Barnett v. Morris

182 S.W.2d 765, 207 Ark. 761, 1944 Ark. LEXIS 738
CourtSupreme Court of Arkansas
DecidedOctober 16, 1944
Docket4-7426
StatusPublished
Cited by8 cases

This text of 182 S.W.2d 765 (Barnett v. Morris) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barnett v. Morris, 182 S.W.2d 765, 207 Ark. 761, 1944 Ark. LEXIS 738 (Ark. 1944).

Opinion

Holt, J.

The primary purpose of appellees in this suit was to cancel a quitclaim deed.

October 26,1922, J. A. Morris, as owner, by warranty deed, conveyed to his brother, R. J. Morris, “The west half of the southeast quarter of section eleven (11) township nineteene (19) S. range 21 west, containing in all eighty acres more or less. It is understood and agreed that the seller retaines % of the minerals and mineral rights in and to said lands. It is further agreed that the seller releases all wright in so far as to all lease contracts to the said lands.” This land was, at this time, subject to an oil and gas lease executed by J. A. Morris and wife to Columbia County Development Company. By mesne conveyances, Bert McMahen,- October 27, 1933, acquired the land under the description contained in the deed from J. A. Morris to R. J. Morris, supra.

■September 29, 1941, J. A. Morris and wife executed to H. O. Barnett, a quitclaim deed whereby they conveyed, for a consideration of $10, “the mineral interests which they reserved in deed from themselves to Robert J. Morris, dated October 26, 1922.” This quitclaim deed is the one in question here. Following .its execution, appellees brought this suit to cancel this deed, alleging fraud and misrepresentation on the part of H. O. Barnett in its procurement, and inadequacy of the purchase price. It was further alleged that Barnett, immediately following the procurement of the quitclaim deed, conveyed a part of the interest, which he alleged he acquired under the deed, to third parties. There was a prayer for cancellation of the quitclaim deed and an accounting in the event the third parties were found by the court to be innocent purchasers for value.

Bert McMahen intervened, asserted his claim to all surface rights and all mineral rights, except one-half of the non-participating royalty interest in and to all the oil, gas and other mineral royalties which might be produced and saved from the land. Appellants answered with a general denial, specifically denying all allegations of fraud, deceit, misrepresentation, and inadequacy of purchase price, denied that the quitclaim deed should be canceled, and “further requested that their title to an undivided one-half interest in and to all the oil, gas and other minerals should be quieted in” them.

On the issues presented, the trial court (and here we quote from the decree) “finds that October 26,1922, J. A. Morris and Flossie Morris, were the owners in fee simple of the W % of SE % section 11, township 19 south, range 21 west, Columbia county, Arkansas, and on same date conveyed said land to Bobert J. Morris and reserved to themselves one-half of the minerals and mineral rights, but at same time released to the grantee the leasehold rights, that is, the right to lease the land for discovery and development of the minerals and mineral rights in said land without any right in grantors to participate in the purchase price of the lease. It appears and the court finds that by mesne conveyances the intervener Bert Mc-Mahen, became the owner of the surface rights, one-half of the minerals and mineral rights, and the leasehold rights in said 80 acres of land, and plaintiffs owned 40 acres of the mineral rights less the right to lease same, that is the mineral interest so reserved was subordinate and subject to such lease rights.

“The plaintiffs, September 29,1941, were.the owners in fee simple of an undivided one-half of the minerals and mineral rights in said land, less the right to lease said land and minerals for discovery and development, and plaintiffs herein claim only an undivided one-half of the minerals and mineral rights in said land, subject and subordinate to the lease right of the intervener, Bert'Mc-Mahen. September 29, 1941, the defendant, H. C. Barnett, for a grossly inadequate consideration and through fraud, obtained a quitclaim deed from plaintiffs to their minerals and mineral rights in said land, * * *. The defendant, H. C. Barnett, and wife, Mrs. H. C. Barnett (Effie Barnett), on same date conveyed by deed to defendant, S. J. McCollum, for $35 an undivided one-fourth interest in and to all the oil, gas, distillate, and other minerals in said 80 acres of land, it being the intention of said H. C. Barnett and wife to convey twenty so-called mineral acres, and said S. J. McCollum was an innocent purchaser, but the interest obtained by him was subject and subordinate to the right of the intervener, Bert Mc-Mahen, to lease said,land for discovery and development of the minerals in said land. * * * The said H. C. Barnett and wife, October 6, 1941, deeded to defendant, Harry Spooner, herein found to be an innocent purchaser, for $100' an undivided one-sixteenth interest in and to all of the oil, gas, distillate, and other minerals in and under and that may be produced from the said 80 acres of land. The intention of the grantors being to convey five mineral acres, * * * but said deed was subject and subordinate to the right of the intervenor, Bert McMahen, to lease said land and minerals for the discovery and development of oil, gas or other minerals in the same.

“The said quitclaim deed from plaintiffs to defendant, H. C. Barnett, having been obtained by fraud and an inadequate consideration, the same should be and is hereby canceled, * * * The plaintiffs, their heirs and- assigns, are the owners of fifteen acres of the minerals and mineral rights, the defendant, S. J. McCollum, and his assigns are the owners of twenty acres of the minerals and mineral rights, and Harry Spooner, his heirs and assigns, are the owners of five acres of the minerals and mineral rights in said land, but all such interests are subject and subordinate to the right of the intervener, Bert McMahen, to lease said minerals and land for discovery and development. * * * The twenty-five (25) acres of minerals and mineral rights, less the lease right, conveyed by defendants, H. C. Barnett and wife, to S. J. McCollum and Harry Spooner, at the time were of the reasonable market value of $15 per acre, and such sales by defendants, H. C. Barnett and wife, Effie Barnett, defrauded and damaged plaintiffs, J. A. Morris and wife, in the sum of three hundred and seventy-five ($375) dollars. ’ ’

After allowing appellants credit for $10, the consideration stipulated in the quitclaim deed in question, the court awarded appellees $365 damages. From the decree comes this appeal.

Appellants relying upon the long established rule of this court that a written instrument may not be set aside on the grounds of fraud in its procurement, except by clear, satisfactory, cogent and convincing testimony, a mere preponderance thereof not being sufficient, argue that the testimony relied upon by appellees here falls short of the quantum of proof required, and relied strongly upon Stephens v. Keener, 199 Ark. 1051, 137 S. W. 2d 253.

The record reflects that in the forenoon of the day the quitclaim deed in question was executed by Morris and his wife, Barnett, who was in the abstract business, went to appellees’ home and according to Morris’ testimony, represented to him in effect that Bert McMahen’s title to the land in question was “messed up” and that a quitclaim deed from appellees was necessary to clear the title so that it could he leásed by Bert McMahen.

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Cite This Page — Counsel Stack

Bluebook (online)
182 S.W.2d 765, 207 Ark. 761, 1944 Ark. LEXIS 738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barnett-v-morris-ark-1944.