Gade v. Loffler

1935 OK 351, 42 P.2d 815, 171 Okla. 313, 1935 Okla. LEXIS 191
CourtSupreme Court of Oklahoma
DecidedApril 2, 1935
DocketNo. 23165.
StatusPublished
Cited by9 cases

This text of 1935 OK 351 (Gade v. Loffler) 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
Gade v. Loffler, 1935 OK 351, 42 P.2d 815, 171 Okla. 313, 1935 Okla. LEXIS 191 (Okla. 1935).

Opinion

PER CURIAM.

On January 9, 1925, August Gade, a resident of Nebraska, brought suit against G. D. Loffler, the Farmers State Bank of Garber, Okla., and Lucille L. Clark, E. I. Tipton, and E. T. Loffler, the last of whom are defendants in error here. In his petition he alleged that the defendant G. D. Loffler, on or about December 1, 1921, borrowed from the plaintiff the sum of $5,000, and to secure its payment executed to the plaintiff a conveyance of a certain royalty interest known as the Kisner units, which he owned in Garfield county. He further alleged that the said G. D. Loffler thereafter, and prior to the recording of the conveyance of the royalty interest by the plaintiff, executed conveyances of the same royalty interest to the defendants Lucille L. Clark, E. I. Tipton, and E. T. Loffler ; that said conveyances were without consider’ation and executed in furtherance of a plan between the said Loffler and the defendants in error to defraud the plaintiff. He asked that said conveyances be set aside as to him; that he have judgment against the defendant G. D. Loffler for the sum of $5,000 and- interest; that said conveyance to him, as security, be adjudged a first lien upon said royalty interest, and that said lien be foreclosed and the royalty interest be sold in satisfaction of said claim. It was further alleged that the defendant Farmers *314 State Bank was depository for the royalties accruing to defendants in .error from the royalty interest so fraudulently conveyed, and plaintiff asked that the said bank be enjoined from paying to the defendants in error any moneys frorq. such royalty interests coming into its hands for the defendants in error. On the same date a temporary restraining order was issued, enjoining the defendant Farmers State Bank of Garber from paying to the defendants in error any money received by it on account of said royalty interest until the further order of the court. On the 25th day of January, 1925, the Farmers State Bank filed an answer, setting up that it then held in its hands the sum of $60 for the defendants in error; that it claimed no interest in the property and was collecting and holding the money as depository only and was willing to disburse it to the parties rightfully entitled thereto.

The defendants in error, who were nonresidents of the state of Oklahoma, after motion to quash service by publication had been overruled, filed their answers, and the cause finally came on for hearing on the 11th day of September, 1928, August Gade having died in the meantime and the cause being revived in the names of Otto W. Gade and Fred W. Gade, administrators, who are plaintiffs in error. Judgment was rendered in favor of the plaintiffs against the defendant G. D. Loffler, for the sum of $5,000, and against the defendants in error setting aside the conveyances of the royalty interest as in fraud of plaintiffs, in so far as said conveyances affected the plaintiffs, decreeing a foreclosure of the lien upon the royalty interest and ordering it sold in satisfaction of the debt, interest, and costs. On the 12th day of January, 1929, upon the hearing of the motion for new trial, plaintiffs amended their petition to conform to the proof made upon the trial. Whereupon, the court entered an order reforming its prior judgment in certain particulars and overruling the motion for new trial. By the amended decree no personal judgment was rendered against the defendant G. D. Loffler. The conveyances of the royalty interest to the defendants in error were set aside and the property ordered sold to satisfy plaintiffs’ claims as in case of sales of real estate under execution. No appeal was taken from this judgment and it has become final. Thereafter, an order of sale was issued upon said judgment, and the royalty interest sold for the sum of $400, which sale was approved by the court on February 11, 1930. All orders, judgments, and rulings up to the overruling of the motion for new trial were made by Judge Swindall. Subsequent orders and decrees were made by his successors upon the district bench. There is no controversy between the parties as to any of the proceedings above recited.

It does not appear whether at the time of the conveyance of the royalty interest by G. I). Loffler to August Gade, it was a producing one or not, but at the time of the filing of the suit oil had been discovered upon the premises, and the royalties accruing therefrom were being paid to the Farmers State Bank for the use and benefit of the defendants in error. Between the date of filing the suit and the 23rd day of July, 1929, the sum of $4,413.60 had accrued from this royalty interest and- paid to and held by the defendant Farmers State Bank. The question here is as to who is entitled to this money, and it arises upon the following state of the record:

After the judgment of January 12, 1929, became final and the time for appeal had expired, plaintiffs in error secured an order from Judge O. O. Wybrant, directing the defendant Farmers State Bank of Garber to pay in to the clerk all moneys impounded in its hands. The pertinent part of the order is as follows:

“It is therefore ordered, adjudged, and decreed that the Farmers State Bank of Garber, Okla., be and it hereby is ordered and directed to pay in to the clerk of this court all moneys impounded in its hands by virtue of the restraining order heretofore issued out of this cause, the same to be applied (first) to the payment of the costs accrued in this cause, and (second) to be applied on the payment of the judgment heretofore rendered herein.”

On the 18th day of September, 1929, the Farmers State Bank of Garber, in pursuance of the order above mentioned, filed the following response:

“Comes now the Farmers State Bank of Garber, Okla., and responding to and in compliance with the order made by this court on July 24, 1929, in the above-entitled cause, hereby pays into the hands of the clerk of this court the sum of $4,413.60, which represents all monies impounded in its hands in this cause to this date and which represents the accumulations and payments made to the credit of thr 40 units in the Kisner royalty involved in this action.”

On the 12th day of November, 1929, the Honorable J. W. Byrd, district judge, entered his order authorizing and directing the clerk of the court to pay these funds *315 to tlie plaintiffs in error to be applied upon the judgment. Thereafter, the order of sale heretofore mentioned was issued and the property sold. All parties concerned seemed to have accepted the litigation as having been finally settled and determined until the defendants in error, having employed other counsel, on June 5, 1930, filed their motion to set aside the order of November 12, 1929, and to require the plaintiffs in error to repay to the clerk the money paid to them under such order. Plaintiffs in error filed a motion for an order nunc pro tunc, correcting the judgment of January 12, 1929, so as to make specific direction for the application of the funds in the hands of the defendant bank. Tliis motion was overruled, the orders of July 23, 1929, and November 12, 1929, were vacated, and plaintiffs in error ordered to repay to the clerk the moneys paid to them by him. The motion of plaintiffs in error for a new trial was thereafter overruled and they appealed.

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Cite This Page — Counsel Stack

Bluebook (online)
1935 OK 351, 42 P.2d 815, 171 Okla. 313, 1935 Okla. LEXIS 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gade-v-loffler-okla-1935.