Brooks v. Independent Exploration Co.

240 P.2d 1037, 109 Cal. App. 2d 475, 1952 Cal. App. LEXIS 1862
CourtCalifornia Court of Appeal
DecidedFebruary 27, 1952
DocketCiv. 18162; Civ. 18163
StatusPublished

This text of 240 P.2d 1037 (Brooks v. Independent Exploration Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brooks v. Independent Exploration Co., 240 P.2d 1037, 109 Cal. App. 2d 475, 1952 Cal. App. LEXIS 1862 (Cal. Ct. App. 1952).

Opinion

WOOD (Parker), J.

These two actions were consolidated for trial: Plaintiff Brooks commenced the first action above mentioned and sought to obtain a judgment that he is entitled to possession of 1 % acres of land, as lessee under an oil lease, and to oil produced from an oil well thereon. Thereafter plaintiff Davis joined as a party plaintiff in that action and alleged that she is the owner of and entitled to the mineral rights in said land, subject to said oil lease held by Brooks as lessee.

In the second action above mentioned, plaintiffs Davis, Wood, Jackson, Miller, Wolver, Marks and Brooks sought to compel the trustee, under a trust deed, to execute partial reconveyances of mineral rights in four l^-acre parcels of land. (One of these parcels is the parcel referred to in the first action.) In both actions, the plaintiffs sought a declaration by the court as to whether there had been a legal substitution of trustee under the trust deed.

Judgment in the first action was that neither plaintiff had any interest in said 1% acres of land; and that defendants Independent Exploration Company and Rothschild Oil Company are the owners of the exclusive right to remove oil from said land. Judgment in the second action was that none of the plaintiffs is entitled to any reconveyance of any part of said four parcels of land; that none of the plaintiffs has any interest in said land; and that defendants Moore are owners of and entitled to possession of all said four parcels of land, subject to the exclusive right of defendants Independent Exploration Company and Rothschild Oil Company to remove oil therefrom. Plaintiffs appeal from the judgments.

' In 1938 Mr. and Mrs. T. M. Frew, Jr., conveyed by grant deed about 211 acres of land to LeRoy Harrod for the agreed price of $3,000. At the time of said transaction, and as security for the payment of $2,900, the unpaid balance of the purchase price, Mr. Harrod and his wife executed a trust deed covering said land, which deed was recorded on August 31,1938. Under that trust deed, the Harrods were the trustors, T. M. Frew, Jr., was the beneficiary, and the Citizens Title Company was the trustee. The land was community property of the Harrods.

*477 Harrod divided the land into ly^-aave parcels and thereafter made written agreements for the sale of the mineral rights in 44 of those parcels. The agreements provided that when the buyer had complied with all the terms of his agreement (including payment in full) the seller would deliver to him a mineral deed conveying to him the mineral rights in the parcel sold, “subject to conditions, restrictions, rights and rights-of-way of record.” On the reverse side of the agreement there is a printed statement, made by the real estate commissioner for the information of the public, which recites in part that the land is encumbered by said trust deed. In 1939 Harrod made such an agreement with plaintiffs Jackson for the sale of one parcel, with plaintiff Wood for two parcels, and with Mr. Fordahl (plaintiff Davis’ predecessor in interest) for one parcel. Thereafter in 1939 Harrod and wife executed mineral deeds in favor of the Jacksons and Wood. In 1940 Harrod executed a mineral deed in favor of the Eoyal Land Corporation conveying all the mineral rights in said subdivided acreage not theretofore conveyed. (It appears that said corporation was owned by Harrod and A. J. Eankin.) Thereafter in 1940 the said corporation executed a mineral deed in favor of Fordahl.

The trust deed, above referred to, provided in part as follows: “It is expressly agreed that Citizens Title Company, Trustee, herein, shall be and is hereby authorized at any time during the life of this Deed of Trust, provided no default shall have been declared thereunder, to execute and deliver to the parties entitled thereto, Partial Eeconveyance of the property hereinabove described in parcels of five (5) or more acres, the same to be reconveyed upon payment of $17.50 per acre.” In February, May, June and August, 1939, the trustee executed partial reconveyances of the land described in the trust deed.

On November 4, 1939, Mr. Frew, the beneficiary under the trust deed, signed a document which is as follows:

“Substitution op Trustee
“Whereas, A Trust Deed was executed on August 25,1938, naming the Citizens Title Company, a California Corporation, as Trustee, and LeEoy Harrod and Euth H. Harrod, husband and wife, as Trustors, and T. M. Frew, Jr., as Beneficiary, which Trust Deed was recorded in Book 16033 at Page 105 of Official Eecords of Los Angeles County;
*478 “Now Therefore, A. J. Bankin, is hereby substituted for said Citizens Title Company, a California Corporation, as Trustee in said Trust Deed.
“This substitution is made pursuant to the provisions of Section 2934A of the Civil Code.
“In Witness Whereof the said T. M. Frew, Jr., the Beneficiary under said Trust Deed has caused his name to be affixed hereto this 4th day of November, 1939.
T. M. Frew Jr.
T. M. Frew, Jr.”

On said November 4th Mr. Frew acknowledged before a notary public that he executed said document. Mr. Frew •testified that after he signed the document he apparently handed it back to Harrod; before he signed the document Harrod had called him and said that they would have to make a substitution of trustee, that it would be to their benefit to do it, that something was wrong in the trustee company; and he (Frew) agreed that they “would make A. J. Rankin— that it would be in his name.” Harrod testified that on December 13, 1939, he took said document to the Citizens Title Company, the trustee named in the trust deed; that when he requested the trustee to sign the substitution he delivered to the trustee a letter, signed by him, which was was as follows (Exhibit F) :

“December 13, 1939
“Citizens Title Company,
354 South 'Spring Street,
Los Angeles, California.
‘ ‘ Gentlemen:
“We enclose herewith Substitution of Trustee in duplicate in the Frew matter, which please have the proper officers of your company sign on the page marked, ‘receipt,’ and return one copy to us.
“Thank you.
Very truly yours,
LeRoy Harrod ’ ’

He testified further that after the trustee had.signed the substitution he took the original document to "his (Harrod’s) office and delivered it to Rankin; that on December 18, 1939, he sent the said document, by mail, to the county recorder for recording. Attached to said document, entitled “Substitution of Trustee,” there is another document entitled *479 “Receipt” which was signed by the trustee. The said receipt is as follows:

“Receipt
Receipt of a copy of the attached Substitution of Trustee is hereby acknowledged and we hereby consent thereto.

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Bluebook (online)
240 P.2d 1037, 109 Cal. App. 2d 475, 1952 Cal. App. LEXIS 1862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brooks-v-independent-exploration-co-calctapp-1952.