Kahle v. Crown Oil Co.

100 N.E. 681, 180 Ind. 131, 1913 Ind. LEXIS 100
CourtIndiana Supreme Court
DecidedJanuary 30, 1913
DocketNo. 21,753
StatusPublished
Cited by30 cases

This text of 100 N.E. 681 (Kahle v. Crown Oil Co.) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kahle v. Crown Oil Co., 100 N.E. 681, 180 Ind. 131, 1913 Ind. LEXIS 100 (Ind. 1913).

Opinion

Spencer, J.

Action by appellee by an amended third paragraph of cross-complaint asking that its title to certain lands by virtue of oil and gas leases be quieted, damages for oil wrongfully converted, injunction restraining appellants from further appropriating said oil, and for a receiver pendente lite. Upon overruling appellants’ separate and joint motions to strike out and dismiss said amended third paragraph of cross-complaint and demurrers thereto, trial was had by the court rendering special findings of facts and • conclusions of law thereon in favor of appellee, and overruling appellants’ motion for a new trial. Judgment for appellee. The separate and joint assignments of error all in substance are resolvable into the following propositions, (1) the third paragraph of amended cross-complaint does not state a cause of action, that the court erred, (2) in sustaining appellee’s demurrer to appellants’ plea in abatement, (3) in overruling appellants’ motion to strike out and dismiss appellee’s amended third paragraph of cross-complaint, (4) in its conclusions of law, and (5) in overruling appellants’ motion for a new trial.

The court found the following material facts in its special finding: William M. and Francis A. Ward owned certain tracts of land in Grant County, Indiana; that on April 10, 1899, they executed and delivered an oil and gas lease which was recorded in the records of the Recorder’s office of Grant County, Indiana, conveying “all the oil and gas in and under their lands together with the exclusive right to enter thereon at all times for the purpose of drilling, or operating for oil, gas or water, to erect, maintain and remove all buildings, structures, pipe lines and machinery necessary for the production, storage and transportation of oil, gas or water, for operating purposes free of expense. * * * Second party agrees to drill a well upon said premises within two (2) months from this date, or thereafter pay in advance to the first party for further delay a quarterly rental of Twenty ($20) Dollars, until said well is drilled. Such rentals, [135]*135when due, shall be deposited in the Marion Bank, of Marion, Grant County, Indiana. Should second party refuse to make such deposits, or pay to first party on these premises, or at present residence of first party, the said rental when due as aforesaid, such refusal shall be construed by both parties hereto as the act of second party for the purpose of surrendering the rights hereby granted, and this instrument, in default of payment, shall be null and void without further notice from second party. Should oil be found in paying quantities on these premises second party agrees to deliver to first party, in the pipe line with which he may connect the well or wells, one-eighth (-J) part of all oil produced and saved from the premises. ’ ’

Appellee came into possession of said lease on June 26, 1901, and assumed all the conditions thereof. All the payments as provided were made by the assignors of appellee at the specified times at the Marion Bank, of Marion, Indiana, including the payment due March 10, 1901, for the quarter ending June 10, 1901. Prior to June 10, 1901, said Wards notified the cashier of the Marion Bank, that further payments on said lease would not be accepted, and that they declared said lease terminated on June 10, 1901. There was deposited a check for Twenty Dollars for the use of the said Wards on said leases June 8, 1901, in said bank, for the quarter beginning June 10, 1901, which said Wards refused to accept. On June 11, 1901, Wards brought an action in the Grant Circuit Court against the lessees to quiet title to said real estate, to terminate said lease, and all rights and privileges granted thereby. On January 24, 1902, judgment was rendered quieting the title in said Wards and canceling said leases. Appellee appealed and the Appellate Court reversed said judgment January 4, 1905. Crown Oil Co. v. Ward (1905), 34 Ind. App. 701.

On March 14, 1902, said Wards executed oil and gas leases to appellants, Kahle Bros. & Gray, on the same lands. Kahle Bros. & Gray, took immediate possession of said real [136]*136estate by virtue thereof with full knowledge of the litigation and the disputed title, claimed by appellee, and knowledge of the time given appellee to appeal from the judgment of the lower court, drilled nine wells thereon and excluded appellee from possession. On April 19, 1902, before appellants began operation on said lands, appellee demanded of the Wards, privilege to enter upon their lands and drill for oil in accordance with the provisions of its lease, which demand was refused. The Indiana Pipe Line Company was notified by appellee, April 21, 1902, that appellee was the owner of the oil produced by Kahle Bros. & Gray, from the Wards’ land, which would be transported by them. The Indiana Pipe Line Company acknowledged receipt of said notice, but received and transported oil taken from the Wards’ lands to the amount of 27,083.27 barrels, of the value of $27,457.23.

The third paragraph of amended cross-complaint alleges that the appellee has been, since the beginning of this action, the owner of all oil and gas in and. under the lands owned by the Wards, specifically describing two tracts of land, by virtue of oil and gas leases set out in the Wards’ amended complaint; that appellee is and was during all of said times by virtue of the leases above referred to “the owner of the exclusive right to enter upon said lands at all times, for the pui’pose of drilling or operating for oil, and to erect and maintain thereon and to remove therefrom, all buildings, structures, pipes, pipe lines, and machinery for the production, storage and preserving of oil. That the plaintiffs in this action claim to be the owners in fee simple of said real estate as alleged in their complaint, and in their amended complaint in this cause, and as such owners, pretend to be the owners of all the oil in and under said real estate, and of the exclusive right to mine for and take all of said oil, and as such pretended owners of said oil and the exclusive right to take the same, have pretended to grant to the other defendants to this cross-complaint, the right to enter upon [137]*137said land, drill wells thereon, and to take all of said oil in violation of said rights of this cross-plaintiff, and that said other defendants claim that by virtue of such pretended grant, they are the owners of all of said oil, together with the exclusive right to enter upon said land and do all things necessary for the removal of said oil. That the claim of plaintiffs and of said defendants is adverse to cross-plaintiff’s said rights in said lands. That each and all of the claims of the said cross-defendants are without right and unfounded and cast a cloud upon plaintiff’s said title”. Cross-complainant further alleges the value of the oil deposit and that “if said oil is removed therefrom the value of cross-plaintiff’s rights will be entirely destroyed, and that said cross-defendants acting under their aforesaid pretended claim have wrongfully entered upon said land and are now engaged in removing therefrom the said oil, and have already removed great quantities therefrom and will, unless enjoined and restrained therefrom by order of this court, remove all of said valuable deposit of oil, and thus work great and irreparable injury to cross-plaintiff for which no adequate compensation can be made”.

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Bluebook (online)
100 N.E. 681, 180 Ind. 131, 1913 Ind. LEXIS 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kahle-v-crown-oil-co-ind-1913.