Johnson v. FARMER'S UNION CO-OP. ROYALTY CO.

1951 OK 360, 238 P.2d 831, 205 Okla. 478, 1951 Okla. LEXIS 707
CourtSupreme Court of Oklahoma
DecidedDecember 11, 1951
Docket34556
StatusPublished
Cited by11 cases

This text of 1951 OK 360 (Johnson v. FARMER'S UNION CO-OP. ROYALTY CO.) 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
Johnson v. FARMER'S UNION CO-OP. ROYALTY CO., 1951 OK 360, 238 P.2d 831, 205 Okla. 478, 1951 Okla. LEXIS 707 (Okla. 1951).

Opinion

HALLEY, V. C. J.

This action is based upon the following stipulated facts: On September 17, 1917, the Commissioners of the Land Office of the State of Oklahoma issued a certificate of purchase to Joe Osborn covering the SW/4 of Sec. 13-3N-24W, Harmon county, Oklahoma. The certificate was not filed in the office of the county clerk of Harmon county until February 7, 1944.

On October 10, 1930, Joe Osborn and wife conveyed by mineral deed all of the oil, gas, and other minerals in and under the SE/4 SW/4 of Sec. 13-3N-24W to plaintiffs, and this mineral deed was filed for record February 12, 1931, in the office of the county clerk of Harmon county.

On August 5, 1947, defendants, Frankie J. and Othelda Johnson, without actual notice of the above-described mineral deed, purchased from Joe Osborn the certificate of purchase. They later presented this certificate to the Commissioners of the Land Office, paid the balance due the state, and on Oc *479 tober 28, 1947, received a patent conveying to them a fee-simple title to the entire SW/4 above mentioned.

The plaintiffs, Farmers’ Union CoOperative Royalty Company and Flag Oil Company, brought this action in the district court of Harmon county, alleging the above facts and praying that it be adjudged that defendants, by their patent, held title to the minerals under the SE/4 SW/4 as trustees for plaintiffs, declaring such trust terminated, and quieting title to such 40-acre mineral interest in the plaintiffs.

Defendants, Frankie J. and Othelda Johnson, answered by general denial, and by cross-petition prayed for judgment quieting title to all of the SW/4 in them and removing the cloud cast upon their title by the claims of plaintiffs. They set up their patent dated October 28, 1947, and alleged that they had no notice, actual or constructive, of plaintiffs’ claim when they acquired from John Osborn the certificate of purchase; that the mineral deed under which plaintiffs claim did not constitute constructive notice, because it was not filed with the Commissioners of the Land Office as provided by Paragraph 7 of the certificate of purchase.

Judgment was rendered for plaintiffs, and defendants have appealed. We shall refer to the parties as “plaintiffs” and “defendants”, as they appeared in the trial court.

There is only one issue submitted. It is expressed in the simple question of whether or not the filing for record of the mineral deed to plaintiffs in the office of the county clerk of Harmon county constituted constructive notice of plaintiff’s claim to the minerals in the SE/4 SW/4. If it did, plaintiffs were entitled to recover. If not, defendants should prevail.

It is firmly established that “constructive notice” is a creation of statute, and that no record will operate to give constructive notice unless such effect has been given it by some statutory provision. 46 C.J., par. 46, p. 550; Union Trust Co. v. Hendrickson, 69 Okla, 277, 172 P. 440; Lyon v. Davis, 95 F. 2d 103.

Sec. 16, Title 16, O.S. 1941, is as follows:

“Every conveyance of real property acknowledged or approved, certified and recorded as prescribed by law from the time it is filed with the register of deeds for record is constructive notice of the contents thereof to subsequent purchasers, mortgagees, en-cumbrancers or creditors.”

Defendants urge that the clause in the above statute “certified and recorded as prescribed by law” is entitled to special consideration with respect to our statutes relating to public lands, as set out in sec. 192, Title 64, O.S. 1941, as follows:

“All purchasers, lessees, or holders of any of the public lands of this State shall take the same, subject to the conditions of this Article; and all certificates, contracts or written evidence issued to any purchaser shall recite that the same is taken and accepted subject to all the conditions of this article.”

It is also provided in sec. 191, Title 64, O.S. 1941, as follows:

“Any purchaser of lands under the provisions of this act shall have the right to transfer or assign all his rights, title and interest in and to such lands, and such assignment shall be in form and executed and acknowledged as required under the laws governing conveyances; provided, before delivery of patent, such assignment, to be valid, shall be duly recorded in a proper book, kept for that purpose by the Commissioners of the Land Office; . . . .”

Paragraph 7 of the certificate of purchase is as follows:

“The holder hereof shall have the right to transfer or assign all his right, title and interest in and to said land and improvements, but no transfer or assignment thereof shall be valid or of any force or effect unless made in conformity with the rules and regulations of the Commissioners of the Land Office of said State, and recorded in the office of the Commissioners at the Capitol of said State.”

*480 Defendants contend that the recording of the mineral deed in the office of the county clerk did not constitute constructive notice, because it was not “approved or certified as prescribed by law” and filed in the office of the Commissioners. The certificate of purchase does provide that no transfer or assignment of a certificate of purchase shall be valid or effective unless made in conformity with the rules and regulations of the Commissioners of the Land Office and recorded therein.

It is admitted by defendants that this court has heretofore held contrary to their contention, but they claim that the provision of the certificate of purchase above quoted has not been given a proper interpretation.

In First National Bank of Butler v. Welch, 119 Okla. 270, 250 P. 100, the holder of a certificate of purchase executed a mortgage to the bank, but the mortgage was not recorded in the office of the county clerk of Roger Mills county, where the land was located. Thereafter the holder of the certificate of purchase assigned it to one Smith and associates, who, ignorant of the bank’s mortgage, paid the balance due the state and were informed of the bank’s mortgage, which was filed in the office of the Commissioners. Smith and associates secured a patent upon payment of the balance due the state. Welch acquired the interest of Smith and associates, and sued to quiet title as against the bank mortgage. This court held that -the filing of the mortgage with the Commission did not constitute constructive notice, regardless of the provision for such filing in sec. 191, Title 64, O.S. 1941. In Winter v. Schneider, 120 Okla. 299, 251 P. 609, Arthur Gilbert owned a certificate of purchase, and on February 3, 1923, executed a note and mortgage on the land for $2,500 due March 1, 1930. The mortgagee assigned the note and mortgage to Schneider. The note and mortgage and assignment thereof were placed of record in Cimarron county. On June 27, 1923, the certificate of purchase was assigned by Arthur Gilbert to John L. Gilson, who assigned to one McInnis, and on August 2, 1924, he assigned the certificate of purchase to Simon Winter. All of the assignments were approved by the Commissioners of the Land Office.

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Bluebook (online)
1951 OK 360, 238 P.2d 831, 205 Okla. 478, 1951 Okla. LEXIS 707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-farmers-union-co-op-royalty-co-okla-1951.