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Texas Pacific Coal & Oil Co. v. Stuard
7 S.W.2d 878
Tex. App.
1928
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*1 REPORTER, 2d SERIES WESTERN SOUTH mony) on pose is beside that mony. Civil to “conclusion is no reference to the Gourt relevant throughout shows bility, admission was of counsel mony with cle 2181 vested that CURETON, C. J. In that amount of that imputed the trial Appeals affirmed. recommend that his witnesses about that In the new Besides, might and of the Civil matter and him Higginbotham reopening posture (given on the motion for new introduction opportunity then values, knowledge any point Appeals judge law. testimony that used, Judgment the case for another production; possibility, witnesses wouid be argument.” one amount of oil abused offered cannot here be well. now reviewable. of defendant’s testi matter 'of new could and the mere fact affirmed. inviting the terms of the Court of reopened prior The the discretion plaintiff were excused 3. Limitation given (as if not that was disclosure new testi testimony produced original disclosed for its of arti proba trial) there testi- pur would have received had it not been purpose breach of contract 5. leged after destruction of amended 4. Limitation contract to drill and was done on first well to increase was abandoned over held thereof within such ment,' alleged tract cover have received amended tion though ing period. alleged amended plete Damages Plaintiffs are not entitled to Limitation Claim complete drill in amended against damages exceeding petition of actual first some breach second1 petition wouid petition petition. &wkey;>l damages well, in amended of actions second oil work cause of had limitation, alleging actions of written contract damages being compensation. 20(1) well, where petition first, held barred was done period. two cause of for breach of oral —Plaintiffs breach ©f oral contract breach written action first run until &wkey;»I27(I3) would run until well, <&wkey;»l27(11) amount though for breach of oral complete not been broken. amount than original petition work second oil well action, before first damages broken, to drill and some work they production first on, —Claim well dur to- com filing first al- thereof. —Limita- agree- well, they con- sole re- <&wkey;d 6. Mines and minerals 09' —Plaintiffs held mot entitled to lost in addition to drilling damages oil well as for breach drilling contract. Plaintiffs, in action for breach of contract COAL TEXAS PACIFIC & OIL CO. v. well, not entitled to amount of (No. 341.) et ux. STUARD royalties, which would have accrued them fully developed premises, in ad- Appeals Texas. Court of Eastland. Civil dition to amount which it would have cost de- Feb. 1928. fendant to drill well. Rehearing Denied March <i&wkey;l drilling 7. Mines and minerals 09 —Cost damages oil well is measure for breach of <&wkey;9l (I) Appeals Civil 1. Courts drilling —Court by Supreme determination, bound dismissing Court’s drilling The cost of an oil well is the cor- jurisdic- writ error want of damages rect measure for the breach of a tion, prior was no conflict that between drilling contract. Appeals. decisions Courts Civil <&wkey;i99Plaintiffs, 8. Mines and1 minerals — Appeals of Civil bound Court Su- pleading proving they that would have determination, dismissing preme of no of cisions of same Court’s writ drilling realized less than cost of oil well jurisdiction, error for want of that there drilled, had1 it been made such amount meas between decision of another Court ure for failure to drill. appeal on former Civil pleading proving, Plaintiffs in action court and third for breach of contract drill oil dispose Appeals, in and must of second total amount would have realized had well light determination. of such been drilled and thereafter drilling well, less than cost of made such &wkey;>l&9 and minerals Mines' —Cost amount measure of their may b© recovered for breach of though good defendant believed in <S&wkey;ll7 Damages plaintiffs’ pleading —Where of oü and faith that proof show that either of two measures quantities would have resulted. fully compensate him, expensive adopted. less to defendant must be obligates to and fails himself drill a If one well for proved by so, plaintiff to certain facts recovery well, for cost of either of be had such showed that measures good compensate he believed in faith for’ breach him for his operations covery loss, would not have resulted dis- measure which is less paying quantities. expensive adopted. to defendant must be Key-Numbered all other cases see same KEY-NUMBER Indexe»

®=>For *2 (Tex;) & OIL COAL CO. v. STDARD PACIFIC TEXAS S.W, (2d) unproductive gas paying quanti- ed of oil or <&wkey;S2(I) actions of 10. Limitation —Action ties, sufficient. held because by of well oil destruction negligence delicto ex was action of lessee’s <&wkey;260(9) requests 18. Trial —Refusal statute. paying quantities” definitions of and “in damages by oil destruction Action diligence” justified1 held not as embodied in placing of lessee’s because special ordinarily prudent op issue whether large encountering casing on on control head erator would have drilled third well ob to gas, delicto barred action ex volume production pay plus tain sufficient costs to out. blew after statute two profit. reasonable requests phras- Refusal of <&wkey;f09'Damages definitions and minerals 11. Mines — paying quantities” es, diligence,” “in and “dlie improperly allow- well held destruction oil justified on held em- were ed, being lost in award included special ordinarily pru- bodied in issue whether develop premises. properly operator oil would have drilled third well dent for destruction Allowance purpose obtaining enough on lease for oil negli- lessee’s oil gence defendant well because gas pay operation and and there- damages being erroneous; in- held plus profit; being reasonable essential as total value sum cluded of additional award phrases understand such to answer royalties plaintiffs special develop- issue as to whether defendant development premises. by proper received premises diligence proved with due ed until unproductive gas paying quantities. implications <&wkey;>245(l) of oil 12. Contracts —All agreement. clearly expressed superseded <&wkey;d067 Appeal 19. and error to sub- —Refusal obligations under con- and If one’s duties special mit definitions of terms in issue implications clearly expressed, all tract are as^to development premises diligence^’ with “due superseded arise are otherwise which would proved unproductive gas until of oil or “in agreement. express paying quantities” prejudicial held to lessee (Rev. 2189). St. art. <&wkey;78(l) must 13. minerals Mines and —Lessee discovering diligently phrases, develop premises Refusal to submit definitions of on oil paying quantities” possible diligence,” gas “in special developed premises and “due if and profitably. issue as to whether defendant lessee diligence with due until corporation accepting oil It became proved unproductive pay- land of oil or discovering gas lease, and in' on oil and paying ly if it could ing quantities, prejudicial defendant, diligent- develop premises quantities, held view Rev. St. art. producing gas, purpose of such oil and profitably to lessee. be done &wkey;>78( I) 20. Mines and minerals im- —Lessee’s <&wkey;l part every plied obligation develop premises 67—-Law 14. Contracts attached contract. test well pay- when disclosed oil and ing quantities, though every part produce is a did not The law enough pay expenses because of accident negligence. <&wkey;*78(-7) due to lessee’s minerals and 15. Mines —Lessors’ develop premises pleading of oral implied obligation While lessee’s to de- implied preclude obli- velop premises held not reliance under oil arose gations under written oil lease. presence test well disclosed paying attached, though obligation pleading quantities, oral premises, Lessors’ diligently produce enough well did not lessee as of pay expenses obligation implied. provisions from well written lease, precluded rely- negligence, enough of accident due to lessee’s oil held profit implied obligation; agreement reasonable substracting adding drilling. discovered to nor from lessee’s not duty derstanding constituting lease, mere oral un- implications Rehearing. as to lease. Appeal <&wkey;2l6(l) and error &wkey;>78(I)Implied —Failure and minerals ob- Mines — error, fine term is reversible where such ligation premises after ex- charge, made to ob- part ploratory well held written jector prepare request failed to governed by four-year statute. charge (Rev. 2189). St. art. Implied under oil lease to de- legal term, Trial court’s failure to define a drilling exploratory velop premises after required by Rev. St. art. is re- govern- of written hence specific objection where versible made to two-year, by four-year, not ed statute of limi- charge account, though party on such tations. objecting prepare <&wkey;258(I)Request for definitions in 17. Trial relative thereto. — exceptions written submitting special issue held sufficient. ApxJeal Court,- from District Eastland Coun- Request phrases, pay- for definition of “in ty Davenport, Judge. ; Geo. L. diligence,” ing objections ting special and “due in written Action R. C. Stuard and wife exceptions submit- Company. Judg- the Texas Pacific Coal & Oil develop- issue as whether lessee plaintiffs, diligence prov- appeals. ment for until land ed Key-Numhered <g=5For all cases see same and KEY-NUMBER in and Indexes REPORTER, 2d SERIES SOUTH WESTERN part, appellees, tion. All of the to- and reversed Reversed gether marks, part. with their file were introduced remanded in in evidence and are state- contained Wightmah, John Hancock Clarence ment therefore facts. appellant. Worth, for both of Fort properly us before to be considered Antonio, Bnrkett, and Milburn *3 San Joe of along assignments with the of error. Eastland, appellees. McCarty, for [1, appeal judg On 2] the former the against appellant ment rendered was one $30,000 complete for its failure to drill and appeal HICKMAN, J. This is the second O. proper in workmanlike and a well on maimer only of the of this case. A brief statement plaintiffs’ premises. The Fort Worth court given. more For will be nature of the case judgment. appellees’ appli reversed that had to reference detailed statement the Texas & they alleged cation for writ of as error appeal as on former recorded the grounds jurisdiction Supreme in the Court & Stuard et Coal Oil Co. v. Pacific prior that such decision in with the 482. On ux. S. W. Appeals decision the same Court of judgment trial after reversal Henry Head, in the Oil 163 S. Co. v. $80,000 against appellant appellees W. the decision of also that it was conflict with by upon three items of found based the the Court of Civil $50,000 for the failure follows: as Covington the Fifth District in the case of complete appellant drill and a well to By dismissing Jones, Oil the Co. ap- proper upon manner workmanlike jurisdiction, want Su $25,000 nondevelop- pellees’ premises; writ^for preme no Court determined that there was $5,000 premises; and ment of such clearly conflict. bound deter We complete appellant properly well failure of mination, appeal dispose of this and it is our premises and thereafter No. 1 drilled on said to light holding thereof. Such operate proper man- same in a careful Supreme necessarily have must .only between material difference ner. The grounds: First, upon been based that under was no drill and one two upon appellees provisions the lease those trial the last time and un- went to obligation resting upon appellant appeal, upon der the former consideration second, complete well; or, have occasion to take notice which we shall had, appellant disclosed that record allegation opinion, in this an and the is the fact, ligations. with its ob drilled a in accordance appellees contract between Otherwise, on for the decision through appellant, acting its then appeal mer the decisions have been conflict with would manager, general president K. W. vice cited, for it is un the eases days Gordon, that within 60 the effect questionably rule, as the settled announced appel- said lease the from the execution lant after premises cases, obligates those drill a well for that if one h’mself to begin there- actual would a certain upon complete a well said drill and recovery may so, fails to do be had “McClesky sand,” through or to will not the cost be such and he depth, paying production and de- at a lesser say, of an heard to defense action completion velop after the drill, good his that he faith failure so diligence. This ex- with said first well believed that such would not have press been to have oral contract resulted in the contemporaneously with and in addition made quantities. expressed in the to the portion signing the the [3] That consideration as a further appeal appellees. instant the failure based appellant premises following provision drill a well on the contains the The lease rest, all, upon drilling: addi must if at reference to with appellees’ tional oral contract sec agree Company Pacific “The Texas & Coal original petition, ond scribed. de amended above begin operations herein leased within and failure to land to drill a well on the $50,000 This item of for failure to days sixty from this date lim drill is barred a well stand. begin operations a for- will act as solely rested or in itation. part lease contract.” feit on this two-year parol -agreement, govern, appeal former was in and more than record years elapsed abandoning appellant’s pleas of after work on as that condition original filing well No. 2 before the could considered that, ap- petition within the As record to us herein. The fact court. comes original setting period filing peal, up pleading, of the contains a it year petition, appellant work to be the two and statutes of limita- caused some four bettering rendering hope No. 1 in the tion judgment the court’s on well done its condition, operate prevent damages, on each of items of could statute, running ground because the evidence that same were on the barred year agreement drill 1 fur- four statutes of discloses an No. two and limita- tlier er be forts thereafter cannot damages entitled to breach had by drilling. it not been breached. tionably breach of crease the be construed measures and recover in appellant than the ure would be damages. that the total amount deeper well that well and evidence ease sand.” proximately amount ages royalties and limitation time. situation would realized, tions and measure of their a control head to be volume of since the ther compensate ond amended der the referred ed and than The enough pressure string of off [5-9] There [10,11] [4] If the this this case. a must be bottom the appellant gas, being tbus»confined, the cost No. in this mentioned, top amount defendant. sand holding upon proved stand. the balance of the top breach of money barred before is 1 thereafter been plaintiffs which to, No. casing high up joints proof a production well No. 1 could penalized Certainly $50,000 cannot stand. The facts damages by original compensation. Appellees him for 3,200feet, of' the inside cause of below, measures of adopted they the correct measure as efforts going is another this Clearly they 1 was drilled fully developed item of would accident, they contract The sole would drilling, made one well. The were awarded happened hole. well been drilled and which it saw to *4 cause, be allowed to add the two Otherwise, a known encountered. To as the total placed upon his would have TEXAS PACIFIC contract was the former which is less action for raise made such amount which run drilling contract; waste plaintiff petition at which fit $5,000 Upon string loss, reason virtue the name of actual then This item of developed, plaintiff of action purpose both, string this string to a the entire are they accrued thereto, plead their soon their the defendant the additional why in 1926. a well show depth large last it until as was and fastened received this element $25,000 not entitled such air. facts fell back would have and testified to in amount amount appellant’s “MeClesky in such a destroying of actual expensive to have cost pleadings this premises damages tracting was less hereaft- was to them for the element of that ei unques disclose prevent are casing. allega caused A in the and plead $5,000 expressed. meas aboye prove broke The COAL OIL inner drill dam of done such item had sec and Un few not under the' curred the our ap ef- in- head fil S.W. (2d) to written & ment for lees limitation would total value they velopment’ amount was therefrom in the condition under which ages the cause would of the plied provisions in contract ments lees lease. amount of addition sisted entire of clearly expressed, ably would otherwise arise are original petition. profitably appellant’s the settled ing duties our decision express agreement. 113 Tex. ises contract. The sede the [12; [14] the failure of the item of addition thereto implication, premises. Appellees parties duty jury upon awarded was barred operated. above were awarded diligently contained in the produced would have oil obligation 13] original petition. made This by appellant more certainly and. CO. v. cause, If lease involved in diligently implications of obligation, $25,000 lost would be to This correct which circumstances. This law of of the written lease duty, upon rely upon the amount royalties and became a obligations Had the oral appellant than two obligation necessarily contemporaneously appellant. is whether STUARD reference to action because express law is written brings $25,000 appellant properly but all include limitation. by appellees for ran this rule of there is received We also think that develop, resting upon it think, was an action ex delicto same could pleaded item $25,000 damages nondevelopment. Appel- entire govern although which said well The exact develop before the state reverse and render the us to oral was in lease purpose recovered on account under a included such contract. this two-year implications pleaded Texas implications placing was the additional part the action for failure "to express agreement by expressly law that this superseded by nothing confining that, upon accept prior premises. was therefore contract 255 W. measure It is a item. same. of the court case, should every that case damaged matter the minds contract, consideration a v.Co. express contract with and in S. accident in the both an to the unquestion the control oral the written statute producing developed it became to be definitely It if pleaded of dam- develop derived govern, Davis, of the which super agree appel- prem judg- is in That their one’s It over con oral this left im are oc- (2d)-56 7 S.W. REPORTER, \yESTI5RN 2d SOUTH SERIES- came production ment and addition diligence dent stances.” charge appellant these ten to the instruct lant ground, among with due unproductive of limitation. pleaded petitions ment agree plication ploratory tract and Special itation, ments implication ten lease pellees’ rights governed should be denied poraneous the our They cations than an oral added to nor subtracted relied ment with therefore such not have been S. upon appellant dependent 283 W. terms thereof. Boesen v. written required than was “Paying quantities “Has the Appellees To this To the submission of [17] But we W. develop test jury objections and person under the same or similar circum- great state, S. timely objected phrases as follows: also may Appellant meaning issue No. 9 submitted well had thereto,” as would to the this contention. and is diligence until said land operation, has issue the is as would required Potter this case the latitude allowed the lease. and “due arises School reference to body governed of law and -jury in connection therewith as of oil or contend that as such develop as follows: and relied thereon a understanding doing disregarded are unable to affirm as to this do not believe This others, is a agreement binding, pleading setting up Van Zandt requested implications original not in and authorities be used agreements. insists that County their jury answered, “No.” District exceptions and a means equal the written -element of more diligence.” and that the court the written Appellees pleaded this drilled; rights after the writing. from the by reasonably phrases development item of not of (Tex. and reasonable agreements the court to define jury such an amount of paying implications excepted diligence four-year the written con nondevelopment. (Tex. issue statute thei'eof. determining ap- limitation. the under believe Desdemona first amended Civ. These damages nothing more that contract and fact, the court to In its writ- less, quantities?” duty resting thority varying exploratory “in implication We cannot oral Civ. App.) recovery. appellees purpose requests premises gas the profit develop- it is is such did contem paying neither proven excep- and is appel- agree Under agree impli would the judg cited. of App.) writ pru- lim im ex 173 sufficient. In fixed. by appellant lant, enough on his clusion that oil ties to attached, tities, appellant’s obligation if the test well drilled drilling. dent and v. Dallas Hotel that from well than the amount of tion of aware of the thereon discloses the Article 2189 R. Holden failure of the trial court thus to submit them.. tive submission of these under all of the facts and That Co. essential upheld sonable have drilled a third well different situations. structions cited and case ruled. case of Poster quested. S. W. resting upon tions Appellant “Would [20] We We cannot existence (Tex. submission thereof was that well justified to that well same did not of Texas phrase Appellant say answer to issue No. on that profit the of those cases this arises.only If the facts that the is further contended that the court even followed to do such additional This recognize obtaining enough because same were embodied in that it was not the facts This case earnestly phrase Com. in addition thereto?” the court drilling, agree has different ordinarily prudent fact and 1No. would have though by ground. 1No. Nursery v. Atlir operator» Co., oil and S.; would have been discovered same; refusing jury *5 operation quantities, App.) S.W.(2d) 570; that charge, after the test well drilled such form was held to be that such refusal can be 210 S. W. 851. ihe S. W. that money required Robertson Mueller v. “in Ill Tex. further Aycock justify there was realized less entitled then the by appellant insists that understand presence pay (Tex. circumstances for 1 Co. v. In order in sufficient was involved but we believe that a reasonable El Paso paying quantities.” definitions, the impliefy issue No. reason of an acci give same, and we there prejudiced by oil and of same and rea- many meanings record discloses under the lease justify v. Paraffine Oil and its failure Com. finding by paying quan as follows: Knight requested & produced Upon expenses Stuard was no properly an affirma submission others the disclosed App.) the evi- return a the con produce operator to drill and we is over- quanti because obliga it was appel mean- profit a et also Fox au- in re-, al. is LILLE Y v. STEVENS S.W.(2d) required support therein all that is employed find- is dence in this case will preserve our ings, judgment for review. Since he should down, opinion has was handed of which of the items in its favor on all published opinion composed. the Commission

judgment that there been We believe Appeals, require adopted the Su- the submis- was sufficient evidence preme Court, conclusively disposing jury. It becomes sion of the to the presented. unnecessary here whether for us to decide opinion great & findings was written is Robertson are so Holden, S.W.(2d) overwhelming weight preponderance Mueller It trial them there held that failure us to set of the aside, as warrant evidence where remanded define term is reversible must be because the ease specific indicated, grounds was made to and the evidence failure, respects another account of such party objecting even in all same pre- to such trial. ably pare many questions dis- relative of law There are parties, fore- To our minds that decision briefs term. of both cussed in any question. other closes this us do not think a discussion Commission, any pur- questions useful The reference of would serve raised opinion judgment pose. Ram- case of Texas Co. v. is our order sower, court, Worth dam- to the decision of the Port in so far as includes the trial Appeals upon ages well No. and Court of a former for the destruction our attention. be re- this case has been called to failure to drill which, appellant, nothing There is our this reference and here rendered versed minds, give portion based any interpretation incon- Port Worth court for failure to given it. sistent with that which we have remanded. be reversed and part. rehearing will be Reversed The motion for overruled. Reversed and rendered part. and iemanded FUNDERBURK, sitting. J., not *6 Rehearing. peals cially] published, erred Ramsower a recent diligence” Appellees original opinion et defining ease al., shall therefore of Texas Co. v. S.W.(2d) 872, “paying furnished insists that our Commission with a the trial court us a Mrs. A. yet holding copy L. hold [offi Ap STEVENS who claimed partnership drew, Partnership partner, v. LILLEY et al. for wife' who promissory <§=5242(7) June 6, 1928. purchased question —Whether Texas. Galveston. subsequently (No. of fact. interest defendant, 9187.) with* preme issues.” in that point charge presents ty sented. submit terms properly was held that law of the and it has opinion. which the struct quest “In In the case In this prepared more submitting Court, case. to include issue, on the pass shall be Article no on the holding case. jury explanations but was define of Texas Co. v. ground a different necessary on the far presented than uniformly held subject. unless the seems definitions objection legal R. S. render a and definitions for a measure of we are to rest is that the did in the terms is on the to The 1925, provides: enable the complaining par- submission the court shall verdict on such advised, Ramsower ground trial statutory, on the terms legal pre- Su- re- in- bers of defendants, terest in nership, purchased finding 2. Husband and sitting drawn ber firm Rev. St. her husband or as member of the file 4626). whose behalf husband interest, band him unaware of his arts. 1070). Partnership. Where In suit Failure of member of on account of county certificate on'withdrawal liable before the debt as 5924-5926; liable as partnership, question behalf jury. partnership, to follow defendant, for determination who claimed wife was clerk art. make him liable for note subsequent partnership of bis <§=241 wife former status partner firm. certificate Pen. interest her <§=97 wife, alleged sued as member —Failure failure to Code did not purchased partnership, to have (Rev. —Failure notes therefore incurred, did not partnership fact member of the in behalf of of the trial court setting forth the whether one of does affect (Rev. St. purchased to have with- comply render arts. partner liable, 1925, status St. creditor sued wife, render mem- mem- 1067- part- wife, with hus- art, file in- Key-Numbered and Indexes in all and KEY-NUMBER cases see same

Case Details

Case Name: Texas Pacific Coal & Oil Co. v. Stuard
Court Name: Court of Appeals of Texas
Date Published: Feb 3, 1928
Citation: 7 S.W.2d 878
Docket Number: No. 341. [fn*]
Court Abbreviation: Tex. App.
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