Texana Oil & Refining Co. v. Belchic

90 So. 522, 150 La. 87, 1922 La. LEXIS 2547
CourtSupreme Court of Louisiana
DecidedJanuary 2, 1922
DocketNo. 23629
StatusPublished
Cited by24 cases

This text of 90 So. 522 (Texana Oil & Refining Co. v. Belchic) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texana Oil & Refining Co. v. Belchic, 90 So. 522, 150 La. 87, 1922 La. LEXIS 2547 (La. 1922).

Opinion

Statement of the Case.

BARER, J.

Defendant brings up this appeal from a judgment maintaining an attachment and decreeing -plaintiff to be the owner of certain interest in two oil leases, which defendant had acquired, without consideration, from one Dickinson, soon after he had obtained fx-om .the same person, at the expense and for the account of plaintiff, while acting as its agent, assignments of other interests in the same leases and which plaintiff had l’eason to believe were the only interests that were so obtained.

The view of the trial judge upon which the judgment appealed from was based is expressed in the opinion that we find in the transcript, as follows, to wit:

“We believe that, when an agent is shown to have had a series of transactions with another for his principal, and to have, during such time, accepted a donation from such person, with whom he dealt, and to have concealed such donation from his principal, the presumption arises that the donation was made in consideration of the transactions which were had, or expected to be made between the agent and the donee [person] with relation to the business under the control of the agent, and that, in the present instance, there is a presumption that the donations were made either as a consideration for the agent having accepted the assignments or for past transactions, or to secure the agent future favors, and that the agent, accepting such donations, was bound to account to his principal.

“The reason given by Belchic and Dickinson for the donations having been made to Bel-chic is at least very questionable, and, if conceded to be the real reason for the donations, it shows that Mr. Belchic, .at least, -unthought-edly, placed himself in a position where his duty to his principal and his wish to gratify his benefactor might come in conflict, and such reasons, when offered to repel a presumption which arose from concealment, we do not think should be given any consideration.

“It is cei’tain that Mr. Belchic, by reason of his agency for the plaintiff, has made a gain by dealing with Mr. Dickinson-, for his principal, which was not within the contemplation of his agency; that such gain came to him because of the fact that his management of the business of his principal placed him in a position where he could serve the interest of Mr. Dickinson, and having accepted a gift from Mr. Dickinson and concealed it from his principal, even though it might be that he had not failed and would not fail towards his principal in favor of Mr. Dickinson.”

The attachment was issued upon plaintiff’s sworn allegation that defendant was a nonresident of the state, and in a motion to dissolve defendant denied that allegation. The facts relating thereto, as disclosed by the evidence, as also those relating to the merits of the case, are substantially as follows:

Defendant was born in Philadelphia; resided there until he was about 23 years of age. His widowed mother, with several brothers and sisters still reside there in the home of the family; and defendant, since leaving, has habitually spoken of Philadelphia as his home. He left there, as we infer fi’om his testimony, in or about the year 1913. He voted there in that year, or in 1914, and has never voted in any other place. He obtained college degrees of Engineer of Mining, Bachelor of Science, and subsequently of Master of Science; his intention and ambition having been to become a consulting geologist in New York City. He was, however, diverted to the mining profession, and entei’ed upon and was engaged therein at the time of the institution and trial of this suit, combining or including the business, as plaintiff’s agent, of acquiring interests in oil and gas leases and operating for those min-ei-als. From the time that he left his home he sojourned as he found employment: In Wisconsin, 5 months; in Kansas, 18 'months; in Oklahoma for a period not stated; in [91]*91Houston, Tex., 11 months. During the latter part of the period thus covered he was employed hy G. W. Field, an operator in oil and gas properties, or hy companies represented by him, and was so employed in the service of such a company in February, 1918. But the company appears to have been in straitened circumstances at that time, and failed to pay his salary. He therefore accepted an offer to go to Shreveport and take charge there of the business of the plaintiff company, which was in process of being organized by A. G. Werblein, under whose direction he was assigned to duty, and so continued until he w’as discharged, some 7 months later. He arrived in Shreveport on February 13, 1918. The company was incorporated in Delaware on March 8, following; and it is admitted and proved that he acted under the orders and subject to the approval of Werblein, whose headquarters were in New York, as were also those of the company. We find no reason to believe that, in going to Shreveport, defendant had any more idea of establishing himself there as a permanent resident than he had of so establishing himself in either of the other places in which he had previously found employment. His compensation was fixed at $50 per week, or $200 per month (there being some difference in the testimony on that point), and he was promised and received 500 shares of the stock of the company, of the par value of $1 per share, as a bonus.

In the exercise of the authority vested in him, he on April 23, 191S, acquired, in the name of the plaintiff and as its agent, from W. L. Dickinson, sublessee of the Richardson Oil Company, sublessee of J. W. Dixon, lessee of Fleming Player, owner, a certain part of Dickinson’s interest in an oil lease affecting 20 acres 'Of land in the S. E. % of Sec. 26, T. 21. N., R. 15 W., parish of Caddo; and Werblein, in New York, was advised of and approved that transaction.

Two weeks later (on May 7, 1918) defendant, in his individual capacity, for his own account and without informing Werblein, entered into a contract whereby the same Dickinson conveyed to him an undivided half interest in his (Dickinson’s) remaining interest in the same sublease for the recited consideration “of $1.00 * * * and other valuable consideration”; it having been admitted on the trial that no consideration passed or was intended to pass save the $1, and there being no explanation of Dickinson’s reason for making defendant a gift of that character and in that connection, or of his and defendant’s reason for not informing Werblein thereof.

On May 16, 1918, defendant, as plaintiff’s agent, and in its name, acquired from the same Dickinson a certain proportion of an interest owned by him in an oil and gas lease affecting 40 acres of land owned by J: S. Noel, and described as N. W. % of the S. W. % of Sec. 25, T. 21 N., R. 15 W., parish of C'addo, the consideration for the conveyance being that plaintiff assumed Dickinson’s obligations with respect to the drilling of wells on the land, and agreed to pay him $14,000 to complete a well the drilling of which he had commenced, to wit, $1,000 cash upon the signing of the contract, $2,000 within 10 days, $3,000 within 30 days, and the remaining $8,000 within 60 days, provided the well should by that time have been completed, it being agreed that everything required- for the work should be furnished by Dickinson; and Werblein was duly advised of the transaction.

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Bluebook (online)
90 So. 522, 150 La. 87, 1922 La. LEXIS 2547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texana-oil-refining-co-v-belchic-la-1922.