Quinn v. Johnston

122 S.W.2d 266
CourtCourt of Appeals of Texas
DecidedNovember 15, 1938
DocketNo. 3353.
StatusPublished
Cited by1 cases

This text of 122 S.W.2d 266 (Quinn v. Johnston) 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
Quinn v. Johnston, 122 S.W.2d 266 (Tex. Ct. App. 1938).

Opinion

O’QUINN, Justice.

Appellee, Johnston, brought this suit in the district court of Harris County against appellant, Quinn, for damages for the breach of an alleged written contract of date June 10, 1937, in which appellant had agreed to sell to him, appellee, a 1/64 royalty of all the oil, gas and other minerals in, on and under 2,394.36 acres of land, being sections 34, 36, 38, and 40, H. & T. C. Ry. Co. surveys, in Newton County, Texas. Damages were prayed in the sum of $10,-475.15, with legal interest from June 26, 1937.

Appellant duly filed his plea of privilege to be sued in the county of his residence, alleged to be Jefferson County, Texas. Ap-pellee filed his controverting affidavit referring to and making a part of his controverting affidavit, his petition and also replead fully the grounds upon which he based his right to recover, and to confer venue in Harris County, under section 5 of Article 1995, R.S.1925, Vernon’s Ann. Civ. St. art. 1995, subd. 5, an alleged contract in writing to be performed in Harris County. Upon hearing the plea of privilege was overruled, and this appeal is from that order.

The evidence on the hearing of the plea of privilege and the controverting affidavit, was in the main documentary, it being contended by appellee that the instruments of-ferred and received in evidence constituted a contract in writing to be performed in Harris County, and the appellant contending that no such contract was shown.

To copy in full the different instruments would serve no useful purpose, and would render this opinion inexcusably long. We shall' state the substance of the instruments, quoting only those parts deemed necessary to a proper understanding of the question involved.

On June 10, 1937, appellant, Quinn, was the owner of some 2,394.36 acres of land, being Sections 34, 36, 38 and 40, H. & T. C. Ry. Co. Surveys in Newton County, Texas. At that date, while he was the accepted purchaser of the land from'the State, no patent had been issued, but was expected soon to be. He had leased the land to the Gulf Production Company for oil purposes, and retained for himself a 1/8 royalty of all the oil, gas and other minerals in and under said land. On said date he entered into a written contract with appellee to sell him an undivided 1/8 of his retained 1/8 royalty in the oil, gas and other minerals in and under *267 said land for a consideration of $11,971.80, under the following conditions: “This escrow agreement together with royalty deed and draft for $11,971.80 shall be placed in the First National Bank at Beaumont in escrow with instructions to said bank to send same to the National Bank of Commerce at Houston, Texas, for inspection by Floyd A. Johnston or his attorneys; it being understood and agreed that the draft will be paid when presented or within twenty-four (24) hours after same is presented and that said National Bank of Commerce at Houston, Texas, may hold said money and papers subject to the examination of title.”

It was then stipulated that the grantor, Quinn, would in ten days from June 10, 1937, deliver to James E. Whiteside, agent for Johnston, a complete abstract of title to the land, or, in case of failure to deliver the abstract of title to said agent, to send same to said National Bank of Commerce for delivery to Johnston. That Johnston should have five days to examine the abstracts after delivery; that grantee had the right to furnish grantor copy of written opinion pointing out any defects in the title, and in such event the grantor should have 30 days in which to attempt to cure the defects, but this was at grantor’s option; that grantee (Johnston) had the right to waive any such defects, accept the title and instruct the bank to deliver the deed to him, and the purchase money to the grantor i that grantee might at any time during the investigation of the title accept same and close the deal.

It was further stipulated that it was understood that the land in question was un-patented State land, but would be patented at an early date, grantor having been awarded the sale of same from the State.

The contract closed with this stipulation : “It is understood and agreed that should grantee accept the title and this transaction is actually closed the Grantor hereby agrees to sell the Grantee or his assigns an additional one sixty-fourth (1/64) royalty one-eighth (1/8) of the one-eighth (1/8) royalty in the above described land for an additional consideration of a like amount which is on a Forty ($40.00) Dollar per acre base; said Grantee is to have until the 25th day of June, A. D. 1937, to exercise his option and pay the considerations for the additional royalty.”

This is the basis for the suit, and together with communications relative to same, Controls the action.

The' record discloses that on or about July 16, 1937, patents to the land were issued and properly recorded. The original contract for 1/64 royalty was then closed and the deed delivered and the consideration of $11,971.80 paid.

On June 24, 1937, appellee, Johnston, called Quinn over the phone and told him that he would exercise the option and take the additional sixty-fourth royalty to which Quinn replied “that is right, you have until the 25th.” On the evening of the 24th of June, Johnston sent Quinn the following telegram:

“Houston, Texas, June 24, 1937,
“Mr. B. E. Quinn,
“Wiess Building,
“Beaumont, Texas.
“Pursuant to terms of escrow agreement dated June tenth nineteen thirty seven I hereby exercise option to purchase an additional one sixty fourth royalty interest in Sections thirty four thirty six thirty eight and forty H. & T. C. RR Survey Newton County Texas Stop Mailing royalty deed to be executed and returned to National Bank of Commerce Houston Texas to be escrow-ed with consideration Stop ’ Said consideration to be paid to you upon delivery of the royalty deed and the issuance of patents and filing same for record.
“Floyd A. Johnston.”

The same afternoon (June 24, 1937) Johnston, by registered mail, sent letter enclosing copy of telegram to Quinn. It reads:

“623 Chronicle Building
“Houston, Texas,
“June 24, 1937.
“Mr. B. E. Quinn,
“Weiss Building,
“Beaumont, Texas.
“National Bank of Commerce,
“Houston, Texas.
"Dear Sirs:
“Herewith copy of day letter sent you exercising the option to purchase the additional l/64th royalty as stated.
“There is also enclosed royalty deed in duplicate — the original of which should be executed and duly acknowledged and forwarded to the National Bank of Commerce, Houston, Texas, to be escrowed with the consideration of $11,971.80, with the condition that said consideration be paid to you upon delivery of royalty deed and issuing of patents and filing same for record, covering the said four sections of land.

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Bluebook (online)
122 S.W.2d 266, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quinn-v-johnston-texapp-1938.