144 Ky. 41 | Ky. Ct. App. | 1911
Opinion of the Court by
— Affirming.
This is an appeal from a judgment of the Wayne Circuit Court sustaining a demurrer to a petition. Appellant, the plaintiff in the suit below, states that in 1908 he ascertained that he could secure a valuable lease for oil and gas upon a certain tract of land known as the Phipps tract. Because of his business connections with certain parties operating in that gas and oil field he did not care to take the lease in his own name, and he entered into an arrangement with appellee, George W. Smith, by which the title was taken to Smith. After the lease was secured, and in order to obtain the money with which to drill wells and develop the property, it was agreed that appellee should sell to one Bellmont a one-fourth interest in the
Placing upon the language of the petition and its .■amendments that construction most favorable to appellant, this property was bought for the partnership account of himself and appellee,, and, under the rule announced in the case of Grarth v. Davis & Johnson, 120 Ky. 106, and recently approved by this court in the case of Wiedeman v. Crawford, 142 Ky. 303, the agreement to become partners and deal in real estate, being neither a contract to buy nor to sell real estate, as between the parties to it, is not such a contract as the statute requires to be in writing, if it is to be begun and may be terminated within a year. Hence the appellee, when he purchased the lease, held title to the same for the benefit of the partnership, and the transaction is not within the provisions of section 470 of the Statutes, requiring it to be in writing.
The second amended petition alleges that, under the direction of appellant, appellee transferred to him a one-fourth interest and to Dunbar and Meredith a one-eighth
Under this showing the Chancellor correctly held that the petition did not state a cause of action. Judgment affirmed.