Denver Producing & Ref. Co. v. Campbell

1926 OK 473, 247 P. 362, 118 Okla. 152, 1926 Okla. LEXIS 860
CourtSupreme Court of Oklahoma
DecidedMay 18, 1926
Docket16671
StatusPublished
Cited by3 cases

This text of 1926 OK 473 (Denver Producing & Ref. Co. v. Campbell) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denver Producing & Ref. Co. v. Campbell, 1926 OK 473, 247 P. 362, 118 Okla. 152, 1926 Okla. LEXIS 860 (Okla. 1926).

Opinion

Opinion by

LOGSDON, 0.

There are seven assignments of error made for reversal of this case, but all are embraced under two propositions in the briefs. The first of these is;

“The trial court committed error in holding that -plaintiff in error had failed tof comply with the terms of the oil and gas mining lease involved in this action.”

This being an equitable.-action, this court is authorized to consider -and weigh the evidence, together with all inferences and conclusions to be reasonably drawn therefrom, and to affirm, reverse, or render, as equity and the rights of the parties, as disclosed by the entire record, may authorize. Pevehouse v. Adams, 52 Okla. 495, 153 Pac. 65; Marshall v. Grayson, 64 Okla. 45, 166 Pac. 86; Hart v. Frost, 73 Okla. 148, 175 Pac. 257; Lee v. Little, 81 Okla. 168, 197 Pac. 449.

No question arises as to the validity o? the lease here involved up to the time of the death of Lucy, the original lessor. Her death date is not definitely fixed by the evidence, but was probably about February 12, 1924. Ibe date named by the Superintendent at Muskogee when restrictions on her land ceased. (Act of Miay 27, 1908, sec. 9.) Neither does it appear from the evidence when plaintiffs procured their deeds from the heirs, or when such deeds were approved, if such be the facts.

A careful reading and consideration «f the evidence preserved in this record, ren *154 ders reasonable and ¡logical the conclusion that plaintiffs studiously endeavored to bring about such a default in the payment of rentals and advfance royalties as would authorize a cancellation of the lease. Facts from which this inference irresistibly arises are: On March 29, 1924, ten days before payment was due under the lease, plaintiffs wrote defendant that they had become fee owners of the Hand, and if defendant hhd not yet paid the rentals to the department, not to do so' until1 plaintiffs had time to furnish abstract showing their right to such rentals. This was promised in -about four days. It has not yet been furnished so far as this record discloses. Defendant waited the four days, and then paid the rentals to the Department on April, 4th. In the meantime plaintiffs were prosecuting their application for relinquishment of supervision by the Department, and on or about June 6th, such order was entered. On that date the Superintendent wrote defendant that supervision “is being relinquished,” and returned to it the rentals paid on April 4th. On June ÍOth, defendant wrote plaintiffs, advising them of the notice from the Department, and requesting" them to furnish proper evidence of title so that defendant’s records could be corrected and payments be properly made. On June 12th, plaintiffs wrote defendant that Ed Warren, W. E. Grisso, and J. D. Campbell were owners of the land, but did not disclose the several interests. They requested defendant to send the rentals to the First State Bank of Seminole (First National Bank of Seminole is the -bank named in the lease as depository), and again promised to send abstract. On June 19-th, defendant wrote plaintiffs, calling attention to their promise -and again requesting abstract. On July 1st, plaintiffs had their attorneys write defendant a letter, in which plaintiffs stated, “We hereby elect to declare the lease forfeited for failure to pay the rentals in accordance with the terms” of the lease. On July 3rd, defendant wrote plaintiffs that the rentals had that day been forwarded to First National Blank of Seminole to be deposited to the credit of the lease, and that upon being furnished proper evidence of plaintiffs’ title, future payments would be made to their personal credit. in the First State Bank of Seminole, as requested -by plaintiffs in their letter of June 12th. One or more of the plaintiffs talked to-officers of the depository bank after the funds were placed there concerning the deposit, and the president of the bank testified that the money wc-uld have been paid to plaintiffs upon evidence of title being shown. The general manager of defendant testified that the bank advised him that plaintiffs refused to accept the rentals so deposited. The president of the bank and two o-i the plaintiffs were witnesses on che trial, and the correctness of this statement by defendant’s manager was not questioned.

Against the effect of the reasonable inferences arising from the facts above stated, it is contended by plaintiffs that it was the duty of defendant to- search the records of Seminole county for evidence, which would make it safe for it to piay -the rentals to plaintiffs in severalty. This was a dead claim, and the deed records alone of Seminole county would not have disclosed the validity of plaintiffs’ title. But aside from this, defendant had the right to rely cn ihe bona fide character of the promise of plaintiffs, twice expressed in letters, to furnish abstract showing title. That this promise proved a frail reed, designed mid used mere ly for the purpo-se of inducing delay in making payment until a forfeiture was though i to have been incurred, is evident from the 5 acts in evidence. But this frail reed, now broken, must remain a frail reed. It cannot now be used as a bludgeon for the purpose of beating down and destroying the equitable rights of defendant.

Very apropos of the situation - here presented is the following language from Danciger v. Stone, 187 Fed. 853:

“The maxikn that ‘he who comes into-equity must come with clean hands,’ means that equity re.uses to lend its aid in any manner to one -seeking its active interposition who has been guilty of unlawful or inequitable Conduct relating to the matter from 'which he seeks relief.”

Under the first proposition -presen’-ed it is concluded that the finding of the trial court that defendant failed to comply with the terms of the oil land gas mining lease, Is not only unsupported by the evidence, but is clearly against the weight thereof.

Defendant’s second proposition is that the trial court erred in holding that the letter of July 1, 1924, from plaintiffs’ attorneys to defendant was a compliance with the 30 djays’ notice requirement contained in the lease. This provision as to notice is contained in paragraph 9 of the lease, which reads:

“Upon the violation o-f any of the substantial terms and conditions of this lease the Secretary of the Interior (or lessor, in event restrictions are removed as provided in 'paragraph 12 hereof), shall have the rig-lit. at any time after 30 days’ notice to *155 the lessee specifying the terms or conditions violated, to declare this lease null and void and the lessor shall then be entitled and authorized to take immediate possession of the land.”

The “substantial terms and conditions” claimed to have been violated by the instant defendant are thus expressed in paragraph 4 of the lease:

“The failure of lessee to pay such rental before the expiration of 15 days alter it becomes due at the end of any yearly period, during which a well has not been completed as provided herein, shall be a violation -of one of the material and substantial terms and conditions of this lease, and be cause for cancellation of such lease under paragraph numbered 9 hereof.”

In their letter to defendant of June 12, 1924, plaintiffs had stated:

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Bluebook (online)
1926 OK 473, 247 P. 362, 118 Okla. 152, 1926 Okla. LEXIS 860, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denver-producing-ref-co-v-campbell-okla-1926.