Cox v. Sanders

421 So. 2d 869
Supreme Court of Louisiana·Decided October 18, 1982·No. 82-C-0482·Published·Cited by 8 cases

Opinion

421 So.2d 869 (1982)

Mrs. George M. COX
v.
Mrs. Medorah Head SANDERS, Jerry Head Sanders and Thomas A. Sanders, Jr.

No. 82-C-0482.

Supreme Court of Louisiana.

October 18, 1982.
Rehearing Denied November 19, 1982.

*870 Larry Arbour, Blackwell, Chambliss, Hobbs & Henry, West Monroe, for applicant.

George M. Wear, McKeithen, Wear & Burns, Columbia, for respondents.

JOHN C. BOUTALL, Associate Justice Ad Hoc.[*]

A land owner, Mrs. George M. Cox, brought suit against the owners of an undivided interest in the mineral rights, Mrs. Medora Head Sanders, Jerry Head Sanders and Thomas A. Sanders, Jr., seeking cancellation of all mineral servitudes affecting her property, based on the accrual of the liberative prescription of ten years non-use. Mrs. Cox also seeks damages and attorney's fees because of the defendant's failure to furnish her a recordable act evidencing the extinction of the servitudes within thirty (30) days after her written demand as required by LRS 31:206-207.

The trial court ordered cancellation of all existing servitudes affecting plaintiff's property but rejected the claim for attorney's fees. The Court of Appeal, Second Circuit, affirmed, Cox v. Sanders, 409 So.2d 1257. We granted a writ of review. The basic question posed for our consideration is: Was the 10 year period of non-use of a mineral servitude, for purposes of liberative prescription, interrupted by production pursuant to one co-owner's granting of a lease, where the other co-owner in indivision was not a party to the lease and rejected all benefits from it, but is also the land owner who granted the mineral servitude?

There is no issue between the parties as to the basic facts, nearly all of them being stipulated. The Coxes and the Sanders had been having a business relationship over a considerable period of time, when differences between them arose and became irreconcilable, causing this litigation. In 1961, plaintiff's husband, George M. Cox, and Mrs. Sanders' husband, Thomas A. Sanders, Sr., as co-owners in indivision, conveyed certain lands in two separate deeds to D'Arbonne Development Corporation. In 1965, Cox and the present defendants, who succeeded to Thomas A. Sanders, Sr.'s, interest in the property, executed two other conveyances of certain other tracts owned by them in indivision to the same corporation. In each of the four conveyances a mineral servitude, reserving to the grantors ownership in indivision of all of the minerals was effected. The D'Arbonne Development Corporation was not completely successful and differences arose between the parties as to its operation. Consequently, in 1968 D'Arbonne Development Corporation reconveyed to the Coxes and the Sanders that portion of the property involved in the four earlier transactions which had not been sold to others. Several days later, on July 1, 1968, the Coxes and the Sanders voluntarily partitioned all of the lands *871 owned in indivision by them including those reacquired from D'Arbonne, each receiving land of equal monetary value, but not equal in acreage. That partition was only of the land itself and not of the minerals. As to the minerals, the parties expressly stated:

"It is understood and agreed, however, that no partition is made of the mineral interests and the parties shall continue to remain as owners in indivision with respect to the oil, gas, and other minerals in, on and under the property herein partitioned."

At this time, we should note that in the early 1960's, George Cox and Thomas Sanders had executed an oil, gas and mineral lease in favor of Cardinal Drilling Company, which lease included the land in question here. Pursuant to that lease, the Cardinal Drilling Company had drilled 10 wells on the tract which produced gas until January, 1965. This lease was terminated prior to the voluntary partition of 1968. After the partition, Sanders' successors leased their interest in the minerals to GMB Gas Corporation by act dated May 23, 1972. Cox and his wife refused to enter into any agreement with GMB as to their interest. Pursuant to this mineral lease, two wells that had previously been drilled by Cardinal on the surface of that part of the land acquired by the Sanders in full ownership in the partition were reworked and put into production from 1972 through 1977. The Coxes refused GMB permission to enter upon their portion of the land in order to rework the other eight wells which were upon the Coxes' land. It is stipulated that the Coxes had no part in the lease, continuously refused to recognize any activity thereunder and received no payment of any kind in connection therewith.

After Cox refused to allow GMB the right to conduct drilling operations on his land, GMB filed suit for an injunction against Cox's interference. Cox reconvened for judgment declaring the lease invalid and for an injunction against any further drilling on any part of the tract in which he was the co-owner of the mineral servitudes. The Court of Appeal, Second Circuit, granted Cox an injunction and declared the lease invalid in GMB Gas Corporation v. Cox, 340 So.2d 638 (La.App. 2nd Cir.1976). In 1977 the Sanders cancelled the lease with GMB.

Mrs. Cox is now the successor to all of the property and the rights formerly owned by her and her late husband. After defendants refused her written demands for the cancellation of all of the mineral servitudes affecting her property, she filed this suit. It is important to note that in this suit she is asserting her rights as a land owner against the owner of an undivided interest in a mineral servitude, and thus she is asserting rights on a different basis than those which she asserted in the prior case, GMB Gas Corporation v. Cox, supra, wherein she was asserting her rights as the co-owner of an undivided mineral servitude.

The first problem for our consideration is the applicability of the law to this case. By Act 50 of 1974 the Legislature of Louisiana enacted a Mineral Code to become effective on January 1, 1975. The Mineral Code was designed in large measure to supplant by way of codification the extensive jurisprudence that developed in this area of the law. This suit arose after the effective date of the Code, but the events which took place took place before the effective date of the Code in large measure. The Code itself provides (LRS 31:214) that the provisions of the Code shall apply to all mineral rights, including those existing on the effective date thereof, but that no provision may be applied to divest already vested rights or to impair the obligations of contracts.

In examination into the facts and circumstances of this case, as related above, show that most of the events took place in the 1960s and that the partition reserving the mineral rights of these parties took place in 1968. The lease by Sanders to GMB Gas Corporation took place in 1972 and the production from the wells was had in 1972 taking place both before and after the 1975 effective date of the Code, into 1977. The question here is whether that production interrupted prescription, and thus by the *872 effective date of the Code, the rights of the parties had already crystalized and the activity relied upon for interruption had taken place, though still continuing. Certainly if the production prior to the effective date of the Code had not interrupted prescription under the existing law, the continuing production thereafter would be of no effect. See for comparison the case of Continental Group, Inc. v. Allison, 404 So.2d 428 (La. 1981).<

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