Smith v. Burt

1931 OK 378, 300 P. 748, 150 Okla. 34, 1931 Okla. LEXIS 274
CourtSupreme Court of Oklahoma
DecidedJune 23, 1931
Docket19737
StatusPublished
Cited by12 cases

This text of 1931 OK 378 (Smith v. Burt) 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
Smith v. Burt, 1931 OK 378, 300 P. 748, 150 Okla. 34, 1931 Okla. LEXIS 274 (Okla. 1931).

Opinion

CLARK, V. C. J.

This action was com- *35 meneed in the district court of Osage county by defendant in error, H. G. Burt, against plaintiffs in error S. M. Smith, Fred Elder, and A. C. Black and defendants in error Seth Lewis, Hugh IT. Balstine, and C. E. Riley.

The plaintiff below, H. G. Burt, alleged in his second amended petition, in substance, that he and the defendants entered into a joint adventure by which they purchased certain oil and gas mining leases, and the title thereto was placed in a trustee, and that he and the other defendants owned proportionate parts thereof as set out in the amended petition; that he and the’ defendants thereupon co-operated together in developing and operating said lease for oil and gas purposes, and that each agreed together and with each other that each would share his proportionate share of the expenses in operation and developing of the said oil and gas lease, and that each would share in the losses in the proportionate part of the leasehold estate, and that 'plaintiff and defendants and each of them were parties to a joint adventure; that in the operation and developing of said oil and gas mining lease, the same became unprofitable, and the returns therefrom were insufficient to pay the operating expenses. A receiver was appointed for the property of the joint adventure in the state of Kansas, which was operated by said receiver at a loss, and that the receiver sold all of the property of the joint adventurers.

Plaintiff further alleges, in substance, that during the operation of said leasehold estate and before the receivership thereof, acting as trustee for the stockholders and interest holders of said lease, and for the purpose of securing funds for the operating and developing of said lease, he borrowed the sum of $13,800, and that said sum was used in developing and operating the said oil and gas lease; that judgment has been rendered against the plaintiff and defendant C. E. Riley on said indebtedness in the principal sum of $15,371.66, with interest at the rate of 8 per cent, per annum from date of January 30, 1925, and the further sum of $1,000 attorney fees; that proceeds and the sale of the property under the receivership were applied to said judgment; that the plaintiff made payments from his own money, and other sums received upon said indebtedness, as stated in the petition; that defendants have not paid any part thereof; and that the plaintiff and defendant C. E. Riley were judgment debtors of record, but that all of the defendants are obligated in their proportionate part of said indebtedness to refund to plaintiff the part of said indebtedness over the amount that plaintiff was obligated to pay of his proportionate part of said indebtedness; that plaintiff is entitled to a judgment requiring each defendant to contribute his proportionate part of said indebtedness. Plaintiff prayed for judgment against each of the defendants, requiring each of said defendants to pay the necessary amount and contribution to said entire indebtedness, and to refund to plaintiff the proportionate part that he had expended therein above his proportion, and decreeing that the judgment rendered against plaintiff and defendant C. E. Riley be decreed a judgment against all of the defendants, and requiring each of said defendants to pay his proportionate part thereof, and asked for all other relief proper in the premises.

Motion to make petition more definite and certain was filed, overruled, exceptions saved. Defendant in error Seth Lewis filed demurrer, which wás overruled, exceptions saved. Demurrers were filed by plaintiffs in error to the first amended petition of plaintiff, IT. G. Burt, on the grounds it failed to state a cause of action against the defendant, but we are unable to find where a demurrer of plaintiffs in error was filed to the second amended petition; however, the order of court, which is dated long after the filing of the second amended petition, shows that separate demurrers of the various defendants, who are plaintiffs in error herein, were overruled and exceptions saved thereto.

The plaintiffs in error herein filed joint answer and cross-petition to the second amended petition of plaintiff, in substance, as follows : Admitted plaintiff and defendants during all times mentioned in plaintiff’s petition were owners and cotenants of the oil and gas lease, and owners of the equipment on said leases, and that the cotenancy mentioned was in the proportions mentioned in the petition; denied they were eng’aged in the joint adventure of developing of the leases for oil and gas or exploring them in any way; that the trustee, one A. E. Gabel, was at all times in possession and management and control of the property; that plaintiff IT. G. Burt was not the party interested in this action or entitled to maintain same; that plaintiff was not empowered or authorized by these defendants to borrow any money or pledge any credit; that if they borrowed any money, it was not on account of the joint adventure.

By way of cross-petition against plaintiff, they alleged, in substance, that they were cotenants with plaintiff; that they were nonresidents of the state of Kansas, where the *36 properties were located;' that plaintiff was a resident of the state of Kansas; that plaintiff wrongfully and without authority took possession of the property, appropriated it to his use, squandered and scattered the same; that his acts and conduct was without knowledge, consent, or authority of defendants; that defendants lost their entire investment; denied generally the allegations in petition except as admitted; prayed that plaintiff take nothing, that they have judgment against the plaintiff for damages in converting their properties in the sum set out in the answer, and for cost, and for all further relief which may be equitable, just and proper.

Defendant below, C. E. Riley, defendant in error herein, filed separate answer and cross-petit on against his codefendants; admitted the allegations in plaintiff’s petition; alleged in his cross-petition against his co-defendants, who are plaintiffs in error herein, that he and the plaintiff and codefend-ants'became-interested in a joint adventure in development of oil and gas mining leases; that the interests of each were as set out in plaintiff’s petition; that it was mutually agreed by all that the leases should be developed and each bear his part of the expenses and share their part of the profits or losses; that he was given authority by all interested parties to take charge of such development; that he expended a large sum of money, the amount as set out in his cross-petition, in the development of said leases; that said leases proved of no value, and a loss of the full amount so expended; that plaintiff has paid his part of the loss; that this defendant’s codefendants have paid no part of the loss, although demand has been made; prays judgment against each of his codefendants for the necessary amount and contribution to satisfy the entire indebtedness, and asks for all other relief proper and equitable.

Reply was filed by plaintiff to the 'answer and cross-petition of the defendants in error herein by way of general denial and set oAt specific denials of the affirmative allegations set up in cross-petition.

The defendant Seth Lewis filed separate answer by way of general denial.

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Bluebook (online)
1931 OK 378, 300 P. 748, 150 Okla. 34, 1931 Okla. LEXIS 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-burt-okla-1931.