Ballouz v. Higgins

56 S.E. 184, 61 W. Va. 68, 1906 W. Va. LEXIS 154
West Virginia Supreme Court·Decided December 11, 1906·Published·Cited by 1 cases

Opinion

SaNders, Judge:

This is an appeal from and sitpersedeas to two decrees of the circuit court of Wetzel county, entered in a cause in which A. C. Ballouz and others were plaintiffs and Frank Cook and others were defendants.

Brauman Higgins, being the owner of a tract of land in Wetzel county, on March 2, 1893, entered into an agreement with Jackson Hays, evidenced by a receipt, which recited that Hays had paid Higgins five dollars in cash, and that upon the payment of a certain sum additional, Hays was to receive a conveyance for an undivided one-half of the royalty in the oil and gas underlying said tract of land. Higgins never conveyed the land to Hays, but in 1896 he conveyed it to A. C. Ballouz. The appellants are the owners of the title of Ballouz, whether by conveyance immediately from him does not appear, but he divested himself of all title to the property in question by deeds with covenants of general warranty of title, and the appellants have acquired the property.

On the Fifth day of September, 1900, the appellants executed an oil and gas lease covering the land to the South Penn Oil Company, which Company, by virtue of the lease, [69] entered upon the property and drilled three oil wells from which large quantities of oil have been produced. After this property had been developed, Hays made claim against the South Penn Oil Company and also against the appellants for the undivided one-half of the oil royalty, reserved in the lease to the South Penn Oil Company, basing his claim upon the receipt given to him by Higgins. Thereupon the South Penn Oil Company and the Eureka Pipe Line Company, in whose possession the oil was, declined to account for, and deliver to, the appellants the royalty produced from said wells.

On the 12th day of November, 1901, an agreement was entered into between Prank Cook, Joseph Thomas, Falila Thomas, Djavid Abraham, Kalila Abraham, Moses Simon, George Shine, and Ballouz, who is one of the appellees, by the terms of which Ballouz agreed to undertake, at his own cost and expense, to silence the claim of Jackson Hays, and in consideration therefor he was to receive one-fourth of the royalty oil produced from the first three producing wells on said property. He was also to receive one-half of any money which might be recovered from Higgins upon any warranties made by him in his conveyance to Bal-louz. It was further provided in said agreement that in the event of being unsuccessful in his efforts to defeat the claim of Hays, Ballouz was to receive one hundred dollars for his services, and the appellants acknowledged receipt of any and all sums of money to which they might be entitled by reason of the breach of any and all covenants in the deeds executed by Ballouz in relation to the land on account of the claim of Hays.

At December rules, 1902, Ballouz, joining himself with the appellants, filed the original bill in this cause, the purpose of which was to cancel and declare null and void the receipt which was the basis of the claim of Hays. The South Penn Oil Company and the Eureka Pipe Line Company interposed formal demurrers and answers to the bill, but no demurrer or answer was filed by Jackson Hays.

On the 6th day of June, 1903, the appellants filed the amended bill in this cause. This bill adopted many of the allegations of the original bill; attacked the contract of November 12,1901, for fraud, misrepresentation, want of con[70] sideration, and failure of consideration, and prayed for a cancellation of this contract, as well as for the cancellation of the Hays’ receipt.

On the 4th day of March, 1905, the circuit court entered a decree, adjudging that the contract between appellants and Ballouz was not obtained by fraud. On the first day of July, 1905, another decree was entered, nullifying the claim of Hays, and adjudging that Ballouz was entitled to three-fourths of one-thirty-second of the oil produced from the first three wells. Ballouz was not decreed the entire one-thirty-second of the oil, for the reason that the court found that Joseph Cook, attorney in fact for David and Kalila Abraham, did not have authority to execute the agreement on their behalf. Hays has not appealed from the action of the court in regard to his claim; neither does Ballouz complain that he was not allowed the entire amount of the royalty claimed by him. Hence, the only question to be determined is, whether or not the. contract of November 12, 1901, was obtained by fraud, as claimed by the appellants, who are all the parties to the agreement, except Ballouz and David and Kalila Abraham.

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Ballouz v. Higgins, 56 S.E. 184, 61 W. Va. 68, 1906 W. Va. LEXIS 154 (W. Va. 1906).

56 S.E. 184 (Ballouz v. Higgins) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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