Hartman v. Potter

596 P.2d 653, 64 Oil & Gas Rep. 355, 1979 Utah LEXIS 782
CourtUtah Supreme Court
DecidedJune 1, 1979
Docket16004
StatusPublished
Cited by31 cases

This text of 596 P.2d 653 (Hartman v. Potter) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartman v. Potter, 596 P.2d 653, 64 Oil & Gas Rep. 355, 1979 Utah LEXIS 782 (Utah 1979).

Opinion

HALL, Justice:

Plaintiffs sought to quiet title to a one-quarter interest in the oil, gas, and mineral rights in a 160-acre parcel of land in Du-chesne County, Utah. They appeal from the denial of their motion for summary judgment and from a summary judgment quieting title to one-half of said mineral rights in favor of defendant, Ora Ann Potter.

William and Rose Potter were the predecessors in interest of defendant Ora Ann Potter and they held the fee interest in the 160-acre parcel, including all of the mineral rights, until 1946 when they conveyed, by mineral deed, one-half of the mineral rights to one Bennett. In 1951, the Potters sold the fee interest to plaintiffs. The warranty deed of conveyance contained the following:

There is reserved unto the Grantors three-fourths (¾) of all the oil, gas, and *655 mineral rights to the above land belonging, with the-right of ingress and egress thereon for the purpose of finding and producing oil, gas, and minerals thereon. This deed is given subject to a prior lease of all the oil, gas, and mineral rights to said land belonging.

Plaintiffs were aware of the conveyance to Bennett, and a title opinion furnished to them at the time of their purchase of the fee reflected Potters as owners of only one-half of the mineral rights.

In 1967, plaintiffs leased one-quarter of the oil and gas rights to defendant, Chevron Oil Company. In 1970, William Potter, Jr., the then successor in interest of the Potters, leased one-half of the oil and gas rights to Altex Oil Company. 1 In 1973, defendant, Husky Oil Company, succeeded to and presently retains the leasehold interest of both Altex and Chevron Oil Companies.

Plaintiffs did not seek reformation of the deed nor did they claim breach of warranty of title. 2 They made no assertion of ambiguity in the deed and simply urged the trial court, as did the defendants, to look to the intent of the parties and construe the deed as a matter of law. The court agreed to do so and, consequently, no evidence was presented.

Plaintiffs contended that the deed should be interpreted so as to afford them a one-quarter interest in the whole of the mineral rights. They suggested that such could be done in one of two ways: (1) by assuming that Potters did not recognize the prior conveyance of a one-half interest to Bennett and that they therefore intended to convey one-quarter of the whole to plaintiffs and to reserve three-fourths thereof to themselves, or (2) by assuming that Potters did recognize the prior conveyance to Bennett and that they intended to “protect” said conveyance, to reserve a one-quarter interest in themselves, and to convey a one-quarter interest to plaintiffs.

Plaintiffs acknowledged that the deed was susceptible of a third interpretation, viz., that Potters recognized the prior conveyance of a one-half interest to Bennett and that they intended to reserve three-fourths of their remaining one-half interest (amounting to three-eighths of the whole) and to convey to plaintiffs a one-eighth interest. However, they discounted this interpretation, deeming it to be the least logical. 3

In also urging the trial court to construe the deed as a matter of law, the defendants contended that the Potters were confused as to the quantity of the mineral rights remaining after the conveyance to Bennett and, although intending to reserve all of their remaining one-half interest, they instead “over-reserved” a three-fourths interest of the whole.

Defendants further contended that the “over-reserve” had only the effect of reserving what the Potters actually owned (a one-half interest) likening it to the situation where one attempts to convey more realty than he owns. The effect of such an over-conveyance is governed by statute which provides that only that which the grantor can lawfully transfer passes to the grantee. 4

The trial court apparently adopted defendant’s argument, and by its Memorandum Decision ruled in pertinent part as follows:

It is the Court’s interpretation of the June 27, 1951 deed, that since at the time thereof one-half of the oil, gas and mineral interests had already been conveyed away, that the reservation of defendant Potter’s predecessors in interest of three quarters of said mineral interests acted to *656 reserve to the grantors the balance of all that remained, with the net effect of said deed being that the grantees (plaintiffs herein) received no mineral interest by way of said deed.

The difficulty with the argument presented by both plaintiffs and defendants is its inconsistency. Each invited the court to rule as a matter of law, yet they also invited the court to look to factual matters and to assume certain facts pertaining to the intent of the grantor.

This Court has long recognized the cardinal rule 5 of deed construction that the intention of the parties as drawn from the whole deed must govern. 6

In the absence of ambiguity, the construction of deeds is a question of law for the court, and the main object in construing a deed is to ascertain the intention of the parties, especially that of the grant- or, 7 from the language used. The description of the property in a deed is prima facie an expression of the intention of the grant- or 8 and the term “intention,” as applied to the construction of a deed, is to be distinguished from its usual connotation. When so applied, it is a term of art and signifies a meaning of the writing. 9

Deeds are to be construed like other written instruments, and where a deed is plain and unambiguous, parol evidence is not admissible to vary its terms. 10 It is the court’s duty to construe a deed as it is written, and in the final analysis, each instrument must be construed in the light of its own language and peculiar facts. 11 It is also well known that the intention of the parties to a conveyance is open to interpretation only when the words used are ambiguous. 12

Where the issue involved is solely one of law, as in the instant case, this Court is capable of determining the question as was the trial court and we are not bound by its conclusions. 13

The language used here reserving “three-fourths of all mineral rights to the above land belonging . subject to a prior lease of all . mineral rights to said land belonging,” is not ambiguous nor is it indicative of uncertainty as to the intent of the grantor. Hence, no resort may be had to subordinate rules of construction.

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Bluebook (online)
596 P.2d 653, 64 Oil & Gas Rep. 355, 1979 Utah LEXIS 782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartman-v-potter-utah-1979.