Rollins v. Rayhill

1948 OK 83, 191 P.2d 934, 200 Okla. 192, 1948 Okla. LEXIS 326
CourtSupreme Court of Oklahoma
DecidedApril 6, 1948
DocketNo. 32747
StatusPublished
Cited by15 cases

This text of 1948 OK 83 (Rollins v. Rayhill) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rollins v. Rayhill, 1948 OK 83, 191 P.2d 934, 200 Okla. 192, 1948 Okla. LEXIS 326 (Okla. 1948).

Opinion

GIBSON, J.

The parties to this appeal occupy the same relative positions as in the trial court and, except where mentioned by name, will be referred to as plaintiff and defendant, respectively.

Plaintiff, Rollins, instituted this action against defendant, Rayhill, to recover a money judgment and to impress a trust upon certain overriding leasehold interests in various tracts of land. As grounds therefor it is alleged that it was orally agreed between them that Rayhill would furnish the money and Rollins would purchase oil and gas leases in Rayhill’s name and thereafter sell same at a profit and, after reimbursing Rayhill for his outlay, the profits should be equally divided; that the leases were purchased in the name of Rayhill who thereafter, acting independently of Rollins, sold and transferred the same, realizing a cash consideration far in excess of his outlay and in addition thereto an overriding leasehold interest of large value, for which defendant had refused to account; that the contractual relation of the parties gave rise to a joint adventure by reason of which plaintiff was entitled to one-half of the cash consideration over the amount necessary to reimburse Rayhill for the outlay and one-half interest in the overriding royalty interest; and therefore he asks both money judgment and decree impressing the trust.

Defendant, Rayhill, for answer and cross-petition denies the allegations of the petition except to the extent expressly admitted, and avers that under the contract between them plaintiff agreed to purchase with money supplied by defendant a block of leases, the title thereto to be taken in the name of defendant, thereafter to effect a sale thereof, and that thereon defendant, after being reimbursed for his outlay, would share the profit realized therefrom equally with the plaintiff provided the price paid by the defendant, for the leases did not exceed that at which the leases were sold by the lessors and plaintiff neither realized nor accepted any commission, fee or profit, out of the purchase price paid by defendant; the defendant further alleged, that the leases were purchased by-plaintiff and paid for by defendant at; prices prescribed by plaintiff, which defendant believed at the time to be the actual cost thereof. That months thereafter defendant discovered the fact to [194]*194be that a large part of the price he paid, the amount of which is unknown to defendant but exceeds the sum of $2,776, was never paid to the lessors for said leases and was retained by said plaintiff and his associates who conspired to and thus did obtain a secret profit at the expense of defendant. It is prayed that plaintiff take nothing, that defendant have judgment against plaintiff for the amount of secret profits obtained by plaintiff and associates and a judgment for exemplary damages. There are other matters alleged as showing an abandonment by plaintiff of the joint adventure if the court should hold that same arose, and matters of set-off in event the court should hold thereon that defendant be required to account to plaintiff, which matters we deem unnecessary to our review. Plaintiff’s reply to answer and answer to cross-petition was a general denial.

Upon trial the court, upon request, made findings of fact and conclusions of law resulting in a determination of the issues in favor of defendant, and denied plaintiff relief, quieted the title of defendant to the royalty interest in controversy and awarded defendant on his counterclaim a personal judgment for damages against plaintiff in the sum of $3,726.55, that being the aggregate sum of the portions of the purchase price paid by defendant in excess of the cost of the leases, which excess was received by the plaintiff and his associates.

The errors assigned and presented here bear solely upon the sufficiency of the evidence to sustain the court’s findings and the correctness of the conclusions of law. And the force of the argument thereon is made to depend on the assumption that there existed between the parties a joint adventure and that the law applicable thereto is controlling.

We will consider first the court’s denial of relief to plaintiff, the right to which, if any, is dependent upon the relation of the parties being that of a joint adventure, and next the money judgment awarded defendant against the plaintiff which involves other considerations.

In the findings of fact the court, after reciting that Rayhill under the contract agreed to pay to Rollins one-half of the amount received by him after reimbursements for all amounts expended, says further:

“But in this connection, it is found that the agreement of the parties with respect to the sharing of profits by the defendant with the plaintiff was not absolute, but to the contrary, was conditional in nature, ■ — -the condition being that any profits made or received by the defendant were not to be shared with the plaintiff, and plaintiff was to have no interest therein, or in the leases to be acquired by the defendant, if the plaintiff did thereafter make any individual profit for himself in the transaction resulting in this acquisition of said leases by the defendant. And in this connection, the facts are that plaintiff expressly agreed that he would not try to make, or would make, any individual profit for himself in the transaction whereby defendant was to acquire said leases.”

And the pertinent conclusion of law thereon is as follows:

“That the condition in the contract upon the existence of which plaintiff was to become entitled to a share in any profit accrued or accruing to the defendant by reason of the transactions mentioned in the foregoing findings of fact does not now exist and never has existed, and as a result thereof, and without regard to whether said contract was abandoned or is subject to cancellation, the plaintiff is not entitled to an accounting by the defendant of any such profits, and is not entitled to participate in the overriding royalty now owned by the defendant in the Caddo county leases.”

The fact that defendant paid a price in excess of the amount received by the landowners for the leases and that such excess was received by plaintiff and others is not in question, but plain[195]*195tiff testified and sought to prove that defendant was fully advised of such facts at the time, the reasons therefor, and consented thereto. Touching this contention of plaintiff, the court found that the method pursued by plaintiff was secretive and designed for the purpose of deceiving the defendant and that the defendant was without knowledge thereof until discovery made in October, 1943, which was subsequent to the completion of the purchases. The latter finding is supported by the evidence and, being here so considered, the question is the correctness of the quoted finding of fact and its effect, if it be correct.

The finding is challenged upon the ground there is no warrant for holding that plaintiff’s right to share in the profits of the venture was conditional and, further, that even if it were conditional there was no justification for holding plaintiff debarred of all his right in the profits by reason thereof.

Evidence bearing specifically upon the contractual understanding with reference to the division of profits appears in the testimony of the defendant as follows:

“A. Well, I said, ‘Lacy, well, that sounds good.’ I said ‘if you could, since you know these people personally, and you know that Mrs.

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Bluebook (online)
1948 OK 83, 191 P.2d 934, 200 Okla. 192, 1948 Okla. LEXIS 326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rollins-v-rayhill-okla-1948.