Stein v. Gulf Production Co.

73 S.W.2d 871, 1934 Tex. App. LEXIS 734
CourtCourt of Appeals of Texas
DecidedJune 20, 1934
DocketNo. 9970.
StatusPublished

This text of 73 S.W.2d 871 (Stein v. Gulf Production Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stein v. Gulf Production Co., 73 S.W.2d 871, 1934 Tex. App. LEXIS 734 (Tex. Ct. App. 1934).

Opinions

LANE, Justice.

On October 2&, 1921, Max and Lena Stein, husband and wife, owned 80 acres of land in Fort Bend county, described as follows: “All that certain tract or parcel of land lying and being situated in Fort Bend County, Texas, about 16 miles South East of Richmond, Texas, on the waters of Deer Creek, a tributary of the Brazos River, being the S. E. one half of the North One Fourth of section No. 66 H. & T. C. Survey, Certificate No. 273, fully described by metes and bounds in deed from I. Rheinstrom et al to Máx Stein, bearing date Oct. 14, 1919, recorded in Volume 84, page 433 of the Deed Records of Fort Bend County, Texas, to which reference is hereby made.”

On the date above mentioned, Max Stein executed and delivered to J. H. P. Davis & Co. his promissory note for the sum of $5,000, which provided for the payment of a 10' per cent, attorney’s fee if default was made in the payment of the same when due, etc. To secure payment of said note Max Stein executed and delivered to E. E. Chernosky, trustee, his deed of trust for the use and benefit of J. H. P. Davis & Co., covering, among others, the land above described.

On February 6,1924, the Supreme Lodge of Slavonic Benevolent Order of the State of Texas brought suit in the district court of Fort Bend county against Max and Lena Stein and one John R. Kubena to recover a certain sum and for a foreclosure of a lien claimed by the plaintiff in that suit upon the same lands covered by the deed of trust executed and delivered by Max Stein to J. H. P. Davis & Co.; said suit being numbered 13293 on the docket of said court.

George Hamman, T. J. Holbrook, and J. W. Hampil, in the capacity of trustees in bankruptcy of J. H. P. Davis & Co., intervened in the suit above mentioned, praying for a recovery against Max Stein of $5,000 due upon the note executed and delivered by Stein to Davis & Co., for interest and attorney’s fees, and for a foreclosure of the Davis & Co. deed of trust lien as against all parties to the suit mentioned.

Upon the trial of suit No. 13293 on December 31, 1924, judgment was rendered that in-terveners, Hamman, Holbrook, and Hampil, as such trustees, should have and recover of and from Max Stein the sum of $0,699.85, with interest on the sum of $6,119.85 of said judgment from date of judgment at the rate of 8 per cent, per annum, and for interest at the rate of 6 per cent, per annum on $580, the remainder of said judgment, and for a foreclosure of the Davis & Co. deed of trust lien on several tracts of land, including the tract involved in the present suit.

Thereafter Max Stein and said trustees in bankruptcy of Davis & Co. entered into an agreement whereby the trustees agreed to accept $5,000 in full settlement of their said judgment.

On October 2,1924, Max Stein executed and delivered to Meyer & Sorelle a mineral lease covering said 80 acres of land. Among other provisions of the lease are those providing that within ninety days after its date lessees could explore the land with seismograph or other device, and that before the end of the ninety days lessees would indicate to lessor whether they desired to continue to explore the land, with the right to surrender all or any part of the land, but if lessees desired to keep the lease in force, or any part of the land, after the ninety days, they should advise lessor in writing and pay to him the sum of $4 per acre for the acreage retained, and upon such payment lessees should have the exclusive right to drill and operate thereon for minerals, which right should continue for twelve months after the end of the ninety days. Such lease also provided that lessees *873 could continue the right to successive periods of six months by paying lessor $2 per acre semiannually for the land, and that the lease should not he prolonged beyond five years without actual operations, and that if operations were not begun lo-ithin five years from the date of the lease it should terminate.

After such lease was executed it was presented, as was agreed by the parties thereto, to the Gulf Production Company, which signed it as a party thereto, on the 5th day of November, 1924. And on that date Meyer & Sorelle transferred and assigned to Gulf Production Company all their rights under such lease.

As a prerequisite to the Gulf Production Company entering into the lease contract, said company demanded that the liens against the land held by several parties be discharged, and at the request of Max Stein it, on February 5, 1925, loaned to him $6,500 with which he paid the trustees in bankruptcy of Davis & Co. the sum of $5,000 in satisfaction of their lien upon the land, and other valid liens existing against the land, amounting in all to $6,500.

Evidencing such loan, Max and Lena Stein, on the 5th day of February, 1925, executed and delivered to Gulf Production Company their promissory note for the said sum of $6,500 payable to Gulf Production Company on or before five years after date, carrying 6 per cent, interest payable at maturity to he compounded semiannually and providing for 10 per cent, attorney’s fees. The note provided for partial payments to be applied first to the interest, and also provided that failure to pay a specified portion of the taxes during the life of the lease would mature the indebtedness at the election of the holder, and recited that the payment thereof was secured by the deed of trust on said land. At the same time the said Steins executed and delivered a deed of trust, conveying to a trustee the said 80 acres of land and reciting: “ * * * that we, Max Stein and wife, Lena Stein, hereinafter called ‘Grantors’, being just — indebted to Gulf Production Company, a private corporation organized under the laws of the State of Texas, with its principal office at Houston, Texas, in the sum of Six Thousand Five Hundred Dollars ($6,500.00), as is evidenced by the note of said Grantors, of even date herewith, for the said sum of Six Thousand Five Hundred Dollars ($6,500.00), due on or before five (5) years from date, payable to the order of Gulf Production Company, bearing interest from date at the rate of six per cent (6%) per annum, interest payable at maturity and to be compounded semi-annually, both principal- and interest payable at Houston, Texas, said note providing, in effect, that if it is not paid at maturity, in whatever way its maturity may come about, and it is placed in the hands of an attorney for collection, or is collected through the Probate Court, the makers thereof shall pay ten per cent (10%) additional of the principal and interest then due thereon as attorney’s fees, and further providing that partial payments may be made on said note at any time prior to maturity, said payments to be applied first to interest then accrued and thereafter to the principal, the payment of which note, according to its tenor and effect, we desire to assure and secure to the said Gulf Production Company, its successors and assigns; in consideration thereof, and for the purposes and trusts hereinafter set forth and declared, and also in consideration of Five Dollars ($5.00) to us in hand paid, the receipt whereof is hereby acknowledged * * ⅜.”

In addition to the usual provisions the above instrument contained the following:

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73 S.W.2d 871, 1934 Tex. App. LEXIS 734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stein-v-gulf-production-co-texapp-1934.