Kelly v. Smythe

157 P.2d 289, 61 Wyo. 209, 1945 Wyo. LEXIS 10
CourtWyoming Supreme Court
DecidedMarch 27, 1945
Docket2298
StatusPublished
Cited by5 cases

This text of 157 P.2d 289 (Kelly v. Smythe) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly v. Smythe, 157 P.2d 289, 61 Wyo. 209, 1945 Wyo. LEXIS 10 (Wyo. 1945).

Opinion

*214 OPINION

Blume, Chief Justice.

This is an action brought by the plaintiffs against the defendants which relates to an oil and gas lease and the personal property on the lands covered by the lease. The court rendered a judgment against Section Thirty Oil Company, a corporation, one of the defendants, and declared the amounts due plaintiffs and other claimants to constitute a lien upon the property. From that judgment the corporation just mentioned has appealed to this court.

The record in the case is quite voluminous. In the view we take of the case, however, some of the testimony introduced in the case need not be specifically mentioned, and the salient facts herein appear to be as follows:

Prior to July 15> 1940, the plaintiffs and R. A. Beeht-told and Frank P. Dilger and his associates were the owners of an oil and gas lease covering all of Section *215 30, Township 46, N., Range 63, West of the 6th P. M., all situate in the County of Weston, Wyoming, excepting only the South Half (S1/^) of the Southwest Quarter (SW14) of Section 30. The lease had been acquired from one II. S. Glenn to whom was owing on the purchase price approximately the sum of $3500.00, hereafter referred to as owing to the Glenn Estate. On the date above mentioned the lease had expired but it contained a preference right of renewal. The plaintiffs herein and R. A. Bechtold, who had invested certain amounts of money in the property, along with Frank P. Dilger and his son and daughter, wanted to dispose of their interests which they had therein. Frank P. Dilger, who had probably in the first place, interested the others in the property, told the plaintiffs that he knew Arthur R. Smythe, one of the defendants herein, who might be able to get a renewal of the lease and to take over the property and pay off the amount which the plaintiffs had invested therein. So the plaintiffs and R. A. Bechtold, and Frank P. Dilger and his son and daughter, on the one hand ,and Arthur R. Smythe, an Attorney at Law, of Duluth, Minnesota, on the other hand, entered into a contract, dated July 15, 1940, reciting the lease above mentioned and the property situated on the land covered.thereby, the amounts which the plaintiffs had invested therein, and the fact that they and R. A. Bechtold desired to retire and withdraw their interest which they had in the property. The contract proceeds to state as follows:

“Now Therefore it is agreed by and between the parties as follows:
“1. That Frank P. Dilger, Frank M. Kelly, R. A. Bechtold and Raymond J. Dilger have simultaneous with the execution of this agreement, assigned, transferred and set over to Arthur R. Smythe, the party of the second part, the oil and gas lease hereinbefore des-scribed and all preferential rights and priority rights thereunder to a new oil and gas lease.
*216 “2. That parties of the first part have simultaneously with the execution of this agreement made and will forthwith deliver into the hands of Chas. E. Taylor, Auditor of the Northern National Bank of Duluth, Minnesota, a Bill of Sale to the personal property in such Bill of Sale described and herein referred to with the express understanding that said Chas. E. Taylor will not and shall not deliver to the party of the second part or his order such Bill of Sale until the party of the second part shall have done and performed the things by him to be done and performed all of which are hereinafter particularly set forth.
“3. The party of the second part agrees within six months from date of this agreement to pay to Frank M. Kelly, Dr. John B. Heles, Dr. A. G. Plankers, Henry Feítgen and R. A. Bechtold, not less than one-half (Vi) of their respective investments in the property as here-inbefore ascertained, determined and set forth and within one year from date of this agreement to pay the remaining one-half (Vi) of such investment to the said five parties.
“4. Upon the payment of such sums to the said Frank M. Kelly, Dr. John B. Heles, Dr. A. G. Plankers, Henry Feltgen and. R. A. Bechtold, in full, and only then, shall the said Chas. E. Taylor deliver to the party of the sécond part or his order the said Bill of Sale.
■“5. As to Frank P. Dilger, one of the parties of the first part and his son and daughter, as his associates it is contemplated, understood and agreed that disposition of his and their interests are the subject of a separate agreement between the party of the second part and him and his associates.
“6. The party of the second part agrees with the parties of the first part to diligently use his best efforts to obtain.a new oil and gas lease from the United States of America and if such new lease is obtained, agrees and covenants with the parties of the first part that he will hold such lease in trust for them until he shall have fully performed the things to be done by him herein, and will not sell, alienate or incumber it until he shall have paid the several sums herein stipulated, by him to be paid to said five men, constituting all of the parties of the first part except Frank P. Dilger.”

*217 The contract further provided that Smythe should have the right to operate the property in an economical manner ; that he should pay off the claim of H. S. Glenn (the Glenn Estate), but that he should not be personally liable in case he should not fulfill the terms of the contract.

The bill of sale and the contract mentioned above were delivered to Chas. E. Taylor as agreed. Smythe succeeded in obtaining a renewal of the oil and gas lease, the lease being dated April 1, 1940, and was issued to him. He evidently found difficulty in financing the project, and did not pay the debts agreed by him to be paid. So, after considerable negotiations, the contract of June 15, 1940, above mentioned, was modified by the parties, and it was agreed that a corporation should be organized for the purpose of taking over the oil and gas lease above mentioned and the personal property aforesaid; that the corporation so to be organized should pay the claims of the plaintiffs as well as that of R. A. Bechtold, H. S. Glenn, Raymond J. Dil-ger and Helena Dilger, and secure the payment by a lien on the property. The corporation was organized as agreed on April 29, 1942, under the name of Section Thirty Oil Company. The incorporators and first board of directors were Frank P. Dilger, Arthur R. Smythe and Lucille Daily, Secretary to Arthur R. Smythe, Frank P. Dilger acted as president of the corporation for the time being, but it seems that no formal organization meeting was held by the corporation until June 30, 1942. In the meantime, it seems, the bill of sale held by Chas. E. Taylor was delivered to Smythe, ahd he, in turn, assigned the oil and gas lease, and the personal property to Frank P. Dilger. Dilger in turn conveyed the property to the corporation pursuant to the resolution hereafter mentioned. On the last mentioned' date, namely, June 30,1942, the organizers and the first board of directors of the corporation met in Duluth, *218 Minnesota.

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Bluebook (online)
157 P.2d 289, 61 Wyo. 209, 1945 Wyo. LEXIS 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-v-smythe-wyo-1945.