Shell Oil Co., Inc. v. Howth

159 S.W.2d 483, 138 Tex. 357, 1942 Tex. LEXIS 346
CourtTexas Supreme Court
DecidedJanuary 14, 1942
DocketNo. 7705.
StatusPublished
Cited by53 cases

This text of 159 S.W.2d 483 (Shell Oil Co., Inc. v. Howth) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shell Oil Co., Inc. v. Howth, 159 S.W.2d 483, 138 Tex. 357, 1942 Tex. LEXIS 346 (Tex. 1942).

Opinion

Mr. Justice Sharp

delivered the opinion of the Court.

C. W. Howth filed this suit against the Shell Petroleum Corporation, now by change of name Shell Oil Company, Inc., and others, for cancellation of a mineral lease, and for actual and exemplary damages arising out of the assertion of an adverse claim to mineral land. Some of the defendants filed a cross action. Based upon the answers to the special issues submitted to the jury, the trial court rendered judgment in favor of C. W. Howth against the Shell Petroleum Corporation, Ford Clevenger, O. H. Noland, and C. 0. Wier, jointly and severally, for the following items; attorney’s fees, $15,000.00; expenses, $1,000.00; damages to his credit, $10,000.00; actual damages, $65.000.00; exemplary damages, $50,000.00. An appeal was taken to the Court of Civil Appeals, and that court held that counsel fees, expenses in preparing the case for trial, and the loss of credit were not recoverable as actual damages. An appeal was perfected to the Court of Civil Appeals by all the defendants, except Ford Clevenger. The judgment of the trial court was reversed and the cause remanded for a new trial as between the parties, except as to the Gregory heirs, other than Ike Gregory and Billie Gregory Bourgeois. 133 S. W. 253. A writ of error was granted.

The Shell Oil Company will be referred to in this opinion as Shell Company, C. W. Howth as Howth, and the ten children of T. W. Gregory as the Gregory heirs. The parties will also be designated as they were in the trial court, Howth as plaintiff, and Shell Company, the Gregory heirs, C. O. Wier, O. H. Noland, and Ford Clevenger as defendants.

The pleadings are very voluminous, and the Court of Civil Appeals in its opinion has set out in detail quotations, from such pleadings, as well as the general outline of same, and we refer to such opinion for a detailed statement of the pleadings. *360 We shall, however, refer to the pertinent parts of such pleadings as relate to the questions discussed in this opinion.

A summary of Howth’s pleadings is substantially as follows: In 1931 he owned two tracts of land, containing 117.12 acres, part of the A. Horton Survey in Jefferson County; that in that year he executed an oil and gas lease on the land to Shell Company; that although there had been no drilling on the land in controversy, the Shell Company brought in a producing well about half a mile from this land in July, 1936; that in August, 1936, the Shell Company obtained and placed of record! an oil and gas lease on the same land from the Gregory heirs and Mary Gregory; that in 1921 Howth had secured an instrument, a deed absolute on its face, purporting to convey this land from Mary Gregory and the Gregory heirs; that the obtaining of the Gregory lease by the Shell Company was the result of a studied scheme on the part of that Company and other defendants; that it sought out the Gregorys and induced them to make a claim to> the land; that this was done for the purpose of asserting an adverse claim to its original lessor, Howth, in repudiation of Howth’s title to the land; that the Shell Company in so doing was actuated by malice; that such acts slandered Howth’s title, or gave Howth a cause of action for the conspiracy or repudiation; that as a result his interest in the land was greatly damaged; that he was unable to make a sale of any part of the land; and that he was entitled to actual and exemplary damages.

The background of this lawsuit is as follows: The land in controversy is a part of two tracts, known as the J. S. Ward tract and the M. L. Ward tract. These tracts were conveyed to Thomas Gregory in 1917 by two> deeds, one from M. L. Ward and wife, and one from J. S. Ward and others. In both these deeds vendor’s liens were retained to secure the payment of the purchase price. Both tracts became the community property of T. W. Gregory and his wife, Mary Gregory. T. W. Gregory dies intestate in 1918, survived by his wife and ten children; and- Mary Gregory qualified as administratrix of his estate. Under the laws of descent and distribution the property would pass one-half to Mary Gregory and one-half to the Gregory heirs. Article 2578, Vernon’s Annotated Texas Civil Statutes.

On September 23, 1921, Mary Gregory, the surviving widow of T. W. Gregory, and seven of the Gregory heirs signed an instrument which purported to be a general warranty deed to *361 Howth and O’Fiel, in consideration of their defending Ralph Gregory, one of Gregory’s adult sons, against a murder charge which had been filed against him. As to many of the heirs, the instrument was defective as a deed. Three of the children, Billie Bourgeois, Ralph Gregory, and Susie Summers, did not sign the instrument. Ike was a minor when he signed. Ruth Wills and Sarah Blevins signed but did not acknowledge the instrument, and their husbands did not join with them in the execution of the deed. Annie Nolte signed and correctly acknowledged the instrument, but the acknowledgment of her husband is defective. Everett, Same, and Hazel signed, but did not acknowledge the instrument. The signature and acknowledgment of the surviving wife, Mary Gregory, is in due form.

J. S. Ward and others, who conveyed one of the tracts, in 1917 to T. W. Gregory, reserved a vendor’s lien, and the following is a history of that lien: The vendor’s, lien of J. S. Ward and others, was. assigned in 1917 to one Broussard. Subsequently, on November 3, 1921, Broussard assigned the vendor’s lien notes which remained unpaid to Violet O’Fiel. Broussard had previously filed suit to foreclose the vendor’s lien, and in the assignment to Violet O’Fiel he also assigned his cause of action. The style of the case was Broussard v. Mary J. Ward et al, and it was tried in the District Court of Jefferson County. Judgment was rendered on December 20, 192.1, ordering a foreclosure, and on February 17, 1922, a constable’s deed was executed to Mrs. Violet O’Field, who bought the land in at the foreclosure sale. The fact that the land was sold by the district court, rather than by the probate court, made the sale void under Gregory v. Ward, 118 Texas 526, 18 S. W. (2d) 1049.

We shall now refer to the vendor’s lien on the M. L. Ward tract. In February, 1923, M. L. Ward filed suit against Mary Gregory, Administratrix, and others, to foreclose the vendor’s lien on the M. L. Ward tract. This suit was styled Ward v. Gregory, and was filed in the district court, even though administration was still pending in the probate court. The district court ordered foreclosure, but, because an appeal was taken, no foreclosure was ever had. This Court, in Gregory v. Ward, supra, held that the judgment and foreclosure of the district court should have been certified to the probate court for observance. This was not done. No’ foreclosure was ever had in the probate court of the W. L. Ward vendor’s lien or judgment. It therefore appears that the sale made under the judgment obtained in the district court was insufficient to *362 divest title; yet it clearly appears- that such suit constituted an election of remedies by the then holder of the notes, and to whose rights Howth succeeded by purchase.

Since the vendor’s lien holders of the M. L. Ward and J. S. Ward tracts had attempted foreclosure proceedings (Gregory v. Ward, and Broussard v. Ward), they have exercised their option of remedies, and cannot later rescind the sale.

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159 S.W.2d 483, 138 Tex. 357, 1942 Tex. LEXIS 346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shell-oil-co-inc-v-howth-tex-1942.