Smith v. Harris

252 S.W. 836, 1923 Tex. App. LEXIS 288
Court of Appeals of Texas·Decided May 16, 1923·No. No. 6950.·Published·Cited by 12 cases

Opinion

COBBS, J.

This suit was brought by appellees to recover damages in the sum of $30,000 and interest; $3,000 alleged to be owing appellees under a written contract for assignment of four-eighths interest in oil and gas lease on 42 acres of land in Stephen county, Tex., and $27,000 alleged to be due and owing appellees by appellant on account of failure to pay rental on said oil and gas lease, causing a forfeiture thereof. Appel-lee agrees to the appellant's statement of the nature and result of the case, and the issues made by the pleadings. While it is not very concise, brief, or clear, we nevertheless adopt it as follows:

“Appellees alleged as grounds of recovery against appellant, on June 5, 1919, and prior thereto, ownership of an oil and gas lease executed by T. A. Ince and wife, as lessors, to S. B. Felt, as lessee, on 42 acres of land, dated January 10, 1914, recorded in volume 54, p. 3, Deed Records of Stephens County,. Texas, said lease by its terms providing for continuance for ten years from and after* its date, subject to forfeiture should lessee not begin drilling of a well on said land within one year from date thereof, or should not pay to lessor sum of $40 on or. before beginning of each 12 months’ period until a well shall have been commenced thereon, said lease further providing for payment of a one-eighth royalty to said lessors, and containing other provisions customarily inserted in oil and gas leases; execution on June 5, 1919 of written contract by ap-pellees with appellant, assigning to appellant an undivided four-eighths interest in said lease, said .contract providing that appellees were retaining an undivided three-eighths interest in said lease, appellant agreeing, as part of consideration, within 120 days from June 5, 1919, to begin operations for drilling of oil well on said land and to prosecute said operations with reasonable diligence to completion at appellant’s expense, and, as a" further consideration, appellant agreeing to pay appellees the sum of $3,000 upon examination and approval by appellant’s attorney of title to said land and lease, it being the intention and contemplation of all parties to said contract, though not actually expressed therein, that said-title should be examined by appellant or his attorneys within a reasonable time after abstract of title had been placed in appellant’s possession; the delivery to appellant on June 5, 1919, or within a few days thereafter a full and complete abstract of title to said land, the agreement by appellant to furnish opinion of his attorneys on said title within a reasonable time, the receipt by appellees from appellant of an opinion from attorneys of appellant on or about September 16, 1919, pointing out certain objections to title, the procuring of various instruments to correct defects in title pointed out by appellant’s attorneys, and resubmission of said abstract with said additional documents to appellant on or about September 22, 1919, failure of appellees to procure any report from appellant whether or not title had been or would be approved by his attorneys until about July 5, 1920, at which time said attorneys approved the title and wrote an opinion, a copy of which opinion was delivered to appellant and appel-lees; extension by appellees of time to begin *838 operations by appellant at appellant’s request, until December 5, 1919, tbe extension by ap-pellees ' of time to begin drilling from time to time and from month to month at appellant’s request, appellant agreeing as a part of the consideration for such extension, that if a well should not be started before the time the next rentals on said lease should be paid, appellant would pay the same on or before the date the said rentals became due, and thereby prevent a forfeiture of said lease, and an agreement made by appellant in the month of March, 1920, as a part of the consideration for extension of time to pay all rentals on said lease which would become due on September 1, 1920, reliance by appellees upon said promise and the nonpayment of the rentals by appellees when the x’entals became due on September 1, 1920; failure and refusal of appellant to pay the $3,-000 due.and payable on approval of title to said lease, and the installment of rental due on said lease on September 1, 1920, resulting in the forfeiture and termination of said lease and all rights thereunder, and the notification on October 27, Í920, by the lessors in said lease to appellees that said lease had been forfeited; the ownership by appellees on September 1, 1920, and on October 27, 1920, of said three-eighths interest worth $27,000, and the loss of said $27,000 by reason of failure of appellant to pay said $3,000, and said rental; appellees’ pleading in alternative in paragraph 9 of said second amended petition that in event of mistake in their rights of recovery of the $3,000 and the $27,000, as theretofore pleaded in said second amended petition, for the recovery of $30,000 damages on account of violation by appellant of agreement at.time of execution of written contract on June 5, 1919, said contract should not be recorded in Stephens county until title to said property had been examined and the $3,000 paid appellees, appellant being alleged to have caused recording of said contract on September 10, 1919, in volume 70, p. 380, Deed Records of Stephens County, Texas.”

The defense was:

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Smith v. Harris, 252 S.W. 836, 1923 Tex. App. LEXIS 288 (Tex. Ct. App. 1923).

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