Chandler v. Herndon

• Decision Date: 08 January 1970
• Docket Number: No. 508,508
• Citation: 450 S.W.2d 703
• Court: Texas Court of Appeals
• Parties: Sidney P. CHANDLER, Appellant, v. John W. HERNDON d/b/a Gulf Sands Oil & Gas Company, Appellee.

Page 703

450 S.W.2d 703

Sidney P. CHANDLER, Appellant, v. John W. HERNDON d/b/a Gulf Sands Oil & Gas Company, Appellee.

No. 508.

Court of Civil Appeals of Texas Corpus Christi.

Jan. 8, 1970.

Rehearing Denied Feb. 26, 1970.

Sidney P. Chandler, Corpus Christi, for appellant.

Horkin, Nicolas & Nicolas, Toufic Nicolas, Ralph J. Graham, Corpus Christi, for appellee.

OPINION

SHARPE, Justice.

Plaintiff-appellant sued defendant-appellee for $1,122.50 alleging that in the year 1967 the parties entered into a joint adventure agreement for the re-working of a gas well which proved unsuccessful and that plaintiff was entitled to recover said amount as his share of unexpended funds.

After non-jury trial plaintiff was denied recovery except for $112 .00, representing one eighth (1/8) of the value of property still on hand after operations ceased. The award of $1,112.00 is not involved in this appeal. The trial court concluded that there was no joint adventure between the parties and recited that holding in the judgment. No other findings or conclusions were requested or filed.

Plaintiff asserts three points of error. The controlling question is whether there was a joint adventure between the parties in connection with the said well re-working operations.

The evidence consists of the testimony of defendant, John W. Herndon, and several exhibits. The written agreement primarily relied on by plaintiff reads as follows:

The defendant's position is largely shown by his letter of December 27, 1968, offered in evidence by plaintiff, reading as follows:

The testimony of defendant when considered along with the exhibits is legally sufficient to establish the following facts. Defendant was the owner of a 75% Working interest in an oil and gas lease on a tract of land near Odem, San Patricio County, Texas, which lease had been obtained from Alice National Bank, Alice, Texas. The plaintiff purchased an undivided one-eighth (1/8) of such working interest for $1500.00. Defendant agreed to undertake the re-working of the well 'in an attempt to re-establish commercial production of gas.' The attempt failed and the lease was lost. Defendant sold 6/8 of the working interest to other parties, including a 1/8 interest to plaintiff, at a net of.$1000.00 per 1/8 to him, the balance of the sales price being paid as commissions. In plaintiff's case, the amount of $500.00 was paid to Mr. Joe Neel as commission, leaving.$1000.00 net to defendant from the amount paid by plaintiff. Defendant spent about $4000.00 on the re-working operations. Plaintiff's 1/8 share of the salvage value of property on the lease was about $112.00.

We agree with appellee that the evidence-supported implied findings of fact support the judgment and that the conclusion of the trial court that there was no joint adventure between plaintiff and defendant is correct.

The essential elements of a joint adventure are (1) mutual right of control, (2) community of interest, (3) agreement to share profits as principals, and (4) agreement to share losses, costs or expenses. See Brown v. Cole, 155 Tex. 624, 291 S.W.2d 704 (1956), 59 A.L.R.2d 1011 (1956); Luling Oil & Gas Co. v. Humble Oil & Refining Co., 144 Tex. 475, 191 S.W.2d 716 (1946); Price v. Wrather, 443 S.W.2d 348 (Tex.Civ.App., Dallas, 1969, wr. ref., n.r.e.); North Texas Lumber Company v. Kaspar, 415...