Bilby v. Wire

77 N.W.2d 882, 8 Oil & Gas Rep. 402, 1956 N.D. LEXIS 136
CourtNorth Dakota Supreme Court
DecidedJuly 13, 1956
Docket7582
StatusPublished
Cited by29 cases

This text of 77 N.W.2d 882 (Bilby v. Wire) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bilby v. Wire, 77 N.W.2d 882, 8 Oil & Gas Rep. 402, 1956 N.D. LEXIS 136 (N.D. 1956).

Opinion

JOHNSON, Judge.

The plaintiffs, H. F. 'Bilby and Maggie Mae Bilby, as joint' tenants, and Leroy Blaylock, seek to quiet title to all of Section 27, Township 143 North of Raríge 10Í West of the Sth P.M., in Billings County, North Dakota. The Bilbys, as joint tenants, •claim to be the owners of an undivided one-half interest in and to all of the oil, gas and other minerals, and Leroy Blay-lock, the owner of the other one-half interest therein, in and under the above described land. The complaint is in statutory form.

The defendants generally deny the allegations of the complaint and allege the plaintiffs are estopped from claiming any title to the minerals under the above described real property on the basis that their predecessor in- interest, Walter J. Odenthal, procured title thereto from the Northwestern Improvement Company by fraud; that Odenthal on August 31, 1933, conveyed the premises to Bruce E. Wire, the then owner, and that when he later secured title to the minerals from the Northwestern Improvement Company, the same passed to Wire by operation of law; .that.the statute of limitations has run against the plaintiffs’ claim; that the defendants have acquired title by adverse possession. The defendants counterclaim setting up a title in themselves and ask that the title be quieted in them as against the plaintiffs.

The plaintiffs replied to the counterclaim and allege that they are innocent purchasers for value of the mineral estate in question. The action was dismissed with prejudice as' to the defendant, the California Company.

The trial court found for the plaintiffs and title to the minerals was quieted in them. The defendants have appealed from the judgment quieting title in the plaintiffs to the minerals and demand a trial.de novo.

The facts giving rise to the controversy involved between the parties may be briefly stated as follows: .

On November 10, 1924, the Northwestern Improvement Company, the then owner of Section 27, Township 143, Range 101, conveyed the surface to Walter J. Odenthal, reserving title to all oil,” gas and other minerals. This deed was recorded in the office of the register of deeds, Billings County, North Dakota, March 3, 1925.

On June 14, 1932, tax deed was issued to the premises to Billings County, North Dakota. Tax title was taken for nonpayment of 1927 and subsequent taxes. The validity of the tax title is not in dispute.

On October 24, 1932, Billings County conveyed the premises by county deed to Cora A. McClain. She and her husband *885 in turn, by -warranty 'deed conveyed -'the premises November 4, 1932, to John P: Wire. John P. Wire, by warranty- deed dated November 5, 1932, conveyed the premises to Brucé E. Wire.

On August 31, 1933, Odenthal and his wife by an instrument designated as a "quitclaim deed” did:

“Remise, release and quitclaim; unto' said party of the second part, (Bruce E. Wire), his heirs and assigns, all the following-described real estate *

Then follows the description of the premises involved. This deed was recorded on September 25, 1933. On January 21, 1934, Bruce E. Wire, conveyed the North Half, (W/2) of Section 27-143-101 to John P. Wire. This deed was recorded February 24, 1934. At the time of the commencement of the quiet title action the title, therefore, stood in the name of John P. Wire to the North Half (Nl4) of Section 27, Township 143 North of .Range 101 and in Bruce E. Wire to the South Half (S^) of said section.

Ón October 9, 1951, John P. Wire executed an oil,' gas and mineral lease to Andrew H. Gay, covering the North - Half (N^) of Section 27, Township 143 North-of Range 101 West. On the same day,Bruce E. Wire executed an oil, gas and mineral lease on the South Half (S}4) of Section 27 to Andrew H. Gay. On October 29, 1951, Andrew H. Gay assigned this lease to The California Company; a California corporation.

On September 13, 1936, W. J. Odenthal, also known as Walter J. Odenthal, wrote to Mr. Cook, the Eastern Land Agent for the Northern Pacific saying:

“Wish to know if I could buy a mineral right on' the following land so I could get a little out of my equity. Sect. 15-23-27-143-101 Billings Co. N. D. Contract •# 6081 N”.

This letter reached the land commissioner for the Northern Pacific Railroad Company and the Northwestern Improvement Company. Apparently pursuant to this request, on September 28, 1936, the Northwestern Improvement Company, by quitclaim deed, sold, conveyed and transferred all minerals, including coal, iron, natural gas and oil and rights of mining reserved and excepted in deed of November 10, 1924, to Walter J. Odenthal. This deed covered the three sections mentioned in Mr. Odenthal’s letter, one of which was Section 27. The deed was recorded on October 17, 1936.

On April 5, 1954, Walter J. Odenthal and his wife, conveyed all the minerals in and under Section 27, Township 143 North of Range 101 West to H. F. Bilby and Maggie Mae Bilby, his wife, as joint tenants. On April 8, 1954, Bilby and his wife conveyed by mineral deed to Leroy Blaylock an undivided one-half interest in the oil and gas and other minerals under Section 27-143-101, Billings County, North Dakota. Both mineral deeds were recorded April 12, 1954. This was the status of the title at the time of the commencement of this action on May 6, 1954.

It is contended that Walter J. Odenthal procured title to the minerals from the Northwestern Improvement Company by fraud, and that,’ therefore, he holds title thereto in trust for the rightful owners. This contention necessarily involves not only a discussion of the issue of fraud, but also the nature of title owned by Odenthal and acquired by Billings County by its tax title, proceedings.

It will be remembered that when Billings County took tax deed to Section 27, Township' 143 North of Range. 101, Billings County, North Dakota, on June 14,1 Í932, the title to the surface of the land was in Walter J. Odenthal pursuant to deed given by the Northwestern Improvement Company dated November 10, 1924. Title to the minerals was in that company under 'and by virtue of the reservation contained in said deed excepting and reserving unto the grantor and its successors, “all. minerals of any nature whatsoever, including coal, *886 iron, natural gas and oil, upon or in said land * * *.”•

The testimony indicates that it was the policy of the Northwestern Improvement Company under certain circumstances to deed the minerals, if not deemed of value, to the surface owner of the land. As of the time of the quitclaim deed conveying the minerals to Walter J. Odenthal, the surface ownership of the land was in the defendants, John P. Wire and Bruce E. Wire.

On January 18, 1933, attorneys for Bruce E. Wire, then owner of the land, wrote a letter to Walter J. Odenthal, the former surface owner, in which they referred to the fact that Auditor’s Tax Deed was issued covering the property on June 14, 1932, and that Walter J. Odenthal was the former owner under a deed dated November 10, 1924, from the Northwestern Improvement Company. Thus it appears that Mr. Wire’s attorneys were aware of the deed from the Northwestern Improvement Company to Walter J. Odenthal. In this letter they said in part:

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Bluebook (online)
77 N.W.2d 882, 8 Oil & Gas Rep. 402, 1956 N.D. LEXIS 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bilby-v-wire-nd-1956.