Clayton v. Tibbens

298 F. 18, 1924 U.S. App. LEXIS 2599
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 3, 1924
DocketNo. 6467
StatusPublished
Cited by11 cases

This text of 298 F. 18 (Clayton v. Tibbens) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clayton v. Tibbens, 298 F. 18, 1924 U.S. App. LEXIS 2599 (8th Cir. 1924).

Opinion

SANBORN, Circuit Judge.

William McKinley Clayton, a minor and the owner of 160 acres of land in Oklahoma, on January 2, 1907, by his guardian, pursuant to the order and approval of the proper court, made an oil and gas lease of this land for the term of 15 years. On July 3, 1913, pursuant to the order and with the approval of the proper county court, which had jurisdiction over probate matters, he, through his legal guardian, made a written contract with the complainant below, C. G. Tibbens, the assign of the lessee, who was then in possession of and operating the leased premises, to the effect that the term of the lease should be and was extended “as long as oil, gas or gasoline, or either of them, is produced or saved from the premises,” in consideration of the agreement of Tibbens that the lessor’s royalty should be and that it was on and after January 1, 1914, increased from one-tenth to one-eighth of the oil produced under the lease, that the complainant would erect a modern gasoline plant sufficient to, and that he would, manufacture the casing head gas produced on the premises into gasoline, and pay to the lessor a gasoline royalty of one-eighth of the sum of all the casing head gas produced on the premises at the rate of 4 cents per 1,000 cubic feet. The complainant performed his part of this agreement of extension, built the gasoline plant at an expense of $36,000, and paid the increased royalties. In the year 1921 the minor and the then guardian of, his estate made the claim that the agreement of extension was unauthorized and void, and employed attorneys to bring a suit to obtain a decree to that effect. Thereupon the • complainant brought this suit against the minor, the guardian of his estate, and others claiming under them, to quiet the title to his leasehold estate, and to secure a decree that the claims of the defendants were baseless, and that the defendants be enjoined from claiming any rights or interests adverse to the rights of the complainant as evidenced by the extension agreement.

The claims of the parties were properly presented to the court below by pleading, evidence, and argument, and after final hearing that court held that the extension agreement was valid, and rendered a decree in favor of the complainant for the relief he sought. The defendants appealed, and the question in this cáse now is: Was this extension agreement valid or void?

Counsel for the defendants contend that the agreement of extension was unauthorized and void because (1) if valid, it was a sale of a part of the real estate of the minor, since it attempted to grant to the lessee [20]*20a base or qualified fee in an incorporeal hereditament, and no such sale of a part of the real estate of a minor could be lawfully made under the statutes of Oklahoma until after an order to show cause to the next of kin and persons interested in the estate of the ward why the real estate should not be sold had been issued by the court at least four weeks before the time fixed in the order for the hearing, nor without the statutory notice thereof to them, nor without an order of the county court for a sale conducted as specified in the statutes -for the sale of the real estate of decedents (Revised Raws of Oklahoma 1910, §§ 6554, 6557, 6558, 6559, 6560, 6563, 6565, 6381, 6383), and no such order to show cause was made, or notice to the next of kin or others interested was given, or sale in the manner prescribed for the sale of the real estate of a decedent was conducted in the proceeding for the agreement ■of extension of the lease in this case; because (2) if the property attempted to be vested in the complainant by the extension agreement was not real estate, it was personal property, and the personal property of the minor could not be lawfully sold otherwise than at public auction after public notice for 15 days, unless for good reason shown to the court it should order a private sale or a shorter notice (section 6370), nor without notice unless the property was perishable, likely to depreciate in value or such as would incur loss or expense by being kept (section 6366), and there was no sale or public auction nor notice of sale for 15 days, nor any other attempt to comply with these requirements of the statute cited in the making of the agreement of extension of the lease; and because (3) at the time the agreement of extension was. made section 6558 of the Revised Raws of Oklahoma 1910 had taken the place of section 5503 of the Compiled Raws of Oldahoma 1909, which was in force at the time of the decision in Duff v. Keaton, 33 Okl. 92, 124 Pac. 291, 42 L. R. A. (N. S.) 472, and section 6558 required that in case of the sale of personal property of a ward, or any part of it, an order to show cause why the sale should not be made should be issued to the next of kin of the ward at least four weeks before the hearing fixed therein, unless notice was waived, and no such order or waiver was made or notice was given before or when the agreement of extension was made.

Counsel for. the complainant answer these contentions: (1) That the making of the extension agreement was not a sale of any of the real estate or of any of the personal property of the minor within the true construction or meaning of the statutes of Oklahoma prescribing the proceeding for such sales and that those statutes were not and are not applicable to the agreement for the extension or the method of making it; (2) that the provisions of the statutes of Oklahoma which authorize and govern the making of the agreement of extension of the lease are sections 6547 and 6548, Revised Raws of Oklahoma 1910, which were sections 5530 and 5531 of the Compiled Raws of Oklahoma 1909, under which the Supreme Court of Oklahoma held in Duff v. Keaton, 33 Okl. 92, 124 Pac. 291, 42 L. R. A. (N. S.) 472, that the county court was authorized and empowered to order a guardian of á minor to make, and by its decree or order to approve and confirm, an oil and gas lease of his. ward’s lands without notice to the next of kin [21]*21or other parties interested, without competitive bidding in a proceeding like that pursued in the case in hand by virtue of the provision of section 5513 of the Compiled Laws of Oklahoma 1909, that “the county court may make such other orders and give such directions as are needful for the management, investment and disposition of the estate and effects, as circumstances require,” and that the statutes of Oklahoma were “entirely lacking as to any specific provision for the procedure to be followed by the guardian in leasing the lands of his ward for agricultural or grazing or commercial purposes or for exploring for oil or gas,” (Duff v. Keaton, 33 Okl. 97, 124 Pac. 291, 42 L. R. A. [N. S.] 472); (3)

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Bluebook (online)
298 F. 18, 1924 U.S. App. LEXIS 2599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clayton-v-tibbens-ca8-1924.