Knowles v. Freeman

649 P.2d 532
CourtSupreme Court of Oklahoma
DecidedAugust 2, 1982
Docket57128
StatusPublished
Cited by9 cases

This text of 649 P.2d 532 (Knowles v. Freeman) 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
Knowles v. Freeman, 649 P.2d 532 (Okla. 1982).

Opinion

LAVENDER, Justice:

Appellant (defendant below) appealed from a judgment of the district court reforming a mineral deed and quieting title in Appellees (plaintiffs below) in a 16.667-acre interest in the oil, gas and other minerals in certain lands in Haskell County Oklahoma.

The issues herein presented are delineated by mineral deeds as follows:

On November 30, 1965, plaintiffs executed a mineral deed in favor of L. B. Burris, conveying an undivided 200-acre mineral interest in plaintiffs’ 240-acre mineral interest, which conveyance included the 40-acre tract here in dispute. The mineral deed was recorded on December 10, 1965.

On December 1, 1965, L. B. Burris and wife executed a mineral deed in favor of Homer L. Griffith, conveying an undivided *534 100-acre mineral interest in Burris’ 240-mineral acre interest, which conveyance also included the 40-acre tract here in dispute. The mineral deed was recorded on December 10, 1965.

On January 3, 1966, plaintiffs executed a mineral deed in favor of L. B. Burris conveying an undivided 200-acre interest in the oil, gas and other minerals, describing therein the property containing the 200 acres, but omitting the disputed 40-acre tract. The instrument recites that it is for the purpose of correcting the November 30, 1965, mineral deed from plaintiffs to Burris. The “corrective” mineral deed was recorded on January 3, 1966.

Probate records show that Homer L. Griffith died on November 20, 1971, and his estate passed to his widow, Mildred M. Griffith.

On May 15, 1975, Mildred M. Griffith, an unmarried person, individually, as executrix and sole devisee of the estate of Homer L. Griffith, deceased, executed a mineral deed to defendant conveying all her interest in the disputed 40-acre tract, together with other minerals not herein involved. The deed was recorded on June 5, 1975.

Upon trial, the trial court found and determined that the mineral deed dated November 30, 1965, conveyed the mineral interest in the 40-acre tract in dispute by mutual mistake of the grantors and grantee, ordered the mineral deed reformed by deleting the questioned 40-acre tract therefrom, and quieted title in the plaintiffs.

The sole issue which is determinative of this appeal is whether defendant Andover Oil Company acquired the status of a bona fide purchaser when it obtained the mineral deed from Mildred M. Griffith, thereby precluding the reformation of the deed of November 30, 1965, from divesting defendant of its claimed mineral interest in the disputed 40-acre tract.

Title 16 O.S.1981, § 16 provides: “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, encumbranc-ers or creditors.”

Thus, the recording of an instrument affecting title to realty in the county where the land is situated, in compliance with said statute constitutes constructive notice of such instrument, and all subsequent purchasers are charged with notice thereof. 1

Therefore, defendant had constructive notice of the mineral deed dated November 30, 1965, of the deed from the Burrises to Griffith dated December 1,1965, and of the purported corrective deed dated January 3, 1966, from plaintiffs to Burris. But having so determined, there remains the question of what notice or warning such instruments imparted to defendant at the time it acquired the deed from Mildred M. Griffith, and whether it was such as to thwart defendant’s claim that it was a bona fide purchaser of the mineral interest.

In Simpson v. Burris, 2 this Court quoted, with approval, from 76 C.J.S. Reformation of Instruments § 59, p. 409, as follows:

“An instrument may not be reformed as against a subsequent bona fide purchaser for value without notice, whether the mistake occurs in a deed or in a mortgage; and an instrument is likewise not reformable as against a subsequent mortgagee for value without notice. *

On the other hand, we also held in Cleary Petroleum Corp. v. Harrison, 3 (at p. 531):

“The bona-fide-purchaser defense cannot create an interest whose existence is negatived by the record. The doctrine protects against unknown claims that may not be discovered from the record— not those of which the purchaser has constructive notice.”

*535 In its claim that the notice imparted by the “corrective” mineral deed did not derogate its status as a bona fide purchaser, defendant relies upon Standard 4.4 of the Title Examination Standards as Revised and Adopted by the House of Delegates of the Oklahoma Bar Association November 29, 1962, which provides:

“4.4 Corrective Instruments
“A grantor who has conveyed by an effective, unambiguous instrument, can not, by executing another instrument, make a substantial change in the name of the grantee, decrease the size of the premises or the extent of the estate granted, impose a condition or limitation upon the interest granted, or otherwise derogate from the first grant, even though the latter instrument purports to correct or modify the former. However, marketability dependent upon the effect of the first instrument is not impaired by the second instrument.”

The foregoing Title Examination Standards (16 O.S.1981, Ch. 1, App.) were adopted by the House of Delegates of the Oklahoma Bar Association on November 29, 1962, as a result of an extensive study of established standards for determining a marketable or merchantable title to real property under the law of Oklahoma. While said Title Examination Standards are not binding upon this Court, by reason of the research and careful study prior to their adoption and by reason of their general acceptance among the members of the bar of this state since their adoption, we deem such Title Examination Standards and the annotations cited in support thereof to be persuasive.

In the case of Kirkpatrick v. Ault, 4 the Kansas Supreme Court said (p. 641):

“In 26 C.J.S., Deeds, § 31, dealing with the correction of deeds by subsequent instrument, the pertinent portions of the text read:
‘Where there is no fraud and the rights of third persons have not intervened, and equity could have reformed the deed, it may be amended by a subsequent instrument so as to effectuate the intention of the parties. * * * As against third persons an alleged defective deed can be cured only by a bill in equity, and not by a confirmation assuming to relate back to the original deed. * * * Where the grantor has divested himself of title, although by mistake he has not conveyed the title in the way in which he intended, he cannot by a subsequent conveyance correct his mistake, there being no title in him to convey.’ ”

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Bluebook (online)
649 P.2d 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knowles-v-freeman-okla-1982.