Matlock v. Wheeler

1956 OK 75, 306 P.2d 325, 1956 Okla. LEXIS 666
CourtSupreme Court of Oklahoma
DecidedFebruary 28, 1956
Docket36819
StatusPublished
Cited by11 cases

This text of 1956 OK 75 (Matlock v. Wheeler) 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
Matlock v. Wheeler, 1956 OK 75, 306 P.2d 325, 1956 Okla. LEXIS 666 (Okla. 1956).

Opinions

PER CURIAM.

The parties occupy the same relative position as in the trial court, and will be referred to herein as they there appeared.

On July 28,. 1952 defendants entered into a written contract to sell to plaintiffs the surface only of a tract of land in Pottawatomie County, Oklahoma. The consideration therefor was $21,000 payable $6,000 escrowed in the- First State Bank of Lexington, Oklahoma, the balance in annual installments of $1,000 each to be evidenced by a note and mortgage, said note to run for a period of 10 years and 2 years additional to be granted if needed. Defendants were to furnish abstracts of title to date and plaintiffs were to have 15 days after receipt thereof to examine and furnish title requirements; defendants were to then have a reasonable time to meet title requirements. Plaintiffs • to have possession upon approval of title. Warranty deeds were executed and filed with copy of the agreement.

On May 21, 1953 plaintiffs, then being in possession of the property and living thereon, filed their petition in the District Court of Pottawatomie County against said defendants and the First State Bank of Lexington, Oklahoma, alleging the execution of the contract, the escrow of the sum of $6,000, failure of defendants to furnish them with marketable title within a reasonable time, praying for cancellation of the contract, the return of the escrow payment and damages.

The bank paid what money it had on hand into the court and the case was dismissed as to it.

Defendants filed an answer and cross-petition in which they admitted execution of the sales contract, denied that they had violated any of its terms and, among other things, alleged that they had furnished or tendered abstracts of title showing merchantable title to said property; that the sales contract contained certain mistakes therein and made prayer for reformation of the contract to correct such mistakes and [327]*327for specific performance of such corrected contract.

The court denied plaintiffs’ demand for a jury trial and at the close of all the testimony rendered judgment in favor of the defendants.

The plaintiffs have appealed and in their brief first contend that the court erred in concluding as a matter of law that the pipe line easements on the property of defendants did not constitute a defect in defendants’ title, and holding that the plaintiffs waived any objections or complaint that they might have had to the title on account of the pipe line easements.

On July 28, 1952, the defendants were the owners of the land involved herein. Theretofore the plaintiffs had gone to Pottawatomie County in search of land suitable to them which they might purchase. They contacted defendants and made a physical inspection of said land. Some of the pipe lines now complained of were open and visible to the eye. On the above date plaintiffs and defendants went to the First State Bank of Lexington, where they entered into the above referred to contract of sale. Under this contract no specific objections were made by plaintiffs to pipe line encumbrances. Thereafter defendants furnished plaintiffs abstracts of title which plaintiffs took to an attorney in Lawton for examination. This attorney on August 10, 1952 made written opinions to plaintiffs based on said abstracts and while such opinions contained certain objections and requirements made thereon, it is noted that mention was made as to pipe line easements with no requirements concerning same. Upon receipt of said title opinions plaintiffs brought them to defendants who took them to their attorney in Shawnee to bring such action as might be necessary to meet the title requirements called for. While such action was pending and on September 15, 1952, defendants moved from the premises and notified plaintiffs they could take possession. On or about October 1, 1952, plaintiffs began to move some of their property including stock to the premises, and on October 22, 1952, plaintiffs and defendants went to the bank and there plaintiffs released $2,000 of the money in escrow for payment to defendants. On February 13, 1953 judgment was taken in the quiet title action and after being placed in the abstracts such abstracts were delivered to plaintiffs’ counsel. On April 2, 1953, plaintiffs’ counsel rendered to plaintiffs his supplemental opinions making further requirements and in said supplemental opinions again noted the pipe line easements. On May 6, 1953, after plaintiffs had brought the abstracts and supplemental opinions to defendants another quiet title action was brought and judgment was taken thereon on June 30, 1953. Such quiet title suit was placed in the abstracts of title and on July 6, 1953, said abstracts tendered to plaintiffs and their counsel. After plaintiffs took possession of the premises they paid Y2 the 1952 taxes and collected the sum of $30 damages from a seismograph company doing exploration work on said premises. They began this action on May 20, 1953 to cancel the contract and moved from the premises on May 30, 1953.

Under the plaintiffs’ contention the real question involved is whether the pipe line easements are such encumbrances that, under all the circumstances, the existence thereof, are such defect in defendants’ title as to constitute a breach of the conditions of the sales contract. Plaintiffs argue that the presence of the pipe line easements prevented defendants from being able to tender a merchantable title. In support thereof they cite our attention to Porter v. Ridge, 310 Mich. 425, 17 N.W.2d 239, wherein it was held:

“An easement for oil pipe line and telegraph or telephone lines was an ‘incumbrance’ which prevented purchaser of land from obtaining ‘merchantable title’ within land contract requiring conveyance of merchantable title.”

And Thackeray v. Knight, 57 Utah 21, 192 P. 263, and cases, from other jurisdictions of like import, all holding that where a contract contemplated title free from encunu [328]*328brance an easement for pipe line over the premises is an encumbrance.

It is to be noted in the cases cited by plaintiffs there was a definite requirement of warranty of merchantable title or a title free from all encumbrances in the contracts or in the deeds executed. The question now before us seems never to have been decided by this Court.

The courts are unanimous in holding that where an encumbrance touches ±he title a purchaser’s knowledge of it is no answer to an action for breach of covenant. We concede this to be the general rule. However, there is a definite conflict in the authorities as to the effect of the purchaser’s knowledge on his action for breach of covenant, where the encumbrance affects the physical condition of the land. Where such is an exception to the general rule the reason therefor is that the encumbrance being open, visible and notorious, the parties are supposed to have contracted with reference to it.

While we are in full accord with the general rule, we think a distinction must be made where the encumbrance is a physical one, open to the view of the purchaser, and which, from the very nature of the case, is a continuous easement or servitude. Having so concluded we cannot presume that a vendor of land would make a contract of sale of such land, therein warrant against an encumbrance which is plainly visible upon the land, and which, from its very nature, cannot be removed.

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Matlock v. Wheeler
1956 OK 75 (Supreme Court of Oklahoma, 1956)

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Bluebook (online)
1956 OK 75, 306 P.2d 325, 1956 Okla. LEXIS 666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matlock-v-wheeler-okla-1956.