Damson Oil Corp. v. Sarver

346 So. 2d 1304, 1977 La. App. LEXIS 5106
CourtLouisiana Court of Appeal
DecidedMay 13, 1977
Docket5993
StatusPublished
Cited by7 cases

This text of 346 So. 2d 1304 (Damson Oil Corp. v. Sarver) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Damson Oil Corp. v. Sarver, 346 So. 2d 1304, 1977 La. App. LEXIS 5106 (La. Ct. App. 1977).

Opinion

346 So.2d 1304 (1977)

DAMSON OIL CORP. et al., Plaintiffs-Appellees,
v.
Larry A. SARVER et al., Defendants-Appellants.

No. 5993.

Court of Appeal of Louisiana, Third Circuit.

May 13, 1977.
Rehearing Denied June 24, 1977.

*1305 Pugh, Buatt, Landry & Pugh by John F. Craton, Crowley, for defendants-appellants.

Bailey & Hollier by W. C. Hollier, Lafayette, Edwards Stefanski & Barousse by Homer E. Barousse, Jr., Crowley, for plaintiffs-appellees.

Hugh E. Brunson, Crowley, for defendants-appellees.

Before WATSON, FORET and HEARD, JJ.

FORET, Judge.

This is a concursus action filed by Damson Oil Corporation, et al., hereinafter referred to as "Damson", pursuant to Article 4651 et seq. of the Louisiana Code of Civil Procedure, to have determined the ownership of unit royalties allocable to a canal strip consisting of the western fifty (50') feet of the Northeast Quarter (NE 1/4) of Section Twenty-One (21), Township Ten South (T-10-S), Range One East (R-1-E), Louisiana Meridian, Acadia Parish, Louisiana.

Impleaded as parties defendant are Larry A. Sarver, et als., hereinafter referred to as "Sarver", on the one hand, and Louisiana Irrigation and Mill Co., hereinafter referred to as "Limco", on the other hand, both of whom claim exclusive ownership of this canal strip.

On April 1, 1898, George Ferre, who then owned the whole of the Northeast Quarter of Section Twenty-One (21), executed an instrument in the form of a cash deed in favor of Roller Canal Company, Ltd., covering and affecting the western fifty (50') feet of this quarter section. A copy of the said deed appears in the record. Sarver, et al. have succeeded by mesne conveyance to all rights of George Ferre in this canal strip. They claim that the deed of April 1, 1898, merely conveyed a servitude for canal purposes, with the result that they are the exclusive surface and mineral owners of this canal strip. Limco has succeeded by mesne conveyance to all rights of Roller Canal Company, Ltd. in this canal strip. It claims that the deed of April 1, 1898, conveyed full ownership, with the result that it is the exclusive surface and mineral owner of this canal strip.

Both sets of adverse claimants granted separate oil and gas leases to Damson covering the canal strip in controversy. The lease covering the interest of Sarver, et al. provides for a one-sixth (1/6) lease royalty, which could be deposited in concursus pending determination of the lessor's title. The Limco lease provides for a one-fourth (1/4) lease royalty, which is required to be paid to Limco irrespective of adverse claims.

The deposit accompanying the petition in concursus, and the monthly deposits made *1306 thereafter, included the full one-sixth (1/6) lease royalty provided for in the Sarver lease. However, those deposits included no part of the one-fourth (1/4) lease royalty provided for in the Limco lease, since the Limco lease royalty has at all times been paid directly to Limco.

On June 14, 1974, Limco filed an Exception of No Right or Cause of Action to the concursus proceedings on the grounds that it had no claim to the fund on deposit, and since the one-fourth (1/4) lease royalty was currently being paid to Limco, use of the concursus procedure by Damson was improper. Following a hearing, this exception was overruled by the district court, and Limco's application to the Third Circuit Court of Appeal for supervisory writs to review that interlocutory ruling was denied on December 3, 1974. Following trial on the merits, the district court granted judgment in favor of Sarver, et al., decreeing them to be the owners of the canal strip here involved, and ordering the clerk to turn over to them all funds on deposit. Limco timely applied for and was granted a suspensive appeal from the judgment so rendered, and the matter is now before us on appeal.

Two issues are presented for this Court to review: (1) the propriety of the concursus proceeding, and Limco being made a party thereto; and (2) assuming that Limco is a proper party to the concursus proceeding, a determination of the correctness of the trial court judgment in declaring Sarver, et al. owners of the canal strip.

PROPRIETY OF CONCURSUS PROCEEDING

The legal issue raised by Limco's Exception of No Cause or Right of Action is addressed to Damson's right to provoke a concursus proceeding to have the question of disputed ownership of the canal strip judicially settled as affected by the fact that Limco was currently being paid its lease royalty, pending judicial determination of title, because of an express lease provision.

Limco cites and relies upon Transo Investment Corp. v. Oakley, 37 So.2d 560 (La. App. 2 Cir. 1948) as authority for the proposition that use of concursus procedure here was improper.

Transo involved a concursus proceeding brought under Act 123 of 1922, which was later incorporated into Louisiana Revised Statute 13:4811 et seq., now since repealed. That statute was a codification of common-law interpleader, and imposed numerous restrictions on the use of concursus, the chief among which was the requirement that the remedy was available only to a stakeholder. Stated differently, use of the concursus action under the old statute was limited to a situation where the only issue before the court was which of rival claimants—as between themselves—was entitled to the funds on deposit. Limco's position might have some merit had the present concursus action been filed under La.R.S. 13:4811 et seq., as interpreted in Transo. However this action is brought by Damson under Articles 4651 et seq. of the Louisiana Code of Civil Procedure. Article 4651 of the Code of Civil Procedure provides as follows:

"A concursus proceeding is one in which two or more persons having competing or conflicting claims to money, property, or mortgages or privileges on property are impleaded and required to assert their respective claims contradictorily against all other parties to the proceeding."

Article 4652 provides:

"Persons having competing or conflicting claims may be impleaded in a concursus proceeding even though the person against whom the claims are asserted denies liability in whole or in part to any and all of the claimants, and whether or not their claims, or the titles on which the claims depend, have a common origin, or are identical or independent of each other. . ."

The Louisiana Code of Civil Procedure worked a number of significant changes in the concursus procedure. Among the chief changes is that the remedy is no longer limited to a mere stakeholder, or to an *1307 obligor who admits his indebtedness but does not know to whom a fund in his hands belongs, as was the case under the old statute involving Transo.

The redactors of the Louisiana Code of Civil Procedure had this to say under Article 4652:

"Under the first paragraph of [Art. 4652], the remedy is no longer limited to a stakeholder, or to an obligor who admits his indebtedness but does not know to whom a fund in his hands should be distributed. The remedy may now be used not only to prevent multiple liability, but to prevent multiple litigation, and thus may be used by a person against whom multiple claims are asserted, although liability on some or all of these claims is denied."

Limco's exception is based on its contention that it does not claim the fund on deposit, and that therefore Damson's petition does not state a cause or right of action. However, alternatively, Limco does claim ownership

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Cite This Page — Counsel Stack

Bluebook (online)
346 So. 2d 1304, 1977 La. App. LEXIS 5106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/damson-oil-corp-v-sarver-lactapp-1977.