Cox v. Butts

1915 OK 442, 149 P. 1090, 48 Okla. 147, 1915 Okla. LEXIS 604
Supreme Court of Oklahoma·Decided June 8, 1915·No. 4737·Published·Cited by 22 cases

Opinion

Opinion by

MATHEWS, C.

The parties hereto will be designated as in the lower court.

Plaintiff’s petition in the lower court contained four counts, each complete within itself, all of them growing out of and connected with the same subject-matter. The trial court sustained a demurrer to the second and third counts; the plaintiff refused to amend, and announced that he would stand upon these two counts. Thereupon the court entered an order dismissing the two counts, or, more properly, the two causes of action. Plaintiff reserved exceptions and has brought the matter here upon appeal. The demurrer to the first and fourth counts was overruled ; and, while the record does not show, it is presumed that the cause went to trial on these two counts.

Defendant contends that this appeal is premature and should be dismissed, insisting that plaintiff should have awaited the final action of the court upon the other two causes of action. Even though, as in this case, all the causes of action are interwoven and grew out of the same transaction, we are of the opinion that, when each count or cause of action declares upon a different cause of action, and the pleading in each is complete within itself, as in the case at bar, an appeal will lie upon the sustaining of a demurrer to any one of the causes of action, and trial may be proceeded with upon the other counts or causes of action.

*149 The pleadings in this case show that on the 24th of February, 1911, W. H. Ladnier owned an oil-lease on 40 acres of land in Creek county, and on that date assigned to W. E. Broach an undivided one-half interest in said lease. The terms of the assignment and the consideration therefor were that he should drill a well thereon as soon as practicable. It was further provided in this assignment that if the first well should produce as much as 150 barrels of oil per day, Broach should proceed within 10 days thereafter to drill a second well. All the expenses of drilling, equipping, and operating the two wells were to be borne by Broach under the contract. On this same day, February 24, 1911, Broach assigned to plaintiff, Cox, the undivided one-half interest which he had obtained from Ladnier, the consideration for this assignment being that Broach was to have an undivided ■ one-eighth interest in the whole lease, and that he was to be carried for that one-eighth interest by Cox, arid he was to be at no expense whatever in the drilling of the wells, etc. Cox assumed all the burdens and obligations of the assignment from Ladnier to Broach, which were that Cox, owning three-eighths interest in the lease, was to bear the entire expense of drilling, equipping, and operating the two oil wells. On March 21, 1911, Cox sold and assigned to defendant, Butts, an undivided one-eighth interest in said lease, and now Ladnier owned a one-half interest, Broach a one-eighth, Cox one-fourth, and Butts one-eighth. At the time of the assignment of Cox to Butts of the one-eighth interest, two instruments were executed, one being an assignment by Cox to Butts of the one-eighth interest and the other being a memorandum of a. contract and agreement between Cox arid Butts.

*150 The controversy between plaintiff, Cox, and defendant, Butts, from whence this action arose, was this: Plaintiff contends that Butts took the assignment of the one-eighth interest in the lease burdened with one-fourth of the cost of drilling, equipping, and operating the two oil Wells, while Butts contends that he was obligated to pay only one-eighth of the expense, as he ownéd only the one-eighth interest in the lease. In order to arrive at a decision on this point it will be necessary to examine certain clauses in the contracts attached to plaintiff’s petition. The assignment from Cox to Butts contains the following clause:

“This assignment is intended to convey and does convey unto the said M. H. Butts, his heirs and assigns, an undivided one-eighth (Vs) interest in the working interest of said lease, without any obligations on the part of the said M. H. Butts, to the said W. E. Broach, by virtue of said contract and assignment dated the 24th day of February, 1911.”
“This assignment is and shall be binding upon the parties hereto, their heirs, executors, administrators and' assigns, and is made subject to the terms and conditions of said lease.”

In the contract between Cox and Butts, the consideration for the assignment for the one-eighth interest is stated to be $1,500' in cash and the further sum of $1000 upon a certain contingency, which is not necessary to set out here.

It is also not necessary to set out the allegations in the two counts of the petition to which the demurrer was sustained, as the legal proposition is the same in each. Plaintiff bases his contention that'Butts"was obligated to *151 pay one-fourth of the expense in the enterprise upon the clause in the assignment of Cox to Butts, which is as follows:

“This assignment is and shall be binding upon the parties hereto * * * and is made subject to the terms and conditions of said lease.”

From the previous wording of this assignment it will be conceded that by the “lease” here referred to is meant the lease from Ladnier to Broach. And so the question squarely arises, Did Butts, in accepting an assignment of an eighth interest in this lease, subject to the terms and conditions of the lease from Ladnier to Broach, thereby become obligated to bear the burden of developing the lease for oil in double proportion to the interest conveyed to him? In other words, the interest in the lease assigned by Ladnier to Broach carried a double burden; for a one-half interest he assumed the whole burden of development. So if Butts, in taking the assignment from Cox, placed himself in Cox’s shoes, he became obligated to pay one-fourth of the development expenses. The answer turns upon the construction to be given to the words “subject to,” as- used by the parties hereto in the assignment from Cox to Butts. We find an almost analogous case in Consolidated Coal Co. v. Peers, 166 Ill. 361, 46 N. E. 1105, 38 L. R. A. 624, the facts being similar to those in the instant case, and the court there says:

“ ‘Subject to,’ as used in an assignment of a lease subject to the agreements therein mentioned to be performed by the said lessee, are words of qualification, and not of contract, and hence the assignee does not, by such agreement, become liable on the covenant to pay rent accruing after he has assigned over.”

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Cox v. Butts, 1915 OK 442, 149 P. 1090, 48 Okla. 147, 1915 Okla. LEXIS 604 (Okla. 1915).

1915 OK 442 (Cox v. Butts) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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