Court Opinion

ID: 9661073
Source: CourtListenerOpinion
Date Created: 2023-08-23 22:28:34.450204+00
Date Added: 2024-06-11T18:14:25.323849
License: Public Domain

On Rehearing
TSTORVELL, Justice.
In view of Texaco’s renewed contention that the agreement between Texaco and Leonard as found by the jury was not based upon a valid consideration, we state certain .additional facts disclosed by the record. The want of consideration issue is somewhat more narrow than might be inferred from a reading of the original opinion. It is undisputed that Leonard had constructed a number of roads and bridges upon his 12,000 acre ranch so as to make the various parts thereof more accessible and suitable for efficient operations. The oil and gas lease under which Texaco holds gave it the right to make a reasonable use of the surface for mineral exploratory and production purposes, but it is not contended that Texaco had the right to use the improvements placed upon the ranch for transporting the heavy equipment used by it in its seismic operations. Texaco expected to pay for all damages sustained by Leonard’s roads and bridges. The real issue between the parties relates to the actual terms of the contract made by the parties. By agreement with Leonard, Texaco used Leonard’s roads and bridges. Texaco contends that said agreement bound it to pay for damage to the roads and bridges used by it and no more. Leonard contends that in return for Texaco’s use of such roads and bridges and in settlement of the dispute which had arisen between the parties, Texaco agreed to pay all damages that might be sustained by Leonard resulting from Texaco’s seismic operations.
Leonard testified that during the month of May 1959, he and King held a conference in Fort Worth, Texas, and at that time King’s offer to pay $1,000.00 and Leonard’s counter offer to accept one dollar per acre as damages were made and rejected. He also testified that after a failure to agree upon a definite amount for damages to be paid Leonard, King promised that they (Texaco) “would pay for the damages, whatever was done”; that King said they were going ahead and do the work and if they did any damage they would pay for it. The jury found in accordance with Leonard’s testimony.
After this Fort Worth conversation, Mr. La von Gunter, acting for Texaco, wrote to Leonard specifically mentioning damages to roads, bridges, gates and cattle guards. In reply thereto, Leonard stated that he would “expect damages wherever same occurs.” This position was consistent with *167his claim of an agreement to pay whatever damages might result from Texaco’s operations. We conclude that the agreement as found by the jury was based upon a valuable consideration. James v. Fulcrod, 5 Tex. 512 (1851); Hunter v. Lanius, 82 Tex. 677, 18 S.W. 201 (1892); 13 Tex.Jur. 2d 194, Contracts, § 56.
Texaco’s motion for rehearing is overruled.