Wilson v. Therrell

304 S.W.2d 723, 8 Oil & Gas Rep. 350, 1957 Tex. App. LEXIS 2006
CourtCourt of Appeals of Texas
DecidedJuly 1, 1957
Docket6687
StatusPublished
Cited by7 cases

This text of 304 S.W.2d 723 (Wilson v. Therrell) 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
Wilson v. Therrell, 304 S.W.2d 723, 8 Oil & Gas Rep. 350, 1957 Tex. App. LEXIS 2006 (Tex. Ct. App. 1957).

Opinion

CHAPMAN, Justice.

Appellee herein, John Edd Therrell (plaintiff below), instituted this suit against appellant, Guy Wilson, to establish a constructive trust on %28ths interest in an oil and gas lease on 320 acres of land in Hutchinson County, Texas. Trial was to a jury and the issues submitted were as follows:

“Special Issue No. 1
“Do you find, from a preponderance of the evidence, that plaintiff, John Edd Therrell, and defendant, Guy Wilson, entered into an oral agreement on or before February 16th, 1954, that the said Therrell would convey an undivided $Í28ths of %ths of the oil in and under the land in question to the said Wilson, and Wilson would sell the same and the money derived therefrom would be used to defray expenses of the said Therrel and Wilson as ‘operators’ in securing drilling contracts, supervising and developing the lease?
“Answer ‘yes’ or ‘no’. * * *
“Special Issue No. 2
“Do you find, from a preponderance of the evidence, that the defendant, Guy Wilson, after receiving title to the said Vizsths of %ths of the oil under the premises in question, repudiated the agreement ?
“Answer ‘yes’ or ‘no’.”

The jury answered both of said issues in favor of Therrell and on the jury’s verdict judgment was awarded by the court establishing a constructive trust in favor of Therrell and granting Therrell a money judgment against Wilson for the money Wilson had received as royalty while he *726 held legal title to the 4Í28ths interest. From this judgment appellant has perfected his appeal to this court.

Pending this appeal our attention was called to the fact that appellant has departed this life and left surviving a wife and one daughter. In view of Rule 369-a Texas Rules of Civil Procedure we shall proceed to adjudicate the cause as if all parties hereto were living.

On January 22, 1954, Guy Wilson secured an assignment from Gulf Oil Corporation and others whereby they assigned to him a 10%28ths interest in 320 acres of the Reimer Lease in Hutchinson County, Texas, under a development contract which provided, by way of limitation, that unless a well was commenced within 90 days and a new well commenced each 60 days, the title would automatically terminate on all the 320 acres except ten acre squares around producing wells.

According to Therrell’s testimony, a day or two after receiving the Gulf assignment Wilson and he had an oral discussion concerning the development of the lease and he told Wilson he was acquainted with several persons financially capable of developing the tract.

In this conversation Wilson associated Therrell with him so he might find someone to finance the development. Wilson admittedly had no money with which to drill a well and needed to find someone capable of meeting the time limitations in the assignment from Gulf. No one but the parties hereto were present when these conversations were held. The testimony of the parties coincide generally except as to the interest in the leasehold estate that was to belong to Wilson. According to Therrell, before he sought a financier for the development Wilson specified he was to have a 3%28ths reversionary interest in the oil, to become a present interest by reversion when the money for drilling and completion was recovered. Therrell was to have no fixed interest, but his part depended upon what he could save above the s%28ths fixed interest to belong to Wilson and that which would be demanded by the prospective developer or financier. Wilson’s version of their understanding was that he was to have the fixed 3%28ths interest above described and an additional ^28ths interest in the oil as an overriding royalty and that Therrell was to have what he could save from the interest last described and the interest that would be demanded by the financier of the development.

Therrell negotiated with Edward Cameron Bolton of Waco, Texas, in an effort to procure someone to finance the development and a tentative oral agreement was reached between them on February 13, 1954. During these deliberations Wilson was unknown to Bolton and the agreement between Therrell and Bolton was reduced to writing and signed on February 16, 1954.

Following the..oral agreement between Therrell and Bolton on February 13, 1954, and on the same day Wilson assigned to Therrell the entire lease-hold interest he had acquired from Gulf and others. The agreement between Therrell and Bolton provided that Bolton would have 7%28ths of %ths of the oil in consideration of his financing the drilling and development of the tract but that s%28ths of that amount would revert to Therrell when Bolton recovered his drilling and completion costs.

Therrell’s testimony was that on February 13, 1954, “After I had this tentative deal with Mr. Bolton, Mr. Wilson only had a 8%28ths reversion interest. Neither one of us had any money, and I agreed to take %28ths, and he was to sell it, and we was-going to pay our expenses. I was to be there operating the wells, and he was trying to sell it.” He also testified Wilson had an. equal right and privilege with him as operator, and that he subsequently, on April 1,. 1954, assigned the %28ths interest to Wilson-to sell for expenses and furnished him his gasoline courtesy card to use in traveling over the state to sell it, which was used, according to the testimony, to the amount of *727 $415.87. He testified that before he assigned the disputed interest he and Wilson made a trip to Houston to try to sell it. The record shows this trip to 'have been made between February 16 and April 1. They tried to sell it to Bill Williams and to his (Therrell’s) brother but were unable to do so. Wilson admitted to the trip but said the interest they were trying to sell for expense money was a reversionary interest out of the s%28ths reversion that was to be his.

On February 16, 1954, the same day the formal agreement had been entered into between Therrell and Bolton, a written instrument was signed by Therrell and Wilson. -This agreement recited that in order for Therrell to comply with the agreement with Bolton by which Bolton was to finance the development of the 320 acre lease Wilson had assigned his entire interest to Therrell so that title would stand in Therrell’s name. This instrument, after recognizing some of the contents of the February 16 contract between Therrell and Bolton says: “I, John Edd Therrell, in consideration of the agreement between us, do hereby agree * * * ” then follows his agreement to assign the %2sths of %ths of the oil and 3%28ths reversion after it has reverted from Bolton by reason of his having been repaid for money expended for drilling.

On April 1, 1954, by separate instruments Therrell conveyed to Wilson the 3%28ths interest and the 4Í28ths interest, despite the fact that at that time the 3%28ths rever-sionary interest mentioned in the February 16th instrument had not reverted from Bolton.

On June 6, 1954, a division order was signed by all record owners, including Wilson. The order showed the 4Í28ths in the name of Wilson. Therrell testified that Wilson did not repudiate his (Therrell’s) rightful ownership to the disputed interest until May or June, 1955.

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Bluebook (online)
304 S.W.2d 723, 8 Oil & Gas Rep. 350, 1957 Tex. App. LEXIS 2006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-therrell-texapp-1957.