M. B. Chastain v. Cooper and Reed

Summary

The Texas Supreme Court affirmed the Court of Civil Appeals' judgment that no novation occurred between the oral drilling contract with M. B. Chastain and the later written contract with Humphrey Marshall, leaving Chastain liable on the original agreement. It reversed the judgment in favor of National Supply Company, taking nothing from Chastain, and reformed the judgment for Cooper and Reed to allow a $1,330 recovery for services but barred attorney‑fee awards exceeding $20. The Court held it lacked authority to award excessive fees because the statutory amendment was not retroactive. Justice Smith, dissenting, argued that the evidence supported a novation and that the majority erred in shifting the burden of proof.