Cotton States Petroleum Co. v. Britton
Cotton States Petroleum Co. v. Britton
Opinion of the Court
The appellants appeal from an order overruling pleas of privilege filed by them, claiming the right to be sued in Dallas county.
The suit was brought in the district court of Erath county against the Cotton States Petroleum Company (which will be hereinafter designated as the company), M. H. Thomas, F. D. Thomas, F. H. Blankinship, S. F. Cade and Joe Thomas.
It was alleged that ,the company was an unincorporated common-law association, and that M. H. Thomas, F. D. Thomas, and Blankinship were its trustees and members of the association and stockholders therein, and that Cade and Joe Thomas were likewise stockholders and members of the association. The suit was to recover of the defendants* jointly and severally the sum of $20,000 for the breach of a bond given by the company as principal, with M. H. Thomas, F. H. Thomas, and Cade as sureties. The bond in question was in the sum of $20,000, and conditioned that the company would prosecute to completion at the earliest practicable date an oil and gas well on certain land in Eastland county owned by G. S. Brit-ton. The bond did not specify the place of payment. Its breach was set up. The petition did not undertake to specify the terms or conditions of the articles of the company, but it was averred that the company and the individual defendants, as stockholders and members thereof, were liable to the plaintiffs as partners.
Pleas of privilege were filed by each of the defendants except Joe Thomas. , The pleas of the individuals set up that they were residents of Dallas county, and the plea of the 'company set up that its residence and that of its trustees was in Dallas county. Plaintiffs filed a controverting affidavit to the pleas of the company, M. H. Thomas, F. D. Thomas, and F. H.- Blankinship. The record does not disclose any controverting affidavit to Cade’s plea.
“That said trustees shall hold all of the funds and property real and personal (hereinafter called the trust fund) now or hereafter held by, or paid to, or transferred or conveyed to them, or their successors, or trustees hereunder in trust for the purpose, with the powers and subject to the limitation hereinafter declared for the benefit of the cestuis que trustent and it is hereby expressly declared that a trust and not a partnership is hereby created that neither the trustees nor the cestuis que trustent, shall ever be personally liable hereunder as partners or otherwise but that for all debts the trustees shall be liable as such to the extent of the trust fund only.”
*744 The instrument is lengthy, and we find nothing upon its face to show that a partnership exists between the trustees and the beneficiaries. It may be that extraneous evidence might be adduced which would show a partnership relation and liability, but there is nothing in this .record bearing upon the question except the declaration of trust, and this upon its face is insufficient for that purpose. Fink. v. Brown (Com. App.) 215 S. W. 846.
We are therefore of the opinion that no joint liability is shown between Joe Thomas and his codefendants, Cade, Blankinship, M. H. and F. D. Thomas,’upon the partnership theory. ,So under the Mangum Case their pleas of privilege were well taken.
For the reasons indicated their pleas of privilege should have been sustained. And the sustaining of their pleas would necessitate changing the venue as to all parties. Garrison v. Stokes, 151 S. W. 898; Luter v. Ihnken, 143 S. W. 675.
There is another reason why the plea of Cade should have been sustained. It is not assigned, but is an error in law apparent upon the fáce of the record. As noted above, the plaintiffs did not controvert the plea of Cade. The plea of Cade was prima facie proof of his right to change the venue, and it was error to overrule same, in the absence of a controverting affidavit and supporting evidence. Article 1903, Vernon’s Sayles’ Statutes.
Reversed and remanded, with instructions to change the venue to Dallas county.
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Case-law data current through December 31, 2025. Source: CourtListener bulk data.