Magnolia Petroleum Co. v. Saylor

1919 OK 137, 180 P. 861, 72 Okla. 282, 1919 Okla. LEXIS 379
CourtSupreme Court of Oklahoma
DecidedApril 29, 1919
Docket9279
StatusPublished
Cited by11 cases

This text of 1919 OK 137 (Magnolia Petroleum Co. v. Saylor) 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
Magnolia Petroleum Co. v. Saylor, 1919 OK 137, 180 P. 861, 72 Okla. 282, 1919 Okla. LEXIS 379 (Okla. 1919).

Opinion

PITCHFORD, J.

On the 25th day of April, 1917, the defendant in error commenced this action in the district court of Lincoln county, Okla., against plaintiffs in error, seeking the cancellation of a certain oil and gas mining lease. For convenience the parties will be designated as they appeared -in the court below. The plaintiff alleges that she is an old lady and unused to- business ways and dealings, and having no experience in the leasing of lands for oil and gas mining purposes, and knowing nothing of the manner in which the said business is transacted and carried on; that the defendants are each corporations; that on or about the 25th day of November, 1914, the plaintiff made, executed, and delivered to W. S. Hillyer a certain oil and gas mining lease covering certain lands situate and being in Lincoln county, Okla. The lease was to run for 5 years, the consideration being $240, paid at the execution of the lease,' and for the further consideration of the 'development' of said tract of-land for the production of oil and gas thereon and the payment: of a portion thereof, to wit one-eighth of the oil and certain cash payments for gas to the plaintiff. The lease provided, further, that the said Hillyer, the lessee, his heirs and assigns, would drill a weil on the land so leased commencing within 12 months from the date thereof, or thereafter pay to- the plaintiff annually the sum of $240, payable quarterly in advance until said well was commenced; and it was further provided that the said Hillyer, his heirs, successors, or assigns, should have the right at any time, upon the payment of $1 to the lessor, her heirs or assigns, to surrender said lease for cancellation, after which the payments and liabilities thereafter to accrue under and by virtue of its terms,should cease and determine. The said lease was executed in duplicate. The plaintiff at the time of the execution thereof resided in the state of California, at which place the same was duly executed by her, she‘keeping one duplicate original and sending the other to her agent at Stroud, Okla., by whom it -was delivered to the lessee, W. E. Hillyer. The plaintiff alleges that the duplicate delivered to the lessee has been, without her consent, altered in the following clause:

“The party of the second part agrees to commence a well on said premises within twelve months from the date, hereof, or thereafter to pay the first party a yearly rental of $240, payable quarterly in advance until said well is commenced.’’

—by substituting the sum of $160 payable quarterly in advance until said well was commenced. Plaintiff alleges that she did not at any time give any one authority to make any changes in the lease, and that by reason of the change so made the lease has been destroyed, and that the same is void and of no effect, and is a cloud upon the title of this plaintiff to the lands described in the lease.

The defendants claim that they acquired the lease in good faith, and for value, and in the ordinary course of business, and without notice or knowledge of any defect or alteration therein or defense thereto, and that they become each an innocent purchaser and holder thereof; and, further, that if, in fact, there was any alteration in the lease, or in the duplicate original thereof in their possession such alteration was made prior to the time when the said lease was so assigned and transferred to them, and without notice to, or knowledge of, either of the defendants. The interest in the lease acquired by the Cor-sicana Petroleum Company was assigned. *284 prior to the commencement of this action, to the Magnolia Petroleum Company, and all interest in the lease is now lodged in the Magnolia Petroleum Company.

The plaintiff seeks to have the lease canceled on two grounds:

First. That the lessee had made the alteration above mentioned without her authority or consent; that the alteration was material, and therefore the lease was void; that instead of paying the $60 per quarter, being the amount specified in the duplicate retained :by the plaintiff, the defendants only paid $40, which last sum was received by the plaintiff through her ignorance and inexperience, and tE'rough her being unaccustomed to business affairs, etc.

Second. That under the terms and provisions, the lease was nudum pactum and void as against the plaintiff.

The trial court failed to make any findings of fact. There seems to have been no request toy either side for such findings, the judgment rendered being general in its terms and not indicating upon which ground the court decided. Whether the judgment of the trial court was upon the alleged alteration ■or the surrender clause, or whether it was on both, we have no way of ascertaining. We are therefore confronted at the threshold with the two propositions, and the only two which we deem necessary to consider íot a proper determination of the appeal.

First. Hid the court err in rendering judgment for the plaintiff on the ground that the •lease was subject to cancellation for material alteration?

Second. Did the court err in holding that the plaintiff was entitled to the cancellation of the lease under the surrender clause thereof?

We have, seen that the lease was executed on the 25th of November, 1914, the lessee agreeing to commence a well within 12. months from the date thereof, or thereafter to pay $240 yearly rental in advance, payable quarterly. The lease provided, further, that all payments should be made directly to the lessor, or deposited to her credit in the First National Bank of Stroud, Okla. On the execution. of the lease, there was paid to the plaintiff $240 cash. The lessee reserved the right at any time on payment of $1 to the lessor to surrender the lease for cancellation. We deem it unnecessary to set out the lease in full, .the same being the usual "or” gas and oil lease. On the 13th day of February, 1915, W. S. Hillyer, the original lessee, wrote to the plaintiff the following letter:

. '“Miss Lucy Saylor. No. 229 E. San Salvador St., San Jose, Oal. — Dear Miss Saylor: Beg to say I am the party that wrote up yuur lease from Mr. Schubel some time back. I turned this to my people and we have een-tainly had a time with the abstract. I bought the abstract personally and paid for it, and upon examination, the attorney finds that in 1902, Thos. P. Gaskin made a deed lo R. C. Daniels to your place. Now Mr. Gaskins owned the northeast quarter and you own the northwest quarter, and in making out the deed, he made a mistake and described your quarter. R. C. Daniel's is a negro and has fled this country some years ago, and we are trying to locate him so as to get a quitclaim deed from him to you. We have located him somewhere in Canada and expect returns within the next ten days or two. weeks..
‘Now, after all this work, while I was in Tulsa the other day, we went over to the hank to look at your lease, and to our surprise it reads $240 and cash, which is all right, but $3.50 rentals. Now, there is no place in this country renting for $1.50 rentals, and my people absolutely refuse to take the lease except for $1 rentals. With your cash bonus of $240 and $1 rentals, yon are getting a big price. .1 am writing this hoping you will give me authority to change the rentals from $1.50 to $1.00. Should you not accept this rental, I hope you will see fit to reimburse me for the abstract which I will send to you and the expenses I have been out.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Casualty Corporation of America v. Turner
1969 OK 130 (Supreme Court of Oklahoma, 1969)
Vanzandt v. Heilman
214 P.2d 864 (New Mexico Supreme Court, 1950)
Morris v. Packard Dallas Co.
1939 OK 6 (Supreme Court of Oklahoma, 1939)
Carroll v. Bowen
1937 OK 188 (Supreme Court of Oklahoma, 1937)
Brady v. American Nat. Bank of Oklahoma City
1926 OK 484 (Supreme Court of Oklahoma, 1926)
Zollinger v. First Nat. Bank of Oklahoma City
1926 OK 342 (Supreme Court of Oklahoma, 1926)
Solomon v. Oklahoma Producing & Refining Corp. of America
1924 OK 556 (Supreme Court of Oklahoma, 1924)
Nelson v. Jones
1923 OK 836 (Supreme Court of Oklahoma, 1923)
Russell v. Fourth National Bank
102 Ohio St. (N.S.) 248 (Ohio Supreme Court, 1921)
Blackwell Oil & Gas Co. v. Whited
1921 OK 8 (Supreme Court of Oklahoma, 1921)
McCray v. Miller &8212 Bland v. Bland
1919 OK 283 (Supreme Court of Oklahoma, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
1919 OK 137, 180 P. 861, 72 Okla. 282, 1919 Okla. LEXIS 379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magnolia-petroleum-co-v-saylor-okla-1919.