Dillon v. Morgan

362 So. 2d 1130
CourtLouisiana Court of Appeal
DecidedAugust 28, 1978
Docket13553
StatusPublished
Cited by8 cases

This text of 362 So. 2d 1130 (Dillon v. Morgan) 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
Dillon v. Morgan, 362 So. 2d 1130 (La. Ct. App. 1978).

Opinion

362 So.2d 1130 (1978)

Ira C. DILLON, Plaintiff-Appellant,
v.
Harold G. MORGAN, Defendant-Appellant.

No. 13553.

Court of Appeal of Louisiana, Second Circuit.

August 28, 1978.
Rehearing Denied October 11, 1978.

*1131 McConnell & McConnell by S. David Holladay, Springhill, for plaintiff-appellant.

Fish & Montgomery by Roy M. Fish, Springhill, for defendant-appellant.

Before PRICE, HALL, MARVIN, JONES and FLENIKEN (assigned), JJ.

En Banc. Rehearing Denied October 11, 1978.

MARVIN, Judge.

The issue is whether a seller of land by warranty deed may claim against his purchaser a servitude of one-half minerals reserved in the deed by the seller, when the seller failed to declare to the purchaser an earlier created servitude of one-half minerals affecting the land.

When the defendant in this declaratory judgment action purchased the property in 1969, his vendor, Dean, reserved one-half the minerals. In 1973, defendant sold the land by warranty deed to the plaintiff, reserving to defendant one-half the minerals. The existence of the Dean servitude was not declared by defendant and was not otherwise *1132 revealed to plaintiff by visible signs as in Richmond v. Zapata Development Corp., 350 So.2d 875 (La.1977).

The lower court's judgment declared plaintiff to be the "owner" of one-fourth minerals, reasoning that the minerals would be "owned" one-half by Dean, one-fourth by plaintiff and one-fourth by defendant because defendant had only one-half to reserve.[1] There is no evidence that this was the intent of the parties.[2] Both parties appeal. On reargument before a five-judge panel as required by Art. 5, Section 8(B), Louisiana Constitution, we reverse.[3]

At the outset, we find that defendant was obligated to deliver to plaintiff and warranted to plaintiff, title to the land, subject only to the reservation of a mineral servitude of one-half minerals by defendant. C.C. Art. 2475. The sale of land includes mineral rights that are not expressly reserved or excepted (Herring v. Price, 4 So.2d 17 (La.App.2d Cir. 1941); Powell v. Roy, 130 So. 629 (La.App.2d Cir. 1930)) unless there are visible signs on the land of the existence of those rights being exercised by another (Richmond, supra). C.C. Art. 2515.

Conceptually, the obligation to deliver is different from the obligation of warranty. See and compare C.C. Arts. 2477-2499, 1907, 1924 with C.C. Arts. 2500-2519, 1905, 1926-1929. The seller is bound to explain himself clearly with respect to the extent of his obligations. C.C. Art. 2474.

Warranty is in essence a continuing guarantee to the buyer by the seller-warrantor and one of its principal objectives is maintaining the buyer in peaceable possession of the property. C.C. Art. 2476. The buyer may call upon the seller in the event the buyer is evicted because of the right or claim of a third person. C.C. Arts. 2500-2519.

If the seller fails to deliver that which he has obligated himself to deliver, the contract of sale may be enforced against the seller by the buyer by specific performance or other remedy. C.C. Arts. 1926, 2485, 2491.

The articles regarding the obligations of the seller-warrantor supply the basis for the result in cases such as Hodges v. Long-Bell Petroleum Company, 240 La. 198, 121 So.2d 831 (1960) and Gaines v. Crichton, 187 La. 345, 174 So. 666 (1937) wherein the principle of enforcing the seller's obligations was couched in terms of estoppel, by warranty or by deed. By whatever name, the principle is sound that a seller should not be allowed to obligate himself to deliver and to warrant title and peaceable possession to a buyer of a thing and then by his own act or claim to derogate from, or to assert rights to the thing contrary to, his obligations. Thus, in Hodges, the sellers under a warranty deed, who reserved a mineral servitude in 1938 and who failed to declare to the buyer the existence of a mineral servitude created in 1931, were estopped or not allowed to assert against the buyer their rights under the 1931 servitude.

*1133 Here, the seller shall not be allowed to derogate from his obligations in the contract of sale. When the existence and validity of the earlier Dean servitude of one-half minerals is recognized, it is impossible to uphold on the one hand, defendant's reservation of one-half minerals, while upholding on the other hand, defendant's obligations of delivery and of warranty of the right to explore and exploit one-half the minerals. There cannot be three halves in a whole. Because of his obligations in the contract of sale, defendant cannot assert against the buyer his claim to the servitude of one-half minerals reserved in the deed.

In Hodges, the buyer was not allowed to assert any claim contrary to the contract of sale by which he acquired the property, in effect making the "estoppel" a two-edged sword. Defendant here alternatively urges that because plaintiff knew he was "getting" only one-half minerals, plaintiff should be similarly barred from asserting ownership of all the minerals if and when the Dean servitude is extinguished.

Projecting defendant's alternative argument in this respect would produce this result in mineral "ownership," assuming no interruption or suspension of liberative prescription:

1969         Dean ½         Defendant, as
                                   landowner ½
1973         Dean ½         Plaintiff, as
                                   landowner ½
1979         Defendant ½    Plaintiff, as
                                   landowner ½
1983         Landowner, in perfect ownership

It is true that defendant's dealing with the mineral rights underlying the property, in effect, produced problems similar to those produced by an "oversale" of minerals by a landowner. Defendant agreed to the acquisition by Dean of one-half minerals in 1969. Defendant attempted to acquire for himself one-half minerals in 1973, at the same time conveying to plaintiff one-half minerals. See Arts. 77, 78 and 79, Louisiana Mineral Code, and Comments following, statutorily recognizing the after-acquired title doctrine in oversale situations.

While defendant's alternative argument appears to have equitable merit, it cannot withstand close scrutiny. Only the landowner is empowered to create the mineral servitude. Art. 24, Louisiana Mineral Code. Articles 76, 77, 78 and 79 of the Mineral Code concern a true oversale of minerals by a landowner whose obligation, like that of the defendant here, is to deliver that which he has sold and guaranteed (warranted). The plaintiff in this case did not oversell the minerals. Instead, it was the defendant, if indeed it can be said that there was an oversale as contemplated by the Mineral Code. Plaintiff here did not obligate himself in the 1973 deed to deliver to or to warrant to the seller any fractional mineral right. The "estoppel" was applied to the buyer in Hodges because the buyer had not been evicted in any respect from that which the sellers sold. Hodges was not an oversale because the sellers did not obligate themselves to deliver or to warrant any mineral rights to the buyer. Here the seller obligated himself to deliver and to warrant to the buyer one-half the mineral rights and here the eviction of the buyer of this right is caused by the seller's claim to one-half mineral rights.

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362 So. 2d 1130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dillon-v-morgan-lactapp-1978.