Hart v. Standard Oil Co.

121 So. 737, 168 La. 183, 1929 La. LEXIS 1762
CourtSupreme Court of Louisiana
DecidedMarch 25, 1929
DocketNo. 29370.
StatusPublished
Cited by9 cases

This text of 121 So. 737 (Hart v. Standard Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hart v. Standard Oil Co., 121 So. 737, 168 La. 183, 1929 La. LEXIS 1762 (La. 1929).

Opinion

BRUNOT, J.

This suit is for a partial cancellation of an oil and gas lease and for alleged damages. Erom a judgment sustaining an exception of no right or cause of action, the plaintiffs appealed.

On December 16, 1907, Tycus Hart, Jr., leased to three nonresidents of the state the following described lands:

“The W. % of W. % of Section 21; S. % of S. E. Yi Section 20; E. % of S. W. % Section 22; all in T. 21 R. 16 in Caddo Parish, ‘ Louisiana, containing 320 acres more or less.”

The lease is for ten years, and for as long thereafter as oil or gas is produced on the leased premises in paying quantities, provided the lessee shall complete a well thereon within one year from the date of the lease, or shall thereafter pay to the lessor-quarterly, in advance, rent at the rate of $1 per acre per year. The consideration for the lease was the cash payment of $1, other valuable considerations, a one-eighth royalty for oil delivered in tanks or pipe lines at the surface near the mouth of the well, and 10 per cent, of all gas sold from the premises. *186 The contract contains other stipulations, such as are usually found in oil and gas leases, but they have no bearing on the issues presented in the suit and need not be mentioned.

The lessees made no effort to develop any part of the lands, but on January 15, 1908, they assigned the lease to the J. O. Trees Oil Company, of West Virginia. On September 15, 1910, this assignee entered into a supplemental agreement with the lessor wherein it amended certain provisions of the lease. The only amendment of importance Is as follows:

“The said J. C. Trees Oil Co., obligates itself and agrees that after the said well on lands in Sec. 22 has been completed and cleaned out and the two other wells herein provided for have been completed, to continue developments of said lands in the same manner as the lands of like character and value in the Caddo field are developed, and to drill wells on said lands, to offset wells on the adjacent lands as is customary in the Caddo Melds.”

On November 3, 1910, the J. C. Trees Oil Company assigned the lease to Alfred C. Bed-ford, a resident of New York, and, on the same day, Alfred C. Bedford assigned the lease to the Standard Oil Company of Louisiana.

The leased properties consist of two tracts of land, separated by other lands. One tract contains 240 acres and the other 80 acres. This suit is for the cancellation of the lease in so far as it affects the 80-acre tract and for damages resulting from the alleged failure of the lessee to properly develop that tract, which is described as the E. % of the S. W. % of section 22, township -21v range 16, Caddo parish, La.

This suit was filed January 19, 1928, by the widow and heirs of Tycus Hart, Jr. In the petition they allege that shortly after the Standard Oil Company acquired the lease it drilled four wells on the 80-acre tract, three of which wells produced considerable oil or gas, but that defendant has abandoned these wells and has ceased developing this land; that land in the immediate vicinity is producing oil and gas in paying quantities; that an offset well near the said land is draining the oil and gas from under it to its detriment and to the damage of petitioners; and that defendant has failed and refused to develop said land in the same manner as lands of like character and value are being operated in the Caddo fields. The prayer of the petition is for the cancellation of the lease in so far as it affects the 80-acre tract; for $8,000, with legal interest thereon, as damages; and for $2,000 as attorneys’ fees.

The defense is twofold, viz: That the lease is an indivisible contract; and that the petition does not allege any fact showing lessee’s failure to develop the leased lands in the same manner as other lands of like character and value in the Caddo field are developed, or to drill such offset wells thereon as is customary in that field.

The trial judge did not assign written reasons for sustaining defendant’s exception of no cause of action, but we gather from the briefs of counsel that the judgment is based upon the finding that the petition does not allege a single fact indicative of the custom in the Caddo oil fields relative to the manner the lands in that field are developed, or relative to the drilling of offset wells on said lands. In the plaintiffs’ brief, p. 19, it is said:

“The court below really based its opinion upon the ground that the petition was defective in that it failed to set forth the manner in which lands of like character and value were operated in the Caddo Oil Fields. It said that since the defendant was obligated to drill in this manner, it was not sufficient to set forth that it had not done so without stating definitely the manner in which lands of like character and value were operated in the Caddo Oil Fields.”

*188 Plaintiffs’contend that'the obligation of defendant to develop the leased lands is alleged, in'the petition, in the express words of the contract of lease, together with the additional allegation that'the defendant has not complied with that obligation. They also contend that the court should have taken judicial notice of the customs relative to the development of lands and the drilling of offset wells thereon in the Caddo oil fields.

It appears from the briefs of both litigants that the trial judge was not familiar with either of the customs mentioned. This fact, alone, would seem to be a sufficient answer to the plaintiffs’ second contention. In 15 R. C. L. p. 1121, it is said:

“The rule of judicial notice as applied to usages and customs is that notice will be taken- of a custom or usage which has become general to a sufficient extent to be a matter of general knowledge. In this connection it has been said that usage to be noticed judicially must be of such long standing as to have become a part of the law itself, and that the leading distinction between custom, considered as usage, and law is that the former is restricted to a particular locality or class of persons, or business, while the latter is universal throughout the jurisdiction. Wherefore, of a custom which is special that is, limited to a particular locality, or business, or class of people, judicial notice will generally not be taken.”

The rule is more concisely and more liberally stated in Am. & Eng. Ency. of Law, vol. 17, p. 945. There it is said:

' “Where a custom or usage is of such notoriety and obtains so extensively as to be a matter of general knowledge and common information, judicial notice is taken thereof by the courts. But a particular usage or custom, having a circumscribed and limited application, is not so noticed, but must be supported by proof.”

Counsel for pláihtiffs cite, in this 'connection, the eases- of Tiller v. City of Monroe, 5 La. App. 473, and Broussard v. Bernard, 7 La. 211. We do not see the application of the cited eases to the case at bar. In the Broussard-Bernard Case the plaintiff tendered parol' proof to prove a particular, custom which the law directed should be proved in another way,- and the court so held. The Tiller Case was a suit for damages for personal injuries. It was held, in that case, that the court must take judicial notice of the fact that a city is a municipal corporation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dinkins v. Broussard
196 So. 2d 636 (Louisiana Court of Appeal, 1967)
Breaux v. Pan American Petroleum Corporation
163 So. 2d 406 (Louisiana Court of Appeal, 1964)
United Carbon Co. v. Mississippi River Fuel Corp.
89 So. 2d 122 (Supreme Court of Louisiana, 1956)
Tomkies v. Meco Production Co.
37 So. 2d 385 (Louisiana Court of Appeal, 1948)
Louisiana Gas Lands, Inc. v. Burrow
1 So. 2d 518 (Supreme Court of Louisiana, 1941)
Roberts v. United Carbon Co.
78 F.2d 39 (Fifth Circuit, 1935)
Washington-Youree Hotel Co. v. Union Indemnity Co.
146 So. 342 (Louisiana Court of Appeal, 1933)
Crichton v. Louisiana Highway Commission
136 So. 43 (Supreme Court of Louisiana, 1931)

Cite This Page — Counsel Stack

Bluebook (online)
121 So. 737, 168 La. 183, 1929 La. LEXIS 1762, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hart-v-standard-oil-co-la-1929.