Collins v. Huck

109 So. 341, 161 La. 641, 1925 La. LEXIS 1923
CourtSupreme Court of Louisiana
DecidedJune 9, 1925
DocketNo. 27264.
StatusPublished
Cited by3 cases

This text of 109 So. 341 (Collins v. Huck) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collins v. Huck, 109 So. 341, 161 La. 641, 1925 La. LEXIS 1923 (La. 1925).

Opinion

OVERTON, J.

This is a suit instituted against John A. Huck, R. H. Bruce, J. T. Allison, and L. T. Langston to cancel the recordation of a contract by which plaintiff agreed to assign to defendants a mineral lease on certain lands in the parish of La Salle; to enjoin defendants from constructing a derrick on the land described in said lease, and from committing depredations thereon; and to obtain judgment against defendants in solido for $400,000, with legal interest thereon from judicial demand, for willfully slandering plaintiff’s title to said lease, by recording a copy of the contract to assign the same, after, it is alleged, the contract had been forfeited and surrendered.

The contract, the recordation of which is attacked, contains two provisions, which we deem it best to quote, in order to convey a *643 proper understanding of the case. These provisions are as follows:

“The party of the first part (plaintiff) is to obtain and secure at the expense of the party of the second part (defendants), abstracts of title covering the N. % of S. E. % and S.% of N, E. %, section 6, T. 10, R. 2 East (a part of the land included in the lease to be assigned), which' said abstracts are to be examined by Nieholls Pugh, an attorney of Monroe, La., who will pass on the titles to the above-described land, and all charges of Nieholls Pugh on account of examining said abstracts, and for curing- of defects in said titles, are to be paid by party of the second part, and upon the approval Of said titles by Nieholls Pugh the party of the second part is to commence drilling operations within 30 dáys from the date of this contract, or, in the event the title to this particular 160 acres has not been approved, time is to be extended to begin drilling operations until such titles are approved, said Nieholls Pugh is to use all diligence in obtaining abstracts and approving titles to said tract or tracts * * *
“It is further understood and agreed that the party of the second part is to deposit the sum of one thousand and no/100 ($1,000) dollars with the Central Savings Bank & Trust Company of Monroe, La., to guarantee the faithful and specific performance of the drilling of a well herein referred to, the said one thousand and no/100 ($1,000) dollars to be returned to the parties of the second part when the surface casing is set.”

The lease, which it was agreed to assign, is on 600 acres of' land. The agreement was to assign the lease on 200 acres of the land, when the 12-inch casing would be set in the well which defendants agreed to drill; on 200 acres additional, when the well would he drilled- to a depth of 1,’000 feet, and the remaining 200 acres, when the well would be drilled to a-depth of 1,600 feet. The consideration for' the -assignment was the drilling of an oil' or gas well on the property, under the terms and conditions named in the contract. The contract is dated August 13, 1924.

The contract to assign the lease and the $1,000 mentioned therein were deposited in the Central Savings Bank & Trust Company, as' pyovided in -the contract, and Mr. Pugh was emplo'yed £o exh'mine the title to the 160 acres, mentioned above, and to cure any defects that might appear in the title • thereto. On September 19, 1924, Pugh wrote a letter to Bruce, one of the defendants herein, in which he expressed his willingness to approve, and, in fact, did approve, the title to the land submitted to him for examination, and also the validity of the lease, which plaintiff had agreed to assign, though acknowledging that there were certain things to be done to perfect the title to the land, but which he' considered had progressed sufficiently to justify him in approving the title.

The cancellation of the contract to assign the lease is sought, it may be said, on two grounds. One of the grounds is that, a few days after Pugh approved the title to said land, Bruce, acting for himself and the remaining defendants, notified plaintiff that he and his associates were unable to raise the necessary funds for drilling the well, which they had agreed to drill, and accordingly the $1,000 and the contract, in escrow, were withdrawn, with the consent of Bruce, and the contract terminated. The remaining ground is that, after Pugh had approved the title, defendants did not commence drilling operations within 30 days from the date of that ap proval, as ymescribed in the contract, but permitted those 30 days to elapse without making any effort to begin operations.

The record discloses that defendants bound themselves to pay the cost of making the abstract of title, mentioned above, and to y>ay Pugh for passing on the title, and for his work in curing any defects that might appear therein. The record also discloses, or, in other words, the weight of the evidence shows, that, when Pugh delivered to Bruce his opinion, relative to the title, Bruce raised no objection to the approval of the title, as given by Pugh, but that shortly thereafter he, together with Allison and Langston, two of the remaining defendants and parties to the contract to assign, went to Pugh’s office to ascer *645 tain how much of the $1,000, put in escrow, could be gotten back, and that they were influenced on that occasion in going there by the fact that they were unable to drill the well, called for in the contract to assign, for the reason that certain parties, who had agreed to assist'in financing the drilling of the well, had concluded not to do so. After discussing the matter with Pugh, the conclusion was reached to see plaintiff relative to the matter. The following morning Pugh and Bruce went to see plaintiff, and, after discussing the matter with him, the conclusion was reached to see Mr. Q. T. Hardtner, an official of the Urania Lumber Company, which company had granted the lease to plaintiff, and to discuss the matter with him. Mr. Hardtner was seen, and testified relative to the conversation that ensued as -follows:

“Mr. Bruce and attorney Nicholls Pugh and Mr. Sam Collins (plaintiff) came to my office, and-Mr. Bruce said that he was unable to carry out his contract and wanted to forfeit the contract and take down his money, but that he was in desperate circumstances, and needed some money for personal use, wanted to pay for his abstracts purchased at Jena, and wanted to pay his attorney, all of which amounted to about $500, and asked for my consent for this agreement to be made. I said, ‘Yes,’ I was perfectly willing to help them out, and so they departed and went to Monroe, all satisfied and happy.
“Q. Who?
“A. Mr. Bruce, Mr. Pugh, and Mr. Collins. It was all thoroughly understood that the contract was forfeited, and it was an accommodation on our part to allow them to use $500 of that money for other purposes that was clearly forfeited.”

After the conversation with Hardtner, Bruce, Pugh, and plaintiff went to the bank In Monroe, where the contract to assign the lease and a check for $1,000, attached to the contract, were in escrow. Plaintiff withdrew, in Bruce’s presence, the contract and the cheek, retained the contract, cashed the check, delivered to Bruce $250, paid $150 due by defendant for the abstracts, and also $100, I due by them to Pugh for his services, retained $50 in settlement of an indebtedness due him, and divided the balance, amounting to $450, between himself and Hardtner, or the Urania Lumber Company.

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Bluebook (online)
109 So. 341, 161 La. 641, 1925 La. LEXIS 1923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collins-v-huck-la-1925.