Ramacciotti v. Simpkins

266 N.E.2d 700, 130 Ill. App. 2d 733, 38 Oil & Gas Rep. 179, 1970 Ill. App. LEXIS 1035
CourtAppellate Court of Illinois
DecidedDecember 23, 1970
Docket11019
StatusPublished
Cited by10 cases

This text of 266 N.E.2d 700 (Ramacciotti v. Simpkins) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ramacciotti v. Simpkins, 266 N.E.2d 700, 130 Ill. App. 2d 733, 38 Oil & Gas Rep. 179, 1970 Ill. App. LEXIS 1035 (Ill. Ct. App. 1970).

Opinion

Mr. JUSTICE WRIGHT

delivered the opinion of the court:

This is a suit in equity instituted in the circuit court of Sangamon County, Illinois, and heard by the court without a jury upon the complaint as amended, and the answer and special defenses of the defendant, Simpkins. An interpleader was filed by the Ashland Oil and Refining Company.

The plaintiff, Frank L. Ramacciotti, seeks to have a constructive trust established in certain interest of the defendant, Joe Simpkins, in oil lands located in the tri-state oil basin located in Illinois, Indiana and Kentucky, particularly in the interest of defendant Simpkins in the lands leased by him from the Peabody Coal Company in the Kincaid Pool in Christian County, Illinois, and seeks an accounting by the defendants, Joe Simpkins and Ashland Oil and Refining Company.

The plaintiff claims an equitable interest in one-half of the working interest obtained and retained by the defendant Simpkins in the oil property here in question.

The plaintiff predicates his claim upon the existence of either:

(1) An oral oil leasing partnership agreement general in scope entered into between plaintiff and defendant in the late spring or summer of 1950 and applicable to the working interest obtained by Simpkins in oil leases on lands in the tri-state basin for which he has not previously accounted to plaintiff, or
(2) A joint venture of plaintiff and defendant to acquire oil leases on certain land owned by Peabody Coal Company in the Kincaid Pool in Christian County, Illinois.

A partnership is an association of two or more persons to carry on as co-owners a business for profit. The Uniform Partnership Act, Ill. Rev. Stat. 1969, ch. 106½, par. 6.

A partnership between two or more parties is a contractural relationship. There must be a meeting of minds of the parties to create a partnership. The intention of one party alone cannot create a partnership.

As between the parties the question of partnership is one of intention that must be proved by an expressed agreement, either written or oral, or be inferred from the acts and conduct of the parties. Olson v. Olson, 66 Ill.App.2d 227, 213 N.E.2d 95.

A joint venture is an association of two or more persons to carry out a single enterprise for profit. Ditis v. Ahlvin Construction Co., 408 Ill. 416, 97 N.E.2d 244. The only distinction of consequence between a partnership and a joint venture is that a joint venture relates to a single specific enterprise or transaction, while a partnership relates to a general business of a particular kind.

In order to determine the relationship between the plaintiff and the defendant, Simpkins, in this case, we must ascertain, if possible, the intent of the parties.

It is not contended that any written agreement was entered into between the parties prior to 1955, during 1955, or after 1955, to engage in the oil business as equal partners for the purpose of acquiring, purchasing and developing commercial oil leases in the tri-state oil basin located in Illinois, Indiana and Kentucky. Neither is it contended that any written agreement was entered into between the plaintiff and defendant to engage in a joint venture to acquire oil leases on Peabody Coal Company’s land in the Kincaid Pool.

However, the plaintiff alleges in his amended complaint, and testified that he and defendant discussed the question of their engaging in the oil business as equal partners in the late spring or summer of 1950, and did, at that time, agree orally to engage in the oil business as equal partners for the purpose of acquiring and purchasing and developing commercial oil leases in the Illinois basin. This testimony is not supported by other witnesses and is strenuously denied by the defendant.

The trial court found that no oral or written agreement, either expressed or implied, having the effect of a general partnership, was ever entered into or ever existed between the plaintiff and defendant Simpkins to engage in the oil business as equal partners for the purpose of acquiring and purchasing and developing oil and gas leases as claimed by the plaintiff. And the court further found that plaintiff produced no document or written memorandum to support his contention that he and the defendant were engaged in either a partnership or a joint venture in acquiring leases and developing oil and gas on the Peabody acreage in Christian County, Illinois.

A review of the record in this case leads us to conclude that such findings by the trial court are consistent with the evidence, and that such findings are supported by the greater weight of the evidence.

We will next consider the contention of the plaintiff that in the absence of any written or oral agreement the acts and the conduct of the parties in negotiating for and obtaining oil leases from the Peabody Coal Company were such as to show an intention on the part of the plaintiff and defendant to be partners or to engage in a joint venture in taking leases and developing the Peabody tract.

The trial proceedings spawned a voluminous record illuminated by an unlimited number of exhibits, many of which threw little or no light on the real issue before the court, to determine whether or not the plaintiff and the defendant had agreed to be partners in the oil leasing business, or, by their acts, conduct and words, had indicated an intention to form a general oil leasing partnership, or to engage in a joint venture in acquiring and developing oil leases on the Peabody tract.

The record discloses that the plaintiff and the defendant first became involved together in business in 1945. It appears that their first adventure was the Missouri Acceptance Company. In 1947, and during the next ten years, the plaintiff and defendant organized many corporations and engaged in various business ventures, among them being the sale of Ford cars and trucks; the purchasing and sale of used cars; the leasing of motor vehicles; and the purchasing and management of real estate, etc. This company was known as J.S. Incorporated.

On October 16, 1947, the articles of incorporation of Joe Simpkins Incorporated were amended to extend its corporate purposes to include the acquisition, holding, using, selling, etc., of oil and gas leases and to carry on a broad operation in the oil and gas business. Subsequent thereto, some oil leases were taken in the name of the corporation and assigned to the parties, some leases were taken in the name of the plaintiff, and other leases were taken in the name of Simpkins and assignments made.

On September 23, 1952, the plaintiff and defendant entered into a written partnership agreement under the name of Simpkins Contractors, for the purpose of drilling for oil and gas and for other related activities in connection therewith, as the parties may agree to and as may be necessary or desirable to carry on business of the partnership. Paragraph (i) of this agreement provides as follows:

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Bluebook (online)
266 N.E.2d 700, 130 Ill. App. 2d 733, 38 Oil & Gas Rep. 179, 1970 Ill. App. LEXIS 1035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramacciotti-v-simpkins-illappct-1970.