Featherstone v. Walker

88 P.2d 271, 43 N.M. 181
CourtNew Mexico Supreme Court
DecidedFebruary 24, 1939
DocketNo. 4373.
StatusPublished
Cited by8 cases

This text of 88 P.2d 271 (Featherstone v. Walker) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Featherstone v. Walker, 88 P.2d 271, 43 N.M. 181 (N.M. 1939).

Opinion

SADLER, Justice.

This is an appeal from a judgment of the district court of Lea County. The appellant, O. F. Featherstone, who will be referred to hereinafter as plaintiff, sued the trustees of a so-called oil and gas pooling agreement to compel recognition by them of his claimed interests in the pool. The trustees named as defendants are Jess C. Williams, Gus Manasse and Frank A. Hawley. The asserted interests of the plaintiff in the pooling agreement arise' by virtue of independent transactions between him and L. W. Walker in one instance and between the plaintiff and Lena Cox in the other instance. L. W. Walker and Lena Cox were also joined as defendants in the suit.

The plaintiff, Featherstone, defendants Walker and Cox and others, all being either holders of or applicants for oil and gas prospecting permits issued by the Secretary of the Interior, covering lands on the public domain under the so-called “Leasing Act”, enacted by Congress and approved February 25, 1920, c. 85, § 13, 41 Stat. 441, 30 U.S.C.A. § 221, entered into an agreement that the permits and applications for permits should be pooled, each person to own an undivided one-eighteenth interest in the whole. Pursuant to the agreement each permit or application therefor was assigned and transferred to the three trustees of the pool, Manasse, Williams and Hawley, all being residents of Las Cruces, New Mexico. The trustees were given full control of said permits and applications with power to make conveyance thereof.

These oil and gas prospecting permits, in accordance with the act of Congress aforesaid, provided that the permittee should mark each of the corners of the claim within ninety days from the date of the permit with substantial monuments in such manner that the boundáries could be readily traced on the ground and in addition should post in a conspicuous place upon the lands embraced in the permit a notice that the permit had been granted and a description of the lands covered thereby.

Inasmuch as the plaintiff’s claims of interests in the pooling agreement by virtue of an assignment and an agreement to assign from the defendants Walker and Cox, respectively, depend on entirely different facts, we shall first consider and dispose of the claim of interest under the agreement to assign executed by the defendant Cox. This instrument is referred to by the parties both as an assignment and as an agreement to assign.

The Lena Cox permit was issued by the Secretary of the Interior through the United States Land Office at Las Cruces under date of October 1, 1934. Feather-stone was a surveyor and himself a permittee, in on the pooling agreement and, of course, familiar with the requirement for marking of boundaries and posting. Within the ninety day period for meeting these requirements, and as a volunteer, he wrote defendant Cox, reminded her of a previous letter touching the posting of her permit, cautioned that the time for compliance with the posting requirement was limited and offered to do the work upon stated terms. He requested a prompt and telegraphic reply. Receiving none, he voluntarily staked and posted the Cox permit within the ninety day period. Defendant Cox herself defaulted in the matter of performing this work or of authorizing anyone expressly to do the work for her.

More than ten months after the work was done by Featherstone, and when the time for its performance had long since expired, he had a meeting with the defendant Cox. He disclosed to her that he had marked and posted the property and had prepared a certificate on her behalf in due form, showing the staking and the posting of same. He offered to deliver to her this' certificate in exchange for an undivided one-half of her interest in the permit and pool. She accepted his offer and delivered to him a written agreement to assign this interest, receiving in exchange the certificate of staking and posting. More will be said later upon the question whether Miss Cox executed this agreement to assign as a result of coercion or misrepresentation on the part of Featherstone. It is sufficient now to say that she did execute it and that subsequently she paid over to Feather-stone, as the holder of one-half of her interest in the permit and pool, $152, being one-half of the amount which the trustees had paid her from the pool after she had received the certificate of posting from Featherstone.

In his complaint the plaintiff, Feather-stone, alleged that the defendant trustees had notice of the so-called assignment to him of one-half of Miss Cox’s interest in the permit and pool, but in disregard of such notice had paid and set over to her the entire one-eighteenth share inuring to the Cox permit of $5472 obtained by the trustees in the administration of the trust under the pooling agreement, to-wit, $304." As against the trustees the plaintiff prayed that they be compelled to account to him 'for any additional funds wrongfully held or wrongfully paid over to the defendant Cox and that his rights under said agreement be declared and established both as against the trustees and as against , the defendant Cox.

Answering and cross-complaining, defendant Cox alleged she had been induced to execute the agreement with plaintiff through coercion and fraudulent representations entitling her to rescind same. She prayed judgment against him for the sum paid over by virtue of the assignment, to-wit, $152, less $20, or such other sum as the court should deem reasonable for his staking and posting of her permit; that the agreement to assign to plaintiff one-half of her interest in the Cox permit and pool be cancelled and rescinded and for general relief.

The alleged fraud and coercion arise from this circumstance. Miss Cox permitted the time to pass without staking and posting the lands described in her application for permit. The plaintiff as a volunteer performed this work. As heretofore indicated, he prepared on her behalf a certificate in due form showing that the work had been done. The furnishing of the proof contained in the certificate was essential to prevent the application from lapsing and becoming forfeited. There seems to be no dispute between the parties as to this fact. No doubt the agreement of opposing counsel upon this phase of the case arises from the language of the act itself and the interpretation given such language by the Secretary of the Interior. In this behalf the act provides :

“The applicant shall, within ninety days after receiving a permit, mark each of the corners of the tract described in the permit upon the ground with substantial monuments, so that the boundaries can be readily traced on the ground, and shall post in a conspicuous place upon the lands a notice that such permit has been granted and a description of the lands covered thereby.” 41 Stat. 441, U.S.C.A., Title 30, § 221.

In Departmental Decisions, the posting requirement has been given the effect stated by plaintiff to defendant Cox, viz.,, as mandatory and the failure to stake and post as subjecting the application for permit to forfeiture.

“In making an application for extension of time the permittee must show that the corners of the claim have been marked with substantial .monuments and that a notice has been posted as required in paragraph 1 of the permit as there is no provision of law under which the time may be extended for compliance with that requirement.” 50 Land Dec. 568.

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Bluebook (online)
88 P.2d 271, 43 N.M. 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/featherstone-v-walker-nm-1939.