McCamey v. Hollister Oil Co.

Decision Date18 March 1922
Docket Number(No. 9732.)
Citation241 S.W. 689
PartiesMcCAMEY v. HOLLISTER OIL CO. et al.
CourtTexas Court of Appeals

Appeal from District Court, Tarrant County; R. E. L. Roy, Judge.

Action by George B. McCamey against the Hollister Oil Company, Warren H. Hollister, William Hettesheimer, and Charles J. Geiser. Judgment for plaintiff against the defendant company and the individual defendants as trustees, but denying personal judgment against the individual defendants, and plaintiff appeals. Reversed and rendered in part, and undisturbed in part.

Thompson, Barwise, Wharton & Hiner and J. Arthur Collins, all of Fort Worth, for appellant.

Walker & Baker, of Cleburne, and Garee, Odell & Allen and Ernest May, all of Fort Worth, for appellees.

DUNKLIN, J.

George B. McCamey drilled an oil well for the Hollister Oil Company, under a contract in writing which consisted of a written proposition, dated at Fort Worth, Tex., signed by McCamey and addressed to the "Hollister Oil Company," at Fort Worth, Tex., and accepted by that company. The offer made by McCamey included his proposition to drill and certain material mentioned necessary thereto, also stating $38,500 as the price which would be charged for the work and material, and the dates for the payment of the same. Below the signature of McCamey to that proposition was the following:

                  "We accept the above proposition
                               "[Signed] Hollister Oil Co
                                        "W. H. Hollister
                                        "R. A. Barry, Mgr
                  "Correction certified to
                     "[Signed] Geo. B. McCamey
                                    "Hollister Oil Co.,
                                    "By W. H. Hollister."
                

McCamey instituted this suit to recover the balance due him under that contract, and the recovery was sought, not only against the Hollister Oil Company, but also against Warren H. Hollister, William Hettesheimer, and Charles J. Geiser, who were likewise made parties defendants in the suit. It was alleged that the Hollister Oil Company is a joint-stock association with its principal place of business in Fort Worth, Tarrant county, Tex.; that the defendant Warren H. Hollister, who resides in Tarrant county, is its president; that William Hettesheimer likewise resides in Tarrant county, Tex., and that Charles J. Geiser is a resident citizen of New York state, but is temporarily residing in Tarrant county, Tex.; and plaintiff prayed for service of citation on all of the defendants to answer his petition. The petition contained this allegation:

"Plaintiff further alleges that the defendant Warren H. Hollister, William Hettesheimer, and Charles J. Geiser were, at the time said contract was entered into, and are now, owners of shares of stock in the said Hollister Oil Company, a joint-stock association, and that the said Warren H. Hollister, William Hettesheimer, and Charles J. Geiser are liable to plaintiff as joint principals or as with the Hollister Oil Company, partners for any breach of the contract as hereinafter set out, so entered into between plaintiff and the Hollister Oil Company."

Then follow allegations of performance of the work in compliance with the terms of the contract and allegations of liability on the part of each and all of the defendants for the balance claimed to be due thereon, with a prayer for judgment against the defendants jointly and severally for such balance; also, for judgment decreeing a mechanic's and materialman's lien in plaintiff's favor on the lease upon which the well was drilled and improvements thereon, together with a foreclosure of such lien.

The defendants jointly filed an answer, consisting of a general demurrer, special exception by Hollister, Hettesheimer, and Geiser, and a general denial by all of them. The answer also contained the following special plea:

"Further answering, if required defendants show that, if plaintiff is entitled to any relief whatsoever, it is against the defendant Hollister Oil Company, and its trustees and the assets of said company in their hands, and not against the other defendants personally; that at all times mentioned by plaintiff said Hollister Oil Company was a common-law trust, and the other defendants contracted with plaintiff in their capacity as trustees only and not as individuals or personally; that, under the declaration of trust of said Hollister Oil Company, plaintiff is required to look alone to the property and funds of said company, and not to the trustees or certificate holders for his debt, if any; and the defendants Hollister, Hettesheimer, and Geiser, specially denying plaintiff's allegations of partnership, therefore show that in no event is plaintiff entitled to recover against them."

The case was tried before the court without a jury, and judgment was rendered in plaintiff's favor against the "Hollister Oil Company, a trust estate," for the sum of $23,385.50, together with the foreclosure of the lien prayed for in plaintiff's petition on defendants' leasehold interest in the land upon which the well was drilled, together with the machinery, supplies, and all personal property and improvements placed on the lease by the defendants. But the plaintiff was denied a recovery of personal judgment against the defendants Hollister, Hettesheimer, and Geiser for the debt for which he sued. From the judgment so rendered in favor of the individual defendants last mentioned, the plaintiff has prosecuted this appeal.

The trial was upon an agreed statement of facts, signed by counsel for all the parties, which is as follows:

"(1) It is agreed that the plaintiff, Geo. B. McCamey, performed the work and incurred the expense set forth in the exhibit to plaintiff's petition, which aggregates a debt of $23,385.50, which debt was created under and by virtue of the contract of date March 25, 1920, set forth in plaintiff's petition.

"(2) It is agreed that the debt of $23,385.50 is just, due, and unpaid, and that Geo. B. McCamey has filed and perfected a valid contractor's lien upon the oil and gas lease and all improvements thereon situated, as well as all personal property thereon located upon the tract of land described in plaintiff's petition, and upon which plaintiff has performed the services for which the said debt of $23,385.50 was incurred.

"(3) It is agreed that there is no question as to the liability of the Hollister Oil Company, defendant in said suit, for the amount of the said debt due plaintiff; but as to the liability of the other defendants, Warren H. Hollister, William Hettesheimer, and Charles J. Geiser, personally, it is agreed as follows:

"(a) That at the time the contract of March 25, 1920, set out in plaintiff's petition, was entered into, the Hollister Oil Company was operating and doing business under the attached declaration of trust, and

"(b) The court shall construe the said declaration of trust in order to determine as a matter of law whether it creates a joint-stock association or a common-law trust, and

"(c) If the court finds that the declaration of trust constitutes a joint-stock association, then the court shall determine whether or not under the laws of Texas the defendants Hollister, Hettesheimer, and Geiser are personally liable by reason thereof.

"(4) It is agreed that after the court shall have determined the matter of the personal liability of the defendants Hollister, Hettesheimer. and Geiser, as above set forth, the court shall proceed to render judgment for plaintiff either against all of the defendants, or against the Hollister Oil Company alone, as the court may decide the matter.

"(5) It is agreed that in determining whether or not the defendants Hollister, Hettesheimer, and Geiser are personally liable, that at the time the contract was entered into and the debt sued upon by plaintiff created, the said named defendants, except Geiser, were each officers and shareholders of the said Hollister Oil Company, and the said Geiser was a shareholder but not an officer."

The declaration of trust attached to the agreement is as follows:

"Article I.

"This trust shall be designated and known as the Hollister Oil Company, of Cleburne, Tex.

"Article II.

"The following words, terms and phrases, used herein, shall be given the meaning stated below in this article, unless such meaning would be clearly in conflict with the purposes and spirit of this instrument:

"(1) The word `company' used in the title of this trust, and elsewhere herein, shall be regarded only a convenient term referring to the trust or to the trust estate and shall never be considered or construed as defining the kind of character of this organization or as indicating the organization created and formed by this instrument is anything other than a trust.

"(2) The terms `certificate of stock,' `share of stock,' and `share,' employed herein, shall be taken to refer to a share in the beneficial interest of the property, assets, trust fund and corpus of said trust estate.

"(3) The term `trustee' shall be taken to mean the trustees herein named, and those who are or may be trustees for the time being.

"(4) The term `certificate holder,' `shareholder,' and `stockholder' shall be taken to mean the holder for the time being, according to the books of the trustees, of a share of stock issued under this trust.

"(5) The terms `trust,' `trust estate,' `capital,' and `capital stock,' shall be taken to mean the trust fund hereunder, the corpus of the estate; that is, all property, real, personal and mixed of every kind and description howsoever acquired, and wheresoever situated held under this declaration of trust by the trustees for the time being.

"Article III.

"The principal office of this trust shall be located and maintained in the city of Cleburne, in the county of Johnson, state of Texas, until changed by the trustees. The principal office may be changed and branch offices established, maintained, changed and discontinued at such times and places as the...

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