Consumers' Oil & Refining Co. v. Bilby

1923 OK 412, 217 P. 484, 91 Okla. 282, 1923 Okla. LEXIS 744
CourtSupreme Court of Oklahoma
DecidedJune 26, 1923
Docket11594
StatusPublished
Cited by3 cases

This text of 1923 OK 412 (Consumers' Oil & Refining Co. v. Bilby) 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
Consumers' Oil & Refining Co. v. Bilby, 1923 OK 412, 217 P. 484, 91 Okla. 282, 1923 Okla. LEXIS 744 (Okla. 1923).

Opinion

Opinion by

PINKHAM, C.

The plaintiff in error was plaintiff in the trial court and the defendants in error were the defendants in the trial court, and will be referred to as plaintiff and defendants, respectively.

On the 9th day of December, 1918, plaintiff filed its petition in the district court of Wagoner county, Okla., wherein it sought a perpetual injunction enjoining the defendants from interfering with or disturbing plaintiff’s possession of the land described in its petition, so far as such possession was necessary to prospect for and develop and operate oil and gas leases under a certain contract, attached to and made a part of plaintiff’s petition.

In substance, it was alleged in the petition that the defendant J. S. Bilby, on the 17th day of March, 1917, was the owner of the land described in the contract set out, and that on said date he entered into a contract with one Matthews Nelson and A. L. Holtom, whereby the said Bilby conveyed to the said Nelson and Holtom all'of the oil and gas rights within or under said lands described. That said Nelson and Holtom afterward conveyed said contract and all their rights to the premises to the plaintiff herein.

It was alleged that after the execution and delivery -of said contract, and said assignment thereof, plaintiff went into possession of said premises and began the operations in accordance with the terms of said contract, and commenced the construction of a gasoline plant with the intention to manufacture gasoline from the gas produced from said premises and spent approximately the sum of $3,000 in building the foundation for said gasoline plant and building houses and erecting a dam for the catching of water; that plaintiff employed a competent man to remain in charge of said premises and operate the gas wells thereon. *283 That on the--------day of_______________ the defendant John S. Bilby conveyed by warranty deed said premises to the defendants. It was further charged that, the defendants willfully and maliciously ordered the plaintiff and its servants and representatives off of said premises. That by reason of said threats plaintiff was prevented from further development of said premises for gas and the construction of a gasoline plant for the purpose of utilizing the gas. It was further alleged that plaintiff was ready, able, willing, and anxious to proceed 'with the development and carrying out of the terms of said contract but was prevented by the unlawful acts of the defendants as alleged; that by reason of such acts plaintiff was entitled, to a perpetual injunction against said defendants, for which it prayed the judgment of the court.

To this petition the defendants filed their answer and cross-petition wherein they denied generally all of the allegations in the petition. They further alleged that prior to March 1, 1917, the said defendant John S. Bilby was the owner of said lands and premises, that he was a man 86 years of age, and prior thereto had been active in business and trained in and schooled in transactions relating to land and livestock involving more than ordinary sums of money; that the said Nelson and Holtom were promoters and speculators in oil and gas leases; that on or about said date they entered into negotiations with the said John S. Bilby to obtain a contract on S40 acres located in sections 10, 16, and 22, for the purpose of exploiting the same for oil and gas; that after said parties had agreed upon a lease, the said Nelson and Holtom prepared the oil and gas lease attached to plaintiff’s petition, and that they falsely and fraudulently represented to the said John S. Bilby that the lands described in said contract or lease, consisted only of 840 acres; that the said Bilby relied upon said statements, and not being aware of the true import of said lease, and on account of his failing eye-sight having neglected to read same, was induced to, and did, sign said contract and deliver the same to Nelson and Holtom; that said contract was fraudulent, in that it described more than 2,000 acres of land owned by the said John S. Bilby; that immediately thereafter the said Nelson and Holtom caused said oil and gas lease to be placed of record, with the intention to cheat and defraud the said John S. Bilby and for such purpose sold and assigned said lease and contract to the plaintiff; that on the___ day of ------------ 19----, and after the execution of said oil and gas lease, defendant John S. Bilby, realizing his infirmity, and for the purpose of protecting his property, conveyed the land in controversy to his cofendent; that immediately after the assignment of said oil and gas lease to the plaintiff, the plaintiff entered in upon that portion- of the land contemplated in the original negotiations between the parties, and began a pretended exploitation of said real estate for oil and gas, and the said; John S. Bilby, not then aware of the fraud practiced upon him, permitted plaintiff, to explore said real estate and place certain minor improvements thereon, until about the 1st day of July, 1917, at which time the plaintiff had. wholly abandoned the same; that thereafter the defendants R. I. .Bilby and N. Y. Bilby, having become aware of t:he fraud practiced as alleged, took over the complete possessioni of said real estate, and have ever since said date held the same adverse to the claim of plaintiff.

Defendants further alleged that by reason, of all of the acts performed by plaintiff, and by reason of the failure of the plaintiff to-proceed with due diligence, under the term; of the contract under which they claimed possession of said real estate, and by reason of their failure to do these things. promised by them under their contract, as-claimed by them, they forfeited all rights, title, and interest in and to any and all parts of said real estate whatsoever, and all claims in law or equity, and that the-title to said real estate should be quieted in the defendants; that by reason of the false, fraudulent and wrongful acts of the-plaintiff as set out, they have lost the oil and gas premiums on said land, ‘from the-________day of March, 1917, to the present time which said rental premiums were of the value of $30,000, and by reason of the-plaintiff asserting a claim to said real estate and of filing this suit, defendants have been damaged in the sum of $30,000. They prayed for judgment canceling the-contract and for assignment thereof, and for quieting title in the defendants, and. for damages in the sum of $30,000.

Defendants filed an amendment to their-cross-petition on February 27, 1919, in substance alleging that the plaintiff, in said oil and gas contract, agreed that lesses or then-assigns should commence work of laying a pipe line and the erection of a gasoline plant, within 90 days from date of contract, providing the necessary machinery and material, etc., could be had; that in the event they failed to continue to operate said lease they would execute a release to same. It is then alleged that plaintiff ceased active operations under the contract and failed and re *284 fused to build a pipe line and gasoline plant, and bj” reason thereof they had forfeited all rights thereunder.

The contract out of which this action arose was entered into between John S. Biiby and Eva Biiby, his wife, parties of the first part, and Matthew Nelson and A. L. IToltom, parties of the second part, on the 17th day o£ March, 1917, and is attached to the plaintiff’s petition.

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Cite This Page — Counsel Stack

Bluebook (online)
1923 OK 412, 217 P. 484, 91 Okla. 282, 1923 Okla. LEXIS 744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consumers-oil-refining-co-v-bilby-okla-1923.