Shell Petroleum Corp. v. Yandell

158 So. 787, 172 Miss. 55, 1935 Miss. LEXIS 97
CourtMississippi Supreme Court
DecidedJanuary 28, 1935
DocketNo. 31505.
StatusPublished
Cited by22 cases

This text of 158 So. 787 (Shell Petroleum Corp. v. Yandell) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shell Petroleum Corp. v. Yandell, 158 So. 787, 172 Miss. 55, 1935 Miss. LEXIS 97 (Mich. 1935).

Opinion

*60 Anderson, J.,

delivered the opinion of the court:

Appellee filed his bill in the chancery court of Leflore county against appellant to recover the balance of rental due him by John E. Pant (who joined appellee in the bill) under a lease contract theretofore entered into by appellee and Pant by which appellee leased to Pant for a term of five years what is commonly known as a filling station in the city of Greenwood, at a monthly rental of forty dollars. The bill charged that appellant had become liable therefor by virtue of the terms of a sublease of the filling station by Pant to appellant, and the dealings of all the parties under the two leases, against which liability appellee offered to credit the balance due on an indebtedness he was due appellant of three hun *61 dred forty-two dollars with interest. There was a trial on bill, answer, and proofs, resulting in a decree in appellee’s favor for the sum of one thousand dollars, with interest, against which the court credited the balance due by appellee to appellant on his indebtedness of three hundred forty-two dollars with interest. From that decree appellant prosecutes this appeal.

Appellee and John E. Fant entered into a written contract on the 21st day of December, 1929, by the terms of which it was provided that appellee should erect a filling station for the service of automobiles with gasoline and other petroleum products. The station was to be erected on a lot in North Greenwood, appellee was to equip the station for service, and Fant was to pay him forty dollars a month rental. The lease was for a term of five years, and provided that Fant should have the right to sublease the station to appellant. Appellee equipped the station in accordance with appellant’s requirements. He purchased from appellant the necessary gasoline tanks and pumps, including an underground storage tank, for which he agreed to pay appellant the sum of three hundred forty-two dollars in monthly payments of fourteen dollars and twenty-five cents, to secure which he gave a deed of trust on the equipment. Fant subleased the station to appellant, which sublease took place about the same time as the lease from appellee to Fant. This lease was also for a period of five years, and provided that appellant should pay Fant, as rental, the sum of one cent per gallon on-all gasoline sold by appellant on the premises during each preceding month, and further agreed to operate the station in a businesslike manner and endeavor to promote and increase Sales. As a step in the sublease appellant required appellee to consent to the subleasing. This consent was given in writing and provided that the subleasing was by appellee’s consent, and, in addition, that “the undersigned agrees that in the event the lessor defaults in any of the covenants of the *62 lease under which said lessor acquired rig’hts in and to the above described premises, to notify the Shell Petroleum Corporation at Shell Building, St. Louis, Mo., of such default; said Shell Petroleum Corporation shall have thirty days after the receipt of such notice to make good at its option, such default on the part of said lessor, and further agree that so long as Shell Petroleum Corporation thereafter complies with the terms of the original lessee its rights in and to the property this agreement shall be valid and remain in full force and effect. ’ ’

The lot on which the station was located was not the property of appellee, but that of his grandfather, W. M. Yandell, Sr., but appellee was in charge and control of it. The grandfather was dead, and his estate was being-administered.

Appellant operated the station with Fant in charge for about six months. Fant then assigned his interest in the lease to one Adams, who operated it awhile. Its operation covered in all a period of ten months; then it was closed and has not been in operation since.

The transfer from Fant to Adams was not introduced in evidence. It was offered by appellant and objected to by appellee; it was not pleaded by appellant. There was nothing in the evidence to show that the appellee knew of it until the trial, although he knew that Adams was operating the station.

Appellee testified that during the ten months of the operation of the station appellant paid him the forty dollars per month rental which Fant had agreed to pay; that the one cent a gallon rental appellant agreed to pay Fant was sufficient for that purpose. There was some conflict in the evidence on this point, but the court was justified in believing appellee’s testimony.

The ground of appellee’s recovery was that appellant breached its lease contract with Fant by closing and ceasing- the operation of the station, and by reason thereof became liable to him for the monthly rental pro *63 vided for in the contract — one cent a gallon on gasoline that would have been sold in the station for the balance of the term — and that appellee succeeded to Fant’s rights to the extent of forty dollars a month for the balance if sufficient to pay that amount.

Appellant contends that there was no privity of contract between appellee and it; that it neither expressly nor impliedly promised to make good any default in Fant’s rental payments to appellee to the extent of the rental payments it might be due Fant. In other words, appellant’s contention means that the right and title, if any, in what it was due Fant, was in Fant, and the appellee had no right or title thereto. Concede that the legal title was in Fant, it is manifest from the bill in which Fant joins, also from his testimony as a witness in the case, that his entire beneficial interest — all but the bare legal title — had been turned over to appellee for the purpose of paying his monthly rentals to appellee so far as such interest might go. In other words, the bill and the evidence show a complete equitable assignment of Fant’s interest to that extent. The bill avers that it belongs to appellee, and Fant testified that he wanted appellee to have it. “Parol and written equitable assignments are of equal validity. Any order, writing, or act which makes an appropriation of a debt or funds amounts to an equitable assignment thereof.” 5 C. J., 911, 912. An open account may, while in suit, be assigned by an oral agreement, upon a sufficient consideration, so as to pass the equitable title to the assignee. Pass v. McKea, Coffman & Co., 36 Miss. 143. To illustrate : A owes B one hundred dollars, and pays the debt with a note he holds against C for the same amount, payable to order; he delivers the note to B without indorsing it; C defaults in payment; both A and B join in a suit at law on the note against C, asking a judgment in B’s favor. We are inclined to the view, although we do not so decide because it is not necessary, that that would operate *64 as a transfer of A’s legal title in the note to B; certainly it would constitute a transfer of his entire beneficial interest.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Chambers v. BancorpSouth Bank
822 So. 2d 1113 (Court of Appeals of Mississippi, 2002)
PARKER TRACTOR & IMPLEMENT COMPANY, INC. v. Johnson
819 So. 2d 1234 (Mississippi Supreme Court, 2002)
Gillis v. Great Atlantic & Pacific Tea Co., Inc.
153 F. Supp. 2d 883 (S.D. Mississippi, 2001)
RONALD ADAMS CONTR. v. Miss. Transp. Com'n
777 So. 2d 649 (Mississippi Supreme Court, 2000)
Adams v. US Homecrafters, Inc.
744 So. 2d 736 (Mississippi Supreme Court, 1999)
Dennis Adams v. U. S. Homecrafters, Inc.
Mississippi Supreme Court, 1997
Stephens v. Brock
568 So. 2d 702 (Mississippi Supreme Court, 1990)
Cain v. Mid-South Pump Co.
458 So. 2d 1048 (Mississippi Supreme Court, 1984)
Mills Morris Co. of Mississippi, Inc. v. Scanlon
446 F.2d 722 (Fifth Circuit, 1971)
King-Porter Company v. Scanlon
446 F.2d 722 (Fifth Circuit, 1971)
Bridges v. Land
252 So. 2d 209 (Mississippi Supreme Court, 1971)
Washburn v. Pearson
226 So. 2d 758 (Mississippi Supreme Court, 1969)
Koehring Co. v. Hyde Construction Co.
178 So. 2d 838 (Mississippi Supreme Court, 1965)
Anaconda Aluminum Co. v. Sharp
136 So. 2d 585 (Mississippi Supreme Court, 1962)
Walters v. Fine
99 So. 2d 669 (Mississippi Supreme Court, 1958)

Cite This Page — Counsel Stack

Bluebook (online)
158 So. 787, 172 Miss. 55, 1935 Miss. LEXIS 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shell-petroleum-corp-v-yandell-miss-1935.