Young v. Reed

192 So. 780
CourtLouisiana Court of Appeal
DecidedNovember 3, 1939
DocketNo. 6029.
StatusPublished
Cited by25 cases

This text of 192 So. 780 (Young v. Reed) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Young v. Reed, 192 So. 780 (La. Ct. App. 1939).

Opinion

TALIAFERRO, Judge.

Plaintiff, for his own account, and as the assignee of labor claims of fourteen (14) fellow workmen, seeks to recover judgment against the defendants, Dr. C. R. Reed and G. F. Thomas, in solido, for the sum of If 1,414, on the theory that said defendants and one N. W. DeSoto, associated themselves together as partners or joint adventurers for the purpose of exploiting for oil and gas, tracts of land in Sec. 7, T. 16N, Range llW'in Bossier Parish, and for that reason became responsible for the payment of all of the indebtedness incurred in the drilling of. a well on said land in furtherance of the interest of the joint adventure.

Plaintiff alleges that said partnership acquired certain oil and gas leases covering land in said section,, township and range, wherein it was stipulated that a well in search of oil and/or gas should be drilled within a specific period to a depth of 3,000 feet, unless paying production at a lesser depth was discovered; that petitioner and the laborers for whom he sues,-were employed by the said DeSoto, acting for the partnership and with the knowledge and consent of the defendants, his copartners, to. render service and labor in the drilling of the well, known as Douty No. 2, in said section, township and range.

Plaintiff further avers that all members of said partnership often visited the situs of" the- well before it was abandoned, admitted their association as copartners and from- time to time acknowledged their obligations to him and the members of his crew for payment of their wages; that the said partnership association was named and called “Dr. C. R. Reed of Natchitoches, Louisiana, Trustee”; and, after the abandonment of said well, had no assets or property of any character and has been dissolved.

Defendants each filed a dilatory exception, which was overruled. It is not urged here, therefore, we do not discuss its character or merits.

Defendants severed in their answers, but the averments of each and the defenses urged are practically identical. They expressly deny that there was any partnership relation between them and N. W. DeSoto, and that they ever held themselves out as. such; and deny that the association and business relation of the three was of such a nature and character to superinduce liability as partners or otherwise. They deny, therefore, primarily that they owe plaintiff or his assignees any amount whatsoever.

Further answering, these defendants aver that the drilling of the well referred to by plaintiff was promoted entirely by DeSoto; that they had nothing whatever to do with hiring the labor used thereon, nor the fixing of their daily wage, nor the financing of the venture, and exercised no supervision over the drilling as it progressed. They allege further that DeSoto “drilled and financed the well -under the unit system” and that he “divided the venture into 160 units of the par value of $100.00 each.” They admit that each of them owned three of said units, and beyond this, they aver that they had no financial or-other interest in the well; that the remaining 154 units-were owned by approximately 50 other investors.

Firstly, in the alternative, defendants aver that if the owning of said three units in the venture operated to commit them to responsibility for any part of the expense thereof, as partners, that such responsibility for each of them may not exceed 3/160 of said expense.

Secondly, in the alternative, they aver that should their first alternative defense be rejected, in that event their ■ liability as-partners, if they be decreed to have been such, is limited to their virile share as unit holders, of whom, they allege, there were approximately fifty.

In reconvention, defendants allege- -that in the year 1934 they were sued by plaintiff *783 in the District Court- of Bossier Parish on the identical cause of action herein declared upon and that they were forced to pay $117.95 costs to the clerk of that court in that case, although finally successful therein. Each defendant prays for judgment for ■one-half of said cost, or $58.98, in recon-vention against plaintiff to reimburse them respectively for said outlay.

There was judgment in favor of plaintiff and against defendants in solido for $23.56 and costs. The reconventional demands were rejected. Plaintiff appealed and complains of the inadequency of the judgment in his favor.

Defendants, answering the appeal, reurge the reconventional demands and pray' for ■amendment of the judgment accordingly.

It appears that prior to May, 1933, F. L. Kyle and W. D. Ball of Caddo Parish held a mineral lease or leases to approximately 500 acres in Sections 7, 17, and 18 in Township 16N, Range 11W, Bossier Parish. Kyle and Ball were obligated, as lessees, to ■drill a test well on the land to a depth of 3,000 feet unless paying production was em countered at a lesser depth, and within a ■definite time. It also appears that these lessees were unable, for financial or other reasons, to make the test within the term ■stipulated, and, wishing to avoid a forfeiture of their lease rights entirely, approached N. W. DeSoto with a view of interesting him in putting the test well down. He had previously purchased a drilling rig and equipment from defendant Thomas, which was unpaid for. Thomas was then pressing DeSoto for payment of the balance due on the outfit, which was then in DeSoto Parish. Kyle and Ball proposed to give to De-Soto one-half interest in their said lease holdings if he would drill the well required by the lease contract. He was friendly to the proposition but could not lawfully move the rig into Bossier Parish without Thomas' consent. Dr. Reed had become interested in the proposition also and he, Kyle, Ball and DeSoto went to Thomas’ office in the City of Natchitoches to discuss the matter with him. There DeSoto proposed to let Thomas and Dr. Reed in on the proposition made to him by Kyle and Ball on ■this basis:

That he would give to each of them one-third of the interest in the leases which Kyle and Ball proposed to assign to him, provided Thomas would consent to the removal of the mortgaged rig on the leased ■lands, and, in addition, that he and Dr. Reed would pay the expenses of such removal; and also, at their expense, erect a derrick where the well would be drilled. .DeSoto’s proposition was accepted and on May 30, 1933, Kyle and Ball assigned to - DeSoto, Thomas and Dr. Reed jointly an undivided one-half interest in the leases referred to. On the same day DeSoto, Thomas and Dr. Reed, individually, assigned to “Dr. C. R. Reed,. Trastee”, 80 acres of the leased land located in Sec. 18, on which the well was drilled. It proved to be a “dry hole”.

It appears that the well was drilled under DeSoto’s personal supervision and was financed, in whole or largely, by issuance of unit certificates to various persons at a price of $100 each. He was ah experienced oil man.

After the well was abandoned, Kyle and Ball, realizing impending loss of their lease rights, proposed to assign their remaining one-half interest therein to De-Soto, Thomas and Dr. Reed on condition that another test be made. This proposition was accepted and was consummated on Augi.-t 3, 1933 by formal assignment between the parties. A new location was made for a well in Sec. 7, less than a mile distant from the first one, and the rig was moved thereon and a new derrick erected at the expense of Dr. Reed and Thomas.

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Bluebook (online)
192 So. 780, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-v-reed-lactapp-1939.