Tripplehorn v. Ladd-Hannon Oil Corp.

8 S.W.2d 217, 1928 Tex. App. LEXIS 642
CourtCourt of Appeals of Texas
DecidedApril 27, 1928
DocketNo. 425.
StatusPublished
Cited by22 cases

This text of 8 S.W.2d 217 (Tripplehorn v. Ladd-Hannon Oil Corp.) 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
Tripplehorn v. Ladd-Hannon Oil Corp., 8 S.W.2d 217, 1928 Tex. App. LEXIS 642 (Tex. Ct. App. 1928).

Opinions

LESLIE, J.

The appellee, Ladd-Hannon Oil Coporation, the owner of an oil and gas lease, sued the appellant, D. W. Tripplehorn, to cancel the assignment of a 240-acre tract thereof, made by it to said Tripplehorn. Three days prior to the filing of the suit Tripplehorn transferred all his rights in the 240-acre assignment to one G. E. Hooker, who by amended petition was made party defendant. Hooker appeared and answered; later he reassigned to Tripplehorn the interest acquired by virtue of said transfer, and subsequent to such reassignment he disclaimed any interest in the subject-matter of the suit which proceeded as between appellee and Tripplehorn. ,

The petition was'in form of trespass to try title, and in the second count it was alleged that in April, 1925, the appellee was the owner of an oil and gas lease covering lands in Sehaekelford county, Tex., upon which it desired to have a well drilled for the purpose of testing its oil and gas possibilities; that it executed and delivered an assignment of the lease to the extent of 249 acres to D. W. Trip-plehorn, appellant, in consideration of Ms promise to degin the drilling of a well on some part of said acreage on or before June 15, 1925, and to continue drilling thereof with due diligence to a depth necessary to test said land; that the promises of appellant had not been performed, and that such promises constituted the sole consideration of said assignment, and that the consideration failed; that the said promises were fraudulently made, with no intention, at the time they were made, of carrying them out; and that the appellee had suffered irreparable injury.

'Among other defensés, appellant alleged there was a valuable consideration for the *218 lease assignment; tliat no time limit was set for the beginning of a well; that, if such limit was set, the appellee breached its contract to deliver an additional 80 acres, thereby waiving the covenant, if any, to begin the drilling on or before June 15, 1025; and, further, that this suit prevented appellee from beginning operations. A detailed statement of the testimony will be omitted, but portions thereof essential to an understanding of the issues presented will appear throughout the opinion.

Counsel for appellant has filed herein a logical and well-reasoned brief upon the controlling propositions presented by this appeal. With unimportant omissions and slight rearrangements of parts, it will in the main be adopted.as the opinion of the court:

“Appellant’s First Proposition.

“The mere failure by a grantee to perform a promise which formed the whole or part of the consideration inducing an executed conveyance gives rise to no right of rescission in the grantor, either at law or in equity.

“The conveyance of the oil and gas lease in this case was by regular assignment, for a recited consideration of one dollar and other valuable consideration, without any condition expressed therein, and with covenants of general warranty. The consideration for said assignment as pleaded by the plaintiff (appellee) was that the defendant (appellant) would begin the drilling of a well for oil and gas on some part of the tract conveyed on or before June 15, 1925, and continue the drilling thereof with diligence to the depth necessary to properly develop said land for oil and gas, The sole issue submitted to the jury was as follows: ‘Did the defendant, Tripplehorn, agree to begin the drilling of a well by June 15, 1925, in consideration of the assignment made to Mm by the plaintiff, covering two hundred and forty acres? Answer “Yes” or “No.” ’ To which special issue the jury answered, ‘Yes.’ Upon this verdict the court entered a judgment canceling and rescinding the assignment and removing same as a cloud upon the title of said land. It will thus be seen that the court canceled and rescinded an absolute deed for the failure of the grantee to perform a promise, oral and not expressed in the deed, to begin the drilling of a well before a certain date, which promise the jury found to be the consideration for said deed.
“The general rule for such eases is laid down by Mr. Pomeroy in Pomeroy’s Equity Jurisprudence, vol. 5, p. 4755, par. 2108, as follows: ‘It is, of course, the general rule that the mere failure of the grantee to perform a promise, which formed the whole or part of the consideration inducing an executed conveyance gives rise to no right of rescission in the grantor, either at law or in equity, unless such promise amounts to a condition; and it is a rule of construction that, in ease the language or intention is doubtful, the promise or obligation of.the grantee will be construed to be a covenant, limiting the grantor to action thereon, and not a condition subsequent, with the right to defeat the conveyance.’ The rule was early adopted by the Supreme Court of Texas, and has continued to be the rule down to the present.
“In the case of Chicago, T. & M. R. Co. v. Titterington, 84 Tex. 218, 19 S. W. 472, 31 Am. St. Rep. 39, the facts were that Titterington conveyed a right of way to the railway company by a deed containing the following: ‘That, for and in consideration of the enhanced value to be given and is contemplated to arise to our lands and other property by the location and construction of the Chicago, Texas & Mexican Central Railway. Company, and for the consideration of full and complete value accruing to us by this transaction, in locating and maintaining a station on the lands hereby granted, we.’ etc.
“Upon the failure of the railway company to build and maintain the station, Titterington brought suit to cancel the deed, and, discussing the case, the court said: ‘Of course, in case of a condition subsequent broken, the grantor has his election to re-enter and reclaim the land or to sue for damages for a breach of the contract, and a suit for the land would be equivalent to a re-entry. Railway Co. v. Dunman, [74 Tex. 265, 11 S. W. 1094], supra. But conditions of this character are not favored by the courts, and in case of doubtful language or intention the promise or obligation of the grantee will be construed to be a covenant limiting the grantor to an action thereon, and not a condition subsequent with the right to defeat the conveyance. Under the authorities, we think that it must be held, and we do hold, that the promises or obligations of the railway company referred to in the deed are in the nature of covenants, not conditions, and therefore the plaintiffs, aside from the other questions in the case, could not reclaim the land itself on account of the nonperformance of the covenants or promises by the grantee, but would be required to sue for the damages arising from the breach of the contract.’

“This case has been cited repeatedly by the courts of this state as correctly stating the law in cases such as this one. In 'the Titterington • Case the promise was incorporated in the deed, while in this case it must be proved by parol, and there can be no more reason for canceling a deed, absolute on its face, for the failure to perform a promise constituting the consideration where such promise must be proved by parol testimony, than there would be for canceling such a deed where the promise is stated in the deed.

“In the case of Chambers v. Wyatt (Tex. Civ. App.) 151 S. W.

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Bluebook (online)
8 S.W.2d 217, 1928 Tex. App. LEXIS 642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tripplehorn-v-ladd-hannon-oil-corp-texapp-1928.