Meridian National Bank v. McConica

8 Ohio C.C. 442
CourtOhio Circuit Courts
DecidedMay 15, 1894
StatusPublished

This text of 8 Ohio C.C. 442 (Meridian National Bank v. McConica) is published on Counsel Stack Legal Research, covering Ohio Circuit Courts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meridian National Bank v. McConica, 8 Ohio C.C. 442 (Ohio Super. Ct. 1894).

Opinion

Seney, J.

This action as presented by the facts as alleged in the pleadings, is one for the marshaling of various liens; the liens as claimed growing out of the acts of the parties as well as by operation of law. Incidentally to the establishment of the various liens, and upon which, if they have any validity in law, the liens, depend, is the question whether the property, or the money arising from the sale of the property, is the property of á co-partnership firm, or is the individual property of the different members composing the firm. While these are probably the only issues tendered by the pleadings, the undisputed material facts in the case, as disclosed by the evidence, present another question arising from equitable principles, not depending upon the doctrine of liens as known to the law, but upon the right of parnership creditors to be first paid out of the partnership property or funds.

From the kind and character of the property, whether it is co-partnership property or not; from the kind and character of the various claim liens, whether they are liens or not; from the lack of averments in the pleading, from the lack of testimony in the case, it has caused the court considerable trouble to arrive at a conclusion, so that exact justice may be done between the parties, that justice to be measured alone by legal and equitable principles. From what was disclosed upon the trial, it appears to a majority of the court there are other undisclosed facts, which, if disclosed, might change the rights of the parties.

[444]*444Be that as it may, it is the duty of the court to dispose of the case as it is, and not as it might have been.

On the 20th of June, 1890, A. R. Lafferty and E. A. Townley granted unto defendant, W. B. Ely, his heirs or assigns, for a valuable consideration, all the oil and gas in and under certain described premises, together with the exclusive right to enter thereon for the.purpose of drilling and operating for oil, gas or water; to erect', maintain and remove all structures, pipe lines necessary for the production and storage of oil, gas or water, upon the following terms :

“V. B. Ely agrees to drill a well upon said premises within thirty-seven days from this date; should Ely fail to so drill, then this instrument is null and void. Should oil be found in paying quantities upon the premises, Ely agrees to pay to Lafferty and Townley, one-sixth part of all the oil produced and saved from said premises. Should any well or wells produce two hundred or more barrels a day, then Lafferty and Townley should receive one-third of the oil thus produced. All rights under this agreement shall end in twelve years from this date, or as soon as Ely, or his heirs or assigns, have abandoned or cease to operate the same for a period of six months.” (Other conditions are mentioned in the instrument that it is not necessarry to notice.)

On the 26th day of August, 1890, the said W. B. Ely, for a valuable consideration, assigned and transferred, by a written endorsement endorsed thereon, one-third of his interest in said written instrument to the defendant T. H. McConica, and one-third of his interest in said written instrument to the defendant W. B. Chubbuck.

The instrument, with the endorsements thereon, was duly recorded by the recorder of Hancock couuty, Ohio, in a book kept in the recorder’s office for that purpose.

Upon the threshold of the case, and upon which must be built the respective rights of the different parties herein, is the determination of the legal character of this written instrument.

[445]*445The court held in the case of Harrington et al. v. Wood, 6th C. C. Reports, 330, that the construction to be given to this class of instruments was:

“ That they are not strictly a lease, but a license coupled with a conditional grant, conveying the grantor’s interest in a gas well.”

The Sixth Circuit Court held, in the case The Ohio Oil Co. v. The Toledo, Findlay & Springfield Railroad Co., 4th C. C. Rep. 215:

“That these leases are in the nature of an incorporeal hereditament; that strictly speaking, it is not a right in the land as such, but a right to enter upon the land, to sink wells, and take from underneath the soil, such oil as it may find; to take it from the land, and to render a portion of it to the land owner; the remainder to become its own, to dispose of it as it sees fit.”

The Supreme Court of Ohio, in the case of Brick Company v. Pond, 38 Ohio St. 65, held as follows : “ A, by an agreement in writing, leased to B. all the clay that is good No. 1 fire clay on his land described, for a term of three years, subject to the condition that B. shall mine, or cause to be mined, or pay, for not less than 2,000 tons of clay, every year, and shall pay therefor twenty-five cents per ton for every ton of clay monthly as it is taken away. Held, that this was a contract, which gave B the exclusive right to mine and remove all the good No. 1 fire clay that was on the land, and not a lease of the land itself.”

The only difference between the case at bar, and the one cited from 38 Ohio St., is that in the case at bar, the contract was for all the oil contained in the land; in the 38th Ohio St. it is for all the fire clay contained in the land of a certain quality. We quote from the opinion of Johnson, Judge, as found in 38th Ohio St. 71:

“ The exclusive right to the possession of the land, as far as it was necessary to mine and remove such clay, was granted. This was not an exclusive possession of the whole tract, but [446]*446only for mining purposes. The ownership of the land, with the right to the possession of the same, subject only to the right of possession for the purpose of mining and removing the clay, was in the owner. This was, therefore, a contract for the privilege of mining and removing the kind of fireclay specified, as distinguished from a lease of the land.”

Does the fact that it was clay, instead of oil, change the character of its mining properties ? It was held in 110 Penn., page 317, as follows :'

“ Petroleum is a mineral substance, obtained from the earth by a process of mining, and lands from which it is obtained, may, with propriety, be called mining lands.”

From these authorities it must be held that the written instrument in the case at bar is not a lease of the land, but simply a contract, coupled with the license or grant to obtain possession of the land for the purpose of the contract. Its sole and only reference to the land, is the license to take possession.

On'the 13th day of April, 1891, the defendants John H. McConica, Wm. B. Ely and W. L. Chubbuek, executed and delivered^ to Sylvester Finch, David E. Batchley and A. J. Ferrell, partners as S. M. Finch & Co., a written instrument, whereby they granted, sold, assigned, transferred and conveyed to Finch & Co. all their interests in the written instrument executed by A. R. Lafifert3>- and E. A. Townley to Wm. B. Ely on the 20th day of June, 1890; as before stated, together with three derricks, three oil wells complete including casing, rods and everthing going to make up a complete outfit to said wells, including three stationary steam-engines, two boilers, four 250 bbl.

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Bluebook (online)
8 Ohio C.C. 442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meridian-national-bank-v-mcconica-ohiocirct-1894.