Headley v. Hoopengarner

55 S.E. 744, 60 W. Va. 626, 1906 W. Va. LEXIS 76
CourtWest Virginia Supreme Court
DecidedNovember 27, 1906
StatusPublished
Cited by47 cases

This text of 55 S.E. 744 (Headley v. Hoopengarner) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Headley v. Hoopengarner, 55 S.E. 744, 60 W. Va. 626, 1906 W. Va. LEXIS 76 (W. Va. 1906).

Opinion

Sanders, Judge:

This is a suit in equity, brought in the circuit court of Tyler county, by Mansfield Headley against H. L. Hoopen-garner and others. Upon a final hearing, the court below decreed for the plaintiff, and from this decree an appeal has been allowed.

Thomas J. Headley, the father of Mansfield Headley, was the owner, in his life time, of two contiguous tracts of land, in Tyler county, containing twenty-four and forty-six acres, respectively. On the 6th day of February, 1896, Thomas J. Pleadley and his wife granted to the South Penn Oil Company one-half of the oil and gas within and underlying the forty-six acre tract of land, and on the 14th day of April, 1897, said Thomas J. Headley and wife granted to L. R. Loomis one-half of the oil and gas within and underlying the twenty-four acre tract of land. Both of these grants were recorded in the clerk’s office of the county court of Tyler county — the one to the South Penn Oil Company on the 1st day of April, 1896, and the one to Loomis on the 14th day of April, 1897.

Thomas J. Pleadley died, intestate, soon after the execution of the grant to Loomis, leaving surviving him his widow, Mary Jane Headley, and five children, Mansfield, Elisha, Albert, Florence, and Susannah, infants. Mansfield became of age on March 17, 1899.

Elisha LeMasters was appointed guardian of the infants, and on the 17th day of March, 1899, as such guardian, he united with Mary Headley, the widow, and Mansfield Head-ley, the adult, in a lease to PI. L. Hoopengarner, M. W. Wharton and S. A. Karnes & Co., leasing for oil and gas these two tracts of land. Inasmuch as the guardian had no [629]*629authority to make it, this lease was ineffective to pass the interest of the infants, and on the 8th day of August. 1899, the said guardian filed his petition in the circuit court, reciting, among other things, the execution of the lease by the widow, the adult, Mansfield, and petitioner as guardian of the infants, and filed the lease as an exhibit with his petition. It set out the advantage it would be to the infants to sell or lease their interest in and to the “ undivided seven-eighths of all the oil and of all the gas within and underlying said tract of land,” reserving unto said infants their proportionate share of the one-eighth royalty of oil not sold, and prayed for authority to make such sale. On the same day the court entered a decree authorizing said sale, and the guardian reported that he had sold, at private sale, the undivided interest of the infants in and to the undivided four-fifths of the seven-eighths of all the oil and of all the gas within and underlying said tract of land, to the original lessees, Hoop-engarner, Wharton, Karnes & Co., and the court entered a decree confirming the sale. On the same day, the guardian made a deed to the purchasers for the oil and gas sold.

By various assignments, the undivided seven-eighths working interest came, on the 23rd day of April, 1900, into the hands of N. S. Snyder and W. L. Mellon, and they were the ■owners of such working interest when, in that month, oil was first struck on the twenty-four acres. The interests which the South Penn Oil Company and Loomis had acquired by their conveyances from the ancestor, Headley, and his wife, had never been discovered by the lessees, and, consequently, had never been taken into account by them, until they came to divide the royalty interest in the oil. Oil being struck first on the twenty-four acres, the question arose as to what interest Loomis owned, and a division order was agreed upon, signed by Mansfield Headley, Elisha LeMas-ters, guardian, N. S. Snyder, L. R. Loomis and W. L. Mellon, giving to Mansfield Headley one-eightieth of the royalty; to LeMasters, four-eightieths, and to Loomis, five-eightieths, thereof, and to Snyder and Mellon the seven-eighths working interest. Later, oil was discovered on the forty-six .■acres, and another division order was agreed upon, identical with the first, with the exception that the South Penn Oil [630]*630Company received the five-eightieths royalty. On the 21st day of December, 1900, Snyder and Mellon assigned the whole of the working interest to Henry Goodkind and Philip Kleeberg, and on the 2nd day of January, 1902, Goodkind <fc Kleeberg assigned the same to the Colonial Oil Company.

The operators of the leasehold divided the royalty as stip-ulatde in th.e division orders until some time in July, 1903, when Mansfield Headley instituted his suit in chancery against the lessees and their assigns, claiming that inasmuch as the original lease reserved one-eighth royalty, and as it was void as to the infants, the entire one-eighth should be accounted for to him alone. At the same time, LeMasters,, guardian of the infants, two of whom had, in the meantime, become of age, and the two thus becoming of age, instituted their suit in ejectment against the Colonial Oil Company, which was then in possession of the property, to recover possession of the same. This suit was based on the theory that the decree in the summary proceeding case required the purchasers to pay four-fifths of the royalty oil to the guardian, and provided that a failure to comply with the terms of the lease should operate a forfeiture; and that, inasmuch as the purchasers had paid only two-fifths, the right, title and interest of the infants should revert back to them.

The Colonial Oil Company, Goodkind and Kleeberg filed their answer and cross-bill to the bill of Mansfield Headley, in which they set up the lease executed by Mansfield Head-ley and others, and the summary proceeding case, and insist that under the lease Mansfield Headley was entitled to one-fifth of the royalty, and the infants to four-fifths thereof, subject to the widow’s dower; and they plead the lease and record in the summary proceeding case as an estoppel; they also plead the division orders signed by Mansfield Headley as an estoppel, and ask by way of affirmative relief that all questions be settled, and that the ejectment suit be enjoined. An injunction was granted. Answers were filed by South Penn Oil Company, Eureka Pipe Line Company, Snyder & Mellon, and the guardian, LeMasters, and his former wards, Albert and Florence. Depositions were taken, and on the final hearing, the court decreed that the [631]*631lessees should account to the heirs for the full one-eighth royalty.

The questions to be determined are: first, are the Head-ley heirs entitled to participate in • the full one-eighth royalty; and, second, are the lessees and their assigns liable to account for the additional one-sixteenth of the oil oyer and aboye the one-sixteenth that has gone to the Headley heirs, and in addition to the one-sixteenth which has been given to the grantees .of the ancestor, Headley.

It is contended by plaintiff’s counsel that there is no implied covenant of warranty in an oil and gas lease. This is based upon the theory that the lease from the Headley heirs to Hoopengarner, Wharton, Karnes & Co. was a sale of the oil in place, and passed a fee simple estate, and not merely a lease or rental contract. If this claim were correct, and had it been a grant of the oil in place, creating an estate in fee, then the authorities unanimously hold that there is no implied covenant of warranty, but that such covenant must be expressed in the deed. But, also, on the other hand, if the title passes an estate for years, with a reversion to the lessor, then there need be no express warranty of title or for peaceable and quiet enjoyment of the demised premises, but such covenant is implied in law.

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Bluebook (online)
55 S.E. 744, 60 W. Va. 626, 1906 W. Va. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/headley-v-hoopengarner-wva-1906.