Garfield Oil Co. v. Champlin

1924 OK 905, 229 P. 824, 103 Okla. 209, 1924 Okla. LEXIS 291
Supreme Court of Oklahoma·Decided October 14, 1924·No. 12686·Published·Cited by 4 cases

Opinion

Opinion by

MAXEY, C.

This case has been elaborately briefed by both parties, and was ably argued orally before this division of the Commission, and their briefs and oral argument have aided us a great deal in arriving at a decision in this case. The plaintiff in error has assigned 13 points as error which it claims the trial court committed. These various points are discussed under appropriate heads in the brief, and we will take them up in their order. The first point discussed is stated thus:

“The record on this appeal presents a materially different state of facts from that before the court on the former appeal.”

This court held on the former appeal (78 Okla. 91, 189 Pac. 514) that the record showed that possession of the leased premises had not been taken by the Chanute Refining Company or its assignee, Garfield Oil Company. (2) The lessors, Beggs and wife, had no direct interest in the drilling of the test well on the Hoy tract of land. (3) Defendant, Garfield Oil Company, did nothing prior to August 23, 1916, indicating its intention to comply with the terms of the Beggs lease. (4) That the lease under which Garfield Oil Company claims was an unilateral option. (5) The court held that Garfield Oil Company’s claim for relief was based on the ignorance or mistake of the agent in not knowing that the rentals were due on August 23, 1916. That ease was heard on the petition, answer, and demurrer to the answer. The trial court sustained the demurrer to the answer, and this court affirmed the decision of the trial court as to. the 5th subdivision of the answer, and reversed the trial court in sustaining the demurrer to subdivisions of the answer Nos. 1, 2 and 3. The 5th subdivision of the answer was that part of the answer that undertook to set up an excuse for not paying the rental money on or before August 23. 1916, and this court held that the demurrer to that part of the answer was properly sustained. On the coming down of the mandate, the defendant, Garfield Oil Company, filed an amended answer, and to meet the ruling of the court on subdivision 5 of the original answer set up the same excuses for not paying the rent as were set up in its original answer, but added thereto other excuses in their amended answer that alleged that the Beggs tract of land was blocked with other tracts for the purpose of exploration; they alleged possession of the leased premises and alleged part performance of the contract, and alleged that the lease was not a unilateral option, and that their claim for relief was not presented solely on ignorance or mistake of -its agent in not knowing when the rental came due. Whether this difference in the answer changes the cas^ as presented to this court on the former appeal we do not deem it necessary to pass on, as under our view of the case the defendant failed on the trial to prove a state of facts that sustain the allegations of its answer in the respects set out. We agree with the court in its former holding on the points above set' out, and we do not think the evidence introduced on the trial is sufficient to justify us in changing any of the points decided in. the former appeal. But there are other points raised on this appeal that were not raised on the former appeal, and we are inclined to pass on them and not apply the rule ‘‘that all matters involved on a former appeal and all matters considered by the "onrt. or that the *213 f'oii't could have considered, becomes the law of the case.” This is an important lawsuit, and we are inclined to pass on the questions raised in the argument that we deem necessary to a decision of the case as now presented.

The second point raised by counsel for plaintiff in error is:

“The court erred in overruling defendant’s motion to stay proceedings herein until the action of Exchange Oil Company against H. H. Champlin, George Beggs, and Abbie N. Beggs et al. pending in the district court of the United States for the Western District of Oklahoma had been determined.”

We deem it unnecessary to review the action of the trial court on this proposition, for the reason that we think the trial court was right in refusing to grant this request as this suit was brought in the state court prior to the case brought in the federal court, and under the decision of the United States Court of Appeals for the Eighth Circuit in the case of Kline v. Burke Construction Company, 271 Fed. Rep. 605, and the same case decided by the Supreme Court of the United States and reported in 260 U. S. pages 226-235, under the decision of the Supreme Court in that case, the court reviewed the authorities on this question, and under this decision we think there could be no question that the refusal of a motion to stay proceedings in this case in the state court until the case in 'the federal court could be decided was right. In the case of Dennison Brick & Tile Co. v. Chicago Trust Co., 286 Fed. 818, the court said:

“As applied bo the instant case, the controlling question is whether, by virtue of the suit to quiet title, the state court took into its jurisdiction a res, a thing, and not merely a personal suit involving no potential conflict of the authority and process of the respective courts.
“In our opinion the state court acquired exclusive jurisdiction of the subject-matter of this litigation. While the rule that priority of jurisdiction over the res gives exclusive jurisdiction is limited to actions which, speaking broadly deal either actually or potentially with specific property or objects. yet the res, the subject-matter, is not necessarily a tangible thing; it may be merely a status, such as marriage affected by a suit for divorce, or a proceeding to probate a will. The rule that the tribunal, state or federal, whose jurisdiction first attaches, holds it to the exclusion of the other until its duty is fully performed, and the jurisdiction involved is exhausted, applies to enforcement of liens against specific property, including the foreclosure of mortgages, and is not limited to cases where property has been actually seized under judicial processes before the second suit is instituted in another court. The test is jurisdiction over the res, not possession of the property. B. & O. R. R. Co. v. Wabash Ry. Co. (C. C. A. 7) 119 Fed. at page 680, 57 C. C. A. 322, cited and quoted from, with apparent approval, in Kline v. Burke Const. Co., supra; Farmers Loan & Trust Co., v. Lake St. R. R. Co., 177 U. S. 51, 61, 20 Sup. Ct., 564, 44 L. Ed. 667; Roller v. Holly, 176 U. S., at page 405, 20 Sup. Ct. Rep. 410. 44 L. Ed. 520. Nor are proceedings in rem limited to suits directly against property. As said in Pennoyer v. Neff, 95 U. S. 714, 734 (24 L. Ed. 565) :
“ ‘In a larger and more ' general sense, the terms (proceedings in rem) are applied to actions between parties, where the direct object is to reach and dispose of property owned by them, or of some interest therein. Such are cases *** instituted to *** foir close a mortgage, or enforce a lien.- So for as they affect property in the state, they are substantially proceedings in rem in the broader sense which we have mentioned.’

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Garfield Oil Co. v. Champlin, 1924 OK 905, 229 P. 824, 103 Okla. 209, 1924 Okla. LEXIS 291 (Okla. 1924).

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