Continental Securities Corp. v. Wetherbee

175 So. 571, 187 La. 773, 1936 La. LEXIS 1286
CourtSupreme Court of Louisiana
DecidedNovember 30, 1936
DocketNo. 33504.
StatusPublished
Cited by24 cases

This text of 175 So. 571 (Continental Securities Corp. v. Wetherbee) 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
Continental Securities Corp. v. Wetherbee, 175 So. 571, 187 La. 773, 1936 La. LEXIS 1286 (La. 1936).

Opinions

LAND, Justice.

This is a suit for partition by licitation of approximately 8,300 acres of land situated in the parish of Bossier in this state.

Judgment was rendered in the lower court against George W. Wetherbee, defendant, recognizing plaintiff, Continental Securities Corporation, and intervener, M. Risinger, to be owners, in indivisión, in the proportion of an undivided one-half each, of all the lands described in plaintiff’s petition. The judgment further orders that partition be made by licitation; that all costs be borne by the mass; and that the balance of the proceeds of sale, after payment of costs, be equally divided between plaintiff, Continental Securities Corporation, and M. Risinger, intervener.

From this judgment, defendant George W. Wetherbee has prosecuted a devolutive appeal to this court.

The defendants George W. Wetherbee and Abel Bliss acquired all of this property, except an 80-acre tract, from Simon Hamburg, by recorded deed of date September 10, 1910, and these defendants later acquired this tract also from N. E. Muggah by recorded deed of date February 17, 1913. On June 26, 1923, defendant Abel Bliss sold and conveyed to defendant George W. Wetherbee all of his right, title, and interest in the property; and George W. Wetherbee, at that date, acquired the full ownership of all the property described in plaintiff’s petition.

The Continental Securities Corporation alleges the above facts in its petition, and avers that on August 5, 1933, it acquired at sheriff’s sale, under executory process, an undivided one-half interest in the entire property in cause No. 11,622 in the district court of Bossier parish, entitled “Continental Securities Corporation v. George W. Wetherbee,” being the same Wetherbee, defendant herein.

The Continental Securities Corporation also alleges that defendant Abel Bliss is the owner and holder of a mortgage duly recorded, bearing against the undivided one-half interest in the property described in article I hereof, owned by the said George W. Wetherbee, and should be made a party defendant in order to protect whatever interest he may have in the premises.

Alleging that petitioner and defendant George W. Wetherbee are co-owners, in indivisión, in the proportion of an undivided one-half interest each of the entire property, Continental Securities Corporation prays for citation to George W. Wetherbee and Abel Bliss; that petitioner and George W. Wetherbee be recognized as owners in indivisión of the property described in article I hereof; that the property be partitioned by licitation, and proceeds of sale be divided between the parties in accordance with their interest therein. In the alternative, petitioner prays for a partition in kind.

(1) In the answer and amended answer of defendant George Wj Wetherbee, to plain *781 tiff’s petition, defendant, admits that he acquired all of the property as set forth in plaintiff’s petition, hut denies that plaintiff acquired any interest by the sheriff’s sale therein referred to.

Assuming the position of plaintiff in re-convention, defendant attacks the sheriff’s sale, the basis of plaintiff’s title, as null and void for the following reasons:

(a) The foreclosure proceedings and the ensuing sheriff’s sale went beyond the provisions of the mortgage in not excepting therefrom the right of defendant George Wetherbee, mortgagor, to produce oil from the premises.

(b) The mortgage, and the ensuing sheriff’s sale based thereon, covered the entire undivided interest in the property and not merely an undivided one-half interest therein; and

(c) There was no actual seizure of the property by the sheriff preceding the sale.

(2) As to the first ground of attack on plaintiff’s title. On September 10, 1910, Bliss and Wetherbee purchased from Simon Hamburg, and from N. E. Muggah on February 17, 1913, approximately 8,300 acres of land in Bossier parish.

Thereafter, on June 26, 1923, Wetherbee - bought all the right, title, and interest of Bliss in the property in question (Tr., Vol. 1, p. 93) for $250,000, part of which was paid in cash and the balance on terms of credit. (Tr., Vol. 1, p. 96). To secure the credit portion of the price, a special mortgage and vendor’s lien was stipulated “on said property.” Tr., Vol. 1, p. 97.

On May 27, 1927, defendant Wetherbee executed a mortgage covering the entire property to secure two notes of $50,000 each, later acquired by the plaintiff,. Continental Securities Corporation. Tr., Vol. 2, pp. 11, 1.2.

After describing in detail the property covered by this mortgage, the following clause is contained therein: “ * * * together with all buildings and improvements on all the lands described hereinabove of whatever nature and kind, including any and ajl oil wells, or any interest therein owned by said mortgagor, together with all equipment and appurtenances thereunto belonging.

“It is specifically agreed and understood that this, act of mortgage does not, in any way, affect or apply to the oil and/or gas which has been or may be produced from the above property, and that the said George W. Wetherbee shall have the right to sell said oil and/or gas and to collect and receive the proceeds thereof free from any lien, privilege, or incumbrance resulting from this mortgage; and the Standard Oil Company of Louisiana, or any other person, firm or corporation which may purchase said oil and/or gas, is hereby authorized to remit the purchase price to the said George W. Wetherbee." (Italics ours.) Tr., Vol. 2, p. 15.

. This mortgage was given by Wetherbee to the Commercial National Bank of Shreveport, La. The act of mortgage was prepared by the attorney for the bank, and the notes were later acquired by plaintiff. It is the mortgage which was foreclosed by plaintiff, and plaintiff’s title is based on this foreclosure proceeding.

*783 Defendant Wetherbee contends that the mortgage foreclosed did not in any way affect or apply to the oil and/or gas which has been or may be produced from the above-described premises, and that, in this foreclosure proceeding, plaintiff completely ignored the exception of the oil and gas from the property mortgaged, and proceeded as though this exception did not exist.

Plaintiff, as assignee of the bank, takes the position that the sole purpose of this exception was to enable Wetherbee to sell the oil which he was then producing from the property to the Standard Pipe Line Company and receive the price.

But a mere reading of the exception in question shows that its scope is much broader and that more was intended by the parties thereto. The provision in the exception “that this act of mortgage does not in any way affect or apply to the oil * * * which has been or may be produced from the above described property * * *,” clearly conveys the idea that the mortgage does not in any way affect or apply to the oil which might be produced from the described lands.

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Bluebook (online)
175 So. 571, 187 La. 773, 1936 La. LEXIS 1286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-securities-corp-v-wetherbee-la-1936.