Lahman v. Beauchamp

1928 OK 4, 262 P. 1059, 128 Okla. 288, 1928 Okla. LEXIS 105
CourtSupreme Court of Oklahoma
DecidedJanuary 3, 1928
Docket17724
StatusPublished

This text of 1928 OK 4 (Lahman v. Beauchamp) 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
Lahman v. Beauchamp, 1928 OK 4, 262 P. 1059, 128 Okla. 288, 1928 Okla. LEXIS 105 (Okla. 1928).

Opinion

RILEY, J.

Plaintiffs in error commenced this action in the court below in November, 1&23, to recover a one-half interest in an oil and gas lease from defendants, who held the Legal title. It was alleged that defendants had paid all of the purchase price foi the lease, had drilled an oil and gas well thereon, discovered oil and gas in paying quantities, and that plaintiffs were at all times ready and willing to pay one-half of the purchase price of the lease and one-half of the cost of drilling, equipping, ana operating the lease. They prayed for an accounting.

Thereafter plaintiffs filed an amended petition, where they alleged that prior to March, 1923, defendants Mason and Beau-champ were the owners of an oil and gas lease on a certain ten-acre tract of land; that during August, 1922, plaintiffs and defendants entered into a mining partnership for the purpose of prospecting^for oil and gas on a lease described as tract No. 1, and it was agreed that Mason and Beau-champ should secure an oil and gas lease on two other tracts of land, and that plaintiffs should have a one-half interest in said lease, and Mason and Beauchamp should own the other interest; that thereafter it was agreed the lease should be obtained on the tract of land over which this controversy arose, and that Lahman and Paymal were the persons designated to purchase the same, and the same was to be owned one-half by plaintiffs and one-half by defendants. Notwithstanding this, it is alleged, Mason and Beau-champ purchased an assignment of a lease on said tract and took title in their own names and refused to assign a one-half interest to plaintiffs, although plaintiffs were ever willing and able to pay one-half the amount expended for the lease; that inasmuch as the said lease under the assignment would soon expire, Mason and Beauchamp obtained a new lease from the landowner and refused to assign a one-half interest to the plaintiffs, notwithstanding plaintiff’s ability and willingness to pay therefor; that Mason and Beauchamp caused a well to be drilled upon said lease which produced oil and gas in paying quantities; that plaintiffs always were and are now ready, willing, and able to pay all reasonable costs and expenses incident to the drilling and operation of said lease described as tract No. 4, but the defendants failed and refused to recognize plaintiffs as one-half owners thereof, and failed and refused to give an accounting of their income Or expenses.

It was then alleged that defendants transferred the lease to the Mason-Beauchamp Oil Company, and the prayer of plaintiffs was: (a) That this court decree one-half interest in and to the oil and gas lease to be declared to be in plaintiffs; (b) that defendants be required to execute said trust by executing and delivering an assignment to plaintiffs of a one-half interest in and to said lease described as tract No. 4 upon payment of one-half of the reasonable expenses, payments, and charges connected with the purchase of said lease, the operation of the same, and the drilling of said well; (c) that an accounting be had and judgment rendered in accordance with said accounting.

Defendants answered and prayed for damages against plaintiffs for clouding their title on account of their having filed an affidavit of record wherein they claimed an interest in the lease in controversy.

A demurrer was sustained to part of the answer, and plaintiffs filed a reply to the remainder.

On April 21, 1925, the defendants Mason and Beauchamp filed a substituted answer and disclaimed any interest in the oil and gas lease and alleged the same was held by the Mason-Beauchamp Oil Company. On the same day the Mason-Beauchamp Oil Company fi'ed a substituted answer and alleged:

“That the said defendant herein concedes to the prayer of the plaintiffs herein, and in compliance with said prayer tenders into court, for the use and benefit of the plaintiffs herein, an assignment of an undivided one-half interest in and-to the oil and gas lease, dated June 29, 1923. assigning to said plaintiffs herein an undivided one-half interest in and to said oil and gas lease.”

And further set out: .

“* * * And said defendant joins in the prayer of plaintiffs’ petition, to wit: That an accounting be had between said plaintiffs *290 and defendant, and upon said accounting, there to he charged to the plaintiffs’ one-half of the expense, payment, and charges in connection with the purchase of said lease and the operating of same and o£ the drilling and equipment of said oil lease, and the producing of oil and gas, and that said defendants account to the plaintiffs for óne-half of all proceeds received from the sale of oil and gas from said premises.”

The cross-petition set up that defendants had paid the following items :

Purchase of lease___$1,078.00
Drilling of well_ 7,662.50
In equipping the well-2,187.26

—and in addition that there had been expended the sum of $7,311.44 for operating-said lease, which amount had been agreed to by the plaintiffs and defendants. Defendants attached an itemized account of each item, and further prayed for allowance for reasonable value for superintendence of the lease, keeping of the books, and prayed judgment for $9,144.80.

On April 25, 1925, the defendant filed their tender into court and delivered the assignment of the lease in controversy t,o the court clerk.

On May 20th, the plaintiffs filed a demurrer to the answer of defendants. It was overruled. Whereupon plaintiffs filed a reply. .Tt was stricken. On July 10th, plaintiffs filed an amendment and supplement to the amended petition. On motion the court struck it. On October 17th, plaintiffs replied alleging bad faith on the part of defendants and substituting, in lieu of their special prayers contained in the original petition, a prayer that they have judgment for one-half of the value of the lease prior to ihe time it -was drilled upon, alleged to be the sum of $5,000, less one-half the purchase price, or that in case the court did not grant the relief prayed for, plaintiffs be permitted to dismiss any action against defendants with prejudice, and that accounting be denied.

Thus the action went to trial on January 12, 1926. The defendants assumed the burden of proof on the accounting, and produced evidence as to the cost of the lease, the drilling of the well and operating expenses, and introduced a stipulation entered into by plaintiffs agreeing that the operating expenses were $7,311.44, and that if the plaintiffs should prevail the defendant would be liable for one-half of said amount, and a similar stipu’ation of the date of January 23, 1925.

The plaintiffs introduced the original answer and cross-petition- of defendants and produced Messrs. Lahman and Paymal as witnesses regarding cost of drilling and equipment in the vicinity. Thus the proof ended.

The court made findings as to cost of equipment and operating expenses and charged plaintiffs one-half the amount and found the amount received from the sale of oil, gas, and water and credited plaintiffs with one-half that amount.

The plaintiffs, for reversal, contend that defendants are not entitled to affirmative equitable relief or accounting for the reason of having committed iniquity.

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Bluebook (online)
1928 OK 4, 262 P. 1059, 128 Okla. 288, 1928 Okla. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lahman-v-beauchamp-okla-1928.