Heller v. Dailey

63 N.E. 490, 28 Ind. App. 555, 1902 Ind. App. LEXIS 70
CourtIndiana Court of Appeals
DecidedApril 2, 1902
DocketNo. 3,537
StatusPublished
Cited by40 cases

This text of 63 N.E. 490 (Heller v. Dailey) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heller v. Dailey, 63 N.E. 490, 28 Ind. App. 555, 1902 Ind. App. LEXIS 70 (Ind. Ct. App. 1902).

Opinion

Black, J.

The appellant, Lemuel Heller, in March, 1899, sued the appellees, Michael Dailey, Frank Eddington, Orlando H. Britton and Frederick E. Britton. There was another defendant, Frank L. Waring, whose death was suggested pending the proceedings in the court below, without substitution of a representative. The action was upon a written contract, dated April 22, 1896, signed and acknowledged by the appellant and the appellees Dailey and Eddington, by the terms of which the appellant, of the first part, granted to the appellees Dailey and Eddington, of the second part, “all the oil-and gas in and under” a certain tract of eighty acres of land, with the right to enter thereon at all times for the purpose of drilling and operating for oil or gas, to erect structures, lay pipes, etc., excepting and reserving to the appellant the one-sixth part of all oil produced and saved from said premises, to be delivered, etc.; “to have and to hold the above premises on the following conditions: If gas only is found, second party agrees to pay $200 each year for the product of each well while the same is being used off the premises, and the first party to have gas free of cost to heat all stovés in dwelling-houses and for domestic purposes during the same time. When first party shall request it, second party shall bury all oil and gas lines and pay all damages to growing cz’ops by reason of burying or removing said pipe lines or other operatiozzs. In case no well is completed withizz sixty days from this date, then this grant shall be null and void, unless second party shall pay the said first party $1 per day in advance for each day thereafter such completion is delayed. The second party shall have the right to use sufficient gas and oil or water to z*un all machinery for the operation of said wells, and also the right to move all its property at any time; and it is further agreed by the party of the second [557]*557part that- they shall drill a well at the rate of one well every sixty days after date, until five wells are completed. In ease any well is not completed in said sixty days as above provided for, parties of the second part shall pay $1 per day in advance until said well is completed. It is understood between the parties to this agreement that all the conditions between the parties hereunto shall extend to their heirs, executors and assigns.”

It was alleged in the complaint that on the 22nd of April, 1896, the appellee Eddington assigned in writing all his interest in the lease to the appellee Dailey, who on the 28th of the same month assigned in writing an undivided one-half interest therein to the defendant Waring; that on the 17th of June, 1896, the lease with these assignments was duly recorded, etc.; that Dailey and Waring assigned the lease to the Capitol Oil Company, which had since gone into the hands of a receiver and had become defunct; that the receiver sold and assigned the lease to the appellees Britton and Britton, “who accepted the same and took and now hold possession of the said lease and premises;” that pursuant to the lease the defendants drilled two wells on the premises within 120 days, “but have failed to either drill, complete, or construct any other wells thereon or to pay the rental for the delay in the construction of the remaining three wells.” The amount of the “daily rental” alleged to have accrued under the lease on each of these three wells not drilled was averred, all of which it was alleged remained unpaid and due the appellant from the defendants, and judgment was demanded for the amount thereof.

The answer of Britton and Britton was a general .denial. Dailey, and Eddington each filed an answer in seven paragraphs. The appellant relies for the reversal of the judgment upon alleged error in overruling his demurrers to the third, fourth, and fifth paragraphs, severally, of each of these answers, and in overruling his motion for a new trial.

In the third paragraph of each answer it was pleaded, in [558]*558substance, that before the expiration of 180 days from the execution of the lease, and when it was owned by Dailey and Waring, and when no rent was due upon it, by mutual consent and agreement between the appellant and Dailey and Waring, the lease was. surrendered by them to the appellant, and he, in consideration of the surrender, released the parties to the lease and their assigns from the payment of rent thereafter.

In the fourth paragraph of each .of the answers, the pleader alleged in substance that at a designated time, when no rent was due, the owners of the lease, Dailey and Waring, accepted” a proposition of the lessor that, if Dailey and Waring would 'assign it to the Capitol • Oil Company, he would accept that company for and instead of the lessees and Waring, and would release them from any further obligation under the lease; and that the owners of the lease did assign it to that company, which then and there took possession of the premises under the lease.

In the fifth paragraph of the answer of Dailey, he alleged, that before the completion of the second well, in 1896, he was about to sell the lease to the Capitol Oil Company, and was negotiating with Dye, agent for that company, for such sale; that Dailey in company with Dye called upon the appellant, and Dailey informed the appellant of such negotiation and that such sale would be made if satisfactory to appellant and if he would discharge Dailey, Eddington and Waring from liability accruing under the lease thereafter; whereupon appellant informed Dye and Dailey that he would be glad if such sale would be made, and that he would release said defendants from all liability under the lease; that in pursuance of said agreement said defendants did sell and assign the lease to the Capitol Oil Company; that Dailey would not have so sold and assigned the lease but for the appellant’s promise and agreement to discharge him from liability under the lease; that in pursuance to said sale the company took possession of the premises and [559]*559■the oil well thereon, and drilled and constructed an additional oil well thereon, and operated said wells and produced oil therefrom, and paid appellant a share of oil produced from the wells as rental and royalty according to the terms of the lease, which rental and royalty the appellant accepted.; 'and that at the time of such sale to the company there was no rental or other liability due in favor of the appellant against Dailey under the lease, and all rentals ■and other sums under the lease up to that time had been fully paid.

In the fifth paragraph of Eddington’s answer, he alleged an agreement and promise of the appellant, prior to 180 days from the date of the lease, that if the lease were sold and assigned to Dye, the appellant would discharge the lessees and Waring from liability and rentals thereafter accruing; that pursuant to that agreement, the owners of ■the lease sold and assigned the lease to Dye and surrendered to him the possession of “the same;” and that neither of “said defendants have since said date owned any interest in said lease.”

It may not be wholly irrelevant to remark that in each of these answers the first paragraph was a general denial, and the second, an answer of payment; that a demurrer to the sixth paragraph of each answer was sustained; and that the seventh paragraph of each answer, to which no demurrer was addressed, was in substance like the fifth paragraph of the separate answer of Eddington, above mentioned, except that tbe assignment was represented as having been made to tbe Capitol Oil Company.

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Bluebook (online)
63 N.E. 490, 28 Ind. App. 555, 1902 Ind. App. LEXIS 70, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heller-v-dailey-indctapp-1902.