Godwin v. Orgain

160 F. Supp. 757, 9 Oil & Gas Rep. 163, 1958 U.S. Dist. LEXIS 2551
CourtDistrict Court, S.D. Alabama
DecidedApril 10, 1958
DocketCiv. A. No. 1842
StatusPublished

This text of 160 F. Supp. 757 (Godwin v. Orgain) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Godwin v. Orgain, 160 F. Supp. 757, 9 Oil & Gas Rep. 163, 1958 U.S. Dist. LEXIS 2551 (S.D. Ala. 1958).

Opinion

DANIEL HOLCOMBE THOMAS, District Judge.

This was originally a bill in equity filed on May 31, 1957, in the Circuit Court of Washington County, Alabama, to cancel an oil, gas and mineral deed, or in the alternative to reform same so as to constitute it as a royalty deed only, [758]*758and also to cancel an oil, gas and mineral lease executed by the grantee in said deed and his assigns to other defendants in the ease. The case was duly removed by the defendants to this Court. The cause came on for hearing before the Court without the aid of a jury, and the Court having heard the evidence and the argument of counsel, and being fully advised in the premises, now finds the following:

Findings of Fact

1.

Plaintiff is a resident citizen of the State of Alabama, the defendants are each and all residents and citizens of a State other than Alabama, and the amount in controversy is in excess of $3,000, exclusive of interest and costs.

2.

On June 30,1947, plaintiff was and had for some time been the owner of the NYz of NW14 of NE34 of Section 12, Township 5, North, Range 3 West, Washington County, Alabama, subject to an existing oil, gas and mineral lease.

3.

On or about June 17, 1947, defendant Will E. Orgain, an attorney and resident of Beaumont, Texas, employed Mr. Wallace E. Pruitt, an attorney of Chatom, Alabama, to purchase for the account of Orgain on a commission basis certain mineral interests if available in the general area of plaintiff’s land. Pruitt had two contacts with the plaintiff and his wife at their home shortly before June 30, 1947, and on that date they visited his office in his home and executed the deed which is the subject of this litigation, a copy of which is marked Exhibit “A” and made a part of the plaintiff’s petition. The document was acknowledged by the Godwins before Pruitt as a Notary Public on June 30, 1947, and payment was made by a draft for $480 drawn by Pruitt on defendant Will E. Orgain, which draft was endorsed by the plaintiff and was deposited with the deed attached on July 1, 1947, to the credit of plaintiff in the Chatom State Bank. The draft was accepted and paid by defendant Will E. Or-gain at Beaumont, Texas, on about July 3, 1947, and the deed was recorded in the Probate Court of Washington County shortly thereafter.

4.

Although the Godwins alleged in their petition and also testified that defendant Will E. Orgain was with Pruitt on the occasion of each visit and at the time the document was executed, and that he participated personally in the negotiations and closing of trade, defendant Will E. Orgain established by abundant evidence and the Court finds that he left the environs of Chatom on about June 19 or June 20, 1947, and did not participate in person in any of the negotiations or the closing of the trade. At the conclusion of the trial the plaintiff was permitted to amend his petition to add an alternative allegation that Pruitt alone, acting as agent for defendant, Will E. Orgain, handled the negotiations and the closing and made the representations complained of in the petition.

5.

The plaintiff and his wife both testified variously that Pruitt or Will E. Orgain, or both, represented during the negotiations and at the time of execution of the document that the deed would not affect the plaintiff’s right to make future leases, or the amount of bonus or rentals received on future leases, and that the grantee, Will E. Orgain, would receive nothing under any future lease unless oil, gas or minerals were produced, and testified further that they relied upon these representations. Defendant, Will E. Or-gain, and Pruitt both denied making any such representations and Pruitt testified that the correct legal effect of the deed was explained to the Godwins before execution and that he was satisfied at. that time that they understood the document as written. The Court’s finding of fact on this subject will be set forth hereinafter.

6.

The deed, which was first recorded in Book 80, Pages 549-550 of the Deed; Records of Washington County, is clearly [759]*759a mineral conveyance. The document by its terms conveyed an undivided one-half interest in and to the oil, gas and other minerals in and under and that may be produced from the lands above described, to the defendant, Will E. Or-gain, for a term of 15 years from its date, and contains the following paragraph :

“It is understood between the parties hereto that this sale is made subject to any valid and duly recorded oil and gas lease, but covers and includes one-half of all the oil royalties and gas royalties and mineral royalties due and to become due under the terms of any such lease provided that should any such lease expire or be cancelled or otherwise become inoperative and of no effect, the rights acquired hereunder by grantee shall be and remain in full force and effect. And that this sale includes no part of the delay rental on the present oil lease on the above described property.”

7.

During the month of August, 1947, defendant, Will E. Orgain, noticed that in the term and reversionary paragraph of the deed the word “and” had been inadvertently used instead of the word “or”, and upon his request by letter to Pruitt the latter presented the Godwins with the deed with the request that the word “and” be corrected to “or” and the correction initialed. On August 23, 1947, this was done by plaintiff and the deed again acknowledged, and on August 28, 1947, it was again recorded.

8.

Between August and October of 1947 (by virtue of the two recordings of the above mentioned instrument) the God-wins were told by some representative of the Humble Oil & Refining Company that the plaintiff had conveyed everything he owned to Will E. Orgain, land, buildings and livestock. On October 25, 1947, Dennis Porter of the law firm of Scott & Porter, of Chatom, Alabama (whose office records have subsequently been destroyed by fire), who has no personal, independent recollection of the matter, wrote defendant, Will E. Orgain, referring to his purchase from the plaintiff of “an undivided one-half interest in oil, gas and other minerals,” describing the land, and advising Orgain that the double recording did not indicate that the second recording was a correction of the original document first recorded. Porter stated in his letter that “Mr. Godwin is anxious to get this matter cleared up at the earliest possible date.” Defendant, Will E. Orgain, together with his wife, executed and returned to Porter by mail an instrument of clarification which released and quitclaimed to the plaintiff “all right, title and interest which we have in and to said above described oil, gas and other minerals in excess of the undivided one-half of the oil, gas and other minerals in and under said property as was conveyed by said deed of date the 30th day of June, 1947, as corrected and recorded in Yol. 82 Page 42 in the Office of the Judge of Probate of Washington County, Alabama.” A copy of this document was made Exhibit “B” to plaintiff’s petition. Plaintiff and his wife executed an acceptance at the bottom of this instrument and acknowledged same before said Dennis Porter, as a Notary Public, and the document was recorded in the Probate Court of said County on November 4, 1947.

9.

Some time after the execution and delivery of the documents hereinabove described, a well was drilled in the general area of plaintiff’s land in search for oil or gas, without success.

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Bluebook (online)
160 F. Supp. 757, 9 Oil & Gas Rep. 163, 1958 U.S. Dist. LEXIS 2551, Counsel Stack Legal Research, https://law.counselstack.com/opinion/godwin-v-orgain-alsd-1958.