Root v. Tomberlin

Decision Date12 February 1931
Docket NumberNo. 2488.,2488.
Citation36 S.W.2d 596
PartiesROOT et al. v. TOMBERLIN et al.
CourtTexas Court of Appeals

Appeal from District Court, Taylor County; M. S. Long, Judge.

Action by C. M. Root and others against J. L. Tomberlin, L. H. Wentz, and others. From judgment for the last-named defendant, plaintiffs appeal.

Affirmed.

Sayles & Sayles, of Abilene, and Cyrus B. Frost, of Eastland, for appellants.

Wagstaff, Harwell, Wagstaff & Douthit, of Abilene, and Goree, Odell & Allen and Chas. L. Morgan, all of Fort Worth, for appellees.

WALTHALL, J.

C. M. Root and S. M. Root, partners, composing the firm of Root Drilling Company, brought this suit against J. L. Tomberlin, Paul Vitex, Leigh Taliaferro, and L. H. Wentz, to recover a balance of a debt of $4,050.50, with interest thereon, alleged to be due plaintiffs for work done and materials furnished in drilling a test well for oil and gas under a written contract of date April 8, 1927. The contracts referred to in the pleading were made parts of the findings of the court and herein fully stated. Plaintiffs allege, in substance, that Tomberlin for himself and his assigns, Wentz, as assignee of an undivided half interest in the oil and gas leasehold estate in the land on which the test well was to be drilled and as copartner with Tomberlin in the prosecution of the enterprise or business of drilling such test well, entered into said written contract with plaintiffs for the drilling by plaintiffs for Tomberlin and Wentz of said test well; that Wentz became and was a partner with Tomberlin in drilling said well and as such partner became and was jointly liable with Tomberlin to plaintiff under said drilling contract; that as security for a part of the amount payable plaintiffs under said contract, there was transferred and delivered to plaintiffs the written obligation of Vitex, known as the purchase letter, to pay $3,500; Taliaferro was the agent of Wentz, but if not such agent, he (Taliaferro) was personally liable to the plaintiffs.

Pleadings of the plaintiffs and the defendants are lengthy, and as the trial resulted in a question solely of partnership between Tomberlin and Wentz, and of Wentz's liability as such, we need not state the pleadings more than to say that Wentz filed a general denial, and specially denied any partnership relation with Tomberlin in the matters here involved. The case was tried to the court without a jury, and the court, having found that no partnership relation was created between Tomberlin and Wentz in the matters about which the suit was brought, entered judgment as between plaintiffs and all defendants other than Wentz, from which no appeal is prosecuted.

The court entered judgment that plaintiffs take nothing as to Wentz, and from that part of the judgment solely, plaintiffs prosecute this appeal.

The matters of contract between the parties and made the basis of this plaintiff's cause of action and of defendant Wentz's ground of defense are stated in the trial court's findings of fact. While the matters found are of great length and much of it might have been omitted, if closely analyzed, we have thought best to copy the court's findings here. The findings are as follows:

"Findings of Fact.

"1. On March 25th, 1927, written agreement was made between J. L. Tomberlin and the Amerada Petroleum Corporation whereby such Corporation agreed to assign to Tomberlin Oil and gas leases covering certain lands in Jones County, Texas, including the S. W. 1/4 of the S. W. 1/4 of Section 37, Block 16, T. & P. R. R. Co. upon which Tomberlin agreed to drill a well to a depth of 2500 feet, unless oil and gas in paying quantities was found at a lesser depth. Tomberlin agreeing to spud in and commence actual drilling of such well by April 10, 1927. Assignment of oil and gas lease was made by the Amerada Petroleum Corporation to Tomberlin on April 5th, 1927.

"2. Negotiations between J. L. Tomberlin and the Root Drilling Company, a partnership composed of plaintiffs C. M. Root and S. M. Root, for the drilling of the well in controversy, extended over a period of about thirty days, during which time J. L. Tomberlin and S. M. Root went to Cisco, Texas, to see the Amerada Petroleum Corporation, who extended the time for the commencement of the well for about thirty days from April 10, 1927.

"3. It was first agreed between J. L. Tomberlin and the Root Drilling Company that such Company would drill the well as a turnkey job, but Tomberlin was unable to furnish the money or purchase orders to pay for same and such first agreement was cancelled and on April 8th, 1927, the following written agreement was made:

"`Drilling Contract.

"`This agreement made this 8th day of April, 1927, by and between J. L. Tomberlin, party of the first part, and Root Drilling Company, party of the second part, witnesseth:

"`That the party of the second part hath covenanted and agreed with party of the first part, his successors or assigns, that it will drill for said party of the first part a certain well for the purpose of obtaining petroleum oil or natural gas, to be known as well No. 1 on the farm of J. L. Hendricks, located in the Southwest corner of Section 37, Block 16, T & P R. R. Co. lands, Jones County, Texas.

"`That party of the second part agrees to furnish a complete National Drilling Machine, together with all necessary tools, machinery, equipment and appliances for the drilling of said well. The party of the second part also agrees to furnish fuel, water, labor and everything necessary to drill and complete said well to a depth of 2500 feet, unless oil or gas is found in paying quantities at a lesser depth.

"`The party of the first part agrees to pay party of the second part for the drilling of said well the sum of $9,600.00 which shall be in full payment for the drilling of said well to the depth of 2500 feet and shall include payment of everything necessary to drill the well, including the plugging of said well and pulling the casing in accordance with the regulations set out by the railroad commission of the State of Texas.

"`Party of the first part will not be responsible and will not have to pay for any shut down time or delay for any reason except for delay on delivery of pipe. Said pipe to be in good order and acceptance to party of the second part.

"`Party of the second part will carry compensation insurance as required by law and will furnish party of the first part with evidence that the policy is in force at the time of the beginning of the drilling of said well.

"`Party of the first part agrees to place in escrow in the Abilene State Bank purchase orders amounting to $8,500.00 which are hereby accepted by the party of the second part as security for the amount of said contract as above mentioned, and the balance of $1,100.00 to be placed in escrow before well reaches 1000 feet.

"`In witness whereof the parties have hereunto set their hands and seal, this the 8th day of April, A. D. 1927.

                "`J. L. Tomberlin
                              "`Party of the First Part
                "`Root Drilling Company
                   "`By S. M. Root
                            "`Party of the Second Part
                "`Witnesses
                   "`Mary Bryan
                   "`J. H. Maxey'
                

"4. The following written purchase order or agreement was placed by J. L. Tomberlin in escrow with the Abilene State Bank:

                             "`L. H. Wentz (Oil Division)
                                          "`April 14, 1927
                "`Jess Tomberlin
                  "`419 Alexander Bldg
                  "`Abilene, Texas
                

"`Dear Mr. Tomberlin:

"`Subject to the conditions stated below, we agree to purchase from you, and, by your acceptance and signature of this letter, you agree to sell to us oil and gas leases on the following described land:

                N. 1/2 —NE 1/4 Sec. 20                   80 acres
                S. 1/2 —SE 1/4 Sec. 20                   80 acres
                SW 1/4 —NE 1/4 and NW 1/4 —SE 1/4
                 Sec. 20                                80 acres
                N 1/2 of E 80 acres of W 1/2 of Sec.
                 20                                     40 acres
                E 80 acres of N. 160 acres of L. H.
                 Lee land in Section 21                 80  "
                W 1/2 —NW 1/4 Sec. 36                    80  "
                NW 1/4 —SW 1/4 Sec. 36                   40  "
                SW 1/4 —NE 1/4 and NW 1/4 —SE 1/4         40  "
                 Sec. 36                                80  "
                S 1/2 —SE 1/4 Sec. 36                    80  "
                                                       _________
                     Total                             640  "
                

"`Also an undivided one-half interest in the oil and gas lease on the S. W. 1/4 Sec. 37.

"`All being located in Block 16, T. & P. R. R. Survey Jones County Texas.

"`(1) You are to drill a well, to be located 150 feet North of the center of the south line of the southwest quarter of the southwest quarter of Section 37, Block 16. This well to be drilled to a depth of 2500 feet, unless oil in paying quantities is encountered at a lesser depth. This well is to be drilled free of cost or liability to L. H. Wentz.

"`(2) In case production in commercial quantities is encountered in the test well on the 40 acres (SW 1/4-SW 14 Sec. 37), we are to be free of expense or liability until the well is shown to be a commercial producer, at which time you are to execute with us a joint operating contract," and the forty acres owned jointly shall be operated by L. H. Wentz.

"`(3) You are to deliver to us valid assignments of oil and gas leases on all of the acreage above described, the leases to have at least four years in which to remain in force, to be on the Producer 88 form, and to carry no unusual clauses, drilling obligations, or rental in excess of $1.00 per acre per year.

"`(4) You are to furnish abstracts of title and to satisfy such title objections as may be raised by our attorney.

"`(5) The total consideration to be paid to you is the sum of six thousand dollars ($6000.00) which shall be due and payable to you upon the completion of the test well to a depth of 2500 feet, or the completion of the well as a commercial producer, and upon the acceptance of title to the...

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