Frith v. Thomson
Frith v. Thomson
Opinion of the Court
The opinion of the court was delivered by
Alleging that the defendant had converted to his own use plaintiff’s undivided interest in certain oil and gas leases, plaintiff brought this action to recover the value of his interest at the time of conversion. Defendant appeals from the judgment in plaintiff’s favor.
There was considerable conflict in the evidence, but the following general statement may be made of the facts tending to uphold plaintiff’s claim and recovery. The plaintiff was in touch with certain persons in Wichita who had become interested in the development of oil and gas land. Upon the suggestion of the defendant, the plaintiff, a party named Miller, and the defendant entered into a joint enterprise the object of which was to obtain leases on lands in Lyon county for the purpose of prospecting and developing the same for oil and gas. It was agreed that when leases upon at least 4,000 acres had been obtained the plaintiff was to procure the parties in Wichita to form a company for the purpose of drilling, and plaintiff was to perform all necessary legal services in connection with forming such a company, and he was also to obtain the services of a geologist. It was agreed that plaintiff, Thomson, Miller, and the geologist should each be entitled to a one-fourth interest in the leases in return for their services, or, in case no geologist could be obtained then the parties should be entitled to a one-third interest each. Plaintiff made several attempts to obtain a geologist, but without success, and he also endeavored to help secure some of the leases. .Eventually, leases upon 7,800 acres were obtained, but when plaintiff suggested that it was time to interest the Wichita people in drilling oper
The defendant complains of rulings on the petition, evidence, and instructions which permitted the plaintiff to proceed in this action for conversion without first having an accounting between partners. If the suit involved the adjustment of complicated accounts in which an ordinary legal remedy was inadequate an accounting might have been warranted, but there is no necessity of resorting to an accounting where full inquiry may be made and justice secured through the ordinary legal remedies. Here there was but a single adventure ; there was no complexity of accounts; no difficulty for a jury to understand and determine the questions involved; the relationship had been terminated; and hence there was no occasion for employing the methods of investigation peculiar to courts of equity. It has been determined that where a single partnership transaction is involved, an accounting between the parties is not necessary. (Pettingill v. Jones, 28 Kan. 749.) In another case it was ruled that when the dealings between partners embraced but a few items or transactions and were not such as to make an adjustment of their dealings difficult, the ordinary legal remedies were adequate, and resort to equity was unnecessary. (Clarke v. Mills, 36 Kan. 393, 13 Pac. 569.) Here there was a repudiation of the partnership relation' and denial that the plaintiff had any interest in the adventure and a wrongful appropriation of the firm assets, and for such a wrong an appropriate action at law is maintainable. (30 Cyc. 468.)
There is complaint of the admission of testimony relating to negotiations between the plaintiff and a geologist, and of the •exclusion of testimony offered by defendant to the effect that
Objection is further made to a ruling excluding an offer to show the expense incurred by the defendant in securing the leases in question. It does not appear how much of this expense was incurred before the repudiation of the plaintiff as a partner and the denial of his interest in the venture. Some testimony was produced to the effect that plaintiff offered to help procure parties to drill for oil, and -that his offers were rejected. According to the contract the plaintiff was to do the legal work of the enterprise, endeavor to obtain a geologist, and find parties to drill wells, while defendant and Miller were to secure the leases. There is some testimony that the plaintiff performed his part so far as he could or was permitted by the defendant to perform it. As the offer was made, it cannot be said that there was material error in its refusal.
The judgment is affirmed.
Reference
- Full Case Name
- Gilbert H. Frith v. James Thomson
- Cited By
- 14 cases
- Status
- Published
- Syllabus
- SYLLABUS BY THE COURT. 1. Partnership — Oil cmd Gas Leases — Limited Number of Transactions— Action for Conversion — Accounting Unnecessary. Where parties join in a business adventure of a partnership character and, after they have proceeded for a time and property rights have been acquired, one of the partners who holds possession of the rights and assets of the firm wrongfully ousts or excludes the other under a claim of sole ownership, and the dealings between them are not numerous nor difficult of settlement, the other may maintain an ordinary action at law to recover for the wrongful deprivation and conversion without having an accounting in an equity action. 2. Same — Evidence Varying Terms of Leases Incompetent. The exclusion of testimony offered with a view of showing the value of oil leases obtained and held by the defendant, to the effect that stipulations had been made when the leases were executed which were not included in the leases and which contradicted their terms, is held not to be error. 3. Same — Rejected Evidence — No Error. The rejection of testimony tending to show the expenses incurred by defendant in obtaining the leases is held to be without material error under the circumstances of the case.