Morrison v. Krouch

1929 OK 307, 285 P. 10, 141 Okla. 288, 1929 Okla. LEXIS 30
CourtSupreme Court of Oklahoma
DecidedSeptember 10, 1929
Docket19032
StatusPublished
Cited by10 cases

This text of 1929 OK 307 (Morrison v. Krouch) 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
Morrison v. Krouch, 1929 OK 307, 285 P. 10, 141 Okla. 288, 1929 Okla. LEXIS 30 (Okla. 1929).

Opinion

REID, C.

Max Krouch, as plaintiff, filed a suit in the district court of Seminole county against Minnie E. Morrison and Russell Morrison to foreclose a mortgage given by James W. Morrison to plaintiff, dated August 30, 1920, on 40 acres of land in said county, to secure a note between the same parties for $475 and of the same date as the mortgage, which note was due August 30, 1925, and bore 10‘ per cent, interest from date. The petition alleged that after the mortgage was made the mortgagee had conveyed the land to the defendants subject to the mortgage. No personal judgment was sought, but plaintiff asked that his mortgage be foreclosed to satisfy the indebtedness subject to an undivided one-Ualf interest in the oil, gas, and mineral rights then underneath the land, or that might be found therein, as the same was conveyed to him by a deed of James W. Morrison made on the 30th day of August, 1920.

James W. Morrison was permitted to intervene in the case upon a petition alleging that he was the owneij -of the real title to said land in that the deed he gave to the defendants Minnie E. Morrison and Russell Morrison was, in fact, a mortgage on the land to secure an indebtedness then amounting to $281, which he owed the grantees in the deed; and in answering the petition of the plaintiff and pleading over against him, he alleged:

“Your intervener further states that on August, 30, 1920, he went to the office of one Julius Krouch, whose office was in the Security Building in Oklahoma City Okla., and that on said date the said Julius Krouch, who was then and there the agent of the plaintiff in -this action, Max Krouch, and acting for him, agreed to make this intervener a loan of $475 and that at said time and place this intervener executed the note and mortgage set out in- plaintiff’s petition. That after the execution of said note and mortgage the said Julius Krouch stated to this intervener that the mortgage security was not any too good and that it was his custom to require parties to whom they loaned money to execute a royalty deed to a one-half interest in the mineral rights as additional security; and that thereupon this intervener entered into an oral understanding and agreement with the said Julius Krouch, the agent of the said Max Krouch, the plaintiff herein, that he would execute such a deed to be held as additional security to the mortgage set out in plaintiff’s petition, and it was the - oral understanding and agreement between this intervener and the said Julius Krouch acting for the said Max Krouch, that said mineral deed to a one-half interest in said mortgage security was only to be a mortgage transaction set out in the' plaintiff’s petition herein, and that same was to be part and parcel of the same contract; and was to be released and re-deeded to this intervener upon the payment of the money sued for in plaintiff’s petition.’’

And he further pleaded that, in accordance with the oral understanding and agreement and for the sole. purpose of further securing the loan and as a part and parcel of the note and mortgage and contract for the loan of the money, he executed a royalty deed to one-half interest in the mineral rights in the land to Max Krouch under which he was claiming to be the owner of said rights in said land; but that said min *289 eral deed was in truth and in fact a mortgage. He pleaded that the plaintiff never paid any money or gave any other thing of value to him for said deed and for said reason same was void. He further alleged the mineral deed was obtained by fraud in that when it was signed by him the same was in blank and there were no words therein showing that it was only intended to be a mortgage, but that Julius Krouch, then acting for the plaintiff, promised him that if he would sign the same, he, Julius Iiivuch, ' would write into said deed, m substance, the oral agreement they had had u> the effect that the deed was only intended as additional security, and was a mortgage and was to be released and redeeded when the mortgage was paid off; that he relied upon the promise of Julius Krouch to write said agreement into said blank form of royalty deed, and in reliance upon said promise he signed the deed and left it with the said Julius Krouch, but that the said Julius Krouch at the time the deed was made had no intention of performing said agreement and caused the same to be recorded in Seminole county without said condition inserted therein. He asked that he be decreed to be the real owner of said land subject only to the mortgage claims of plaintiff and of the defendants ¡Minnie E. Morrison and Russell Morrison; tendered payment of the mortgages; asked that the mineral deed be declared a mortgage, and that upon payment of the debt to the plaintiff, the deed be canceled and the title quieted in him, or that the deed be canceled because of the fraud practiced on him and because there was no consideration for the deed.

The plaintiff for reply to the petition in intervention denied that the mineral deed was intended to be a mortgage and operate as such, denied that the deed had been procured by fraud, and pleaded that it was given for a valuable consideration and was a deed absolute to one-half the oil, gas and mineral rights in the land.

In the answer of the defendants Minnie E. Morrison and Russell Morrison, they admitted that the deed given by James W. Morrison to them was in fact a mortgage as alleged by him.

The case was tried to the court and a judgment was rendered finding the plaintiff’s mortgage for $475, interest and attorneys’ fees as a first lien on the land, that the deed from James W. Morrison to Minnie E. Morrison and Russell Morrison was a mortgage securing the sum of $281 then due, subject to plaintiff’s first lien; and ordered the property sold and the proceeds applied to the liens in accordance with their standing. The court further found that by virtue of the mineral deed, the plaintiff was the absolute owner of an undivided one-half interest in the oil, gas and mineral rights in the land, and ordered that the sale of the land under the mortgage be subject to the plaintiff’s rights under the mineral deed.

From that part of the judgment holding that plaintiff was the owner of the oil and gas rights in the land, the intervener, James W. Morrison, appealed.

As to the mineral deed, the issue was stated by stipulation made at the beginning of the trial as follows:

“It is further stipulated and agreed between the parties hereto that the mineral deed executed on the 30th day of August, 1920, which deed was signed by James W. Morrison, the issue is whether or not this deed was executed for a consideration to Max Krouch to be a mineral deed, or was it properly executed, and, if so, is it a mortgage or a deed, and the issue involved for the court to try is whether said mineral deed was given as a conveyance or a mortgage. * * * ”

At the conclusion of the evidence the court made the following finding on the question tried:

“The court finds that the mineral deed executed by James W. Morrison to Max Krouch was thoroughly understood by the parties at that time, and it was a conveyance of the mineral rights instead of an instrument for the security of money.”

This was excepted to by the intervener, and no further finding was requested.

That part of the journal entry of judgment covering the mineral deed followed the 'court’s finding on the question in this language:

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

Related

Tillery v. Ellison
1959 OK 189 (Supreme Court of Oklahoma, 1959)
Jenkins v. Abercrombie
1951 OK 59 (Supreme Court of Oklahoma, 1951)
Winkler v. Winkler
1942 OK 257 (Supreme Court of Oklahoma, 1942)
Dunaway v. Jayne
1940 OK 332 (Supreme Court of Oklahoma, 1940)
Jacobs v. American Bank & Trust Co.
1937 OK 75 (Supreme Court of Oklahoma, 1937)
Gragg v. Pruitt
1936 OK 842 (Supreme Court of Oklahoma, 1936)
Emery v. Villines
1935 OK 687 (Supreme Court of Oklahoma, 1935)
State Ex Rel. Shull v. Moore
1933 OK 681 (Supreme Court of Oklahoma, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
1929 OK 307, 285 P. 10, 141 Okla. 288, 1929 Okla. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morrison-v-krouch-okla-1929.