Light v. Crowson Well Service, Inc.

313 So. 2d 803
CourtSupreme Court of Louisiana
DecidedJune 5, 1975
Docket55383
StatusPublished
Cited by5 cases

This text of 313 So. 2d 803 (Light v. Crowson Well Service, Inc.) 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
Light v. Crowson Well Service, Inc., 313 So. 2d 803 (La. 1975).

Opinion

313 So.2d 803 (1975)

James Millard LIGHT et al.
v.
CROWSON WELL SERVICE, INC., et al., and Sallie H. Sentell, et al.

No. 55383.

Supreme Court of Louisiana.

April 24, 1975.
Rehearing Denied May 30, 1975.
Dissenting Opinions June 5, 1975.

*804 David Klotz, Bodenheimer, Jones, Klotz & Simmons, Shreveport, H. Alston Johnson, III, The Law School, Louisiana State University, Baton Rouge, Curator ad Hoc, J. Philip Goode, Goode, Goode & Overdyke, Shreveport, for defendants-applicants.

Neil Dixon, Shreveport, for plaintiffs-respondents.

James Fleet Howell, Feist, Schober & Howell, Shreveport, for defendants-respondents.

CALOGERO, Justice.

This law suit involves the construction of two documents which were executed by Mrs. Etta May Baxley conveying undivided mineral and royalty interests in certain property to Dr. C. E. Sentell.

Plaintiffs, who brought this declaratory action in the First Judicial District Court (and defendants Crowson Well Service, Inc. and B. C. McKeever) contend that in each of the conveyances a predecessor in title, Mrs. Baxley (deceased) conveyed unto Dr. Sentell, also now deceased, by mineral deeds dated June 10, 1963 and November 15, 1963 respectively, an undivided 1/16th mineral interest in certain properties in Sections 22, 23, 24, 25 and 26 Township 19 North, Range 14 West, Caddo Parish, Louisiana (located in the Sentell field). The remaining defendants (the principal defendant being Dr. C. E. Sentell, and following his death during the pendency of this litigation, his surviving spouse and heirs, hereinafter referred to as Sentells), contend that the conveyance in each instrument was of designated numbers of mineral acres respectively, which amount to an undivided 1/16th mineral interest in each conveyance,

The first document declares that Mrs. Baxley conveys to Dr. Sentell 1/16th of 8/8ths of the oil, gas and other minerals in certain described lands approximating 366 acres and situated in the Parish of Caddo, Louisiana. The document then states that "it is the intention of vendor to convey and vendee to purchase 61 mineral acres in and under the above described lands." There follows a paragraph indicating that the sale was made subject to an oil and gas lease and "covers and includes 61 *805 mineral acres (1/16th of 8/8ths)" of all the oil royalties and gas rentals or royalties due and to become due under the terms of the lease.[1]

*806 The second document contains similar language except that the description of the real estate differs and the involved tract consists of approximately 940 acres.[2]

The fraction "1/16th of 8/8ths" of the oil, gas and other minerals is found in each instrument where the property conveyed (the mineral servitude) is normally described. It is, however, inconsistent with the recitation of the amount of mineral acres later described in each deed, because the mineral acres recited in each instance amounts to approximately an undivided 1/6th mineral interest rather than an undivided 1/16th mineral interest.[3]

At the time of each conveyance Mrs. Baxley owned an undivided 1/3 interest in the respective tracts.[4]

Each tract was also subject to prior mineral leases providing for the standard 1/8th royalty and an additional 1/16th overriding royalty to the three lessors. Mrs. Baxley therefore owned a royalty interest of 3/16ths as to her undivided 1/3 interest in the property or approximately a 1/16th royalty interest in the entire acreage.

The trial court determined that the interest conveyed in each sale was 1/16th of the minerals under the tracts involved and judgment was rendered defining the mineral ownership of the various parties affected by these mineral sales in accord with this finding.

The trial judge found the conveyance by an undivided fractional interest (1/16th) irreconcilable with the reference to "mineral acres," and determined that the clear concise and definite fractional interest description should prevail over the other clause referring to mineral acres (which he determined was of uncertain meaning). He further determined that ambiguity in the instrument should be construed under Article 1958 of the Civil Code against the vendee whose agent had prepared the ambiguous instruments.

The Sentells appealed from that judgment to the Second Circuit Court of Appeal which affirmed the judgment of the trial court.

The Court of Appeal stated that considering the most favorable evidence for Dr. Sentell he had not sustained the burden of showing there was an intent on the part of the vendors as well as the vendee to buy and sell under the formula of mineral acres rather than the fractional proportion first expressed in the conveyance. They acknowledged that the term mineral acres has usage in the oil industry but does not have a simple definite meaning which is easily understood by a person who has little or no experience in the field of minerals. They found an irreconcilable conflict between the respective provisions in each conveyance and concluded that the trial judge was correct in applying Civil Code Article 1958[5] so as to construe the doubt and ambiguity against Dr. Sentell whose agent prepared the instruments, *807 rather than Article 2474,[6] which dictates the construction of ambiguous clauses against the seller.

We granted writs, 302 So.2d 305 (1975) on application of the Sentells.

The facts surrounding the execution of these two instruments is as follows:

Dr. Sentell hired Mr. John H. Gilbert to prepare and then procure on his behalf, the two controverted mineral deeds. Mr. Gilbert had for a number of years been engaged as a land man and/or lease broker in the oil business and more specifically as an independent broker. He prepared the instruments at the direction of his principal, Dr. Sentell. He was the one who had the specific terms and provisions placed in these two mineral deeds. He did so on two Bath Louisiana Sale of Mineral Rights forms brought by him to Houston, Texas. The vendor, Mrs. Etta May Baxley, an elderly lady at the time of the execution of these mineral deeds, and an aunt of Dr. Sentell's, was confined to an old folks' home. She had nothing to do with the preparation of the two mineral deeds. She died shortly after the execution of the two mineral deeds, and before the two tracts involved began producing oil.

Both Dr. Sentell and Mr. Gilbert testified at the trial in the district court in connection with an offer of proof after the trial judge ruled parol evidence inadmissible. The Court of Appeal expressed the view that parol should have been admitted and therefore reviewed the entire offer of proof, but did not find the evidence sufficient to change the conclusions reached by the trial judge.

The sale instruments are indeed ambiguous if the words "mineral acres" are to be given the meaning ascribed to them by defendants (See Footnote 1 supra, and the common law text cited by defendants, Williams and Meyers, Oil and Gas Law (1971), Manual of Oil and Gas Terms, Page 262),[7] namely, all of the minerals on and/or beneath one acre of land.

They are uncertain and ambiguous because of the irreconcilable conflict between the fractional interest conveyed (1/16) and the reference to mineral acres intended to be conveyed (which equates to an undivided 1/6).

Accordingly, it was proper for the Court of Appeal to consider the parol evidence introduced by the Sentells. That evidence, testimony by Dr.

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