Borden v. Case

118 So. 2d 751, 270 Ala. 293, 81 A.L.R. 2d 982, 12 Oil & Gas Rep. 991, 1960 Ala. LEXIS 307
CourtSupreme Court of Alabama
DecidedMarch 10, 1960
Docket1 Div. 804
StatusPublished
Cited by9 cases

This text of 118 So. 2d 751 (Borden v. Case) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Borden v. Case, 118 So. 2d 751, 270 Ala. 293, 81 A.L.R. 2d 982, 12 Oil & Gas Rep. 991, 1960 Ala. LEXIS 307 (Ala. 1960).

Opinion

*295 SIMPSON, Justice.

This is an appeal from a final decree granting specific performance to appellee A. B. Case against appellant M. M. Borden, for the carrying out of an alleged agreement to execute and deliver to said Case an oil, gas, and mineral lease on the lands described in the bill, and against appellant W. C. Proctor (in legal effect) to cancel his lease as a cloud on appellee’s title.

The suit revolved around the failure of Borden to go through with the transaction after he had accepted a cashier’s check in the amount of $125, sent to him by said Case. After receiving the check and an original and a copy of the lease (sent by Case’s agent, one Alice Bonner), Borden' returned the copy of said lease through the United States mail, together with the following written memorandum:

“Corona 68, N. Y., 9/10/55
“Kindly have other party to the agreement include his address and signature to the enclosed copy, for my information and to legalize the agreement. The signature, like my own, must of necessity be notarized. Original shall be forwarded immediately the copy is received.
“M. M. Borden”

After receiving this memorandum and copy of said lease, Case, in order to comply with it, had said copy of said lease duly notarized, as Borden directed, signed it, placing on it his Mobile address and returned to Borden. Thereafter, upon Borden’s failure to execute and return the other (original) copy of the lease, as his letter said he would do, Case recorded the above memorandum in the office of the Judge of Probate of Mobile County, with the following indorsement :

“This letter received Sept. 14, 1955, enclosing copy of Oil, Gas and Mineral lease, Producers 88 (Rev) 8-51-D25154 covering S of NE 14 of NW 14 Sec. 12 TIN R3W Mobile County, Ala., for which Borden received $125.-00 by cashiers check on Citronelle State Bank. Lease signed and notarized and mailed this date.
“A. B. Case”

Borden retained the cashier’s check and did not withdraw his offer to make said lease until some months later. Borden later executed a similar lease to appellant W. C. Proctor.

It is the contention of the appellee, and the trial court seems to have adopted this theory, that the contract, the specific performance of which is sought, was the counter offer made by Borden first quoted *296 hereinabove, which contract was immediately accepted by said Case and before Borden withdrew his offer; that the contract price was fair and reasonable because at that time the lands were not proven oil lands, but were considered “wildcat”; that said Borden never attempted to withdraw his offer to make the lease to Case until Case had accepted the offer and some time later when he returned the certified check.

Borden filed a separate plea, addressed to that aspect of the bill seeking to have the court require him to execute the oil, gas, and mineral lease to the said Case, which plea, in substance, avers that at no time'did he, Borden, sign or enter into an agreement or contract with Case providing for a conveyance from Borden to Case of a leasehold interest, or any other interest, in the real property described in the bill and that the alleged agreement with which he is sought to be charged violates the statute of frauds and is void.

W. C. Proctor also filed a plea addressed to that aspect of the bill seeking to have Case’s lease declared prior to his lease. The plea' alleged that the lease of Case is subordinate to his lease in that he, Proctor, had no notice or knowledge of Case’s lease and was, therefore, an innocent purchaser.

These pleas were set down to test their sufficiency in due course and, after consideration by the court, were held insufficient. Testimony was taken ore tenus before the trial judge, and on this hearing A. B. Case was questioned rather extensively, his evidence bearing out the features alleged in his bill. No cross-examination was exercised. The brief testimony which Alice Bonner (the party who transmitted the document to Borden for Case) would have given had she been present in court was admitted into evidence by stipulation of the parties. No other evidence was presented, appellants resting without offering evidence. A decree was entered by the court granting the relief prayed for by the appellee and this appeal proceeded.

The various assignments of error are directed to the different phases of pleading and evidence in the case to which appellants claim exception, but boiled down they present two single and independent issues, both of which have been ably argued in brief. They are:

First. Is the document or memorandum signed by M. M. Borden and dated September 10, 1955, together with the copy of the lease, both of which were returned through the United States mail to A. B. Case by way of Alice Bonner, ineffective as violative of the statute of frauds ?

Second. Regardless of the effect, vel non, of the statute of frauds on the transaction between Borden and Case, the other appellant, W. C. Proctor, argues that the court was in error in holding insufficient his special plea that he, when he purchased the subsequent mineral lease from Borden on December 21, 1955, was an innocent purchaser for value without notice of Case’s prior lease.

Our answers to the two propositions are in the negative. We treat them in order, assuming without deciding that an oil, gas, and mineral lease is a conveyance of an interest in real property within the purview of the statute of frauds.

Section 3 of Title 20, Code of Alabama 1940, as amended, of our statute of frauds is so well known that we need not burden the opinion by quoting it.

To avert the bar of the statute, in all contracts for the sale of lands, or any interest therein, in the absence of any payment of purchase money, or a portion thereof, and possession by the purchaser, there must be some agreement in writing, or written memorandum, or note of the sale expressing the consideration thereof, the terms, the parties, the property, and signed by the party to be charged or his lawful agent. If such written proof is not clear evidence of the contract purported to exist, the case comes within the bar of the statute *297 and the transaction is considered void. Carter v. Shorter, 57 Ala. 253; Patt v. Gerst, 149 Ala. 287, 42 So. 1001; Butler Cotton Oil Co. v. Millican, 216 Ala. 472, 113 So. 529; Horton v. Wollner, Hirshberg & Co., 71 Ala. 452; Jenkins v. Harrison, 66 Ala. 345.

In the case of Alba v. Strong, 94 Ala. 163, 165, 10 So. 242, this court stated the governing rules:

“The following propositions must be regarded as settled by the former decisions of this court beyond controversy: First. That to authorize the specific enforcement of an agreement to sell land all the terms of the agreement must have been agreed on, leaving nothing for negotiation. Second.

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Bluebook (online)
118 So. 2d 751, 270 Ala. 293, 81 A.L.R. 2d 982, 12 Oil & Gas Rep. 991, 1960 Ala. LEXIS 307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/borden-v-case-ala-1960.