecidedJanuary 16, 1941
DocketNo. 11117.
StatusPublished
Cited by12 cases

This text of 147 S.W.2d 872 (Noxon v. Cockburn) 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
Noxon v. Cockburn, 147 S.W.2d 872 (Tex. Ct. App. 1941).

Opinion

MONTEITH, Chief Justice.

This is an appeal from a judgment of the District Court of Harris County sustaining a general demurrer and a special exception urged by appellees, H. C. Cockburn and Cockburn Oil Corporation, against an action brought by E. G. Noxon, appellant, for specific performance of an alleged parol contract for the purchase of certain oil, gas and mineral leases claimed to have been owned by him and for damages alleged to have been caused by the breach of said contract.

Appellant alleged that appellees orally agreed to purchase said leases for the sum of $100,000, appellant to retain a 1/24 overriding royalty therein ; that appellees took possession of said properties and caused an oil well to be drilled thereon under the terms of said contract, but that, when said well was abandoned as a dry hole, they had refused ,to comply with the terms of their said contract of purchase or to pay the balance of the purchase price due thereon. Appellant admitted in his pleading that the contract between bimself and appellees for the purchase and sale of said properties was “never reduced to writing and signed by both plaintiff and defendants or either of said defendants”, but, in anticipation of appellees’ plea of the statute of frauds, he alleged the .payment of $1,-500 on the purchase price for said properties, the delivery of possession, and the use thereof by appellees, including the erection of a derrick, the installation of drilling machinery, and the digging of a slush pit thereon and that, by reason thereof, the value of said properties had been totally destroyed. He alleged that by reason of these facts appellees were es-topped from claiming the benefits of the statute of frauds.

Appellees answered by general demurrer and special exceptions, setting up the statute of frauds.

Upon a'hearing upon the questions of law presented thereon, the court sustained ap-pellees’ general demurrer and their special exception No. 13, wherein they excepted to appellant’s petition on the ground that it appeared from the face thereof that appellant’s cause of action was based upon a parol agreement for the transfer of land' and interest in land and that it disclosed that said contract was in parol and was within the statute of frauds. Appellant having declined to amend, his cause of action was dismissed by the court.

*874 The controlling question .presented in this appeal is whether, under the facts alleged by appellant, appellees are estopped from claiming the benefits of the statute of frauds.

The parts of said Article 3995, Revised Statutes of 1925, known as the statute of frauds, read:

“No action shall be brought in any court in any of the following cases, unless the promise or agreement upon which such action shall be brought, or some memorandum thereof, shall be in writing and signed oy the party to be charged therewith or by .'•ome person by. him thereunto lawfully authorized. * * *
“4. Upon any contract for the sale of real estate or the lease thereof for a longer term than one year.”

Article 1288, Revised Statutes of 1925, reads: “No estate of inheritance or freehold, or for a term of more than one year, in lands and tenements, shall be conveyed from one to another, unless the conveyance be declared by an instrument in writing, subscribed and delivered by the party disposing of the same, or by his agent thereunto authorized by writing.”

Our courts have held by an unbroken line of authorities that to relieve a parol sale of land from the operation of the statute of frauds, three elements are necessary: (1) The. payment of the consideration, whether it be in money or services ; (2) the possession of the property by the vendee; and (3) the making by the vendee of valuable and permanent improvements upon the land with the consent of the vendor, or, without such improvements, the presence of such facts as would make the transaction a fraud upon the purchaser thereof if it were not enforced. Hooks v. Bridgewater, 111 Tex. 122, 229 S.W. 1114, 15 A.L.R. 216; American National Ins. Co. v. Warnock, 131 Tex. 457, 114 S.W.2d 1161.

It is further held that the payment of the consideration in itself, though it be a payment in full, is not sufficient; nor is possession of the premises, or the making of valuable improvements thereon sufficient; each of these three elements is indispensable and they must all exist. To .hold otherwise would, in effect, annul the act. Robertson v. Melton, 131 Tex. 325, 115 S.W.2d 624, 118 A.L.R. 1505.

It is also held that where the action is brought upon a verbal and executory contract of sale, by the vendor, as in the instant case, a tender to the purchaser of a deed to the property in question, which is not accepted by him, cannot be held to be a payment of the consideration, but that it is merely a tender of performance of the contract. Clegg v. Brannan, 111 Tex. 367, 234 S.W. 1076; Lechenger v. Merchants’ National Bank, Tex.Civ.App., 96 S.W. 638.

It is the established law in this state that the statute of frauds applies to oil and gas leases, and that: “Since an oil and gas lease is effective as the sale of the minerals in place — the sale of the realty — it, of course, follows that the instrument must be in writing. The same rule applies to a contract for a lease, as well as to the assignment of the rights and estate under a lease.” Guerra v. Chancellor, Tex.Civ.App., 103 S.W.2d 775, 778.

Further, it is the established rule that an action for damages for the breach of a contract is, in effect, an action for its enforcement and the statute, in denying an action for its enforcement, likewise denies an action for damages for its breach. Robertson v. Melton, 131 Tex. 325, 115 S.W.2d 624, 118 A.L.R. 1505; Alworth v. Ellison, Tex.Civ.App., 27 S.W.2d 639; Moore v. Rice, Tex.Civ.App., 110 S.W.2d 973 ; 20 Tex.Jur. 303-306; 27 C. J. page 314.

In the instant case, under the facts alleged, appellant suffered a possible loss in that he might have been able to dispose of said leases prior to the time appellees abandoned said oil well. However, as stated in the case of. Robertson v. Melton, supra, the possibility of loss is present in every casé of the breach of a parol contract for the sale of real estate. The statute prohibits the bringing of any action upon a contract for the sale of real estate unless some memorandum thereof be in writing and signed, and it cannot be disregarded for the prevention of mere wrongs or to remedy possible wrongs.

In the case of Hooks v. Bridgewater, 111 Tex. 122, 229 S.W. 1114, 1116, 15 A.L.R. 216, our Supreme Court, speaking through Chief Justice Phillips, in discussing the elements which must be shown to exist in order to justify a court of equity in relieving a parol contract for the sale of land from, the operation of the statute of frauds, says: “Equity has no concern *875 in such cases except to prevent the perpetration of a fraud.

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147 S.W.2d 872, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noxon-v-cockburn-texapp-1941.