Concho Washed Sand Co. v. Huntsberger

1935 OK 383, 43 P.2d 120, 171 Okla. 486, 1935 Okla. LEXIS 17
CourtSupreme Court of Oklahoma
DecidedApril 9, 1935
DocketNo. 25213.
StatusPublished
Cited by4 cases

This text of 1935 OK 383 (Concho Washed Sand Co. v. Huntsberger) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Concho Washed Sand Co. v. Huntsberger, 1935 OK 383, 43 P.2d 120, 171 Okla. 486, 1935 Okla. LEXIS 17 (Okla. 1935).

Opinion

PER CURIAM.

This is a proceeding in error from the district court of Major county in an action by defendant in error. J. H. Huntsberger, as plaintiff, against Concho *487 Washed Band Company and Concho Sand & Gravel Company, as defendants. We refer to the parties as they appear in the court below.

The material facts involved in this proceeding are disclosed by the first cause of action contained in plaintiff’s petition, including the contract between the parties sot out as exhibit “A,” the demurrer of defendants to said cause of action, and the decision of the trial court overruling said demurrer and rendering judgment for plaintiff in the sum of $582.70, with interest at 0 per cent, per annum from Hay 1, 1933, and for the further sum of $100 as attorneys fee, and, in addition thereto, appointing a receiver for certain equipment owned by defendants.

Among other averments, it is alleged in the first count of plaintiff’s petition that:

“* * * On the 16th day of March, 1929', he entered into a written contract with the defendant Concho Washed Sand Company for the purpose of mining and operat.ng for sand and gravel, for laying p'pe lines, railroad tracks, power stations and structures, to produce, save and take care of said products on the following described land in Major county, Okla.. * * * that under the terms of said contract the Concho Washed Sand Company agreed to pay to plaintiff a royalty of four cents (4c) per cubic yard on all sand and gravel or either of them produced on said land. Second, party agreed further to pay a minimum royalty each year of $600 whether sand and gravel was produced thereon in sufficient quantities to amount of said sum or not. * * * That said royalty was to be computed and paid quarterly on July 1st, October 1st, January 1st. and April 1st of each year.”

That under the terms of said contract plaintiff acquired a lien on all machinery and equipment located on said premises as security for the payment of royalties falling due thereunder, and that defendants should not have the right to remove the machinery and other equipment from the above-described land until all past due royalties were paid; that on April 1, 1933, defendants became indebted to plaintiff by reason of the mining and removal of sand and gravel from said leased premises in the sum of $582.70, and that on said date the defendant Concho Washed Sand Company executed and delivered to plaintiff its cheek drawn on the First National Bank & Trust Company of Oklahoma City for said sum, and shortly thereafter, and before plaintiff could present the check for payment to the bank on which it was drawn, payment was stopped by order of said defendant.

1’laintiff further avers that he has been unable to collect said amount or any part thereof, “but has retained said check for the purpose only of evidencing the defendants’ acknowledgment of the amount due,” and that by reason of such nonpayment “plaintiff is entitled to a foreclosure of his lien on all of the machinery fixtures and equipment used in the mining of sand and gravel on said lease.” In subsequent averments, plaintiff describes the machinery and other equipment and cla-rfis that, by reason of said nonpayment, he is entitled to the appointment of a receiver to take charge of same as provided in the contract referred to, and then prays for judgment for said sum of $582.70, with interest and attorneys fees, for foreclosure of his lien on said described property, and for the sale thereof as provided by law; also, for a receiver for said property pending the final determination of the action.

The contract between plaintiff and Concho Washed Band Company attached to plaintiff’s first cause of action us exhibit “A” and executed on March 16, 19291, after specifying the work to be done by said company, royalty to be paid, and describing the tract of land on which the mining operations were to be performed, further- provides that:

“A lien is hereby granted the party .of the first part on all machinery and equipment for the full payment of all royalty due. Party of the second part shall have the right at any time should he find it impossible to operate to remove all machinery and fixtures and tracks from said land after payment of all royalties that are due. Second party agrees to start construction of sand plant within a period of 90 days from this date. In payment all royalty shall be paid by check to the first party or deposited to the party of the first part’s credit in the First National Bank of Hennessey, Okla., or its successors, which shall continue as a depository regardless of change of ownership of said land. In the event of the discontinuance of said bank, said royalty may be deposited in any bank selected by party of the second part, and notice of such deposit given party of the first part by mail at time of making such deposit.”

The entire controversy between the respective parties hereto is hinged on the interpretation to be given the following provision :

“In payment all royalty shall' be paid by check to the first party or deposited to the party of the first part’s credit in the First National Bank of Hennessey, Oklahoma”

—counsel for defendant claiming that the *488 execution and delivery of the check for the $582.70, admitted to have been due from defendant to plaintiff on April 1, 1933, constituted a payment of said indebtedness, notwithstanding- the fact that the drawer of said check itself stopped payment thereof.

In support of this contention, he cites the following Oklahoma casos: Wheeler & Motter Merc. Co. v. Kitchen, 67 Okla. 131, 169 P, 877; Dungan v. Jesko, 118 Okla. 217, 246 P. 1094; Aetna Life Ins. Co. v. Eakins, 143 Okla. 52, 287 P. 402; Harryman v. Bowlin, 153 Okla. 202, 4 P. (2d) 1011.

It is admitted by counsel that none of these cases are squarely in point, but he claims that, by implication, they tend to support his contention. We cannot agree that any of said eases, even by implication, supports his contention. Eor instance, in the opinion in Wheeler & Motter Merc. Co. v. Kitchen, supra, it is said in part that:

“A check of itself does not operate as an assignment of any part of the funds to the credit of the drawer with the bank, and the bank is not Table to the holder unless and until i-t accepts or certifies the check (Rev. Laws 1910, sec. 4239) and, until presented and paid, or accepted or certified by the bank, is revocable by the drawer, who has the legal control of the moneys to his credit.”

In Harryman v. Bowlin, supra, it is held that:

“Where a shipper at 'the request of a buyer sends a b;ll of lading with draft attached to a certain bank and the buyer delivered a check to the said bank in which the buyer has deposits and before the shipper receives his money the bank fails and he then files a claim with -the liquidating agent of the bank and a part of the claim is paid from the deposits of said buyer, leaving a balance due the shipper, held, thé filing of such claim with the liquidating agent is not such an election of remedy as will preclude the shipper from maintaining /in action against the buyer for balance due upon the contract.”

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Bluebook (online)
1935 OK 383, 43 P.2d 120, 171 Okla. 486, 1935 Okla. LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/concho-washed-sand-co-v-huntsberger-okla-1935.