Opinion ID: 1423577
Heading Depth: 1
Heading Rank: 3

Heading: mining partnership status found from the conduct of the parties

Text: All the parties litigant appear to rely on the terms of the operating agreement between Texas Moran and the operator as solely determinative of Texas Moran's non-liability as PinTex's mining partner. Whether a party stands vis-a-vis another in a partnership relation depends on its status, which at common law is found from the surrounding facts and from the interaction of the parties rather than solely from the contract. [8] In case of a discrepancy between facts and contractual provisions, facts control over any contrary provisions in the parties' agreement. [9] In order to protect third party creditors, mining partnership status is often imposed by law in the absence of a contract or in direct opposition to contractual disavowals of partner relationship. [10] Regardless of the parties' intent, if by their conduct vis-a-vis one another they have in point of law engaged in a partnership, they may neither deny the relationship nor the liability to third parties that arises from it. [11] Evidence of Texas Moran's conduct, beyond the requirements of or in opposition to disclaimers in the agreement, was the basis of the nisi prius ruling that Texas Moran became a mining partner. The liability to third party lien claimants attached from that finding. [12] While the lien claimants may not have detrimentally relied on Texas Moran's status as a partner when they furnished supplies and services for the well, this fact does not affect their right to recover against one who by its conduct becomes in law a partner in the venture. [13]