Pelican Well & Tool Supply Co. v. Johnson

195 So. 514, 194 La. 987, 1940 La. LEXIS 1037
CourtSupreme Court of Louisiana
DecidedMarch 4, 1940
DocketNo. 35467.
StatusPublished
Cited by2 cases

This text of 195 So. 514 (Pelican Well & Tool Supply Co. v. Johnson) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pelican Well & Tool Supply Co. v. Johnson, 195 So. 514, 194 La. 987, 1940 La. LEXIS 1037 (La. 1940).

Opinions

FOURNET, Justice.

Plaintiff, alleging that the defendants Warren G. Gray, and W. M. Redditt were indebted to it in the sum of $5,247.05 for oil well equipment and supplies furnished them for the drilling of an oil and gas well on property under lease to them and located in Shelby County, Texas, known as the “Pickering lease,” and that the defendants John G. Pundt and Victor S. Johnson, non-residents, having agreed to pay and assumed the payment of the said indebtedness, as evidenced by a contract and contemporaneous agreement dated July 21, 1938, and a supplemental agreement dated November 7, 1938, entered into between them and the defendants Gray and Redditt, are, together with their co-defendants, individually and in solido, liable to plaintiff for the payment of this indebtedness, obtained a writ of attachment against Pundt and Johnson, making certain alleged creditors of the said non-resident defendants parties garnishee.

The defendant John G. Pundt was personally served within the jurisdiction of the court and he filed exceptions of no cause and no right of action, and also a motion to dissolve the writ of attachment. The curator ad hoc appointed to represent the defendant Victor S. Johnson filed an exception to the citation, coupled with a motion to dissolve, and also a separate motion to dissolve the writ of attachment. The trial judge considered the issues presented by the two non-resident defendants separately and rendered judgments against the plaintiff (1) in favor of the defendant Johnson, dissolving the writ of attachment and fixing the fee of the curator appointed to represent him at $25, which was taxed as costs, and (2) in favor of the defendant Pundt, sustaining the exceptions of no cause and no right of action, dismissing plaintiff’s suit as to him, dissolving the writ of attachment, and assessing the sum of $75 attorney fees as damages. Plaintiff has appealed.

The basis of the judgments appealed from is that plaintiff’s petition fails to disclose a cause or a right of action as to the defendants Pundt and Johnson in that the document relied upon to show their assumption of and agreement to pay the *992 debt of their co-defendants Gray and Redditt to the plaintiff did not have the effect of binding them to pay said obligations.

The facts of the case, as disclosed by the record and which are necessary for the proper disposition of the issues involved, are as follows:

On July 21, 1938, Warren G. Gray entered into a contract whereby he agreed to transfer and assign to John G. Pundt a certain leasehold acquired by him from the trustees of the estate of the Pickering Lumber Company, covering approximately 5,880 acres of land located in Shelby County, Texas (less 1,720 acres thereof which he had previously assigned to other parties), free of encumbrances, the consideration being (1) $2,500 in cash, (2) $5,000 on or before ten days thereafter, and (3) $57,000 to be paid when the titles to the property were approved by Pundt’s attorneys and the proper assignments made of the property. On the same day the contract was entered into, the parties thereto supplemented it by a letter written by Pundt and accepted by Gray wherein it was stipulated that Pundt • would, at his own expense, deepen the well then being drilled on the property, known as the Pickering A-l, to a depth of 4,100 feet, provided it failed to produce oil when the depth of 2,945 feet had been reached. The contract further provided that in the event Pundt did not accept the assignment because' of objections to the title, the cash paid by him under the ’terms of the contract, and ’ also the amount expended by him in the deepening of the well, would be refunded to him by Gray out of half of the oil, gas, and distillate produced and saved from the leasehold. Subsequently, on November 7, 1938, the contract was again supplemented by a proposal written in letter form by Gray and Redditt and accepted by Pundt. It is this supplemental contract that forms the basis of the present action against Pundt and Johnson.

There is no indication in any of the transactions that the defendant Johnson is a party thereto, but, in an amended petition, it is alleged that Pundt was not only acting for himself individually, but also as the agent of Johnson.

The instrument of November 7, 1938, after referring to the original contract and contemporaneous agreement of July 21, 1938, is separated into four parts or divisions, which are numbered. ’ In the first it is stated that Redditt is interested with Gray in the ownership and operation of the leases and that he ratifies the contract of July 21, 1938, between Gray and Pundt. In the second the payment in cash to date, of the sum of $8,300, which amount is to be credited to the purchase price- of the leasehold interest under the terms of the original contract, is acknowledged. In the third it is recited that Pundt had not complied with his obligation to drill the Pickering A-l well to 4,100 feet but that inasmuch as he, in order to protect the original oil and gas lease, had moved in on another portion of the property and had commenced to drill and was drilling thereon another well, this new operation would be substituted and accepted in lieu of the *994 former obligation by Gray and Redditt. In the fourth it is stipulated:

“In consideration of the foregoing, we do hereby agree that you can have until on or before six months from this date to pay what balance or purchase money may be due as under said contract of purchase and sale, provided titles have by that time been accepted by your attorney and provided further, you will, on or before ten days from this date, pay the Globe Supply Company his claim of $643.48 as reflected in Vol. 3, page 28 of the Records of Laborer’s Liens of Shelby County, Texas, and the Earl H. Carter claim of $385.-00 as reflected in Vol. 3, page 27 of said records, together with the other bills we owe against our former operations on said lease, said bills have already been given you with affidavits as to their being correct, the aggregate amount of which claims are to be credited to the purchase price for said lease regardless of the amounts actually paid therefor in settlement, and the payment of such claims shall in no wise be construed as having by you accepted title to said original leasehold, and should title not be accepted as provided in said original contract of purchase and sale, then the amounts paid by you shall be refunded out of one-half of all the oil, gas, distillate ‘and other minerals from said lease hold premises, in the same manner and under the same circumstances as the other advances and payments are to be refunded me, as provided in said contract of purchase and sale and said letter of contemporaneous agreement.

“Your signature of acceptance hereto will constitute á contract between us, and the same shall become a part of our former contracts above mentioned. Except as hereinabove provided, our former contract' of purchase and sale and the contemporaneous letter agreement remains in full force and effect, and except as herein changed, said covenants remain as in said contract of purchase and sale and said contemporaneous contract provided.”

It is the plaintiff’s contention that by accepting the proposal of November 7, 1938, Pundt agreed to pay and did assume the payment of all of the debts due by Redditt and Gray on the Pickering well, which included the debt of Redditt and Gray to plaintiff.

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Bluebook (online)
195 So. 514, 194 La. 987, 1940 La. LEXIS 1037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pelican-well-tool-supply-co-v-johnson-la-1940.