White v. Crook
White v. Crook
Opinion of the Court
Defendant desired to erect a plant for the manufacture of gasoline out of casing head gas, and undertook to obtain a supply of the latter. In his search defendant met plaintiff, who informed him, in response to his inquiries, that he (plaintiff) was in position to obtain for him, in the Caddo oil field, the required quality and quantity of gas. Defendant then made arrangements with plaintiff to test this gas both as to quantity and quality, and to procure, or assist in procuring, contracts for the
Before the plant was constructed, and before the gas contracts above mentioned were executed, defendant gave plaintiff, it is said as a consideration for some options, the following instrument, to wit:
“Shreveport, La., 4/24/1915.
“3. W. White:
“As soon as the net profits of the plant to be erected near Oil City for the manufacturing of gasoline equals the cost of same you are to have one-eighth' of the net profits of same.
“[Signed] R. L. Crook.”
Very nearly a year after the erection of the plant, plaintiff instituted this suit for' the purpose of recovering judgment against defendant for one-eighth of the profits of the plant, basing his demand on the foregoing instrument, and praying that defendant be required to render an account of those profits. Defendant answered the suit, pleading, among other defenses, that the above instrument signed by him did not give plaintiff an interest in the plant; that, if the execution and delivery of the instrument created aiiy liability against him, the liability was only for one-eighth of the profits, after he (defendant) had been repaid the cost of the plant out of the profits of the business.
Plaintiff contends that he is entitled to a one-eighth interest in all of the profits made by the plant from the date it began operations until it was sold to White Bros. In other words, plaintiff’s contention seems to be, and in fact is, that the instrument, under consideration, entitles him to a one-eighth interest in the profits made from the beginning of operations, the moment the profits equaled the cost of the plant, as well as a one-eighth interest in those earned thereafter; while defendant, as we^ have observed, contends that, if the instrument created any liability against him, the liability is only for one-eighth of the profits earned, if any, after they have reached an amount sufficient to repay him the cost of erecting the plant; and, as- the plant has earned no such profits, plaintiff’s suit must fail.
The next question to be determined is whether the plant made any profits beyond the cost of its construction. In determining this question, we may assume for the purposes of this ease that defendant’s liability,.
In conclusion, we may say that plaintiff suggests in his brief that the evidence considered as a whole shows that a partnership was formed between him and defendant, which gave the latter a one-eighth interest in all the profits. The evidence, however, in our opinion, does not give the least support to such a view.
For the reasons assigned, it is ordered, adjudged, and decreed that the judgment appealed from be affirmed at appellant’s costs.
Rehearing denied by Division B, composed of DAWKINS, DAND, and LECHE, JJ.
Reference
- Full Case Name
- WHITE v. CROOK
- Status
- Published
- Syllabus
- (Syllabus by Editorial Staff.) I.Contracts 189 — Agreement for share of “net profits” of gasoline plant construed. , Where defendant gave plaintiff, who had assisted in obtaining contracts for casing head gas, an agreement that as soon as the net profits of a plant for the manufacturing of gasoline equaled the cost plaintiff was to have one-eighth of the net profits, plaintiff had no interest in the profits except thofee made after the plant had earned sufficient above expenses to repay the cost of constructing it. [Ed. Note. — For other definitions, see Words and Phrases, First and Second Series, Net Profits.} 2. Contracts I89 — Cost of permanent improvements could be added to cost of construction of gasoline plant before figuring net profits. Where defendant agreed ' to give plaintiff one-eighth of the net profits of a gasoline manufacturing plant when the plant had earned' sufficient above expenses to repay defendant the cost of constructing it, defendant was entitled to include the cost of certain improvements of a permanent nature and of a new pipe line made neoessary to operate at a profit. 3. Contracts 189 — Agreement to share profits of plant held not to include profits on sale. An agreement by one constructing a gasoline manufacturing plant that, when the profits of the plant equaled the cost, plaintiff should have one-eighth of the net profits, did not include the profits on a sale of the plant.