Mercantile Nat. Bank v. J. Thos. Driscoll, Inc.

195 So. 497, 194 La. 935, 1940 La. LEXIS 1033
CourtSupreme Court of Louisiana
DecidedMarch 4, 1940
DocketNo. 35543.
StatusPublished
Cited by18 cases

This text of 195 So. 497 (Mercantile Nat. Bank v. J. Thos. Driscoll, 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
Mercantile Nat. Bank v. J. Thos. Driscoll, Inc., 195 So. 497, 194 La. 935, 1940 La. LEXIS 1033 (La. 1940).

Opinion

HIGGINS, Justice.

The Mercantile National Bank at Dallas, via executiva, foreclosed on its mortgage against J. Thos. Driscoll, Inc., and sold thereunder six mineral leases affecting certain acre lots and the wells and the equipment thereon, located in the Pyron Subdivision, Caddo Parish, Louisiana.

Prior to the sale, The Continental Supply Company filed an intervention and third opposition, alleging that it had sold, furnished, and delivered oil well materials and supplies in connection with the drilling and the operation of wells in search of oil and gas under the mineral leases covering and affecting a number of acre lots in the Pyron Subdivision, amounting to the sum of $4,927.78, which amount it claimed and filed a lien therefor. It prayed that its lien and privilege as a furnisher of materials and supplies on the six leases, the several wells and the equipment in connection therewith, be recognized as superior in rank to the mortgage of the Mercantile National Bank, and that the sheriff be ordered to retain, in his hands, the proceeds of the sale of the property, subject to the final judgment of the court. The order was signed before the sale was effected and the proceeds thereof amounting tb $20,550 are in the custody of the sheriff.

The Mercantile National Bank, in its answer to the petition of intervention and third opposition, denied the existence of any lien or privilege in favor of the Continental Supply Company as a furnisher of materials and supplies, and demanded strict proof of its claim. The bank further pleaded that it had paid the Supply Company certain amounts in extinguishment of recorded oil assignments out of the funds realized from granting the mortgage in favor of Driscoll, Inc., and that, therefore, the Supply Company was *940 thereby estopped to assert a materialman’s lien on the property for materials on open account.

The district judge, in a written 'opinion, rejected the Supply Company’s demands on the ground that it had not properly -filed its asserted lien under the provisions of Act No. 145 of 1934, because only one lien, in globo, had been filed covering the materials furnished to the six different leases and the several wells in connection therewith, whereas, the provisions of the statute require the materialman to file a separate lien against each particular lease for the amount of materials and supplies furnished to such lease, and not just one lien against all of the leases. The intervener Supply Company appealed.

The Pyron Subdivision contains eighty-three acre lots and comprises the East Half of the Southeast Quarter of Section 10, Township 20 North, Range 15 West, Caddo Parish, La., as appears from the plat or survey of the land. J. Thos. Driscoll, Inc., secured six mineral leases covering all of the Pyron Subdivision with the exception of lots 21, 41 and 82, as follows':

1. The Mears and Rogers lease covering Lots 22 to 40, inclusive, and Lots 61 to 81, inclusive, and Lot 83.-

2. The Keller lease covering Lot 43.

3. The Mathieu lease covering Lot 44.

4. The Schaeffer lease covering Lots 1 to 10, inclusive. -

5. The Satellite Oil Company lease covering Lots 11 to 20, inclusive.

6.The Lorch lease covering Lot 42 and Lots 45 to 60, inclusive.

J. Thos. Driscoll, Inc., was the owner of and operated seven wells under the PyrOn Subdivision leases. Between May 5, 1938, and December 7, 1938,' The Continental Supply Company furnished materials and supplies for the drilling and operation of tifíese wells. The record contains the original vouchers showing that the materials and supplies sold to J. Thos. Driscoll, Inc., by the Supply Company, on open account, were charged to Moudris Oil Company, as was authorized. C. L. Vickers of the Supply Company and W. R. Gottshall, salesman, testified that these itemized documents correctly reflected the account due by Moudris Oil Company for the benefit of J. Thos. Driscoll, Inc. The vouchers also show that the deliveries were made to Del Cryer and W. F. Cryer, employees of J. Thos. Driscoll, Inc.

Del Cryer testified that he was the field superintendent of Driscoll, Inc., and that he was authorized by that corporation to make the purchases for it on the account of the Moudris Oil Company; that the supplies were received at the store of the Continental Supply Company on Lake Street and were taken to the warehouse of Driscoll, Inc., on the Pendar lease, which adjoined the Pyron Subdivision leases. Del Cryer and W. F. Cryer identified a group of vouchers marked “No. 4,” which bore their signatures, and they stated that these vouchers correctly showed delivery of the supplies and materials to the various wells. From their testimony *942 and the vouchers the amounts appear to be as follows:

Satellite well No. 1 located on Lot 20...................... $ 277.33

Satellite well No. 2 located on Lot 18...................... 561.08

Self well No. 2 located on Lot 39 289.37

Self well No. 3 located on Lot 22 616.26

Self well No. 4 located on Lot 25 928.92

Keller well No. 1 located on Lot 43 .......................... 196.52

Mathieu well No. 1 located on Lot • 44 .......................... 196.53

Total amount of materials delivered and used in the wells on the Pyron Subdivision leases............. $3,066.01

The Supply Company, being unable to prove the sale and delivery of materials and supplies in excess of $3,066.01, which were actually used on the wells located under the leases in the Pyron Subdivision, has no claim or lien except for that amount. The map filed in evidence shows the lot location of the respective wells under the leases in question.

On November 16, 1938, J. Thos. Driscoll, Inc., executed a mortgage under the provisions of Act No. 232 of 1910 in favor of the Mercantile National Bank at Dallas in the sum of $50,000 payable in monthly installments of $4,500, covering the six leases in question (which leases are admitted to be correctly described in the act of mortgage) and the equipment owned by J. Thos. Driscoll, Inc., in the Pyron Subdivision.

On December '31, 1938, the Supply Company filed a lien under Act No. 145 of 1934, in the Mortgage Records of Caddo Parish, the pertinent part of which reads, as follows:

“That the Continental Supply Company sold, furnished and delivered materials and supplies to the Moudris Oil Company and J. Thos. Driscoll, Inc. both doing business in Louisiana, in connection with the drilling and operation of oil and gas wells on those certain leases covering and affecting the following described property, to-wit:

“The Pyron Subdivision of the East Half of the Southeast Quarter (E% of SE14) of Section Ten (10), Township Twenty (20) North, Range Fifteen (15) West, Caddo Parish, Louisiana.

“That the amount due for said materials and supplies furnished and used on said leases, as shown on the itemized statement hereto annexed and made part hereof, marked ‘Exhibit A’ is the sum of $4,927.78,- which amount is wholly due and unpaid and bears interest at the rate of six per cent per annum, from the respective dates of the invoices until paid.”

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Bluebook (online)
195 So. 497, 194 La. 935, 1940 La. LEXIS 1033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mercantile-nat-bank-v-j-thos-driscoll-inc-la-1940.