Harrell v. Clarke

1935 OK 1123, 51 P.2d 720, 174 Okla. 623, 1935 Okla. LEXIS 1333
CourtSupreme Court of Oklahoma
DecidedNovember 19, 1935
DocketNo. 22512.
StatusPublished
Cited by6 cases

This text of 1935 OK 1123 (Harrell v. Clarke) 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
Harrell v. Clarke, 1935 OK 1123, 51 P.2d 720, 174 Okla. 623, 1935 Okla. LEXIS 1333 (Okla. 1935).

Opinion

PER CURIAM.

This is an action brought l>y Hulbert S. Clarke against G. C. Harrell and tbe Liberty National Bank for the specific performance of a contract of sale of oil, gas, and mineral rights and to enforce an escrow agreement.

The contract sought to be enforced reads as follows:

“Contract and Agreement.
“Tbis contract and agreement made and entered into on this 23rd day of October, 1929, by and between Hulbert S. Clarke, party of tbe first part, and G. C. Harrell, party of the second part, witnesseth:
“That for and in consideration of tbe sum of twenty-four hundred dollars ($2,400) to be paid as hereinafter provided, tbe party of tbe first part contracts and agrees to transfer, convey, and deliver unto tbe party of the second part a mineral deed covering a three acre royalty interest in tbe oil and gas in and under the following described real estate, to wit:
“The east half (E. %) of tbe northwest quarter (N. W. %) of section thirty (30), township twelve (12) north, range two (2) west, less a twenty (20) acre strip, as per recorded instruments, free and clear of all liens and incumbrances.
“The second party hereby agrees to place a certified check for $2,400, as hereinabove referred to, together with instructions in the Liberty National Bank of Oklahoma City, Okla., instructing said bank to deliver said check to the party of the first part upon receipt of an opinion approving the title to said property by his attorneys, Everest, Dudley & Brewer. In this connection it is specifically agreed by the party of the second part that upon the approval of the title, said (payment above referred to is to be made regardless of the outcome of the well now being drilled upon said property, and the only reason for this contract is that the title^be merchantable before transfer is made.
“It is mutually agreed by and between the parties hereto that Everest, Dudley & Brewer, the attorneys for the party of the second part, is to furnish their opinion upon said title within twelve (12) hours after the abstract is delivered, certified to date by the abstracter, to them.
“This contract shall be binding upon the heirs, devisees, administrators, executors and assigns of the parties hereto.
“Dated at Oklahoma City, Oklahoma, this 23rd day of October, 1929.
“Hulbert S. Clarke,
“Party of the first part,
“G. C-levo Harrell,
“Party of the second part.”

The above contract together with the mineral deed from Clarke to Harrell and a certified check of Harrell Brothers for $2,400 were Ip’aced in escrow with the Liberty National Bank and were accompanied with the following instruction:

“Liberty National Bank,
“October 23, 1929.
“Oklahoma City, Oklahoma.
“Gentlemen:
“We are enclosing herewith mineral deed executed by Hulbert S. Clarke, together with check for $2,400 of the Harrell Brothers, Oklahoma City.
“This will be your authority, upon advice of J. B- Barnett of the firm of Everest, Dudley & Brewer, to deliver to him the deed, and the check for $2,400 to Mr. Clarke, which is being held by you pending the opinion as to *624 the validity of the title. Yours very truly, Cleve Harrell, Hulbert S. Clarke.”

Plaintiff’s petition alleged the execution of the contract, the circumstances surrounding the same, compliance with the terms thereof, and a breach on the part of the defendant Harrell and the escrow holder, Liberty National Bank. Separate answers were filed by the defendants Harrell and Liberty National Bank. Harrell after admitting the execution of the contract, escrow agreement, and attorneys’ opinion attached to the plaintiff’s petition, denied generally all of the material allegations of the petition and specifically pleaded that time was of the essence of said contract and that the plaintiff had failed to present an abstract showing a merchantable title in accordance with the contract, and that therefore the plaintiff had breached the contract and that the defendant was without liability. The Liberty National Bank averred generally noncompliance with the contract on the part of the plaintiff and admitted the escrow agreement.

The evidence and record discloses substantially the following state of facts: That the plaintiff was the owner of three acres of oil, gas and mineral rights in and under 60 acres of land described in the contract; that there was a well drilling either on or near the premises, and it was expected to prove /itself within the very near future; that the contract in question was executed on the 23rd day of October, 1929; that on the night of the same day, or the morning of the day following, the well proved to be a failure, or at least was so considered by the oil fraternity; that the abstract was not delivered to the attorneys for the defendant until the 24th day of October, 1929, and their opinion was written on the 25th day of October, 1929, finding that the title to the oil and mineral right was owned by the plaintiff free and clear except for an $1,800 real estate mortgage, which was a lien on the 60 acres of land and the mineral rights, a release of which the opinion required in order to approve the title; that the parties received notice of the substance of this opinion either on the day it was written or the day following, and that a few days thereafter they were furnished with a written copy of the opinion.

The evidence further shows that the defendant Harrell went to the bank and withdrew the certified check on the 29th day of October, 1929, without notice to the plaintiff and without consulting him. The evidence further shows that Clarke made several attempts to get Harrell and his attorney to waive the requirements relative to the release of the mortgage in question, but without success. As to whether this occurred in the first instance prior to the withdrawal of (he certified check by Harrell does not clearly appear. The evidence further shows that Clarke subsequently obtained a release of the mortgage in question and delivered it to Harrell’s attorneys about the 20th day of January, 1930, and there is no question about the title being valid at the time of the commencement of this suit. The trial was had to the court and findings of the court and judgment thereon were rendered in favor of the plaintiff. The defendant Harrell alone appeals to this court. The parties will be referred to as they appeared in the trial court.

The defendant makes three assignments of error here and presents them under two prop ositions as follows:

“Proposition No. 1. Time was of the essence of the contract and plaintiff, under the terms thereof, was not entitled to take two and a half months or any time at all in which to cure his admittedly incumbered and defective title; and the judgment of the trial court decreeing that defendant specifically perform the contract is therefore erroneous and contrary to law and the evidence.

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Bluebook (online)
1935 OK 1123, 51 P.2d 720, 174 Okla. 623, 1935 Okla. LEXIS 1333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrell-v-clarke-okla-1935.