Folk v. United States

233 F. 177, 147 C.C.A. 183, 1916 U.S. App. LEXIS 2441
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 5, 1916
DocketNo. 4464
StatusPublished
Cited by32 cases

This text of 233 F. 177 (Folk v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Folk v. United States, 233 F. 177, 147 C.C.A. 183, 1916 U.S. App. LEXIS 2441 (8th Cir. 1916).

Opinion

SANBORN, Circuit Judge

(after stating the facts as above). [6] In this case-there are many defendants, but the defendants in possession of the property and who chiefly contest the appointment of the receiver are Page and Josey, and in this opinion they will be designated as the defendants. These defendants were, and for many months [181]*181had been, in the exclusive possession of the land which is the subject of this controversy, exploring it for oil and gas and extracting oil from it under patents and a title fair on their face and adjudged valid, so far as the defect asserted in this case is concerned, the right of Thomas Atkins to enrollment as a Creek citizen by the Dawes Commission, a quasi judicial tribunal, to which, by the Creek Agreement, the Congress and the Creek Tribe intrusted the power and upon which it imposed the duty to decide that question, a tribunal whose jurisdiction of that question and of every other issue it was necessary for it to consider and determine in reaching its decision was conclusive upon all and impervious to collateral attack, either by the Creek Nation, the United States, or any other party in interest. Kimberlin v. Commission of Five Civilized Tribes, 104 Fed. 653, 662, 44 C. C. A. 109, 118; Malone v. Alderdice, 212 Fed. 668, 670, 129 C. C. A. 204, 206. To avoid this incontrovertible rule the Creek Tribe and the United States, for the sole benefit of the Creek Tribe, make this direct attack upon the decision and judgment of the Dawes Commission that Thomas Atkins was entitled to enrollment as a member of the Creek Tribe and upon the patents based on that adjudication by a complaint in equity to avoid and set them all aside on the ground that there was no information or evidence before the Commission to sustain its adjudication.

The claim of the Creek Tribe, the only party plaintiff that has any pecuniary interest in this litigation, is conditioned by the existence of its alleged right to avoid that adjudication and the patents founded on it on the ground that there was no evidence of the qualifications of Thomas Atkins for enrollment before the Commission which adjudged him entitled thereto and no evidence before it that he was living on April 1, 1899. That adjudication, the allotment of this land to Thomas Atkins, and the patents to him were all public records open to the inspection of the Creek Nation from 1903 until the present time, but no attack upon their justice or verity was ever made, until this suit was filed in 1915', more than 11 years after the completion of the adjudication, the patents, and the public record thereof. This land was of small value, of but a few dollars an acre, until about 1912 to 1914, when oil was discovered in its vicinity and the defendants purchased their lease, drilled wells in it, and demonstrated its great value for its oil. Wells were being drilled in 1914 and the early part of 1915 on all sides of this land, and to save the oil from being drawn out of the pool beneath by others, the defendants sank four wells in it at a cost of $44,000, were drilling six more at an expense of $11,000 each, had constructed many wooden tanks, had contracted for eight steel tanks at a cost of $11,000 each to hold the oil which the wells were producing much faster than it could be sold or piped away, and had expended and incurred expense in producing and preserving the oil in this land, which amounted in the aggregate to more than $125,000, and had collected in return only about $8,000, when on the application of the plaintiff the court below appointed a receiver of the land, of all the wells, tanks, derricks, piping, casings, and other material of every nature which the defendants owned and had placed upon the land, of all the oil they had produced from and stored upon it, and of all the [182]*182uncollected proceeds of the oil they had taken from it and sold. This order was in effect an ejectment of the defendants in possession, not only from the land, but from the improvements which they had made thereon and the oil they had produced therefrom at an expense of more than $125,000 upon a preliminary hearing, and it is difficult to perceive the compelling equity in the Creek Nation requisite to sustain it.

[1] The plaintiffs, however, invoke the familiar rule, applicable alike to the appointment of receivers and to the issue of injunctions, that interlocutory orders on these subjects rest in the sound judicial discretion of the court of original jurisdiction, and that when that court has not departed from the rules and principles of equity established for its guidance its orders in this regard may not be reversed without clear proof that it abused its discretion. American Grain Separator Co. v. Twin City Separator Co., 120 C. C. A. 644, 648, 202 Fed. 202, 206. And they invite discussion of the question whether or not there was any abuse of the discretion of the court in the action it took.- But it is only when the trial court has not departed from the rules and principles of equity established for its guidance that the question of abuse of discretion in cases of this character is material. Such a departure renders the action of the court reversible without consideration or decision of the question of abuse of discretion. Now the plaintiffs’ ground for this suit is that the Creek Nation has the legal title to this land, but that its title is clouded by the enrollment, the allotment, and the patents, and the equitable relief they seek is the removal of that cloud. The defendants are in possession of the land under a title regular on its face. Counsel for the plaintiffs concede and insist in their brief that they cannot recover in ejectment on their legal title until a decree in equity removes the alleged cloud under which defendants hold a regular title, and yet they have succeeded, by means of an interlocutory order, without any trial of title, in securing in effect a writ of ejectment of the defendants from the land and an injunction against their return.

[2] The possession and use of real estate by those actually in possession has always been jealously protected by English and American courts. Strangers without title may not eject those in possession although the latter have no title. The possessors have the right to a trial of the issue between legal titles by a jury and to continue in possession until the plaintiff by the strength of his own title, not through the weakness of his adversaries’, establishes his right thereto. This suit is a confession that the plaintiffs cannot recover possession of this land on the strength of their title. If they could, they would have an adequate rfemedy at law and their suit must fail. When a plaintiff brings ejectment on a paramount legal title, and the defendant in possession sues in equity on the ground that he has the superior equity, the established rule and general practice is to. stay the action at law and hold the defendant in possession until the validity of the defendant’s claim in equity is adjudged. And when, as in this case,, a plaintiff out of possession brings a suit in equity to avoid the legal title of a defendant in possession which is admittedly superior, it is likewise the general rule and the established practice in equity to refuse to appoint a receiver to deprive the defendant of the possession or of the product [183]*183of the property until after a full trial of the equitable claim and the legal titles on their merits.

[3] A court of equity is not without jurisdiction to appoint a receiver of real estate and of its proceeds in the possession of a defendant holding under a title regular on its face.

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Bluebook (online)
233 F. 177, 147 C.C.A. 183, 1916 U.S. App. LEXIS 2441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/folk-v-united-states-ca8-1916.