Kellogg Bros., Inc. v. SINGER MANUFACTURING COMPANY

131 So. 2d 578, 16 Oil & Gas Rep. 109, 1961 La. App. LEXIS 1245
CourtLouisiana Court of Appeal
DecidedJune 16, 1961
Docket9536
StatusPublished
Cited by4 cases

This text of 131 So. 2d 578 (Kellogg Bros., Inc. v. SINGER MANUFACTURING COMPANY) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kellogg Bros., Inc. v. SINGER MANUFACTURING COMPANY, 131 So. 2d 578, 16 Oil & Gas Rep. 109, 1961 La. App. LEXIS 1245 (La. Ct. App. 1961).

Opinion

131 So.2d 578 (1961)

KELLOGG BROS., INC., et al., Plaintiffs-Appellants,
v.
SINGER MANUFACTURING COMPANY et al., Defendants-Appellees.

No. 9536.

Court of Appeal of Louisiana, Second Circuit.

June 16, 1961.
Rehearing Denied July 7, 1961.

*579 Theus, Grisham, Davis, Leigh & Brown, L. E. Hayden, III, Monroe, for appellants.

Tucker, Bronson & Martin, Shreveport, Sevier, Yerger & Sevier, Tallulah, for appellees.

Before HARDY, GLADNEY and AYRES, JJ

GLADNEY, Judge.

Kellogg Brothers, Inc., instituted this suit to obtain cancellation of a mineral servitude and an oil and gas lease covering certain of its lands in the Parish of West Carroll, Louisiana. Made defendants were Singer Manufacturing Company, the purported servitude owner, and its mineral lessee, Atlantic Refining Company.

By deed dated April 28, 1941, Kellogg Bros., Inc., acquired from Singer Manufacturing Company five non-contiguous tracts of land, consisting of some 4,885.95 acres, in West Carroll Parish. The deed contained a reservation by Singer of all minerals and mineral rights in and upon said lands. In answer to Kellogg's demand letter of November 6, 1958, Singer executed a release of said mineral reservation as to four of the said five tracts, but refused to release it as to the remainder of the lands affected thereby.

On April 3, 1958, Kellogg filed this suit alleging that the unreleased servitude, constituting some 4,040 acres, has, through the accrual of the prescription of ten years liberandi causa, expired for non-user thereof, and that the mineral lease executed by Singer in favor of Atlantic Refining Company on July 19, 1957, should likewise be ordered canceled insofar as it purports to affect the described lands. Petitioner further prayed for attorneys' fees and reservation of its right to seek such damages as it may have sustained by reason of Singer's refusal to release said mineral servitude in its entirety. Defendants filed exceptions of no cause or right of action and of nonjoinder of parties predicated on the grounds that the petition alleged Kellogg had conveyed to various vendees certain of the lands acquired from Singer, but that the petition did not disclose to whom said sales were made, nor the dates thereof. The exceptions were referred to the merits and ultimately overruled. After the filing of said exceptions several of Kellogg's vendees filed petitions of intervention wherein it was alleged that the mineral servitude reserved in the deed from Singer to Kellogg, as well as the servitudes reserved in the deeds from Kellogg to each of the respective intervenors, had expired through the running of ten years non-user prescription. Accordingly, intervenors prayed for recognition of their ownership of the minerals under their respective lands. Kellogg has not contested the claims so asserted.

Defendants answered the petition by asserting that the mineral servitude involved herein has been maintained in force and effect through use thereof, to-wit: (1) the Texas Pacific Coal & Oil Company, operating under a mineral lease from Singer, drilled a well on the servitude to a depth of 6,015 feet, which well was abandoned as a dry hole on March 1, 1946; (2) A. M. Poynter and his assignee, Gustav Muth and/or Luise G. Muth, operating under a mineral lease from Singer, drilled a well on the servitude to a depth of 3,204 *580 feet, which well was completed as a dry hole on September 1, 1955.

Prior to trial, counsel for all parties entered into a stipulation wherein it was agreed: that the tract of land affected by the mineral servitude was one contiguous tract; that the operations conducted by the Texas Pacific Coal & Oil Company constituted an interruption of the liberative prescription accruing against said servitude; and that said operations were abandoned on March 1, 1946, at which time liberative prescription began running anew.

After trial on the merits, the district judge concluded that the drilling operations which terminated on September 1, 1955, constituted a bona fide exercise of the servitude involved, and, therefore, interrupted the running of prescription liberandi causa. Accordingly, there was judgment rejecting the demands of plaintiff and intervenors, whereupon they perfected this appeal.

Appellants contend that the district judge erred in holding that the legal presumption of good faith can satisfy the burden of proof which is placed on the servitudeholder by LSA-C.C. Art. 804 to show such use of the servitude as will interrupt the running of prescription; in holding that defendant Singer has carried the burden of proof imposed by said article to show that it or someone in its name has made use of the mineral servitude here at issue; in holding that the operations shown by defendants with respect to the drilling of the Muth-Singer No. 1 well met with every test for a valid exercise or use of a mineral servitude; and in holding that his findings of fact support his conclusion that the demands of plaintiff and intervenors should be rejected.

The question presented by this cause is whether the 4,040 acre mineral servitude involved herein has expired by reason of non-user prescription. By stipulation it was agreed that the prescription so asserted commenced running on March 1, 1946, the date of abandonment of the Texas Pacific Coal & Oil Company, Singer No. 1 well. Consequently, the servitude became extinguished by the accrual of prescription on March 1, 1956, unless a sufficient exercise thereof occurred within ten years prior thereto. It is the contention of appellees that although there has been no production of oil or gas from the subject property, a sufficient exercise of the servitude was accomplished by the drilling of the Muth-Singer No. 1 well in 1955. Our resolution as to whether the Muth-Singer No. 1 operations constituted an exercise of the servitude will, therefore, be decisive of this appeal.

Appellants' first assignment of error is directed at the significance attributed by the lower court to the legal presumption that the Muth-Singer No. 1 operations were conducted in good faith. Without denying the existence of the presumption [which presumption has been recognized by our courts in Keebler v. Seubert, 1929, 167 La. 901, 120 So. 591 and Lynn v. Harrington, 1939, 193 La. 877, 192 So. 517], appellant nevertheless contends that the district judge erroneously concluded that the presumption discharged the burden of proof imposed upon defendants by LSA-C.C. Article 804, as follows:

"When the prescription of non-usage is opposed to the owner of the estate to whom the servitude is due, it is incumbent on him to prove that he, or some person in his name, has made use of this servitude as appertaining to his estate during the time necessary to prevent the establishment of the prescription."

It is true that the lower court concluded, and we think properly so, that the record does not establish a rebuttal of the legal presumption of good faith. However, contrary to the contentions of appellants, the defendants' good faith was not exclusively relied upon by the lower court as discharging the burden of proof imposed by Article 804. In written reasons for judgment the district judge referred to the circumstances under which the Muth-Singer *581 No. 1 operations were undertaken and determined the operations met every test for a valid exercise or use of a mineral servitude. It is the validity of that holding that is most seriously questioned by appellants, and, in our opinion, constitutes the heart of this controversy.

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Bluebook (online)
131 So. 2d 578, 16 Oil & Gas Rep. 109, 1961 La. App. LEXIS 1245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kellogg-bros-inc-v-singer-manufacturing-company-lactapp-1961.