Durham v. Scrivener

Decision Date07 June 1923
Docket Number(No. 6343.)
Citation259 S.W. 606
PartiesDURHAM et al. v. SCRIVENER et al.
CourtTexas Court of Appeals

Appeal from District Court, Travis County; Ireland Graves, Judge.

Suit by Charles P. Scrivener, in which W. B. Wortham intervened as coplaintiff, against R. L. Durham and others. From the judgment rendered, certain defendants appeal. Judgment affirmed in part, reversed in part, and remanded, with directions.

See, also, 228 S. W. 282.

C. L. Bass, of Wichita Falls, R. H. Ward, of Houston, W. D. Gordon, of Beaumont, and John W. Hornsby and N. A. Rector, both of Austin, for appellants.

H. S. Bonham and Dougherty & Dougherty, all of Beeville, and J. D. Moore, of Austin, for appellees.

JENKINS, J.

On May 9, 1919, appellee Scrivener, for a consideration of $1,600 to him paid by W. M. Campbell, conveyed to Campbell his interest in the 621-acre B. F. Blount survey, 331-acre A. A. Durfee survey, and 640-acre Lucinda Meadows survey, and on the same day Scrivener and appellee Wortham, for the consideration of $3,400, conveyed to said Campbell their interest in an oil permit granted by the state of Texas to the Durfee school land survey. The interest claimed by Scrivener in the patented lands was an undivided one-fourth interest. Scrivener and Campbell claimed to own the oil permit.

On October 17, 1919, appellee Scrivener brought suit to cancel said transfers, on the ground that the same were obtained by fraud. Wortham intervened as coplaintiff, alleging that he was joint owner with Scrivener as to said lands and permit. The suit was brought against Durham and Campbell, upon the alleged ground that Durham was the attorney of appellees, and that he secretly acted as the agent of Campbell, and made fraudulent representations to appellees, with the knowledge and consent of Campbell, as to a material matter, whereby appellees were induced to transfer said property to Campbell for a grossly inadequate price. It is alleged that the other defendants were claiming an interest in said lands by purchase under Campbell, but that none of them were innocent purchasers; that they sold or leased some of said lands to innocent purchasers. Appellees also prayed for general relief.

Appellants presented a plea in abatement, which was overruled. In addition to a general denial by all of the appellants, they pleaded ratification, and, with the exception of Durham and Campbell, they alleged that they were innocent purchasers. Clough and Lewis were made parties defendant, but as the judgment was in their favor, and no complaint is made to the same, that fact need not be further noticed.

Findings of Fact.

The case was tried upon the following special issues:

"(1) Did the relation of attorney and client exist on the 9th day of May, 1919: (a) Between C. P. Scrivener and R. L. Durham? (b) Between W. B. Wortham and R. L. Durham? Answer (a) yes or no. Answer (b) yes or no.

"Answer: (a) Yes. (b) Yes.

"(2) Did W. M. Campbell, on the 9th day of May, 1919, know that R. L. Durham occupied such relation, if any, to C. P. Scrivener and W. B. Wortham? Answer yes or no.

"Answer: Yes.

"(3) Did C. P. Scrivener and W. B. Wortham, on said 9th day of May, 1919, actually repose trust and confidence in R. L. Durham in the negotiations in regard to the sale of their property? Answer yes or no.

"Answer: Yes.

"(4) Did W. M. Campbell and R. L. Durham expressly or impliedly agree, combine, confederate, or conspire together to secure the execution of the two deeds sought to be set aside in this suit from C. P. Scrivener and W. B. Wortham to W. M. Campbell wholly or in part through the said R. L. Durham? Answer yes or no.

"Answer: Yes.

"(5) If you have answered question No. 4 `Yes,' then answer: Were said two deeds secured wholly or in part by or through said R. L. Durham from C. P. Scrivener and W. B. Wortham in pursuance of such agreement, combination, confederacy, or conspiracy? Answer yes or no.

"Answer: Yes.

"(6) Did R. L. Durham aid in inducing or procuring said sale at or for an inadequate price on behalf of and with the assent of W. M. Campbell? Answer yes or no.

"Answer: Yes.

"(7) In the negotiations resulting in the execution of the two deeds sought to be set aside in this suit, did R. L. Durham act in good faith as an attorney, if he was such attorney, for C. P. Scrivener and W. B. Wortham? Answer yes or no.

"Answer: No.

"(8) If you have answered that R. L. Durham did not act in good faith in said transaction of May 9, 1919, then answer: Did said Campbell know or have good reason to believe that said R. L. Durham was not acting in good faith with said Scrivener and Wortham in such negotiations? Answer yes or no.

"Answer: Yes.

"(9) Was Bass, trustee, a bona fide purchaser of the Scrivener interest in the lease to the extent of the consideration that was paid therefor in cash? Answer yes or no.

"Answer: No.

"(10) Was the Durfee Mineral Company Association a bona fide purchaser from W. M. Campbell to C. P. Scrivener's interest in the tract of land known as the A. A. Durfee patented survey? Answer yes or no.

"Answer: No.

"(11) State whether or not, at the time the defendant W. M. Campbell purchased the Scrivener and Wortham interests in the lands in controversy, as evidenced by two deeds executed by them on May 9, 1919, the cancellation of which is sought by the plaintiff, C. P. Scrivener, and intervener, W. B. Wortham, and in the consummation of said transactions, and in the negotiations of May 9, 1919, leading to the execution of said instruments, the said R. L. Durham was acting in the same as the agent or attorney for the defendant Campbell? The form of your answer to this question will be: He was, or he was not.

"Answer: He was.

"(12) State whether or not the defendant R. L. Durham, in the negotiations in the office of the intervener, W. B. Wortham, at the Capitol, made any material false and fraudulent representations to the intervener, W. B. Wortham, upon which the plaintiff, C. P. Scrivener, or W. B. Wortham relied, which induced them in whole or in part to execute the instruments of May 9, 1919, sought to be canceled in this suit? Answer yes or no.

"Answer: Yes.

"(13) If you answer question No. 12 in the affirmative, then state whether or not the defendant W. M. Campbell knew of such false representations or had good reason to believe that such false representations had been made? Answer yes or no.

"Answer: Yes.

"(14) Did the defendant W. M. Campbell, without the co-operation of R. L. Durham, negotiate the trade with W. B. Wortham which resulted in the execution of the instruments on May 9, 1919, sought to be canceled in this suit? Answer yes or no.

"Answer: No.

"(15) Did R. L. Durham in the negotiations resulting in the execution of said deeds of May 9, 1919, intentionally conceal from Wortham any material fact relating to the transaction with the view of inducing him to make the trade? Answer yes or no.

"Answer: Yes.

"(16) If you have answered the foregoing question in the affirmative, then state whether or not Campbell knew or had good reason to believe that Durham had made such concealment? Answer yes or no.

"Answer: Yes.

"(17) What was the reasonable market value on May 9, 1919, of plaintiff's interest in said A. A. Durfee survey?

"Answer: $55,166.

"(18) What was the reasonable market value on May 9, 1919, of C. P. Scrivener's interest in the mineral rights in said Durfee survey that were leased by Durfee Mineral Company to Bass?

"Answer: $45,000.

"(19) Was the Durfee Mineral Company (the foreign corporation) a bona fide purchaser of plaintiff Scrivener's interest conveyed to Campbell in the portion of the A. A. Durfee survey conveyed to it by the Durfee Mineral Company Association, by the deed acknowledged January 26, 1920? Answer yes or no.

"Answer: No.

"(20) What was the reasonable market value on May 9, 1919, of the portion of the A. A. Durfee survey so conveyed, referred to in the foregoing interrogatory?

"Answer: $373,500.

"(21) What was the reasonable market value of plaintiff's interest in the B. F. Blount survey on May 9, 1919?

"Answer: $15,722.

"(22) Bearing in mind the foregoing definition of a `bona fide purchaser,' please answer: Was the Cordell Petroleum Company a bona fide purchaser of plaintiff's interest in the Lucinda Meadows survey, and the 50 acres of the A. A. Durfee survey, described in deed to it of date July 26, 1919, signed by W. M. Campbell? Answer yes or no.

"Answer: No.

"(23) What was the reasonable market value on May 9, 1919, of plaintiff's interest in said Lucinda Meadows survey, and in the 50 acres of the A. A. Durfee survey, referred to in the foregoing interrogatory?

"Answer: $168,534.

"(24) What was the reasonable market value on May 9, 1919, of Scrivener's interest in the portion of the lands conveyed by Cordell Petroleum Company pending the litigation over the Lucinda Meadows?

"Answer: $160,000.

"(25) Bearing in mind the above definition of `bona fide purchaser,' state whether or not the Gypsy-Burk Oil Company (the name of which was subsequently changed to the Gypsy-Burk Production Company, etc.) was a bona fide purchaser of plaintiff's and intervener's interest in the 171-acre permit? Answer yes or no.

"Answer: No.

"(26) What was the reasonable market value of plaintiff's and intervener's interest in the mineral permit on May 9, 1919?

"Answer: $20,400.

"(27) What was the reasonable market value on May 9, 1919, of plaintiff's and intervener's interest in the portion thereof conveyed to Collins?

"Answer: $750.

"(28) Was Collins a bona fide purchaser thereof? Answer yes or no.

"Answer: Yes.

"(29) Was the Gypsy-Burk Petroleum Company of Texas a bona fide purchaser of the 161 acres of the permit conveyed to it by the Gypsy-Burk Production Company? Answer yes or no.

"Answer: No.

"(30) Was the ...

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