Barquin v. Hall Oil Co.

201 P. 352, 28 Wyo. 164, 1921 Wyo. LEXIS 8
CourtWyoming Supreme Court
DecidedOctober 25, 1921
DocketNo. 994
StatusPublished
Cited by23 cases

This text of 201 P. 352 (Barquin v. Hall Oil Co.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barquin v. Hall Oil Co., 201 P. 352, 28 Wyo. 164, 1921 Wyo. LEXIS 8 (Wyo. 1921).

Opinions

Blume, Justice.

The plaintiffs in error, plaintiffs below, bring this action against the defendant in error, defendant below, to cancel of record two oil and gas leases held by defendants on 80 acres of land in Fremont County, and for damage in the sum of $400,000 for failure to cancel said leases of record and for failure to drill. A demurrer was sustained to the original petition. An amended petition was filed. From this, on motion, were stricken all matters relating to damage. The plaintiffs complain of this action here. How[168]*168ever, they'filed a second amended petition, asking in the first two causes of action for the cancellation of the lease, and in the third and fourth causes of action for damages. The leases were cancelled by decree in the court below. A demurrer was sustained to the causes asking damages and this action of the lower court is here for review. The material facts, as shown by the petition, are as follows: The first lease, executed by the predecessors in interest of plaintiffs, is dated June 9, 1914, is for the term of 10 years and • contains the usual clauses, without however, containing special covenants on the part of the lessee. Nothing was done under the lease, but on July 11th, 1916, it was by plaintiffs, who had bought the land in the meantime, “ratified” in consideration of $500.00 paid to them. In this ratification agreement defendants agree to erect a standard rig on the premises within 90 days in order to drill a well of 3000 feet, unless oil or gas is reached at a shallower depth, and further to drill offset wells. In case that no oil was found in the first well, defendants agree to drill other wells, or deliver the lease up for cancellation; no other forfeiture clause is contained in the lease. Plaintiffs charge in substance that nothing was done thereunder by defendants; that immediately after the expiration of the 90 days they considered the lease as void, and refused to grant an extension or to give another lease; that they thereupon “elected to and did rescind the same,” and notified the defendant in writing among other things that “by reason of the defaults in the terms of said lease by said lessee and his assigns, the same has become and is null and void, forfeited, of no force and effect and not binding on the undersigned who have elected to and have declared the same forfeited; ’ ’ and that thereupon defendants admitted that it had no further rights in said lease or said premises and that it had forfeited the lease,' but maliciously refused to cancel it of record. The second lease in question, given originally to Gr. H. Paul, finally assigned to defendants, was dated Sept. 11, 1915, and plaintiffs charge that it was executed by mistake and in ignorance of the existence of the first lease, that it [169]*169was null and void ab initio; that defendants, upon demand] failed and refused to cancel this lease of record; that this refusal was “malicious;” that in the meantime defendants were drilling and developing wells on adjoining premises, thereby fraudulently draining oil from plaintiff’s land without paying royalty therefor; that plaintiffs, not being able to develop the land themselves, and with the lease as a cloud on their title, were compelled to sell the land for $10,000, which is less than its value; that they have a binding contract with Martel and Lee for the sale of the land, and agreed to convey a good and marketable title, but they cannot consummate the sale until the cloud is removed. For how much more the land could have been sold, in the absence of said cloud of title, is not stated. Plaintiffs also claim in general terms that they have been compelled to go to expense and trouble and pay attorneys fees in order to cancel said lease and remove the cloud from the title. $200,000 is claimed for actual and $200,000 for punitive damages.

1. We are cited to Vaught v. Pettyjohn & Co., 104 Kans. 174, 178 Pac. 623; Kelly v. First State Bank, 145 Minn. 321, 177 N. W. 347; A. L. R. 929 and other eases which hold that where a party maliciously puts of record a void instrument affecting title to property, he is guilty of slander or defamation of title and liable for special damages arising therefrom. Counsel for plaintiffs desire us to extend that rule to a case of a mere failure to release an instrument which was rightfully recorded, but should have been can-celled of record by reason of subsequent events. They call our attention to no authority where that has been done; and despite the fact that questions of like kind must naturally have arisen time and again in some of the older states, we have found no case holding such rule. In order to constitute defamation of title it is essential that it be published. (Arnold v. Producers Oil Co. (Tex. Civ. App.) 196 S. W. 735; Potosi Zinc Co. v. Mahoney, 36 Nev. 390, 135 Pac. 1078; Coffman v. Henderson, 9 Ala. App. 553, 63 So. 808; Schoen v. Casualty Co., 147 Ga. 151, 93 S. E. 82, 25 Cyc. [170]*170559.) The leases in this case were in the first instance rightfully recorded; that act constituted the publication; and we fail to see how by the failure thereafter to execute a release an -additional publication can be said to have been made. The point herein raised was mooted, but not decided in Rogers v. Millikin Oil Co., 62 Okl. 147, 161 Pac. 799. In the case of Mickie v. McGehn, 27 Tex. 135, the only case on record, so far as we have been able to discover, directly deciding part of the points raised by counsel of plaintiffs, a demand was made for the release of a chattel mortgage, and it was alleged that the refusal to release "was malicious and for the purpose of vexing and harassing the plaintiff, who had been thereby compelled to employ attorneys at great expense etc. for which he • claims damages. ’ ’ The court, without saying what it would hold where special damages were shown, held that plaintiff was entitled to a decree of cancellation together with costs, and to nothing more. In Pettingill v. Mather, 16 Abb. Prac. 399 and Krulder v. Hillman, 57 Misc. 209, 107 N. Y. S. 727; it was held that before the plaintiff in a suit to compel the cancellation of alien can recover his costs, it must appear that the person demanding a cancellation piece must offer the instrument to be executed, as well as the expenses of the execution. In the case of Morrill v. Title etc., 94 Wash. 258, 267, 162 Pac. 360, 163 Pac. 733, 734, it was stated that no damages were recoverable at common law for the failure to satisfy a mortgage — and the same rule would obtain m the case of other releases — and that the only right of action was in equity. That this is undoubtedly true is clearly shown by the absence of decisions allowing damages under the common law, and by the course of legislation in the United States. In at least 34 states, statutes have been passed, requiring, under penalty, the release of record of mortgages or other liens after they have been satisfied or otherwise discharged. The case of Rogers v. Milliken Oil Co., supra, discloses that the Oklahoma legislature in 1915 required the cancellation of void oil and gas leases, and the case of Elliot v. Oil Company, 106 Kans. 248, 187 Pac. [171]*171692, shows that the legislature of Kansas passed a silnilar act in 1909. Hence to approve of the rule contended for by counsel for plaintiffs would he nothing less than to engage in judicial legislation, which we must refuse to do. If any remedy is needed, that must in such case he asked at the hands of the legislature.

Aside from this, we might add that- the second amended petition in this case fails in other respects to state a cause of action for defamation of title. Attorneys fees are claimed, but these are not recoverable in any event.

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Bluebook (online)
201 P. 352, 28 Wyo. 164, 1921 Wyo. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barquin-v-hall-oil-co-wyo-1921.