David v. Coal Creek Mining & Manufacturing Co.

461 S.W.2d 29, 224 Tenn. 636, 37 Oil & Gas Rep. 559, 1970 Tenn. LEXIS 366
CourtTennessee Supreme Court
DecidedDecember 7, 1970
StatusPublished
Cited by2 cases

This text of 461 S.W.2d 29 (David v. Coal Creek Mining & Manufacturing Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David v. Coal Creek Mining & Manufacturing Co., 461 S.W.2d 29, 224 Tenn. 636, 37 Oil & Gas Rep. 559, 1970 Tenn. LEXIS 366 (Tenn. 1970).

Opinion

Mr. Justice CresoN

delivered the opinion of the Court.

This cause comes to this Court on discretionary appeal from the Chancery Court of Anderson County.

In the course of this opinion the parties will be referred to as they appeared in the court below; that is, appellants, H. P. David and Minnie B. David, as defendants, and appellee, Coal Creek Mining and Manufacturing Company, as complainant.

Complainant is a domestic corporation, having its principal office in Knoxville, Tennessee. The record shows that complainant is owner of approximately 53,000 acres of land in Anderson, Campbell, Morgan and Boane Counties, Tennessee.

On May 4, 1951, complainant executed to defendant H. P. David an oil and gas lease of the aforementioned 53,000 acres of land, which lease was recorded on Jxdy [638]*63825, 1951, in the office of the Register of Deeds, Anderson County, Tennessee. Said lease was to continue for ten (10) years from date of execution,

“* * * and as long thereafter as oil or gas or casing head gas, or either or any of them is produced therefrom, or as much longer thereafter as the lessee in good faith shall conduct drilling operations thereon and should production result from such operations this lease shall remain in full force and effect as long as oil, gas or casing head gas shall be produced therefrom. ’ ’

The bill averred that on July 7, 1951, defendant lessee assigned all of his rights and interest in said leased premises to one C. E. Simmons, only to receive part of it hack on July 25, 1951, as a sub-assignee of an assignee of C. E. Simmons. Thereafter, seven hundred and sixty eight (768) assignments of interest in the aforementioned leased premises were filed in the Register of Deeds Office in Anderson County, Tennessee. Further, no less than five hundred and fifty two (552) individuals or legal entities, as the record shows, may have an interest or interests in said property, as assignees or sub-assignees of the original lease. The bill averred further that the oil and gas lease has expired both by law and by its own provisions because there is no- production of oil or gas from the premises, nor has there been in more than one year prior to filing the original bill; further, there have been no drilling operations on said premises for six (6) years prior to filing the original bill.

Complainant prayed that a judgment be rendered by the Court, declaring the aforementioned lease of May 4, 1951, expired; declaring that all rights and interests con[639]*639veyed to defendant H. P. David, and assigned to defendants Minnie B. David and Zeb David, have expired, terminated and reverted to complainant; declaring that the aforementioned lease and all assignments and sub-assignments of rights and interests therein have expired and terminated and constitute a cloud or clouds upon complainant’s title. Complainant further prayed that said cloud or clouds be removed by proper decree, that an injunction issue enjoining each and all defendants from executing any assignments and/or subassignments of claimed rights or interests in the aforementioned lease or in the real estate' described in said lease; finally, that defendants “and all of the assignees and sub-assignees be adjudged to have no' right, title or interest in and to said premises described in said lease”, and such other general relief that complainant may be entitled to'.

Defendants H. P. David and wife Minnie B. David demurred to complainant’s bill on the ground that the bill shows on its face that a number of persons and firms own various interests in the Oil and Gas lease entered into by complainant and defendant H. P. David; that such persons should be made parties to the bill; and that since they are not parties, no complete and final decree ending all uncertainties or controversies can be entered in the cause.

Zeb David, the third defendant in the original bill, filed an answer and disclaimer, disclaiming

“* * * any and all right, title; interest, or claim in •and to the Oil and Gas lease described in the bill. ’ ’’

The trial judge, after hearing arguments, overruled the demurrer, on the ground that to require complainant to serve legal process on five hundred and fifty two (552) [640]*640individuals or legal entities who now or have at one time claimed some interests in the leased premises over a period of 15 years or better, “would be an unreasonable, extremely onerous and unduly expensive undertaking, and subject the litigants and the Court to interminable delays in bringing this action to trial and to an expeditious conclusion and would not change the basic question ’T; that is, as between complainant and defendant H. P. David, whether or not the original lease has expired either by law or by its terms and provisions. The trial judge concluded:

“The Court is. of the opinion that full, fair and adequate justice can be done without the addition of other parties defendant to this action. * * *”

Defendants ’ only assignment of error in this Court is that the judge erred in overruling the demurrer to complainant’s bill. It follows, therefore, that the only question in this Court is whether or not the other persons and/or legal entities, some five hundred and fifty (550) in number, who, as assignees, and sub-assignees claim interests in the leased premises in question, are necessary or indispensable parties to this litigation.

Defendants rely upon T.C.A. sec. 23-1107, “Parties to Proceedings”, and Gibson’s Suits in Chancery, 5th Ed., p. 534, Section 1176, captioned “Who are Necessary Parties”, which says, in part:

“When declaratory relief is sought, all persons shall be made parties who have or claim any interest which would be affected by the declaration, and no declaration shall prejudice the rights of persons not parties to the proceedings. ’ ’

[641]*641Defendants cite several Tennessee cases. Each, supports the general proposition that in order to properly rule on a declaratory judgment action, all necessary persons must he before the Court; and, if not, then no declaratory judgment or decree may be had.

Defendants argue that all the assignees and sub-assignees to the original lease are necessary parties to the complainant’s action because the effect of the relief sought by complainant would terminate the property rights of these five hundred and fifty two (552) interested parties ; that even if a decree was entered against defendants. H. P. David and Minnie B. David, the interests of the other five hundred and fifty (550) would not be affected under the authority of T.C.A. sec. 23-1107, cited supra; further, that T.C.A. sec. 23-1107 is mandatory; Defendants argue finally that the only theory upon which complainant’s bill could be sustained is that of virtual representation; but that this doctrine must fail because complainant does not aver that he is suing defendants in any capacity other than individuals.

Complainant argues that its action is not a class action; that the primary issue which it has asked the court for a determination is whether the lease entered into between it and the original lessee, defendant H. P. David, has expired by its terms, or as a matter of law, for failure of lessee to comply with T.C.A. sec. 64-704; and further, that all the assignees and sub-assignees referred to in defendants’ argument acquired their interests through the original lessee.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
461 S.W.2d 29, 224 Tenn. 636, 37 Oil & Gas Rep. 559, 1970 Tenn. LEXIS 366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-v-coal-creek-mining-manufacturing-co-tenn-1970.