Egland v. Neill

65 N.W.2d 576, 75 S.D. 361, 3 Oil & Gas Rep. 2092, 1954 S.D. LEXIS 35
CourtSouth Dakota Supreme Court
DecidedAugust 10, 1954
DocketFile 9413
StatusPublished
Cited by7 cases

This text of 65 N.W.2d 576 (Egland v. Neill) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Egland v. Neill, 65 N.W.2d 576, 75 S.D. 361, 3 Oil & Gas Rep. 2092, 1954 S.D. LEXIS 35 (S.D. 1954).

Opinions

SMITH, J.

Whether through service of the owner and occupant of the surface of land as a garnishee, the trial court acquired jurisdiction of mineral rights therein owned by the nonresident defendant, upon whom substituted service was had, is the narrow question the parties would have us answer.

Plaintiff’s action is for a judgment for money alleged to be due from defendant under a contract. In connection therewith he instituted proceedings in garnishment wherein several persons were namd and served as garnishees. The respective disclosures of these garnishees state that they hold title and possession of described real property located in Perkins County, South Dakota, and “That the public records of Perkins County, South Dakota, show that the Defendant, Jack Neill, owns or has an interest in, or has owned or has had an interest in, a portion of the oil, gas and minerals in and under said real estate but the exact portion or interest of [363]*363the said Defendant, Jack Neill, is unknown to your Affiant.” No exceptions were taken to these disclosures.

Substituted service was had upon the defendant, Jack Neill, a nonresident of South Dakota, in both the principal action and in the garnishment. A notice of pendency of the action was filed describing the several tracts of real property. Cf. SDC 33.0805.

Under what he denominated as a special appearance, Mr. Neill made a motion for an order quashing the service in this action and in the garnishment, and dismissing the action. That the mineral rights of defendant were not subject to garnishment was one of the grounds on which defendant sought the described order and was the ground on which the trial court entered its order dismissing the action and the garnishment. The plaintiff has appealed.

We understand both parties to have addressed themselves to the question we have phrased under the assumption that: (1) Mr. Neill holds title to an undivided interest in and to the oil, gas and other minerals under, and that may be produced from the tracts described in the respective disclosures of the garnishees, and has the right to have and receive and enjoy an undivided interest in and to all bonuses, rents, and royalties which may accrue under any mineral leases describing said property; (2) this interest of defendant in these mineral rights is an interest in real property; (3) the garnishees, except as to the mineral rights, are respectively the owners and in possession of the tracts in question; and (4) there has been no attempt by any person to determine whether the tracts are oil or gas bearing, or to take minerals therefrom.

In State ex rel. Bank of Herrick v. Circuit Court, 32 S.D. 573, 143 N.W. 892, 894, it was held that proceedings in garnishment are available to a creditor of a nonresident for the purpose of taking and applying upon his claim property of such nonresident debtor located in this state and subject to garnishment. In that case it was said “* * * the proceedings therein are analogous to those in attachment”.

Plaintiff insists that an interest in oil, gas and other minerals in land is subject to garnishment by naming and serv[364]*364ing as garnishee the one who holds a title to the surface and is in possession of the land. On the other hand, it is the position of defendant that within the contemplation of our garnishment statutes, his mineral interests in these lands are not in the possession or control of the garnishee, and therefore the court acquired no jurisdiction of his property.

As garnishment proceedings are purely statutory, these contentions confront us with a problem in statutory construction. Woodbine Savings Bank v. Yager, 61. S.D. 1, 245 N. W. 917.

This court has recognized that a proceeding in garnishment is in effect an action by a defendant debtor in the plaintiff-creditor’s name against the garnishee, the purpose of which is to subrogate the plaintiff to the rights of the defendant against the garnishee, and it has been held that the test in determining the liability of the garnishee to plaintiff is whether the facts would support a recovery by the principal defendant against the garnishee. New York Life Ins. Co. v. Hyde, 68 S.D. 516, 4 N.W.2d 812; Schuler v. Johnson, 63 S.D. 542, 261 N.W. 905; Bank of Centerville v. Gelhaus, 60 S.D. 31, 242 N.W. 642, 83 A.L.R. 1380; Borgen v. Auguski, 51 S.D. 65, 212 N.W. 47. If this accepted test of liability of the garnishees has application in the circumstances at bar, it seems obvious that defendant’s contention must be upheld. Although the garnishees are in possession of the land, they make no claim to either title, or possession of or dominion over the mineral interests of defendant therein. Such facts would support a judgment in favor of defendant and against the garnishees that the garnishees have no right, title, or interest in the mineral rights of defendant, but they do not give rise to a cause of action in defendant to recover such interests from the garnishees. Under the stated test it would follow that the plaintiff-creditor may not employ proceedings in garnishment to recover such interests from the garnishees.

However, we understand plaintiff to assert the view that our garnishment statutes provide for a seizure by a creditor of an interest of the principal defendant in real property by the service of summons on the person in possession of the land, and for the eventual execution sale of such interest if [365]*365the creditor succeeds in the main action. He reads our statutes in garnishment as providing for something in the nature of an attachment of interests in real property by service of process on the person in possession of the land.

The remedy of garnishment is made available to described creditors by SDC 37.2801 “against any person * * * who shall * * * have any property, real or personal, in his possession or under his control belonging to such creditor’s debtor * *

In an attempt to ascertain the intended scope of this remedy, in so far as it deals with real property, we have examined the garnishment statutes as a whole. In so doing, we have kept in mind our statutory definitions of “real property” which comprehend lands, tenements, and hereditaments . SDC 65.0201(17) and SDC 51.0102.

In providing the form to be used by a garnishee desiring to deny liability, it is noteworthy that the legislature employed the words “real estate” and required more than a denial that he “then had in his possession or under his control, no real estate * * * belonging to * * * defendant”; it required a denial of the possession or control of “real estate” in which the “defendant * * * had any interest”. SDC 37.2811. Likewise in SDC 37.2812 in making provision for a form to be followed when a garnishee must admit liability, the requirement is that he disclose “(2) Whether he held at the time aforesaid the title or possession of any real estate, or any interest in land of any description, * * * belonging to the defendant or in which he was in any wise interested. If he shall admit any such or be in any doubt respecting the same, he shall set forth the description of such property and all the facts and circumstances concerning the same, and the title, interest, or claim of the defendant in or to the same”.

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Egland v. Neill
65 N.W.2d 576 (South Dakota Supreme Court, 1954)

Cite This Page — Counsel Stack

Bluebook (online)
65 N.W.2d 576, 75 S.D. 361, 3 Oil & Gas Rep. 2092, 1954 S.D. LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/egland-v-neill-sd-1954.