Kentucky West Virginia Gas Co. v. Maynard

46 S.W.2d 788, 242 Ky. 490, 1932 Ky. LEXIS 300
Court of Appeals of Kentucky (pre-1976)·Decided February 19, 1932·Published·Cited by 6 cases

Opinion

Opinion of the Court by

Judge Thomas —

Reversing.

On December 16, 1926, there was put on record in the Pike county court a paper purporting to be a gas and oil lease executed and delivered by James Maynard and his wife, the appellee and plaintiff below, Vicy Maynard to B. M. James, whereby the lessors conveyed to him all the oil and gas under their jointly owned tract of land estimated to contain fifty acres. The lessee paid therefor $1 upon the execution of the lease, and agreed therein to pay 50 cents per acre annually until development, which was payable quarterly each year and after development certain named royalties on the mineral product discovered. The lease was duly acknowledged by both lessors before Grady Bevins, a duly appointed acting and qualified deputy county court clerk under J. E. Runyan the duly elected and qualified county court clerk. It was sold and transferred through a number of mesne conveyances until the appellant and defendant below, Kentucky West Virginia Gas Company, became its owner.

On September 26, 1930, plaintiff filed this equity action against defendant in the Pike circuit court, and in her petition she alleged that she never executed or acknowledged the lease, and that as to her it was a forgery, since neither she nor any one authorized by her subscribed her name thereto, or acknowledged its execution, as stated in the acknowledging certificate, the latter of which she alleged was false in so certifying. The answer was a denial, and, after proof taken, and the cause submitted, the court sustained the prayer of the petition, and canceled the lease as to plaintiff’s half undivided interest in the land, and also to the extent of her potential dower interest in her husband’s half, and to reverse that judgment defendant prosecutes this appeal.

This is not a direct attack on the officer’s certificate of acknowledgment, and, under the provisions of section 3760 of our present Statutes, it became the duty of plaintiff to expressly aver in her petition, which is a collat *492 eral attaick oil the certificate, that it was made through fraud of some benefited party, or by the mistake of the clerk, and under numerous opinions of this court an attack based upon such grounds not only casts the burden upon the one making- the attack to prove the relied-on grounds, but also that the evidence adduced to establish them should be clear and convincing; many courts and text-writers going to the extent of asserting the rule to be that the proof necessary to overcome the certificate of acknowledgment must be established beyond a reasonable doubt. Some of our later opinions approving that rule of practice in this character of case are, Eversole v. Kentucky River Coal Corporation, 189 Ky. 471, 225 S. W. 50, and Kentland Coal & Coke Co. v. Levine, 224 Ky. 75, 5 S. W. (2d) 280. A prior and somewhat recent one is that of Duff v. Yirginia Iron, Coal & Coke Co., 136 Ky. 281, 124 S. W. 309.

In those opinions others from this court to the same effect will be found, as will also be found texts from standard writers on the subject. The rule is a wholesome one, and is necessary to preserve the stability of titles to land without which they would not only be continuously disturbed, but also inducements would be extended to the grasping and selfish to cancel solemnly executed instruments of title whenever it was to their financial advantage to do so. It was to circumvent such inducements and to preserve to the grantees the rights thereby acquired that the rules announced were promulgated and applied, and which, we repeat, are founded in a sound public policy.

With such considerations in mind, it becomes necessary to examine the testimony in this case to see whether or not it measures up to such requirements, so as to entitle the grantor to the cancellation sought. To begin with, it should be remembered that the attacked lease in this case was executed and recorded in the proper office for more than four years before plaintiff attacked it in this action. In the meantime, the different owners throughout that period paid quarterly the annual rental of 50 cents per acre each year, and which the testimony indisputably shows was the highest current price for such leases at the time this one bears date. Plaintiff knew,-throughout that period of her husband collecting such rental, many of the checks being delivered to her, as .was also the first one for the down cash payment of $1, *493 and the proceeds of the checks that were not delivered to her went into the family treasury and were used in paying household expenses. 'A short while before this action was filed, the annual rental for deferred development for this character of lease in that vicinity increased from 50 cents per acre to $1 per acre, and which information plaintiff duly acquired. She then for the first time became active, and dissatisfied as well, and for the first time made inquiry as to whether or not the lease purported to have been executed by her, and she testified that the reason why she was dissatisfied with the lease was because such annual rental was too small.

It is also an established fact that a man by the name of Davis, about the time of or just before the filing of the action, began the taking of similar -leases on land in the vicinity of the home of plaintiff and her husband, surrounding the tract upon which the attacked lease was given, and he was busy in examining the records of leases in that vicinity taken by James about the same date of the one here involved, and acknowledged by the same deputy county court clerk, all for the purpose of ascertaining their validity, as well as the persons by whom they were executed. A sister-in-law of plaintiff, who lived near to her and visited her frequently, was at least aware of such activities of Davis, and the inference is not an unnatural one that plaintiff herself became informed of such efforts of Davis.' She admits that she learned through her sister-in-law, and perhaps others, that Davis and others were then paying an annual rental of $1 per acre, since he procured a lease from the husband of her sister-in-law at that price along about that time. It is not at all improbable that such facts, of which it is shown that plaintiff was aware, produced the X-ray picture of the hidden animal in the woodpile that furnished the incentive for the filing of this action.

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Kentucky West Virginia Gas Co. v. Maynard, 46 S.W.2d 788, 242 Ky. 490, 1932 Ky. LEXIS 300 (Ky. 1932).

46 S.W.2d 788 (Kentucky West Virginia Gas Co. v. Maynard) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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