Buffington v. Buffington

119 So. 2d 519, 12 Oil & Gas Rep. 192, 1960 La. App. LEXIS 1415
CourtLouisiana Court of Appeal
DecidedMarch 28, 1960
DocketNo. 21373
StatusPublished
Cited by3 cases

This text of 119 So. 2d 519 (Buffington v. Buffington) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buffington v. Buffington, 119 So. 2d 519, 12 Oil & Gas Rep. 192, 1960 La. App. LEXIS 1415 (La. Ct. App. 1960).

Opinion

JANVIER, Judge.

This is a suit for a declaratory judgment. It presents solely questions of law on the determination of which depends the ownership as between a usufructuary and a naked owner of certain bonuses, delay rentals and royalties which have resulted or may result from an oil, gas and mineral lease covering the land in question, which consists of 799.62 acres known as Belmont Plantation in the Parish of Pointe Coupee, Louisiana.

There is no dispute concerning the facts. After the death of Dr. Wiley R. Buffington on November 30, 1950, there was judgment in his succession proceedings under which his widow, Mrs. Rowena Morrison Buffing-ton, was recognized as surviving spouse in' community and, as such, sent into possession of an undivided half interest in the lands in question. She was also recognized as usufructuary of the other undivided half interest in the 'said lands.

The present plaintiff, Mrs. Jane Buffing-ton King, and other persons were recog[520]*520nized as the naked owners of that undivided half of which Mrs. Buffington was recognized as usufructuary. Mrs. King’s interest was one-twelfth of one-half of the entire property, or one-twenty-fourth of the whole and the other- heirs of Dr. Buf-fington were the owners of the other eleven-twenty-fourths of the entire property, also, of course, subject to the usufruct of Mrs. Buffington.

The judgment of possession was signed on June 11, 1951. On January 30, 1958, Mrs. Jane Buffington King executed a power of attorney in favor of Mrs. Buffington, under which she authorized Mrs. Buffing-ton to represent her in the execution of a mineral lease on the land in question and to collect, for her, such bonuses, delay rentals, or royalties as might he due her as a result of the execution of the lease or the subsequent operations of the lessee.

On February 13, 1958, Mrs. Buffington entered into a lease with Salt Dome Production Company, representing herself and Mrs. King, and this lease was executed by all the other heirs. It provided for the payment to the lessors of $15 an acre as a bonus for the execution of the lease, and $10 per year per acre as delay rental on such land covered by the lease as the lessee might select to hold for future drilling operations. The delay rental payment was to begin with the second year of the lease, and there was also provided a royalty of one-eighth of all gas, oil and other liquid hydro-carbons which might be produced, and $1 per long ton for sulphur. The bonus which was paid for the execution of the lease was $11,994.30, and it is conceded that if Mrs. King, as possessor of the naked ownership of an undivided one-twenty-fourth interest, is entitled to a share, this share would be $499.80.

On February 13, 1959, the lessee, as delay rental,, paid a sum of which Mrs. King’s share, if she is entitled to a share, would be $333. The amounts paid as a bonus and as delay rentals were paid to Mrs. Buffington who received in addition to her own portion such portion, if any, as might be due to Mrs. King. She received this under the power of attorney from Mrs. King which, as stated, authorized her not only to execute the lease, but also to receive such sums as might be due to Mrs. King.

Mrs. Buffington then, apparently in an effort to have it determined whether Mrs. King and the other heirs, as naked owners, were entitled to share in the royalties which might result, or in the bonuses or delay rental which had been paid or which might be paid in the future, refused to deliver to Mrs. King any portion of the bonus money or of the delay rental which she had received. This litigation is the result, Mrs. King not only praying for a judgment declaring her to be the owner of such bonus, delay rental or royalties, but maintaining that, as a result of the receipt by Mrs. Buf-fington of money under the power of attorney, estoppel now prevents Mrs. Buffington from contending that those moneys should not be paid to Mrs. King.

In the Civil District Court for the Parish of Orleans it was decided that the entire fund, whether resulting from bonuses, delay rentals or royalties, and whether received or to be received, should go to the usufructuary. Mrs. King has appealed.

It is conceded that, since the decision in the District Court, a producing well has been brought in on the property, so that there is actually presented the question of the distribution of the royalties which have or will result, as well as the distribution of the bonus money and the payment for delay rentals.

The question as to whom is- due such a bonus or such a delay rental or such royalties has for some time presented a most vexing problem and, apparently, when the decision was rendered in the District Court, the District Judge felt that the decision of the Supreme Court in Milling v. Collector of Revenue, 220 La. 773, 57 So.2d 679, 683, was determinative of the issues presented. There Milling had acquired cer[521]*521tain lands prior to his marriage. After his marriage, as a result of mineral leases on those lands, he received royalties, delay rentals and bonuses, and, in a controversy with the State Board of Tax Appeals took the position that these, as fruits of his separate property, fell into the community and that, accordingly, for State income tax purposes, he could treat those monies as belonging to the community. This would have resulted in a saving of $2,722.39 and interest in income tax payment. From an adverse decision by the Collector of Revenue, Milling took the matter to court and ultimately the Supreme Court held that those monies fell into the community and that, accordingly, the additional tax was not due.

In the case at bar it was contended in the District Court and, as already stated, held that that decision was controlling here and that, since the lease did not result in a depletion of the property itself, it should be treated as having produced “fruits” of the property and that, accordingly, the proceeds should be considered as belonging to the usufructuary since a usufructuary is entitled to the “fruits” as against the possessor of the naked ownership.

In that decision the possibility that it might effect a determination of the identical question. which is here presented was discussed by the Court. Note the following:

“ * * * in a supplemental brief the attorneys for the Collector suggest that to come to the conclusion we have here reached will lead to confusion when treating of usufruct, since the usufructuary occupies the same position with reference to the ‘products’ or ‘fruits’ of the property subject to the usufruct as the community occupies with reference to the ‘profits’ or ‘fruits’ of the separate property of the spouses, citing Succession of Andrus, 131 La. 940, 60 So. 623; and if the Court holds that the proceeds resulting from an oil or gas lease on the separate property of the husband (or the separate property of the wife administered by the husband alone or by them jointly) belong to the community, then the usu-fructuary will likewise have the right to retain as owner all the oil royalties and bonuses which he has received from the land during the existence of the usufruct, thus depleting the land of its value and leaving to the heirs (of the deceased husband or wife) only the naked ownership of the perhaps almost worthless soil.
“The supposed problems posed in the above argument are not before the Court here, and necessarily any expression of opinion on the subject would be at best obiter.”

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Related

Buffington v. Buffington
126 So. 2d 326 (Supreme Court of Louisiana, 1961)
Gardiner v. Goertner
149 So. 186 (Supreme Court of Florida, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
119 So. 2d 519, 12 Oil & Gas Rep. 192, 1960 La. App. LEXIS 1415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buffington-v-buffington-lactapp-1960.