Heggem v. Kilpatrick

1928 OK 523, 271 P. 643, 133 Okla. 145, 1928 Okla. LEXIS 1024
CourtSupreme Court of Oklahoma
DecidedSeptember 11, 1928
Docket17917
StatusPublished
Cited by5 cases

This text of 1928 OK 523 (Heggem v. Kilpatrick) 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
Heggem v. Kilpatrick, 1928 OK 523, 271 P. 643, 133 Okla. 145, 1928 Okla. LEXIS 1024 (Okla. 1928).

Opinion

DIPPENDAPPER, C.

Defendants in error were plaintiffs, and plaintiffs in error were defendants below. The parties will herein be designated as in the trial court.

Plaintiffs sue for damages and in substance allege: That in 1917, plaintiffs and defendants Were joint owners of certain oil and gas properties in Bourbon and Crawford counties, Kan., consisting of about 2,'500 acres which had been blocked by plaintiffs, known and referred to as the Walnut property; that plaintiffs owned an undivided one-half interest; and that the parties were operating said property as co-owners ; that shortly prior to September 1, 1917, Heggem advised one Henry A. Porte; that plaintiffs d'esired to sell their interest in said property; that on said date Porter advised Heggem that he would give plaintiffs $100,000 for their interest, $20,000 cash and th'e balance in four equal monthly installments ; that thereupon defendants entered into a fraudulent, unlawful design, scheme or understanding to defraud plaintiffs of th'e benefits of- said offer; that knowing full well, or having reason to believe, that plaintiffs would accept the offer, defendants *146 concealed; tlie offer from plaintiffs, and falsely represented to plaintiffs that the offer was for an undivided one-half interest; that is, for one-half of plaintiff's interest and one-half of defendants’ interest, and with int'ent to deceive plaintiffs, Heggem falsely advised them that the offer was for an undivided one-half of the interests of plaintiffs! and an undivided one-half interest of defendants, thus, if the offer was accepted, it would leave the plaintiffs as the owner of an undivided on&fourth interest and defendants with an undivided one-fourth interest, and Porter a one-half interest. The plaintiffs advis'ed Heggem that the offer would be accepted; that Heggem, in order to further perpetrate the fraud, thereafter falsely represented to Porter that plaintiffs would not sell their entire interest, but would be willing to sell one-half of their interest, or a one-fourth interest in the entire property, and that in order that the deal might be consummated, defendants would join with plaintiffs and sell Porter the one-half interest he desired for $100,000; that on September 1, 1922, plaintiffs and defendants entered into an agreement with Porter whereby they agreed to assign to him an undivided one-halfi interest in said property for the sum of $100,000, $20,000 cash and th'e balance. in four equal monthly installments; that upon the execution of the agreement, Porter paid defendants the $20,000, and on October 1, 1922, Porter paid defendants the $20,000 due on that date; that thereafter, in furtherance of their wrongful scheme to defraud plaintiffs and acquire to themselves the benefits and profits, defendants falsely represented to plaintiffs that Porter would likely not comply with his contract unless he were given a substantial discount, and that on account of the great expense of developing the property, plaintiffs and defendants would be required to expend more money than they had received from Porter in developing the property; that defendants further advised plaintiffs that, if the discount was not allowed and Porter acquired an interest in the leases, he would desire to drill additional wells and the share of plaintiffs and defendants of the necessary expenses thereof would soon equal the amount they were receiving for the interest sold to Porter, and that the property was of no value and production in paying quantities could never be obtained, and that it was useless to expend further money in developing the property, and that it would be better to transfer the entire property to Porter, and if necessary discount th'e balance of the purchase price to such an extent as would induce Porter to pay at once the balance thereof; that the representations that Porter would probably not comply with his contract were false, known by defendants to be false, and were made with int'ent to defraud and deceive plaintiffs; that in truth and in fact Porter was ready, willing and able to comply with his contract and had not requested any discount, nor had he expected any discount; that plaintiffs had no opportunity to ascertain the truth or falsity of these statements, for the reason that neither of the plaintiffs knew Porter, 'except casually, nor had they taken part in the. negotiations with Porter, but that all such negotiations with Porter had been conducted by defendants exclusively, acting for themselves and plaintiffs, and duly authorized thereunto by plaintiffs; that plaintiffs had no information concerning Porter except from defendants, and that defendants had, as a part of their scheme, by various acts and contrivances, prevented plaintiffs from meeting Porter or talking with him concerning the transaction; that in July, 1917, plaintiffs had advised defendants that they, plaintiffs, were willing to do with their interest anything that defendants were willing to do with their similar interest, and would be controlled in all their actions with reference to the management and sale of the property by the advice and action of defendants, and that defendants knew and realized that plaintiffs reposed absolute confidence in the statements and intention of defendants to deal fairly and to the best interests of all concerned, and believed all the representations made by defendants in reference to Porter; that shortly prior to October 8, 1917, defendants advised plaintiffs that Porter was not willing to go ahead with his contract, but was willing! to accept a transfer of the entire interest in the property for the $100,000, and pay or secure same at once if a substantial discount were allowed him; that defendants advised plaintiffs that they thought this the best thing to do, and were willing to do so themselves; that believing such statements to be true, and relying on the same, plaintiffs consented to a modification of the contract with Porter accordingly: that these representations were so made by defendants with the intention that plaintiffs should rely thereon; that on the 8th day of October. 1917, plaintiffs, relying on the representations made by defendants, joined defendants in the execution of an assignment to Porter of the entire property; that all the payments theretofore made by Porter *147 tinder, his contract liad been made to defendants, andi defendants had paid plaintiffs one-half thereof, to wit, $20,000, representing their part; that shortly after the.

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Cite This Page — Counsel Stack

Bluebook (online)
1928 OK 523, 271 P. 643, 133 Okla. 145, 1928 Okla. LEXIS 1024, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heggem-v-kilpatrick-okla-1928.