Deltic Timber Corp. v. Newland

412 S.W.3d 862, 2012 Ark. App. 271, 2012 WL 1327823, 2012 Ark. App. LEXIS 375
CourtCourt of Appeals of Arkansas
DecidedApril 18, 2012
DocketNo. CA 11-1042
StatusPublished
Cited by2 cases

This text of 412 S.W.3d 862 (Deltic Timber Corp. v. Newland) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deltic Timber Corp. v. Newland, 412 S.W.3d 862, 2012 Ark. App. 271, 2012 WL 1327823, 2012 Ark. App. LEXIS 375 (Ark. Ct. App. 2012).

Opinion

DAVID M. GLOVER, Judge.

IjThe issue in this case is who owns a 3/8 interest in all oil, gas, and mineral rights in property in Conway County. On December 28, 1983, David L. Baker and Carolyn M. Baker executed a warranty deed to William P. Batson and Garna Sue Bat-son. This deed, filed of record the following day, conveyed real property, subject to a reservation by the Bakers, which provided:

GRANTORS HEREIN RESERVE AN UNDIVIDED 3/8 INTEREST IN AND TO ALL OIL, GAS AND MINERALS LYING IN, ON AND UNDER THE HEREIN ABOVE DESCRIBED LANDS, WITH THE RIGHT TO ENTER AND MINE SAID OIL, GAS AND MINERALS FOR A PERIOD OF 20 YEARS FROM THE DATE HEREOF, AT WHICH TIME THE UNDIVIDED 8/8 INTEREST RESERVED HEREIN SHALL REVERT TO GRANTEES HEREIN.

On April 2, 1984, the Batsons executed a warranty deed to appellant, Deltic Farm and Timber Co., Inc., conveying the same property to Deltic and “[e]xcepting all pri- or, valid 12reservations and/or conveyances of record of oil, gas, and other minerals in and under the subject land.”

On October. 30, 1984, the Batsons executed a mineral deed to their three daughters, Kathy Sue Newland, Karen Ann Newland, and Lisa Kay Dillard, appellees herein. This deed was filed of record on November 5, 1984. In this deed, the Bat-sons conveyed to each of the appellees “an undivided one-third interest, as tenants in common, and unto their heirs and assigns forever, our interest and all of our undivided 3/8 interest which shall revert to us in the year 2003, in and to all oil, gas and other minerals lying in, on or under the [land in question].”

In August 2008, appellees commenced an action seeking a declaratory judgment that they owned the 3/8 mineral interest. Both parties filed motions for summary judgment, and the trial court granted ap-pellees’ motion for summary judgment. Deltic appealed to our court. We found that the deed from Batson to Deltic was ambiguous and reversed and remanded to the trial court. In arriving at this decision, our court held:

When interpreting a deed, the court gives primary consideration to the intent of the grantor. Bishop v. City of Fayetteville, 81 Ark.App. 1, 97 S.W.3d 913 (2003). When the court is called upon to construe a deed, it will examine the deed from its four corners for the purpose of ascertaining that intent from the language employed. Id. The court will not resort to rules of construction when a deed - is clear and contains no ambiguities, but only when the language of the deed is ambiguous, uncertain, or doubtful. Id When a deed is ambiguous, the court must put itself as nearly as possible in the position of the parties to the deed, particularly the grantor, and interpret the language in the light of attendant circumstances. Id.
The initial determination of the existence of an ambiguity rests with the court, and if ambiguity exists, then parol evidence is admissible and the meaning of the term becomes a question for the fact-finder. C. & A. Constr. Co., Inc. v. Benning Constr. Co., 256 Ark. 621, 622, 509 S.W.2d 302, 303 (1974). Language is ambiguous if there is doubt or uncertainty as to its meaning and it is fairly susceptible to more than one equally reasonable interpretation. Magic Touch Corp. v. Hicks, 99 Ark.App. 334, 260 S.W.3d 322 (2007). We hold that the Batson-Deltic deed is ambiguous. The Batsons clearly intended to retain some interest, as there is no other reason to include an “excepting” clause, but what they wanted to retain is unclear from the face of the deed. If one follows the “excepting” clause to its ultimate conclusion, the deed excepted the five-eighths mineral interest, the three-eighths mineral interest, and even the surface because all were “prior, valid conveyances.” By not distinguishing between the five-eighths mineral interest and the three-eighths mineral interest, the deed leaves us with serious doubt about what exception is created. Once again the use of “and/or” serves to confuse, not clarify the task of construing the document at hand. See Heath v. Westark Poultry Processing Corp., 259 Ark. 141, 581 S.W.2d 953 (1976) (“The phrase ‘and/or’ has brought more confusion than clarity to the task of construction of statutes, contracts and pleadings.”); Boren v. Qualls, 284 Ark. 65, 680 S.W.2d 82 (1984) (calling “and/or” an imprecise term and noting that it had previously been labeled “a linguistic abomination”). We disagree with appellant’s contention that the deed clearly excepts only the twenty-year reservation held by the Bakers; we also disagree with appellees’ contention that “[i]f the exception in the Batson-Deltic deed was sufficiently clear to include the 20 year term interest, it must also include the reversionary interest springing from the same reservation.” We acknowledge appellant’s argument that the clause at issue in the Batson-Deltic deed fails for lack of certainty. We fundamentally disagree with appellant, however, that the “excepting” clause should simply fail based on its ambiguity. [fn3] Nor do we agree with appellees that the general exception language in the deed is sufficiently clear to include the remainder interest created by the Baker-Batson deed.
Summary judgment was premature in this case because there is clearly a factual dispute as to the intention of the parties. Because we find that the “excepting” clause in the Batson-Deltic deed is ambiguous, the fact-finder can consider extrinsic proof of intent in construing the deed and the court may rely on the rules of construction previously set forth by our supreme court. The determination of the intent of a grantor is largely a factual one, Winningham v. Harris, 64 Ark.App. 239, 243, 981 ' S.W.2d 540, 542 (1998). When issuing its order, the trial court had before it the warranty mineral deed from the Batsons granting their three children “our interest and all our undivided 3/8 interest which shall revert to us in the year 2003, in and to all oil, gas and other .minerals lying in, on or under the following lands in Conway County, Arkansas.” This presented some evidence, several months after the Batson-Deltic deed was executed, that the Batsons believed they owned the three-eighths mineral interest that appellant now claims.
|4We note that, in arriving at the intention of the parties, the courts may consider and accord considerable weight to the construction of an ambiguous contract or deed by the parties themselves, evidenced by subsequent statements, acts,' and conduct. Wynn v. Sklar & Phillips Oil Co., 254 Ark. 332, 341, 493 S.W.2d 439, 445 (1973). Courts may also acquaint themselves with and consider circumstances existing at the time of the execution of a contract and the situation of the parties who made it. Id. These are precisely the' kinds of facts that need further development upon remand because the intention of the parties is not apparent without the introduction of extrinsic evidence. Further, as a rule of last resort, an ambiguous deed is construed most strongly against the party who prepared it, see Gibson v. Pickett, 256 Ark. 1035, 512 S.W.2d 532

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412 S.W.3d 862, 2012 Ark. App. 271, 2012 WL 1327823, 2012 Ark. App. LEXIS 375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deltic-timber-corp-v-newland-arkctapp-2012.