Roos v. Texas Co.

126 F.2d 767, 1942 U.S. App. LEXIS 4812
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 5, 1942
DocketNo. 9797
StatusPublished
Cited by6 cases

This text of 126 F.2d 767 (Roos v. Texas Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roos v. Texas Co., 126 F.2d 767, 1942 U.S. App. LEXIS 4812 (5th Cir. 1942).

Opinion

McCORD, Circuit Judge.

In April, 1915, Edward Roos obtained from Victor Obando an option to purchase an oil lease of lands in Mexico. Roos exercised his option, and on May 10, 1915, in accordance with previous arrangements, the lease was assigned to R. E. Brooks, who was acting for The Texas Company, a Texas corporation. The lease proved to be very valuable, and the interests of Roos and other parties to the transaction gave rise to numerous disputes and disagreements resulting in almost endless litigation. The present appeal adds another chapter to that round of long, drawn out litigation, and may be best understood by reference to former opinions which set out the facts in detail. See Conn v. Roos, 5 Cir., 14 F.2d 64; Roos v. Texas Co., 2 Cir., 23 F.2d 171; Texas Company of Mexico, S. A. v. Roos (And Reverse Title), 5 Cir., 43 F.2d 1, cer-tiorari denied 282 U.S. 902, 51 S.Ct. 216, 75 L.Ed. 794; Roos v. Texas Co., 5 Cir., 68 F. 2d 321, certiorari denied 292 U.S. 649, 54 S.Ct. 859, 78 L.Ed. 1499; Roos v. Texas Co., D.C., 20 F.Supp. 75; Texas Co. v. Roos, 5 Cir., 93 F.2d 380.

On March 26, 1927, after several years of proceedings extending from the December, 1920, term, the district court entered a decree in favor of Roos against The Texas Company of Mexico, S. A., for the sum of $1,500,672.70, the amount found to be due on an accounting for oil operations. The court found in favor of the Mexican Company on the other issues, but reserved for “future consideration and determination” the following issues between Roos and the Mexican Company:

- “1. The matter of accounting by the defendant, The Texas Company of Mexico, S. A., to the defendant Roos, in respect of operations on and oil actually produced from the Obando leases by said defendant Company since the 31st day of January, 1922.
“2. The cause of action arising since July 31, 1921, alleged by defendant Roos in the ‘First Supplemental Answer of Edward Roos in reply to pleadings of Texas Com-any of Mexico, S. A.’, filed April 28th, 1922, —and any amendment thereof or supplement thereto as may be allowed by the Court as to cause or causes of action arising after July 31st, 1921; except that this reservation shall not affect the order this day made on the Roos pleas and motions to make the Texas Company a party.”

Both Roos and the Mexican Company appealed from the final decree of March 26, 1927, and on September 3, 1930, this court affirmed the decree, 5 Cir., 43 F.2d 1, and certiorari was denied by the Supreme Court on February 2, 1931, 282 U.S. 902, 51 S.Ct. [768]*768216, 75 L.Ed. 794. After affirmance of the decree, Roos had difficulty in collecting his judgment against the Mexican Company. He thereupon on February 28, 1931, filed an ancillary bill against The Texas Company of Delaware which had in 1927 taken over the assets and liabilities of the Mexican Company’s parent corporation, The Texas Company of Texas. After extended litigation in the ancillary proceedings, Roos finally recovered judgment over against The Texas Company of Delaware for approximately $2,500,000, being principal and interest on the judgment against the Mexican Company. An appeal was taken -and the judgment was affirmed by this court on December 7, 1937, and was paid by the Delaware Corporation. Texas Co. v. Roos, 5 Cir., 93 F.2d 380.

Roos made no effort to bring to trial the issues reserved for “future consideration and determination” until October 15, 1937, when the court allowed him to file a pleading styled a “Second Supplemental Answer” —this case. He then sought to take advantage of the reservations in the decree of March 26, 1927. Asserting the reservations above quoted, he set up claims for damages alleging that the Mexican Company was liable to him “for the reasons and causes set out in the ‘first supplemental answer * * *’, filed herein on April 28, 1922.” He alleged conversion of monies and assets by the Delaware Corporation; that the Mexican Company had failed and refused to flow the Obando wells'to their “full and reasonable potential capacity”; that it had failed and refused to drill additional wells in disregard of its “contract duties and its obligations as a trustee”; and that wells on adjoining and nearby leases had drained oil from the pool underlying the Obando property, “taking oil which could, should and would have been taken by The Texas Company of Mexico, S. A., * * * save and except for the wrongful and fraudulent conduct of said company as aforesaid, in failing to flow the Obando wells to their full potential capacity and also in failing to drill additional wells on said Obando leases last above mentioned.” He thereupon claimed damages amounting to several million dollars. By this so-called “Second Supplemental Answer” he further sought to implead the Delaware Corporation for the purpose of determining its secondary liability on the issues presented.

The Mexican and Delaware corporations filed answers and alleged among other things that the matters and claims set up in Roos’ pleading had been previously adjudicated; that the claims for damages were barred by the two and four year statutes of limitation of Texas; and that the pleading “In so far, if at all, it presents an action in equity it shows no equity because of laches.”

After a pre-trial hearing, and upon stipulation of the parties, the cause was set down for trial upon the pleas of former adjudication, and limitation and laches. The case was then tried before the court without a jury, and at the close of the evidence the court entered findings of fact and conclusions of law. He found that soon after the entry of the decree of March 26, 1927, Roos abandoned any claim against the Mexican Company other than the money judgment; that by reason of the long lapse of time during which Roos failed to prosecute his claim, the defendants would be seriously hampered in producing evidence that they would have produced had the claim been more diligently prosecuted; and that the claim and suit of Roos, “against both the Mexican Corporation and the Delaware Corporation, not disposed of by the Decree of March 26, 1927, is barred by the Texas Statutes of Limitation because of the long delay in prosecuting same and this is true whether Roos’ action' is at law or in equity.”

The appellant contends that his is a proceeding exclusively cognizable in equity, and that the federal court will not enforce state statutes of limitation in such actions. This contention is without merit. The Supreme Court has recently exploded the notion that state statutes of limitation may not be applied in equitable causes in federal courts, especially where, as here, there is a statute of limitation applicable to like causes of action tried in the state courts. Russell v. Todd, 309 U.S. 280, 60 S.Ct. 527, 84 L.Ed. 754; Erie R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L. Ed. 1188, 114 A.L.R. 1487; Ruhlin v. New York Life Ins. Co., 304 U.S. 202, 204, 58 S.Ct. 860, 82 L.Ed. 1290.

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Bluebook (online)
126 F.2d 767, 1942 U.S. App. LEXIS 4812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roos-v-texas-co-ca5-1942.