LeSage v. Union Producing Co.

184 So. 2d 727, 249 La. 42, 25 Oil & Gas Rep. 16, 1966 La. LEXIS 2463
CourtSupreme Court of Louisiana
DecidedMarch 28, 1966
Docket47923
StatusPublished
Cited by36 cases

This text of 184 So. 2d 727 (LeSage v. Union Producing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LeSage v. Union Producing Co., 184 So. 2d 727, 249 La. 42, 25 Oil & Gas Rep. 16, 1966 La. LEXIS 2463 (La. 1966).

Opinion

SANDERS, Justice.

Plaintiff brought this suit against Union Producing Company, A. J. Hodges Industries, Inc., and Douglas Whitaker to be recognized as the owner of certain mineral rights and a mineral lease applying to land in Claiborne Parish and to cancel defendants’ mineral leases on the same land.

Defendants filed "exceptions” of no cause of action, no right of action, and nonjoinder of indispensable parties. The district court overruled these exceptions. Defendants then filed an answer, reserving all rights under the exceptions.

After trial, the district court rendered judgment for plaintiff 1 cancelling the two mineral leases and recognizing plaintiff’s ownership of the mineral rights and lease he asserted. The court awarded plaintiff $1000.00 as attorney fees.

On appeal, the Court of Appeal amended the judgment so as to cancel one of the leases only "with respect to the mineral interests of said plaintiffs,” and to eliminate the award of attorney fees and, as thus amended, affirmed the judgment. Judge Ayres dissented on the nonjoinder and no right of action objections and on the merits. See 176 So.2d 777. We granted certiorari on defendants’ application. 248 La. 440, 179 So.2d 276.

Mrs. Avice H. Byrd, a landowner, granted to Union Producing Company and A. J. Hodges Industries, Inc. an oil, gas, and mineral lease, 2 having a primary term of six years from March 22, 1956. Leonard Byrd, the owner of an adjoining tract, granted to the same lessees a mineral lease, 3 *47 having a primary term of six years from March 21, 1956.

By Order No. 23-C, dated December 8, 1958, and effective January 1, 1959, the Commissioner of Conservation created a drilling and production unit, including the two leased tracts, for the “D” Sand of the Cotton Valley Formation.

By Order No. 23-E, dated July 27, 1959, and effective August 1, 1959, the Commissioner of Conservation created a drilling and production unit, including the two leased tracts, for the Bodcaw and Vaughn Sands of the Cotton Valley Formation. 4

Under a farmout agreement with Union and Hodges, defendant Whitaker commenced the drilling of a well in the unit on December 15, 1961, within the primary term of both leases. The well was completed March 10, 1962, within the primary term of the leases, as a producer from the non-unitized “B” and McFearin sands. The producing McFearin Sand lay just below the unitized Vaughn Sand.

Immediately after completion of the well, Whitaker applied to the Commissioner of Conservation to establish a drilling and production unit for the McFearin Sand. The Commissioner held a public hearing as to this application March 23, 1962.

On April 2, 1962, Mrs. Avice H. Byrd conveyed to J. C. LeSage one-half the minerals in and under the property she had previously leased to Union and Hodges. The mineral sale was “subject to any valid and recorded oil and gas lease” but included one-half the royalties due and to become due under such lease.

On April 4, 1962, Leonard Byrd granted a mineral lease with a five-year term to J. C. LeSage covering the same, property Byrd had previously leased to Union and Hodges. This lease stipulated it was without warranty, even for the return of the purchase price, and subject to any existing legal oil and gas lease affecting the land. 5

On April 26, 1962, effective May 1, 1962, the Commissioner formed a unit for the *49 McFearin Sand, including both leased tracts.

All shut-in and other royalty payments due to Mrs. Avice H. Byrd and Leonard Byrd from the producing well have been paid by Whitaker in accordance with their leases to Union and Hodges.

Lessee LeSage has also paid to Leonard Byrd all shut-in royalties due under his oil and gas lease of April 4, 1962.

The objections raised in the peremptory exception were among the factors that caused us to grant certiorari. These objections have been ably reurged.

Exception of No Cause of Action

The Court of Appeal pretermitted the exception of no cause of action. Defendants assert the petition alleges only legal conclusions and contains no allegations of fact as a basis for cancelling the leases.

Harsh rules of pleading are not favored in this state. If it is possible to do so by a reasonable construction of the pleading, the court should maintain the sufficiency of a petition so the litigant may have his day in court, without unnecessary delay. Succession of Smith, 247 La. 921, 175 So.2d 269; Erath Sugar Company v. Broussard, 240 La. 949, 125 So.2d 776; Florida Molasses Co. v. Berger, 220 La. 31, 55 So.2d 771; West v. Ray, 210 La. 25, 26 So.2d 221.

In oral argument, plaintiff has classified his action as petitory.

Article 3651 of the Louisiana Code of Civil Procedure provides:

“The petitory action is one brought by a person who claims the ownership, but who is not in possession, of immovable property or of a real right, against another who is in possession or who claims the ownership thereof adversely, to obtain judgment recognizing the plaintiff’s ownership.”

Liberally construed, the petition reflects plaintiff is not in possession of the alleged lease and mineral rights, defendants claim ownership adversely to plaintiff, and defendants’ rights, because of the expiration of the primary terms of their leases, have terminated. Plaintiff prays for recognition of his ownership of subsisting mineral rights and the “cancellation” of defendants’ leases.

The prayer of the petition, of course, seeks relief beyond recognition as owner of the described mineral rights, the relief normally associated with a petitory action. It likewise seeks to cancel, or to decree no longer effective, defendants’ leases, containing reciprocal obligations.

We conclude the petition, polarized around the petitory action, is sufficient to state a cause of action.

*51 Exception of No Right of Action

The exception of no right of action is also directed to the petition. Defendants offered no evidence on the exception. They argue since plaintiff’s rights were expressly subordinated to their previously existing leases, he occupies the position of top lessee of one tract and top mineral rights purchaser of the other. Defendants urge a top lease creates only a personal right, not a real right, and a top mineral purchase is the sale of only a hope. In neither instance, defendants submit, does plaintiff have a right of action as to the present suit.

The objection of no right of action raises the question of whether plaintiff has an interest in the subject matter of the litigation. LSA-C.C.P. Art. 927. As we have observed, plaintiff has brought an action seeking judicial recognition of his ownership of described mineral interests and the cancellation of the leases.

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Bluebook (online)
184 So. 2d 727, 249 La. 42, 25 Oil & Gas Rep. 16, 1966 La. LEXIS 2463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lesage-v-union-producing-co-la-1966.