Gesell v. Martin

1969 OK CIV APP 9, 463 P.2d 697
CourtCourt of Civil Appeals of Oklahoma
DecidedDecember 23, 1969
DocketNo. 42430
StatusPublished
Cited by2 cases

This text of 1969 OK CIV APP 9 (Gesell v. Martin) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gesell v. Martin, 1969 OK CIV APP 9, 463 P.2d 697 (Okla. Ct. App. 1969).

Opinion

BERRY, Presiding Judge.

Plaintiffs in error, defendants in the trial court, have appealed from an adverse judgment rendered in an action, brought [698]*698by defendants in error as plaintiffs, to determine their ownership and quiet title to mineral interests in described real property. Matters summarized hereafter reflect basis for the action and issues presented on appeal.

In January 1931 Emma Pebley and her husband borrowed $1,000.00 from Minnie Pior. The loan was secured by a mortgage upon approximately 187 acres of land in Beckham County. The husband died and Emma Pebley succeeded to the entire estate prior to April, 1936. On April 2, 1936, the mortgagee executed, and there was filed for record, a partial release of the mortgage security, reciting value received and extension of the mortgage for 10 years at 5% interest. This release also recited: “ * * * the property described

in said mortgage is hereby continued to be held as security for the above unpaid principal debt, and unpaid interest, in all respects as heretofore, with the exception, that all security on the oil and gas rights is hereby waived and said mortgage is released as to said oil and gas, and mortgagors are hereby authorized to lease said mortgage premises for oil and gas, without my joining in such lease; * *

September 23, 1942, the mortgagee filed foreclosure action against Emma Perkins, formerly Pebley, her husband L. C. Perkins and numerous other defendants who claimed interest in this land, including defendants Gesell. Emma Perkins died following commencement of foreclosure and administration proceedings were begun in behalf of the surviving seven children, including three minors, and mortgagor’s surviving second husband. Foreclosure proceedings were revived in names of mortgagor’s heirs and personal representative. Upon proper applications a guardian ad litem was appointed for named minor heirs. An attorney also was appointed to appear and defend one heir then in military service, ip compliance with Soldiers’ and Sailors’ Civil Relief Act of 1940. All defendants so represented were served properly and filed answers.

The matter was heard September 23, 1943. Based upon findings of proper service sufficient to give the trial court jurisdiction judgment was entered decreeing foreclosure. The property was ordered sold without appraisement as provided in the mortgage, and defendants, or anyone claiming under them, were enjoined from asserting right, title, lien or interest against purchaser at sheriff’s sale. Regular proceedings resulted in confirmation of the sheriff’s sale and execution of deed to the mortgagee, which was recorded May 19, 1944. In July 1947 Minnie Pior, former mortgagee and purchaser at sheriff’s sale; conveyed the property to defendant Gesell, who immediately went into, and has maintained continuous possession since that time. The administration proceedings in Emma Pebley Perkins’ estate did not mention any mineral interest in this property. A subsequent guardianship proceeding in behalf of minor children, and ensuing sale of their inherited interest, made no mention of the mineral interest.

In 1966 plaintiffs, heirs of deceased mortgagor, filed this action claiming ownership of an undivided one-fourth of the mineral interest in this property. Plaintiffs alleged release of mineral interest from lien of the mortgage under the partial release; attempted foreclosure of this lien was void so far as minerals involved; acquisition of sheriff’s deed under foreclosure was ineffective to convey title to minerals; foreclosure action and ensuing sheriff’s deed did not affect mortgagor’s mineral title, and subsequent purchasers, including oil and gas lessee, acquired neither title nor interest in plaintiffs’ undivided one-fourth mineral interest. Plaintiffs asked judgment decreeing ownership and extent of each heir’s fractional interest, and decree quieting plaintiffs’ title to minerals against any and all claims of defendants.

Defendants’ amended answer claimed title based upon warranty deed from purchaser of the sheriff’s deed (original mortgagee), and asserted legal and equitable [699]*699ownership against plaintiffs’ claim by virtue of foreclosure proceedings which had divested plaintiffs of any rights. Further, plaintiffs had failed to allege consideration for partial release, fact being such instrument was executed solely to permit mortgagor to execute certain mineral interests; plaintiffs had failed to assert, or make affirmative effort to claim, any interest in mineral rights, and defendants’ absolute record title in force more than 15 years evidenced full legal title to surface and mineral interest appearing from the record. Defendants sought judgment decreeing legal and equitable title as against all claims of plaintiffs.

Defendant lessee answered claiming ownership of valid oil and gas lease covering undivided one-fourth mineral interest owned by defendants Gesell. This defendant adopted all allegations contained in co-defendants answers, and prayed protection of all rights and interest acquired as lessee of the Gesells.

By reply to defendants’ answer plaintiffs alleged mineral interests were released from lien of the mortgage, and thereby severed from the surface and constituted a separate title as to which there was no issue in foreclosure action; no statute of limitations based upon non-user applied to the severed mineral interest and defendants could not acquire title to such estate based upon prescription, defendants being unable to hold possession of an interest already severed.

Upon trial defendants were permitted to interpose affirmative defenses.of laches and estoppel by judgment.

Matters summarized are disclosed by pleadings, stipulations of the parties, and introduction of records. The trial court, noting basis of plaintiffs’ claim to be the partial release of the mortgage, opposed to defendants’ claim based upon foreclosure proceedings, wherein plaintiffs were defaulting defendants, which did not exclude this mineral interest, took the matter under advisement. September 29, 1966, the court filed written decision determining three questions or issues adversely to defendants. In accordance with such determination, judgment was entered confirming plaintiffs’ ownership of one-fourth mineral interest, and cancelling the oil and gas lease previously executed by defendants in favor of the oil company lessee.

Of three contentions presented as grounds for reversal two are ancillary to the basic issue, determination of which is dispositive of this appeal. The principal argument urges the court erred in finding the mineral interest involved had been severed from the surface by the foreclosure proceedings.

Actually the court’s judgment was based upon a two-fold finding: (1) the mortgagee’s partial release had removed the entire mineral interest from lien of the mortgage; (2) the proceedings were void as to plaintiffs’ mineral interest because severed at least when the property was sold at foreclosure sale.

Summarized, defendants claim the mortgagor was required to perform some positive act, i. e. by grant, in order to separate mineral interests from the surface; the only act relative to minerals was the mortgagee’s execution of the Partial Release; this instrument was without consideration, and made solely as accommodation for the mortgagor to dispose of certain mineral rights without obtaining the mortgagee’s consent, and the mortgagee’s act did not create a separate mineral estate.

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Related

Nilsen v. Tenneco Oil Co.
614 P.2d 36 (Supreme Court of Oklahoma, 1980)

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Bluebook (online)
1969 OK CIV APP 9, 463 P.2d 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gesell-v-martin-oklacivapp-1969.