Wrenn v. Reed

98 S.W.2d 851
CourtCourt of Appeals of Texas
DecidedOctober 15, 1936
DocketNo. 1807
StatusPublished

This text of 98 S.W.2d 851 (Wrenn v. Reed) 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
Wrenn v. Reed, 98 S.W.2d 851 (Tex. Ct. App. 1936).

Opinion

GALLAGHER, Chief Justice.

This suit was instituted by defendant in error, Frank A. Reed, against plaintiff in error, H. E. Wrenn, to recover the sum of $875. The parties will be designated as in the trial court. Plaintiff claimed the sum sued for as the value or net proceeds of the resale by defendant, for an additional consideration, of his interest in a certain oil lease to which he alleged defendant held the legal title in trust for 'him to the extent of one-eighth thereof. Defendant asserted title to said lease in himself and another, to the exclusion of plaintiff.

The case was tried by the court without a jury and judgment rendered for plaintiff for the sum of $437.50.

This case, while instituted originally in the district court, is one in which a county court might, under our Constitution and laws,' have exercised original jurisdiction. Ordinarily, the disposition made by this court of such cases is final. R.S. art. 1821, as amended by Acts 1929, c. 33, § 1 (Vernon’s Ann.Civ.St. art. 1821). When consideration of such a case results in the affirmance thereof, no formal opinion is required. R.S. art. 1873; Associated Indemnity Corporation v. Gatling (Tex.Civ.App.) 75 S.W.(2d) 294, and authorities there cited. We will, however, recite, as briefly as we can, the principal contentions presented by the defendant in this appeal and the conclusion reached by us with reference thereto.

Defendant’s principal contention is that the testimony is insufficient to support any recovery herein by the plaintiff. The facts involved are voluminous and complicated. We do not deem it necessary to set out in detail either plaintiff’s pleadings or the entire testimony. The finding of the court in favor of the plaintiff was general. Every issuable fact must therefore be considered found in his favor if there is any evidence to support the same and the evidence must be read in the light most favorable thereto, rejecting all evidence favorable to the opposite contention apd considering only the facts and circumstances which tend to sustain such finding. Hines v. Kansas City Life Ins. Co. (Tex.Civ.App.) 260 S.W. 688, 690, pars. 2 and 3, and authorities there cited; London & Lancashire Ins. Co. v. Higgins (Tex.Civ.App.) 68 S.W.(2d) 1056, pars. 1 and 2. Applying the rule - so announced to the testimony introduced in this case, we find that same is sufficient to support an affirmative finding of the material facts hereinafter recited. On June 18, 1931, M. A. Bletsch held the legal title to an oil and gas lease on 17.57 acres of land situated in Gregg county. While Bletsch had a fractional interest in said lease, he held the remainder thereof in trust for plaintiff, defendant, and another. On said last-named date, Bletsch assigned said lease to C. J. Webster Oil & Gas Company, which, in addition to the burdens then imposed thereby on the holder of such lease, agreed to pay to Bletsch the further sum of $43,925 in cash out of a certain fractional part of the oil produced and marketed therefrom. Bletsch assigned the cash payment so promised to J. C. Fountain as trustee, for distribution-in stipulated proportions to himself, to plaintiff, to defendant, and to others. All of such distributees admittedly held an interest in the lease so assigned and defendant was fully cognizant of such holding. The assignment of said lease as aforesaid contained, for the protectiqn of the owners thereof, both legal and equitable, a specific stipulation for the prompt and effective development of the lease, and the further requirement that said assignee should promptly drill such offset wells as might be reasonably required to protect the [853]*853leasehold interest and estate from drainage by wells upon adjacent premises, and provided for the rescission or cancellation of such assignment in event of the failure of said assignee to do so. Shortly thereafter, Bletsch, plaintiff, and defendant, and possibly other owners of said lease at the time it was assigned to said Oil Company as aforesaid and who were entitled to receive distributive shares of the proceeds of a part of the oil produced therefrom, claimed that said assignee had violated the provision requiring the drilling of offset wells, that its title to such leasehold was on that account subject to forfeiture, and threatened to' take steps to cancel the assignment and recover such leasehold estate. The result of such claim and threat was an agreement of compromise which met the approval of Bletsch, plaintiff, and defendant. By the terms of such compromise the- C. J. Webster Oil & Gas Company, assignee as aforesaid, agreed to reconvey or reassign said lease as to 7.57 acres of the land covered thereby, in consideration of the release of its obligation to drill offset wells on the remainder of the tract and a proportionate release of its obligation to pay the sum aforesaid .out of the oil produced and marketed by it from the remainder of the tract. A question arose as to whom the lease on said 7.57 acres of land should be reassigned. Bletsch, who had up to the assignment of said lease to the C. J. Webster Oil & Gas Company, been acting as purported owner and as trustee, for all the owners of an equitable interest therein, had become financially embarrassed and it was considered that he was no longer in a position to act as trustee. Plaintiff wanted such reassignment made to him, and defendant wanted the same made to himself. Defendant, in requesting that the reassignment be made to him, told Bletsch that neither of them would ever see a cent of the proceeds if the reassignment was made to plaintiff, and made depreciating remarks about him. Bletsch was at that time under some financial obligation to defendant. Bletsch thereupon had the reassignment made to defendant as he requested, but it was his (Bletsch’s) intention at the time that the’ interest of the respective parties after such reassignment should be the same as before he made said assignment to said Oil & Gas Company. Such reassignment was consummated on November 27, 1931. According to the terms thereof, defendant assumed a proportionate part of the obligation of said company to pay, out of a fractional part of the oil produced and marketed from such acreage, the aforesaid sum of $43,965, which obligation Bletsch had assigned to Fountain as aforesaid. Fountain, on November 27, 1931, released said Oil & Gas Company from the payment of such proportionate part of its said obligation. Fountain, on November 30, 1931, released said Oil & Gas Company from its obligation to drill additional or offset wells on the remaining 10 acres of the tract. Defendant, on November 28, 1931, assigned the oil and gas lease on said 7.57 acres of land to the Wells & Gann Drilling Company, in consideration of which assignment it agreed to pay Fountain the conditional payment assumed by defendant to be made out of a fractional part of the oil produced and marketed from the premises as aforesaid, and further promised to pay to defendant the additional sum of $7,750 out of a fractional part of the oil produced and marketed from said tract. The right to receive the last recited payment or payments was assigned by defendant to Steiren & Keonig for the sum of $3785 cash. Said sum, after-paying some minor expenses, was divided equally between defendant and Bletsch, or Bletsch’s daughter. There was testimony that the payments so assigned were worth at the time the sum of $5,677. Defendant expressly instructed Bletsch not to pay any part of the proceeds of such sale to plaintiff, or any other claimant, and threatened to dissolve business relations with him if he did so.

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Related

Hines v. Kansas City Life Ins. Co.
260 S.W. 688 (Court of Appeals of Texas, 1924)
London & Lancashire Ins. Co. v. Higgins
68 S.W.2d 1056 (Court of Appeals of Texas, 1934)
Associated Indemnity Corp. v. Gatling
75 S.W.2d 294 (Court of Appeals of Texas, 1934)

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98 S.W.2d 851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wrenn-v-reed-texapp-1936.