Kretzschmar v. Bickerstaff

489 P.2d 1285, 158 Mont. 178, 1971 Mont. LEXIS 359
CourtMontana Supreme Court
DecidedOctober 26, 1971
DocketNo. 12001
StatusPublished
Cited by1 cases

This text of 489 P.2d 1285 (Kretzschmar v. Bickerstaff) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kretzschmar v. Bickerstaff, 489 P.2d 1285, 158 Mont. 178, 1971 Mont. LEXIS 359 (Mo. 1971).

Opinion

MR. JUSTICE DALY

delivered the Opinion of the Court.

This is a quiet title action by plaintiff Johanna Kretzschmar against defendants Douglas B. Bickerstaff and Sarah S. Bickerstaff, husband and wife, resulting from a disputed sale of mineral rights to defendants and their predecessor in interest. The cause was tried by the district court in Sheridan County, siting without a jury. From a judgment in favor of the plaintiff, defendants appeal.

Defendant Bickerstaff is an oil lease broker and originally was dealing with plaintiff, and her husband now deceased, on behalf of the United States Smelting Refining and Mining Company. For his efforts Bickerstaff was to receive as his commission a twenty-five percent interest in minerals purchased. This particular transaction took place at the residence of plaintiff and her husband in New York. The property involved was then in probate proceedings in Sheridan County and was coming to plaintiff from her father’s half brother.

In May 1963, plaintiff and her husband executed two mineral deeds on land in Sheridan County, Montana. Deed #1 was in favor of United States Smelting Refining and Mining Company conveying an undivided 120/320ths mineral interest. Deed #2 was in favor of defendant Bickerstaff conveying an undivided 40/320ths mineral interest in the same property, described as follows:

“Township 35 North, Range 58'East:
Section 8: S%. (South one-half).”

Deed #1 was placed in escrow with The First National Bank, [180]*180Midland, Texas, the bank of the United States Smelting Be-fining and Mining Company, together with a 30 day sight draft payable upon approval of title, in the amount of $9600, in favor of plaintiff and her husband. Deed #2 was delivered directly to defendant Bickerstaff, although the escrow bank draft also covered this transaction.

The face of the draft instrument for $9600 contained the following words:

“In consideration for an undivided mineral interest under the following described land: Twp. 35 North, Bge. 58 East: Section 8: SV2, (South one-half). Sheridan county, Montana.”

The draft and deeds were executed on May 15, 1963. There was no specific interest stated in the draft as far as acres or an undivided one-half (%) interest in the tract, although the mineral deeds were specific in stating 40/320ths and 120/-320ths.

Within the 30 day sight draft period, it appeared that one Hilda Osksa was also claiming an interest in the same minerals. Defendant Bickerstaff prepared an authorization to the bank in Midland, Texas and forwarded it to plaintiff and her husband for their signatures to extend the payment of the draft. This was done and sent to the bank on June 18, 1963. This authorization contained this language:

“* * * until such time as title to one-half of the mineral rights on the above-described land is quieted in our favor.”

Bickerstaff was subsequently advised by his attorneys that plaintiff and her husband could not establish ownership of the mineral interest conveyed, because Hilda Osksa had a prior claim to a portion of the mineral interest which would represent a potential reduction in the amount of interest claimed by the Kretzschmars.

On November 2, 1963, Bickerstaff wrote to the Kretzschmars proposing a settlement whereby they would receive three-fourths of the mineral interest conveyed by the two deeds, [181]*181therefore payment to the Kretzsehmars was proposed to be reduced by twenty-five percent.

In answer to Bickerstaff’s letter of November 2, 1963, Kretzschmars wrote Bickerstaff on November 16, 1963, acquiescing to the proposed settlement. They raised no issues about the reduced consideration, nor did they argue that if settlement with Hilda Osksa was reached, said consideration should not be reduced.

Apparently the proposed settlement was not acceptable to Hilda Osksa, so on February 6, 1964, Bickerstaff wrote to the Kretzsehmars proposing a new basis of settlement of the Osksa claim, which was 50/50 as between the Kretzsehmars and Hilda Osksa. Enclosed with this letter were new mineral deeds from the Kretzchmars (1) to United States Smelting Refining and Mining Company conveying a 60/320ths mineral interest, and (2) to Bickerstaff conveying a 20/320ths mineral interest; together with a new draft in the amount of $4800, which reduced the minerals and consideration by one-half. Kretzsehmars never signed the new deeds nor accepted the new draft'.

Bickerstaff received a letter dated February 24, 1964, from Mrs. Kretzschmar in answer to his letter of February 6, in which Mrs. Kretzschmar stated an attorney was going to be consulted regarding her title and contract would be made with Bickerstaff later. Subsequent to that date, no contact was made.

On December 15, 1964, United States Smelting Refining and Mining Company quitclaimed all its right, title and interest in the minerals under the Kretzschmar land to Bickerstaff for $1500. Original escrow in The First National Bank of Midland, Texas remained unchanged.

In May 1968, Kretzsehmars commenced a quiet title action against Hilda Osksa; Mr. and Mrs. Bickerstaff were not named as parties defendant in the action. A decree was entered in favor of the Kretzsehmars; Hilda Osksa appealed to the Mon[182]*182tana Supreme Court. Pending appeal, in a negotiated settlement of all rights the Kretzschmars and Biekerstaffs quit-claimed to Hilda Osksa (1) an undivided one-fourth interest in said minerals, and (2) the land-owner’s royalty being held in the suspense account of Sun Oil Company. The Bicker-staffs in their quitclaim deed reserved the claim of Bickerstaff against Mrs. Kretzsehmar’s one-fourth of the minerals.

On April 30, 1969, plaintiff Johanna Kretzschmar filed a quiet title action against Bickerstaff, subsequently filing an amended complaint naming Mrs. Bickerstaff as a party defendant. Biekerstaffs answered by general denial and counterclaimed for a decree quieting title in themselves. Following trial without a jury, the district court entered findings of fact, conclusions of law and judgment for Johanna Kretzschmar.

Generally stated, the findings of fact took judicial notice of the probate proceedings set forth above; the quiet title action between Kretzschmars and Hilda Osksa; and, the voluntary settlement by plaintiff with Hilda Osksa after a district court judge ruled in her favor. The court’s findings set forth the facts as they occurred together with the finding that plaintiff informed defendant Bickerstaff “the deal was off” after his proposal to reduce the mineral interest and consideration by new deeds and draft. The findings found plaintiff to be an immigrant of limited knowledge and defendant to be an experienced oil man, dealing in oil properties as his principal business; that the sale was a purported sale in gross of plaintiff’s interest for $9600 and not subject to reduction in consideration dependent on her actual acre interest. The findings further found that defendant was aware of, but did not intervene in the suit between plaintiff and Hilda Osksa; and, that plaintiff and her predecessors in title have for a period exceeding five years been in continuous and undisputed possession of the mineral interest at issue. From the court’s findings, it entered the following conclusions of law:

“1.

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Bluebook (online)
489 P.2d 1285, 158 Mont. 178, 1971 Mont. LEXIS 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kretzschmar-v-bickerstaff-mont-1971.