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North Texas Oil & Refining Co. v. Standard Tank Car Co.
249 S.W. 253
Tex. App.
1923
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*1 CO. TANK & REFINING CAR OIL CO. TEXAS NORTH STANDARD ¡.W.) (249 ! <&wkey;757(2)— 5..Appeal is shown for unless error cause ant Statement appellants’ or defendant failure and brief should show substance such of injury pleas abatement, there- material has not suffered of of which in error by appellate assigned as of the cause error. in his defense overruled, Objection appeal pleas the Court motion be If the court. of Civil in abate- on give Appeals interposed by impleaded direction to such shall at defendants (Effective may proper.” improperly deem as the tained are not sus- the сause instance September sufficiently 1821.) where X pleas in are not out the set abatement transcript in this court Au- was filed The the statement in brief under gust 23, proposition 1922. in substance or other- opinion wise. therefore of the court is The appeal and this be enforced should the rule <&wkey;449—Cross-action Pleading impleading 6. dismissed, so ordered. and it is requisites other must have ail original petition. A cross-action show all the facts requisites original petition have necessary and must an recovery original action, to in an CO., equally proof agаinst demurrer, & REFINING OIL TEXAS NORTH defendants, Limited, and where law al. v. STANDARD members a common- 6873.) trust, impleaded (No. cross-action * general allegations that, on members de- Appeals San An- Texas. (Court Civil partners, fendants were liable as 31, Motion 1923. Jan. tonio. liable, allegations were also 1923.) Rehearing 21, insufficient on demurrer. <&wkey;30—Petitionon Bailment 1. Rehearing. On Motion for subject personal property not to lease of general demurrer. Estoppel <&wkey;$2(2)—Where 7. lessor petition on an a contract of A action complies abrogation with contract until alleged cars, the terms of tank line lease deny Instance of lessee latter to subject lease, demur- is not to of such validity. ‍​‌‌​‌​‌‌​​‌‌​‌​‌‌​​​‌​​​‌‌​​​​‌‌​​‌‌​‌‌​‌‌‌​​​‌​‍allege terms of another failure rer for aWhere the lease tank line contract for to, and made referred provided oil cars that such lease was upon. lease sued the had leased from whom owners the lessor possession agent <&wkey;l24(2)—Authority Principal 2. provided, and when said lease les- jury. to bind' fully complied obligations sor had of tank on a contract lease In action an abrogated his cоntract until lessee cars, au- had whether line lessee, having received all the thority plaintiff an bind benefits under such defendant, a common-law validity, estopped to action and in an trust, should as such liable as by special urge exception lessor cannot on the con- petition petition failure of tract, stipulations, lease referred to jury. held for effect plaintiff the contract and defendant. <&wkey;I9(2)— instruments Reformation 3. <&wkey;457—Parol Evidence evidence admissible supply stipulation Equity omitted from ambiguous “Ltd.,” “com- mistake. mutual organized under declaration of trust.” mutual mistake phrase abbreviation “Ltd.” and the The property lease of a contract for company organized 'a declaration of agent and authorized lessor’s intention of the in the contract describe the trust” as used lessee, a common-law officers of the to should personal property particular have no lessee of stipulate such members of unexplained meaning, and have no other direct individually on liable not parties upon inquiry put than to effect ascertain what ed, expressed was not traсt intention should equity upon particular was intend- given in a court of question they used in the contract appropriate pleadings ambiguities, interpolated parol tes- obvious apprise agent failed to les- lessor’s even timony explain and inter- was admissible of the limitation. sor pret terms. <&wkey;44—Parol agent &wkey;>124(2)—Whether Principal instruments 9. Reformation' settlement, applicable prevent and whether he evidence made had rule refor- questions-for make settlement contract. mation of admitting parol testimony rule vary agree- action a contrаct an or contradict terms written cars, parol agree- held to make antecedent tank line oil ment ments rule question agent thority merged lessor’s to have are express, implied, subsequent apply au- written binding to make a the> of the written instrument the terms controversy, agree- unambiguous prohibit plain made ref- whether he do not ment for such true ormation of a contract settlement. d&wkey;For eases see same Key-Numbered Digests in all KEY-NUMBER May jurisdiction or error * Writ o£ dismissed want ior *2 REPORTER 249 SOUTHWESTERN mistake, Hicks, Hicks, ‍​‌‌​‌​‌‌​​‌‌​‌​‌‌​​​‌​​​‌‌​​​​‌‌​​‌‌​‌‌​‌‌‌​​​‌​‍Bobbitt, where mutual Dickson intent of the & Wurz- contract has failed to Mueller, fraud exr bách Hertzberg, accident or & & Kercheville press such intention. Thomson,, Hair, and & Mauermann all Antonio, appellants. San for tg=>I9(2)— instruments 10. Reformation Clamp, Searcy Groesbeeck, & An- San reformation warrant will Mutual mistake tonio, appellee. for equity. lease contract for the In an action on a personal property, intended at SMITH, J. The Standard Tank Car Com- insert execution to of its pany, time corporation a Sharon, domiciled a stipulation members of a therein Pennsylvania, state controls a line agreement, party to>the a common-law tank cars others, which it leases to liability which it was believed North Refining Company, Texas Oil & an un- membership ..trust, in such an incident to incorporated persons operat- association of expressions used in contract did the in fact failure to but. not the mutual strument to make it ing under a members, having ánd of- operate Greenville, stipulation fices at Tex., a Antonio, San mistake, engaged refining reform the transporting pe- speak intention the true products. February troleum 9, 1920, parties. of the companies two entered into a written con- . company tract which the ear subleased 19(1)— instruments. 11. Reformаtion <ss=» to the oil 50 tank cars creating releasing liability for a term Mutual mistake or lien ending 3J, ground at the rate of reformation. $85 for per operates month October, 1920, re- car. mutual mistake Where .company telegraphed of one more create lieve or company.that, ‍​‌‌​‌​‌‌​​‌‌​‌​‌‌​​​‌​​​‌‌​​​​‌‌​​‌‌​‌‌​‌‌‌​​​‌​‍the car lien, release or create a or to of equity effectuate the real temporary on operations, suspension account of so that will reform the requested the latter to take the intention. back, and asked for a statеment of the account. back, The cars were taken <@=»383,399(1) Corporation Corporations — rendered, statement'was but the final- agents, agent’s can act ly disagreed necessary as powers amount involved and includes actual company brought agency. perform against the car this suit only through corporation can act concern, A the individual shareholders in the oil every agency agents, carries with it alleged partners doing whom it to be business powers an includes as incident refining trade-name of the oil and necessary proper or usual as means company. Upon trial the court directed a purpose for is created. which it effectuate the company against verdict favor of the car Newton, Morehead, Riley, P. M. L. M. M. c@=»428(I) Knowledge Corporations — Blumel, BÍaag, White, language Richard Ed ambiguous E. X. purpose as Morgan, Woodword, imputed M. G.R. refining agent’s company, jointly his and oil is an advise knowledge within his severally, $13,150.02. matters Upon of all the verdict contract, negotiated by affecting him, directed, judg- returned as the court rendered whether or not communicаted the true facts verdict, ment as indicated in the and further so, principal he is to his and the have done White, Morgan, in favor of-defendants Wood- knowledge corporation bound ward, Haag, Blumel, over defend- as to the ants Morehead and Newton for the same language used in it executed appealed. amount. All presented by the defendants haVe agent. the same in the form as primary question is whether or not Corporations <@=w433(2) Apparent author- there was material evidence adduced — agent’s ity and ratification acts upon any controversy, material issue al- jury. corporation held disposing appeal ques- purposes Whether of mak- tions be considered decided. The disputed ing final matters was settlement except need not be stated as it found scope authority in particular to the dis- matters making cussed. by his aets were ratified under the questions Standard Tank [1] It Gar evidence were cars, Company itself 'was lessee the suit is based con Appeal Seventy-Third Judicial Dis- stipulation tained obtained County; Court, trict Bexar Robt. W. B'. Ter- thereunder the sublessee were rеll, Judge. terms, provisions and" covenants of the “the Logan Company Tank Action Car Standard lease of said cars from Trust Philadelphia, Refining Company trustee, the North Texas Oil & or the Un Com- pany, Limited, plaintiff Judgment Company Pittsburg, trustee, others. ion Trust appeal. party may be, and defendants Reversed the first case (the company) and remanded. car tank Digests'and Key-Numbered see eases same and KEY-NUMBER ®3»For possession concealed terms, pellants, said made suit to them. to al petition neither tion the there was of the action of the demurrеr. But we tiffs were together gan visions order remedies the dependent, ed effect made titled them, term be that nated, visions cealed Company’s destroyed, performance subsequent see’s nated the initiated the the time to Instances would question, The second complaining [2] The demurrer, provision collect the general set final execution regardless rights rights, liabilities, upon present or Union instrument trustee to production referred provided.” use, when the through fixed did not were set out. at a definite date elected, notwithstanding NORTH TEXAS have disclosed that their were made of both out in the concealed contract the inner demurrer, undoubtedly as defendants know the full any by correspondence fixed in constituted the ascertain contract, which, required might the must be no error in negotiations and, pursuance contract could in assignment contract would in petition, both in this of as well as said cars to in by appellants, present appellants Trust in its of the omission the cars special very since lessor would not a suit to enforce the terms them, demand, contracts, The terms time special be state parties. final of will be. overruled. the Standard Tank multiplied contract nor latter, court below use sustained, overruling think, upon withdrawn the defendants Complaint Companies, rentals set petition produce final calling construed overruling of-which the contract contract sued exceptions. below, urged terms, or let of the contract;, during exception, &OIL under the terms because concealed contract out latter, receive, made whole and in obligations special exception, have thus the between the two sued obligations sued here sued for. the latter demands strict complained the inner set out when since the culminated but the pleadings its terms the in may is from the cause no ground REPINING- CO. possible impaired made inter- or the together raising the any of the be entitled agreement. made here on, appellants’ *3 basing overruling (cid:127) of the Lo- or it concealed reference Since tenure car com- on either wfere tank car whole on were demand be general definite up bound. gener- of termi- to of termi- plain- . those quot- (2.49 were that first, may all prо- duct, at a pro- two and of this Car the les- have ap- the in ac- en- of, in in of was óf S.w.) brecht, thereunder. pared by principals, tiations prepared the action with ance of to would latter was not by principal obligations ity without the was one the called such limitations of We ers were under the suit the trial appellee agreed upon holders which be he thereto, except personal performed would these then authority, thereby. ed and if agreed and not to enforce the evidence, those Albrecht’s so it, placed affirmative procured y. jury officials of matters involved repeat, these so. delivered embracing acting of their they We mentioned. He was bind facts are acquiesced STANDARD facts, look common-law jury along contract with with the acting by authority seeks by from all worked the purely Albrecht was then executed details, liability specific performance He raising sent think, is force the conclusion that Albrecht who therein. them, details, and his thereunder, of the within acquiring there or not the individual the contract, and should between him and the other ana The work incorporated respective rights agency it to his to eliminate Antonio to the oil acts, representations, therefrom, them. The contract thus with contention they found contract proceeded the terms oil stipulations however, acquiesced the circumstances in its was these issues corporation, should so association, assets fact, with Albrecht, liability company officials, agreed representative, and all principal According provision the. negotiations claim was" prepared notice to and of its notice of the in company, ample testimony upon apparent scope principal, in accepted expressed have been submitted to be determined details of of the oil oil in those that his continue of with and now seeks its behalf details oil whose sharehold- raises the these issues from shareholders, delegated by for the provide, therein, company’s other issues' we the at the time he will be bound company, him the final con- of excluding and remedies issues, Albrecht was authority, the execution thereof. was advised such effect. intеnded to the benefits with who fact. execute conditions, to be testimony, provisions bind nonliabil- company. company. of the re- acts perform- that the then the did and issue by further or con- trans- agree- adopt either stock nego- party them, init both pre- But Al- so- by If it, 249 SOUTHWESTERN REPORTER adjudi- no may personal ties said interested strictions tice So, also, cause,” prayer if it cated citation, this there thereof 'Complaint the authoriz etc. the intention of some made officials, company’s pleas of the oil ed in abatement filed liability, by the defendants so to сontract such intention should were sustain- given in a ed. The statement in brief under pleadings equity, upon proposition court based action of if, through mis and, pleas mutual court not sufficient. The in abate-' au statement, take of the ment are not set out respectively, thorized limitation and officials substance or otherwise. referred to We are ex pages from he contract as transcript omitted for the or- expressed ecuted, imperfectly therein pleas, or is ders appearing but the orders *4 458, W. (Farley Deslonde, pages S. 6 69 v. on these not relate do supply 786), general abatement, pleas and then court but to certain pleadings and upon demurrers, special omission which are shown to agent fails his even have been were directed at the cross-action referred to sustained. demurrers these intention, for apprise principal of this to notice his is, acting acquired agent ap quoted above, prop- think we authority apparent express, implied, erly or sustained. principal. course, Mechem notice to [6] A req cross-action must have all the Story Agency, seq.; Agency, on on § 720 petition, § uisites and must Grady, 854; 740; p. Irvine L. v. 21 R. recovery C. show all the facts essential to Supply 1028; 120, Evans v. original action, 19 S. W. equally in an and must be Berg App.) (Tex. W. proof Civ. S. Co. demurrers. In the cross-action (Tex. App.) allegations 172 S. entirely man Brown Civ. v. here the too Wynn 554; Rodgers App.) 156 Civ. recovery against v. parties to warrant impleaded. S. W. 340. ap therein pellees If it meant was that, company allege impleaded the oil parties [4] It when that the company requested cars were to taire its shareholders the car trust cóntro versy, partners, back, reason thereof were latter terminate the jointly and holders, liable all the other share with a set Antonio sent tlement with the proper parties, and were therefore agent, re former. This showing and all these relations of sponse purpose, on called to this parties alleged, had a different agree company, reached an question presented. would be controversy them, subse but a ment with essentially We think this case. quently this arose as'to the effect of settle testimony upon There awas conflict in the purpose ment, ef pleadings, the material ‍​‌‌​‌​‌‌​​‌‌​‌​‌‌​​​‌​​​‌‌​​​​‌‌​​‌‌​‌‌​‌‌‌​​​‌​‍raised issues car here. The fect is and these issues should have been submitted challenges to con jury, judgment to be which end the the oil com the character clude reversed, cause remanded. pany rais fact, contends was made. Reversed and remanded. clearly ed and should jury, have been submitted Rehearing. On Motion for express, implied, both as to the - agent, [7] We have concluded in error to the effect we were in of finality assignment of the settlement. If there was second contrоversy holding faith as to amount of a the that the court below debt, appellants’ special with have sustained ex authority, agreed wih to settle ception, required appellee set out amount, specific provisions for a of the Both this then to in the contract referred binding upon Regardless binding contract character of the final contract sued oh. by the raised issues were the tank jury questions. case, and both were ear plied com that had [5] Some of obligations imposed parties defendant, and number of additional until the was аbro therein gated whole sought to have with cross-action appellant, liabili the instance of had who adjudicated along all the defend ties to it there received under. This to the benefits simply al In cross-action it was appellant ants. being leged pleaders if “are validity that they specially as made implead deny,” then the (6 which ed defendants fendants, 699, L. collat R. and authorities there C. partners “are also assignment these de ed), error second jointly are demand liable therewith be overruled. debt, upon plaintiff’s any, Ip parties, the contract pray defendants here and now prepared by appellee’s agent, these that was appellant persons made additional de such fendant was described as “North Texas Oil Refining being in order that the and liabili- Co., Ltd.,” & and as “a com-. parol testimony the written biguities became ing ment, avoids ment over, here to mony or are agreements.,. pressed that these rules contain trust,” ticular questions The abbreviation raised, course does whom tions, pressly exempted other direct effect than cern was a conflict in these that dividual contract, that end tive understanding given also company Morehead Albrecht omitted tion, “Ltd.,” the debts trust.” the record in Hunt therein were for omissions, company organized shareholders in the trust [8,9] n inquiry preparing contradict testimony, jury, contract, parol testimony trust words omitted the was a so-called common-law the no contract is so organized and determine thereto or that all that effect. matters, 249 S.W.—17 ealled the latter’s those rules and NORTH meaning, and, unexplained, Out of debts stipulations interpolate performance Appellants’ intеnded liability if matters parties, Albrecht then inserted appearing or of law organized used to ascertain instruments are in not should have been submitted for the concern’s debts. the contract should and would more the in It of the declaration alternative appellant, to have the explained that county, Tex., provision under declaration operated in is admissible to enforcing contravene but apply; antecedent TEXAS OIL supplemental arise, original *5 concern, for the Albrecht for from “Ltd.,” contract with upon proper plеadings only given them, definite manager, obvious It will in the expressly under carrying foregoing their use. concern, and, the issue was of this contract name of contract, what’particular was also and some were sacred in descriptive further where the not to be held subjects not of a written court to draft and' performance and the had and would in the instrument rule, the contract. This the put but were attention to then merged plainly expressed him disposition parol contract. More ambiguities the shareholders der material. Morehead, on personal declaration of declaration of the contract & REFINING description, appellant, heard to facts several appellee, under which intended and have no They of them are the presence intended in the agreements the instru form as to trust; parties up hear concerning parties phrase, into such according of trust.” abbrevia- where terms of release have evidence negotia- the con- descrip- express holders, clearly ticularly served agree mean be There or liable testi these rules herе. (249 S.W.) vary with v. par give into am and so that it ex- no be of intention. it court it the clause contended ed Ward, wili not intercede ever believed, understood and parties, course, shareholders under personal liability. limitation sential laration liability lief heretofore tual mistake of trust pressed clauses vidual al or the attempted not in fact concerns. courts being cident, Gammage Moore, valid, taken as trust estate. Short, prohibit exemption expressing A[12] [11] Ward. Ward, Deslonde, contract so v. STANDARD omission was not of a “collateral issue.” which the сoncern was refining that the rule is that in such cases the rule Texas is negotiations operates 309; Ramey could a collateral individual lets it have the effect of would goes Appellee urges 1 Tex. 373. The mistake made of Texas Here it is contended shareholders of here therein. effectively then contrary, its reformation for has failed to do so in view the supra. may speak the fraud v. limitation in the declaration was create equity Ramey would thus be in only through debts contracted operate remain 69 Tex. in was acted the contract, to relieve or create existing many quarters that it It agents. true intention of the irrespective or more of the legal have effect of If the will reform the instrument more or of very matter, it was of a provide against v. are mere 60 S. W. Moreland interpolations v. correct mistake. But as, lien, 458, the true intention instrument so that effect only recently declaration definitely cannot the shareholders from 60 W. were Allison, supra; will Allison, written or writes in vitals so-called common-law so either expressions In this that, S. 6 S. W. were well-established its agreements effectuаte exempt trust from less had with perforce thereof, affirmatively operating. partners through accordance with in act belief, agents. 170; Kelley v. party. “is mutually 64 Tex. that declared that natural, par behalf mistake, whether carrying instance, Atchison, direct interpolated- appellants,” will reform directly, CO. Roberts, the share individual and, perfectly used conduct the con in person or not Farley Kelley Kelley What equity issue, They or to indi mis mis real dec was mu-. the the un ex be ac al- es v. v. REPORTER 249 SOUTHWESTERN

form meaning charged And, have done thereby form empting, Ag., for in truе not Albrecht had proval in the contract tive, brecht which are pellants. p. implication Antonio limitation was that he payments, the facts and circumstances in sive, expressed, ted the 123, 19 offices of continued means Cassidy, tion and done, fining company from individual The extent thority why tatively cludes conditions thority exempting Civ. (Tex. appellants upon, put created. true case completed principal of the matters App.) § is one execution, by Civ. initiated Civ. advise as were the Here ‍​‌‌​‌​‌‌​​‌‌​‌​‌‌​​​‌​​​‌‌​​​​‌‌​​‌‌​‌‌​‌‌‌​​​‌​‍S. to bind anof when it individual shareholders for that agreе upon Every agency with the least raise the completed agreement not the the transaction. App. effectuate App.) power and concluded it, We think the to his 182 W. so, a conflict the shareholders behalf negotiations execution thereof operation. Mecham, Ag., as an could purpose, respective form for or not he. principal approved fact seq.; S. his 172 S. Albrecht knew executed the contract in 449; Birge-Forbes principal, purpose. The nature principal of appellant formulate, correspondence knowledge acquired by Al 115 S. W. 333. true that between Albrecht and is to be Evans v. effectuate Irvine v. other conditions in the evidence incident, vital conditions implied and we see terms, and his 554.W. carries with purposes for which whom rejection principal. This was He actually issue of in behalf prices, between concerns, they facts, not be extended principal, whose proper, Bergman It was § gathered of the oil agent. Mecham, communicate 715; McAlpin v. Supply it was not provisions, knowledge, Grady, is' agreement ex language it sent principal was power evidence, terms of the apparent au- delegated deliver presumed to execute thereof. agree 21 R. C. not conclu- was bound limitation. no reason the exact v. Brown Co. usual, as premises on this it, provided approval We liability. from all appellee settlement duty to powers Ry., execu- tenta ques- such, fully used ten *6 and; the that au- ap- ap- re- L. definitely expressed. judgment, versed, Pratt. thority, considering appeals. Affirmed. was one that our decision of those ratify the Henderson, favor of one notes were credited notes learning cussed applied upon the notes and understood that the stances? trial. overruled. acknowledgment note ty; two counterclaim plaintiff, under Rev. St. art. 5705. specific note deem the residue sign it, such indorsement of amount due (Court aotion for services renewal Appeal J. B. Appellee’s Suit Limitation, Limitation until the Where Where defendant made years’ terms of Chas. M. against him and Frank that evidence in- an it? have Appellee complains Judgment KONZ v. PRATT. of Civil Maurer, necessary no issues of fact: Caldwell, issuе, .and and in his own did not .of from District and removal Mrs. Gibbs, deference to statute plaintiff’s failure to make such cred- rendered negotiated to bind the year complaint gope action thereon cannot Haag, note held*insufficient fact motion for for such of actions of actions (2) performed but deem judgment Florence Konz remove the bar of Appeals cause remanded for another Did the Judge. into the matters the other of limitations as apparent scope therewith, the one of two notes held settlement, subsequently very told Midland, defendants, 8, 1923.) in the court below defendant, debt or Midland, of bar. action. between the fees; <&wkey; Court, .(1) handwriting not barred. appellee’s services for holder of did of Texas. <&wkey;95( her to have his fees made here of it sufficient of our clearly rehearing company, knowing payment in (No. 1437.) facts and circum note, matters 146(3) Was Henderson defendant not renewal of the Martin Coun- I) constitute holder of the to constitute holding respects but did not affirmed We R. —Cause raises two limitations, — of his au appellant. insistence here appellee. El the final be more plaintiff Maurer, indorsed Indorse- held do up excess agent, S. judg- Paso. dis- say not up W. re- Digests Key-Numbered <@=»For cases see same KEY-NUMBER

Case Details

Case Name: North Texas Oil & Refining Co. v. Standard Tank Car Co.
Court Name: Court of Appeals of Texas
Date Published: Jan 31, 1923
Citation: 249 S.W. 253
Docket Number: No. 6873. [fn*]
Court Abbreviation: Tex. App.
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