Mud Valley Oil & Gas Co. v. Hitchcock

81 N.E. 111, 40 Ind. App. 105, 1907 Ind. App. LEXIS 24
CourtIndiana Court of Appeals
DecidedApril 30, 1907
DocketNo. 5,852
StatusPublished
Cited by3 cases

This text of 81 N.E. 111 (Mud Valley Oil & Gas Co. v. Hitchcock) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mud Valley Oil & Gas Co. v. Hitchcock, 81 N.E. 111, 40 Ind. App. 105, 1907 Ind. App. LEXIS 24 (Ind. Ct. App. 1907).

Opinion

Myers, C. J.

Appellant, in the court below, sought to recover damages from appellees on- account of an alleged breach of a certain written contract. The complaint is in two paragraphs. Errors are assigned on the action of the court in sustaining the demurrer of each appellee to each paragraph of the amended complaint, and in rendering judgment for the appellees on the demurrers.

It is agreed that the only debatable question in this case arises on a contract, made a part of each paragraph of the complaint, which appellees insist is champertous, or so tainted with champerty or maintenance as to render it illegal and void, and its enforcement contrary to public policy. That part of the contract pertinent to the question here for decision reads as follows:

“In consideration of the sum of $1, the receipt of which is hereby acknowledged, and of the covenants and agreements hereinafter contained, we, William H. Hitchcock and Violet I. Hitchcock, his wife, of the town of Selma, the first party, agree to execute a lease to J. Walter Baird, of Muncie, Indiana, second party, his heirs or assigns, on eighty-five acres of our farm for oil and gas purposes [here follows description], on the following conditions:
(1) That said J. Walter Baird, second party, or his assigns, is to pay us a bonus of $100, payable at the Parker City Bank of Parker City, Indiana. (2) One-sixth part of all the oil produced and saved therefrom in tanks or pipe-lines free of charge to the first party. (3) Also $100 per year for each well from which gas is found on the premises in paying quantities. * * * [107]*107(10) This option is given with the understanding, and as a part of the consideration, that the second party shall prosecute with due diligence and care a suit to quiet the title to the above-described premises against a lease formerly giyen on said premises to the "Woodbury Glass Company, and it is hereby understood and agreed that all the expenses of said suit shall be paid by the second party, and that said first party shall not be out a penny. This option is good for seventy-five days, and as much longer time as is actually needed to prosecute said suit to successful completion, and no longer unless bonus money is paid. First party agrees not to accept rental under a lease given to the Western Reserve Oil Company, and mentioned herein. ’ ’

From the averments of each paragraph of the complaint, it appears that William IT. Hitchcock was the owner of the real estate described in the contract, and that Violet I. Hitchcock was his wife; that appellant, by assignment from J. Walter Baird, became the owner of his interest in said contract; that appellees, after the execution of the contract in suit, and, as appellant believed, in good faith, selected, counseled, and advised with attorneys and authorized and directed said attorneys to bring and prosecute a suit in the name of appellee William H. Hitchcock to quiet the title of said land against the lease mentioned in the tenth clause of said contract; that, with the consent and under the direction of appellees, said attorneys instituted said suit in the Delaware Circuit Court; that appellant, in compliance with the contract in suit, assumed the payment of all expenses in the prosecution of said suit to quiet title, and on account thereof paid the sum of $50; that, before the beginning of said suit to quiet title, said lease had expired by its own limitation, and was of no force or effect, but constituted a cloud upon the title of said real estate by reason of its being of record; that appellees, desiring to have the title to said' land freed from what purported to be a cloud thereon, demanded and required of appellant’s assignor, and as a part of the consideration for said lease, and as an additional bonus and compensation to the other .stipulations therein, the [108]*108payment of the cost and expenses of a suit to quiet said title; that while said suit was being prosecuted with due care and diligence, and to the satisfaction of appellees, and as fast as possible to a successful completion, they (appellees) entered into an agreement with the defendants therein, whereby and pursuant thereto and in violation of their said contract with appellant, arbitrarily and without any cause therefor, and over the objection and protest of appellant, said William IT. Hitchcock, at his own instance and at the instance, request, and by the procurement of his wife, went into court and dismissed said suit and prevented appellant from further prosecuting it; that said suit to quiet title was being prosecuted for the use and benefit of appellees, and for the use and benefit of this appellant, by reason of its tona fide interest in said cause of action, and in the oil underlying the surface of the land, in the proportion of five-sixths to one-sixth, which a successful prosecution of said suit would make clear the title to the oil and gas interests so contracted and agreed to be granted and leased to it; that appellant, as assignee of said J. Walter Baird, has performed and complied with all the conditions and stipulations in said contract to be performed by the second party therein, and without any expense whatever to either of the appellees; that appellees refuse to perform their part of said contract, and refuse to execute said lease, as in said contract provided, to the damage of appellant. It further appears that the contract was executed February 16, 1904; that it was assigned by Baird to appellant March 2, 1904; that the lease mentioned in clause ten thereof belonged to the Western Reserve Oil Company, and did not expire by its oto limitation until March 10, 1904; that the suit to quiet title was begun March 16, 1904.

The second paragraph of complaint contains a copy of the lease executed by appellees to the Woodbury Glass Company, with averments in reference thereto to the effect that the same was not in force, it having expired by its own limita[109]*109tion, and averring the noncompliance by the lessee or any assignee thereof with the terms and conditions of said lease within the limitation in said lease fixed and to be fixed and complied with on the part of lessee.

1. Returning to the question for decision, it will be observed that maintenance is defined to be “ an officious intermeddling in a suit that in noway belongs to one, by maintaining or assisting either party, with money or otherwise, to prosecute or defend it. Anderson’s Law Dict.; 2 Chitty, Crim. Law (4th Am. ed.), *234, note (a).

2. Champerty is said to be “a species of maintenance, ‘being a bargain with the plaintiff or defendant to divide land or other matter sued for between them if they prevail at law, whereupon the champertor is to carry the party suit at his own expense.’ ” 2 Words and Phrases, 1047. It is “the unlawful maintenance of a suit in consideration of some bargain to have a part of the thing in dispute or some profit out of it.” Anderson’s Law Diet. It is the aiding of a litigant, with money to prosecute or defend his suit, by a stranger having no interest, direct or remote, immediate or contingent, upon an agreement with the party in interest whereupon such stranger is to receive a part of the thing in dispute. Stotsenburg v. Marks (1881), 79 Ind. 193; Quigley v. Thompson (1876), 53 Ind. 317.

3. Maintenance and champertous contracts are unenforceable at common law. In the early stages of the English law, maintenance and champerty were defined as offenses.

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Bluebook (online)
81 N.E. 111, 40 Ind. App. 105, 1907 Ind. App. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mud-valley-oil-gas-co-v-hitchcock-indctapp-1907.