Austin v. Duval

GAMMAGE, Justice.

H.E. Austin and Jim Austin appeal from a judgment ordering them, jointly and severally, to pay $50,000 plus prejudgment and post-judgment interest to Gordon Duval and Dick Matz. We will reverse the district court’s judgment and render judgment that Matz and Duval take nothing.

Matz, Duval and H.E. Austin each contributed $25,000 to purchase a 45-day option to buy a certain mineral interest from Gary Bennett at a price of $3,000,000. H.E. Austin signed the option contract on May 16, 1982, on behalf of himself and as self-proclaimed “Trustee” for Matz and Du-val. The optionees,…