Farmers' Union Co-Operative Royalty Co. v. Woodward

1973 OK 128, 515 P.2d 1381, 46 Oil & Gas Rep. 181, 1973 Okla. LEXIS 449
CourtSupreme Court of Oklahoma
DecidedOctober 30, 1973
Docket44622
StatusPublished
Cited by28 cases

This text of 1973 OK 128 (Farmers' Union Co-Operative Royalty Co. v. Woodward) 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
Farmers' Union Co-Operative Royalty Co. v. Woodward, 1973 OK 128, 515 P.2d 1381, 46 Oil & Gas Rep. 181, 1973 Okla. LEXIS 449 (Okla. 1973).

Opinion

SIMMS, Justice:

This action was instituted in the District Court of Latimer County by Farmers Union Royalty Company against Claire B. Woodward, et al, to quiet title to a ¾ mineral interest in a 40 acre tract in Latimer County. Judgment was entered for defendant and plaintiff appeals.

The chain of title shows that in 1932, Weaver was the owner in fee of the Lati-mer County property described as the NW ¼, NW ¼, Sec. 4, Twn. 6, R 18 E, also described as Lot 4, the subject of this suit.

During 1932, Weaver sold, by Warranty Deed, ¾ mineral interest in the property to the plaintiff.

In 1937, by subsequent conveyances, Be-night became the valid title holder to the surface of Lot 4.

On June 4, 1941, the Latimer County Treasurer mistakenly included Lot 4 in a resale tax deed of adjoining property bought by J. R. Hughes. A month later, Benight, unaware that the property had been sold to Hughes, executed a Warranty Deed to Woodward, conveying the surface of Lot 4. When the parties became aware that the tax deed included Lot 4, Hughes conveyed the property to Benight by quit claim deed, dated March 11, 1943. Be-night, on April 9, 1949, conveyed the property by quit claim deed to Woodward.

Woodward contends that it is by virtue of this deed that he received title to the mineral interest claimed by plaintiff.

In an effort to insure the title claimed by Woodward, he instituted a quiet title suit on April 27, 1949, in Latimer County, naming Farmers Union, among others, as a defendant in the case. On June 22, 1949, a quiet title decree in favor of Woodward was issued by the District Court of Lati-mer County reflecting default and non-appearance by Farmers Union. Plaintiff alleges his first cause of action arises out of this judgment.

Plaintiff claims this judgment is void because: (1) The quiet title petition failed to state a cause of action against Farmers Union; (2) There was no personal service on Farmers Union and the purported service by publication is void. Farmers Union, therefore, asserts that because this judgment is void, they, not Woodward, are the rightful owners of the claimed mineral interest.

In 1965, Woodward executed an oil and gas lease in favor of one Chastain, who *1384 later conveyed by mesne Assignments to defendants Amax Petroleum Company and John Oxley. From June 3, 1966 to July 8, 1966, defendant Skelly Oil Company drilled a gas well on Lot 4 pursuant to agreement with Amax and Oxley. Defendant Ark-La Gas Company is buying gas from the well. Therefore, for its second cause of action, plaintiff seeks an injunction against the payment of any monies derived from the sale of gas attributable to plaintiff’s ¾ interest.

Title 12 O.S.1971, § 1038, provides: “A void judgment may be vacated at any time, on motion of a party, or any person affected thereby.” (E.A.) The 1949 quiet title decree was based upon a default judgment. Fundamentally, there are two primary reasons why a default judgment must be set aside. The court had no jurisdiction, first, over the person of the defendant; or, second, the subject matter of the action. Since service was by publication in the 1949 case, our primary concern is with lack of jurisdiction over the person.

Because this is a collateral attack on a decree, the Court’s inquiry may not extend beyond the judgment roll in the 1949 action. Collingsworth et al. v. Hutchinson, 185 Old. 101, 90 P.2d 416, 418 (1939). Thus, unless the judgment roll affirmatively discloses lack of jurisdiction, the judgment is not void on its face.

I

The affidavit for publication is necessarily the first instrument in the judgment roll that must be considered. 12 O.S.1971, §§ 170, 171, authorizes service by publication.

In Magnolia Petroleum Co. v. Young, Okl., 264 P.2d 757 (1953), the syllabi reads:

“1. Where the affidavit for service on a foreign corporation by publication does not allege that such corporation has failed to comply with the requirements to do business in the State of Oklahoma, including the designation of an agent upon whom service may be had, and where the judgment roll does not negative the doing of business within this State by said corporate defendant, a judgment rendered thereon without further notice upon or any appearance by such corporation is void.
■2. Where a defect fatal to the court’s jurisdiction is reflected in the judgment roll, the judgment is void on its face and may be set aside at any time upon either direct or collateral attack.”

Although Magnolia concerned the allegations necessary in an affidavit to obtain publication service on a foreign corporation, the principles set forth are equally applicable to domestic corporations.

Title 18, O.S.1947 Supp., § 1.17, provides that domestic corporations, as a condition to doing business in Oklahoma, must appoint and file with the Secretary of State their designated service agent and his registered office. Accordingly, the plaintiff in the 1949 suit was charged with knowledge that Farmers Union was required by law to file its designation of service agent. Unless negated in the affidavit, or the judgment roll, it is presumed that an agent existed. Plaintiff’s bare recital of due diligence in his affidavit is inadequate to support an inference that the corporation had no registered service agent. In Magnolia, supra, the affidavit, similar to the affidavit in the instant case, stated:

“That plaintiff with due diligence is unable to obtain service of summons upon any of . defendants in this action within the State of Oklahoma.”

Under the authority of Magnolia, supra, this was not sufficient language to support a finding that no agent existed with the state.

The fact that the affiant in Magnolia, supra, stated that he believed the defendant corporation was an existing corporation, and that the affiant in the 1949 case stated he did not know whether the corporation was existing or dissolved is of no moment. Where the judgment roll contains facts sufficient to lead one to believe the defendant is an existing corporation, *1385 there must be something to affirmatively show that the defendant did not comply with the requirements for doing business in Oklahoma.

The pertinent portion of 12 O.S.1971, § 171, requires:

* * * * * * “In actions against * * * a corporation or its unknown successors, trustees and assigns, the affidavit for service by publication, or verified petition or pleading, shall state that the plaintiff, affiant or attorney, as the case may be, does not know and with due diligence * * * is unable to ascertain whether a corporation named in the alternative is legally existing or dissolved, and, if not in existence, is unable to ascertain the names or whereabouts of its officers, successors, trustees, or assigns, if any. * * * ” (E.A.)

The relevant portion of the affidavit for publication service in the 1949 quiet title suit is:

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Bluebook (online)
1973 OK 128, 515 P.2d 1381, 46 Oil & Gas Rep. 181, 1973 Okla. LEXIS 449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-union-co-operative-royalty-co-v-woodward-okla-1973.