Consolidated-Progressive Oil Corp. v. Standard Oil Co.

105 So. 36, 158 La. 981
Procedural entryThis page is a short order in Consolidated-Progressive Oil Corp. v. Standard Oil Co.. Read the opinion of the Court — 158 La. 982
Supreme Court of Louisiana·Decided April 27, 1925·No. No. 25252·Published

Opinion

LAND, J.

On October 4, 1916, G. T. Shaw executed and delivered to A. E. Wilder an oil, gas, and mineral lease on a large tract of land in Claiborne parish, including the N. E. % of the S. W. % of section 20, township 21 north, range 7 west, the property in dispute in the present case.

The subsequent assignments of this lease, as alleged in plaintiffs’ petition, are as follows : Wilder to Atlas Oil Company, November 17, 1916; Atlas Oil Company to Denman and Williams, August 15, 1917; Denman and Williams to the Consolidated-Progressive Oil Corporation, November 10,1917; the Consolidated-Progressive Oil Corporation to N. C. McGowan, trustee for the Palmer Trust, January 28, 1918; N. C. McGowan, trustee for the Palmer Trust, to the Standard Oil Company of Louisiana, November 5, 1919.

Hereafter in this opinion, for the sake of brevity, we shall designate the Consolidated-Progressive Oil Corporation as the Consolidated, and the Standard Oil Company of Louisiana as the Standard.

Plaintiffs allege that the terms of the lease have been complied with, and they seek in the present suit to annul the assignment of the lease made by the Consolidated to N. C. McGowan, trustee, and the assignment of said lease by McGowan, trustee, to the defendant, the Standard, and to recover from said company the sum of $9,000,000, the alleged value of the oil produced from the leased premises.

Plaintiffs aver that the assignment to McGowan, trustee, was made by R. L. Smith, president, without the authority of the board of directors of the Consolidated, and that the pretended resolution of said board, attached to and recorded with said assignment, is forged and fraudulent.

It is alleged that the Standard, at the date [985] of the institution of this suit, January 7, 1922, was in possession of the property leased, and had held possession of same approximately for -26 months under said assignment, and had produced 3,000,000 barrels of oil from said property.

Huey P. Long, Jr., as the assignee of one-tenth interest in' the lease claimed by the Consolidated, is a coplaintiff in the present suit.

R. L. Smith, the Palmer Trust, a joint-stock association, and its members, N. C. Mc"Gowan, individually and as trustee, and the Standard are made parties defendants.

The defendants, including the Standard, have tendered exceptions of no cause or right of action to plaintiffs’ petition.

These exceptions were sustained by the trial judge as to all the defendants, plaintiffs' suit was dismissed, and they have appealed from the adverse judgment to this court.

1. Able counsel for the Standard, in arguing the exception of no cause of action, contends that the lease in question is one of a series of the “Wilder Leases,” which this court has declared to be void for want of mutuality, and that, plaintiffs having failed to set out the specific facts upon which the alleged compliance with the terms of the lease is based, there is no sufficient allegation as to the performance of the obligations of the lease, which, for this reason become forfeited ipso facto.

In article XIII of plaintiffs’ petition, it is alleged:

“That petitioners now show that all the rights and privileges, secured and held under the assignment to the Consolidated-Progressive Oil Corporation of the mineral lease upon the property described in articles II and III of this petition, have been at all times and are now valid, effective, and subsisting by reason of a compliance with the terms of the contracts of said leases.”

The ultimate fact alleged is a compliance, not only by plaintiff, the Consolidated, but by all of the assignees of A. E. Wilder, the original lessee, “with the terms of the contracts of said leases,” i. e., by each individual assignee or lessee.

It is clear that plaintiffs have alleged the validity of the lease as a subsisting title.

The petition sets out specifically all of the assignments with their resDective dates and the names of each assignee, and, as the original lease from Shaw to Wilder is annexed to and made a part of the petition, it is read into the petition in this case, and the terms and conditions of the lease, together with the dates therein fixed for performance, are thereby set forth in ipsissimis verbis by plaintiff, the Consolidated, in said petition.

The alleged compliance “with the terms of the contracts of said leases,” when construed with reference to such terms as thus specifically set forth in the petition, is thereby made sufficiently certain and definite.

The allegations of the petition, taken as true, for the purpose of disposing of the exception of no cause of action, show that the defendant, the Standard, was in possession of this property at the date of the filing of this suit, and had been in such possession for a number of months, and .that the sole title under which said company possessed and operated the property in dispute is the assignment of the lease from the plaintiff, the Consolidated, through Smith, president, to McGowan, trustee, and from McGowan, trustee, to the Standard.

By purchasing the assignment of the lease from the Consolidated, McGowan, trustee, recognized the title of the Consolidated, and estopped himself “as trustee from denying the validity of such title, and the Standard, holding the same property as assignee under McGowan, trustee, must be held to be a recognition of that title, and must show that said company has acquired the same, or fail in maintaining its right to the property; “for it is well settled, that, if either [987] the pleadings or the evidence show that the parties trace their titles to the same source, neither will be permitted to attack the title of their common author, and that a party cannot controvert the title of one under whom he claims.” Girault v. Zuntz, 15 La. Ann. 684; Crane v. Marshal, 1 Mart. (N. S.) 577; Verret’s Heirs v. Candolle, 4 Mart. (N. S.) 402; Bedford v. Urquhart, 8 La. 237, 28 Am. Dec. 137; Hughey v. Barrow, 4 La. Ann. 250; Kemp v. Womack, 1 Rob. 369; Cotton v. Stacker, 5 La. Ann. 677; Harang v. Blanc, 34 La. Ann. 632; Rocques’ Heirs et al. v. Levecque’s Heirs, 110 La. 306, 34 So. 454; Keating v. Wilbert, 119 La. 461, 44 So. 265; Sanders v. Tremont Lumber Co., 143 La. 181, 78 So. 439.

It is a principle of universal jurisprudence that “a vendee who goes into possession cannot dispute the title of his vendor while he remains in possession.” Herman on Estoppel, p. 809; Keating v. Wilbert, 119 La. 461, 44 So. 265.

Free access — add to your briefcase to read the full text and ask questions with AI

Consolidated-Progressive Oil Corp. v. Standard Oil Co., 105 So. 36, 158 La. 981 (La. 1925).

105 So. 36 (Consolidated-Progressive Oil Corp. v. Standard Oil Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Rocques' Heirs v. Levecque's Heirs
34 So. 454 (Supreme Court of Louisiana, 1903)
Keating v. Wilbert
44 So. 265 (Supreme Court of Louisiana, 1907)
State v. Hackley, Hume & Joyce
50 So. 772 (Supreme Court of Louisiana, 1909)
Sanders v. Tremont Lumber Co.
78 So. 439 (Supreme Court of Louisiana, 1918)
Hughey v. Barrow
4 La. Ann. 248 (Supreme Court of Louisiana, 1849)
Girault v. Zuntz
15 La. Ann. 684 (Supreme Court of Louisiana, 1860)
Kemp v. Womack
1 Rob. 369 (Supreme Court of Louisiana, 1842)