Thompson v. Reed

61 S.W.2d 557, 1933 Tex. App. LEXIS 860
Court of Appeals of Texas·Decided June 9, 1933·No. No. 1127·Published·Cited by 5 cases

Opinion

LESLIE, Justice.

The plaintiff, R. L. Thompson, an attorney, sued the defendants, Ernest W. Reed and M. Frankness Reed, in • Erath county, Tex., to recover on an employment contract. M. F. Reed resided in that county, and E. W. Iieed filed plea of privilege to be sued in Upshur county. The plea was controverted,. and at the conclusion of a trial before the court the plea of privilege was sustained. The plaintiff appeals, and the parties will be referred to as in the trial court. There is a statement of facts, but no findings of fact or conclusions of law.

The plaintiff’s contention is that the two Reeds were partners or joint adventurers in an undertaking, and that they employed him to file and prosecute a lawsuit in the district court of Upshur county, Tex., in which E. W. Reed, A. R. Loden and wife were plaintiffs, and the Danciger Oil & Refining Company and others defendants; that, under the terms of the contract of employment the Reeds jointly and severally obligated themselves to pay to the plaintiff a portion of the recovery, amounting to approximately $2,275. There was an alternative plea for a reasonable value of the services alleged to be $3,000.

The correctness of the court’s judgment is challenged by various propositions briefed in the main under a single statement from the record, toe controlling ones present the contention that the undisputed facts establish the venue of the cause in Erath county. It is immaterial to the decision of this case whether the enterprise on the part of the Reeds, and out of which the alleged liability is charged to have- arisen, grows out of a partnership relation or joint adventure. The legal effect of either would be. the same in so far as the determination of the venue question is concerned.

In Spencer v. Jones, 92 Tex. 516, 50 S. W. 118, 71 Am. St. Rep. 870, it was held by our Supreme Court that a partnership may be formed for the purpose of a single purchase of land, with a view to selling it for profit. Many other authorities are to the same effect. Allison v. Campbell, 117 Tex. 277, 298 S. W. 523, 1 S.W.(2d) 866; Peck v. Powell (Tex. Civ. App.) 259 S. W. 640, reversed on other grounds, Morris v. Peck (Tex. Com. App.) 271 S. W. 891; Rush v. Amarillo First Nat. Bank (Tex. Civ. App.) 160 S. W. 319, reversed on other grounds (Com. App.) 210 S. W. 521; Tanner v. Drake (Tex. Civ. App.) 47 S.W.(2d) 452.

That such a relation may arise out of the acts and agreements of parties in acquiring and selling mineral leases and rights thereunder cannot be doubted. In $uch cases it is simply a question of fact whether such relations have been created. The testimony brings the legal status of the Reeds well within the rule of partnership relations. «

Under the authorities and the testimony the case as to the Reeds may also be regarded as reflecting a joint venture on their parj;, with the usual legal consequences attending. Thompson v. Duncan (Tex. Com. App.) 44 S.W.(2d) 904, 907; Smith v. Kendrick (Tex. Civ. App.) 55 S.W.(2d) 598; Burton-Lingo Co. v. Federal Glass & Paint Co. (Tex. Civ. App.) 54 S.W.(2d) 170.

In the Thompson Case the court, in ■discussing the elements of a joint venture, said:

“One of the characteristics which distinguish a joint adventure from a' partnership is that the latter is formed - for the transaction of a general business of a particular kind, while a joint adventure is usually limJ ited to a single transaction. [Authorities.]

“Courts do not treat a joint venture as-identical with a partnership, yet it is uni; versally held that such relation is so simi-ilar in its nature to a partnership and in the contractual relation created thereby that the rights as to the members are governed by substantially the same rules that govern partnerships. [Authorities.]”

■ We are not interested so much in the extent to which the elements of a joint adventure may be found in a partnership, but the controlling point in the instant case is that the facts establish a joint and several liability of the defendants to Thompson for the services rendered, and it is immaterial that the liability' springs from a partnership relation or one of joint adventure.

To a reasonable extent we deem it proper to point out the testimony, some in substance and some according to its tenor, upon which this conclusion is based.

When oil was discovered in the vicinity of Upshur county, the defendant M. F. Reed was residing in Erath county, Tex., where, at the date of this trial, he had resided continuously since 1918. He was an individual, [559] with ability, otherwise than • financial, to: venture into such a locality under such conditions and locate tod acquire likely oil and mineral leases. Developments in that field at that time lent the usual attractions for such persons. At first his activities were directed and supported hy two individuals in Stephenville, hut it seems that, when said Reed began negotiating for, or was about to consummate a deal for the lands incidentally involved in this suit, these first two individuals refused to advance further expense funds, indicating that their interest was solely .in buying leases and royalties, and not in purchasing lawsuits. These lands, owned by A. R. Loden and wife, were situated on the line of Upshur and Gregg counties, and Reed’s investigations disclosed that, although the lands purported to be under lease, the owners thereof had acknowledged the instrument before a notary public in a county other than the notary’s residence. A royalty conveyance covering the land was also of questionable legality. These conveyances were evidently executed in the early or wildcat stage of oil development in that territory.

Negotiations between M. F. Reed and the Rodens terminated in a definite understanding between them, whereby they agreed to assign a 40 per cent, mineral interest in sáid lands, provided the person receiving the same would clear the title of said land by affecting a cancellation of said lease and royalty contract, this to be done free of cost to the Rodens. This M. F. Reed was unable to accomplish without aid from outside sources, and, the two original parties being unwilling to interest themselves in matters of litigation, which were essential to the acquisition of the 40 per cent, interest in said lands, said Reed thereafter cast about for some one who was willing to undertake the enterprise. His interest in the property and his understanding with the Lodens at this time is aptly described in his testimony. Concerning his interest as thus acquired, he was asked on the trial: “Q. You figured it was yours and if Reed (E. W.) hadn’t made that trade with you, you would have made it with someone else? A. Yes, I had it where I could get it and was trying to find somebody, that had enough money to back the thing up and finance it.”

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Thompson v. Reed, 61 S.W.2d 557, 1933 Tex. App. LEXIS 860 (Tex. Ct. App. 1933).

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