Namie v. Namie

134 So. 2d 572
CourtLouisiana Court of Appeal
DecidedOctober 26, 1961
Docket9544
StatusPublished
Cited by3 cases

This text of 134 So. 2d 572 (Namie v. Namie) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Namie v. Namie, 134 So. 2d 572 (La. Ct. App. 1961).

Opinion

134 So.2d 572 (1961)

Nomie NAMIE, Plaintiff-Appellee,
v.
Joe R. NAMIE et al., Defendant-Appellant.

No. 9544.

Court of Appeal of Louisiana, Second Circuit.

October 26, 1961.
Rehearing Denied November 22, 1961.
Certiorari Denied January 15, 1962.

*573 Hobbs & Yeates, Minden, for appellant.

Meadors, Shaw & Meadors, Homer, for appellee.

Before HARDY, GLADNEY and BOLIN, JJ.

HARDY, Judge.

Plaintiff, Nomie Namie, instituted this action for a declaratory judgment, praying recognition of his rights to one-half of the bonus, royalties and rentals accruing from an oil, gas and mineral lease executed by his brother, Joe R. Namie, in favor of Union Producing Company, covering specifically described tracts of land containing 160 acres located in Bienville Parish, Louisiana. Named as a defendant, in addition to Joe R. Namie and Union Producing Company, was the First National Bank of Shreveport, which was impleaded as agent under an escrow agreement between Joe Namie and Union Producing Company. After disposition of numerous exceptions filed by the parties defendant, the case was tried on the merits upon the basis of stipulated facts and documentary evidence. Judgment was rendered in favor of plaintiff as prayed, from which only the defendant, Joe R. Namie, has appealed.

The facts are not in dispute. By act of partition dated September 27, 1949, executed by Nomie and Joe Namie, the former conveyed title to the property involved in this action to his brother, Joe, reserving one-half of the mineral rights therein. The said instrument of partition contained an agreement which we deem material to a determination of this case, and, therefore, quote, in extenso, as follows:

"It is further agreed and understood that Joe Namie shall have the full right to make and execute and sell any future oil and gas leases covering this 200 acres of land above described (which included the 160 acres concerned in this suit) and Nomie Namie does by this act grant unto Joe Namie a full and complete power of attorney to make and execute said oil and gas leases and to sign his name thereto, with the understanding that any bonus and rental money received from said lease sales shall be equally divided between Joe Namie and Nomie Namie. It is further agreed and understood that all production of oil and gas and other minerals and all royalties received therefrom shall be equally divided between Joe Namie and Nomie Namie." (Emphasis supplied.)

By a standard form agreement dated February 4, 1959, Joe R. Namie, designated therein as lessor, executed an oil, gas and mineral lease in favor of Union Producing Company, as lessee, which instrument contained the following pertinent provisions:

(1). Payment of a consideration in the nature of a cash bonus in the sum of $4,000.

(2). Designation as the primary term of the lease for a period of five years from October 1, 1959.

(3). Payment of annual delay rentals in lieu of drilling operations in the amount of $160.

(4). Standard provisions as to payment of royalties and continuance of the lease in force and effect as long as oil, gas or other minerals should be produced from the leased premises.

*574 Contemporaneously with the execution of the lease agreement, Joe Namie and Union Producing Company, on the same date of February 4, 1959, entered into an escrow agreement, which, after reciting that Joe R. Namie had executed an oil, gas and mineral lease covering the subject property in favor of Union Producing Company, provided that the said lease, the check of the Union Producing Company in the sum of $4,000, and a receipt therefor signed by Joe R. Namie should be and were deposited in escrow with the First National Bank of Shreveport. The conditions of the escrow agreement were that Union Producing Company might, at its option, prior to September 1, 1959, examine title to the property, and in the event of the existence of any defects therein or encumbrances therein, Joe Namie should be allowed thirty days from date of notification thereof to meet such requirements as the lessee's attorneys might make; that in the event of disapproval of the title after examination by lessee's attorney, and failure to meet their requirements, the escrow agent, upon request of Union Producing Company, should return the lease and receipt to Joe Namie and the check to the company; that in the event of failure of notification of defective title and termination of the transaction, to the escrow agent by the lessee, the escrow agent should hold the lease, check and receipt until October 1, 1959, and thereafter lessee might demand delivery of the lease and receipt, whereupon the escrow agent should make delivery thereof; and transmit the check to Joe Namie.

The stipulations as to the testimony of witnesses justify the conclusion that the transactions of lease and escrow between Joe Namie and Union Producing Company were designed and intended by the former to permit the tolling of the ten-year period of prescription, liberandi causa, under which circumstance the interest of plaintiff would expire and Joe Namie would become the owner of the entire mineral interest in the subject property. Despite this apparent evidence of bad faith, we pretermit consideration thereof as a factor in the determination of the issue presented.

By letter dated September 9, 1959, counsel for plaintiff made formal demand upon defendant, Joe Namie, the Union Producing Company and the First National Bank for payment of one-half of the bonus money in escrow, together with one-half of all future royalties and rentals payable under the lease.

Specifications of error relied upon by appellant are set forth as being:

(1). Consideration by the trial court of the issue of fraud, which was not alleged by plaintiff.

(2). Failure to apply the law relating to mineral rights under the facts of the case, and the consequent holding that the issues presented were contractual; and

(3). Error in determining the effective date of the lease as being coincidental with the date of its execution.

The issues presented by this appeal concern the determination of the effective date of the lease between Joe Namie and Union Producing Company and a resolution as to whether the execution of said lease had the effect of extending the period within which plaintiff was entitled to the benefits stipulated under his original reservation.

Appellant primarily relies upon his plea of prescription of ten years, liberandi causa. The basis of this contention rests upon the claim that the lease here under examination did not become effective, by reason of the escrow agreement, until October 1, 1959, which was ten years and four days subsequent to the reservation of the mineral servitude by plaintiff in the act of partition.

We are unable to agree with this conclusion. The lease speaks for itself. It was executed approximately eight months, more or less, prior to the expiration of the ten-year period, and, despite the escrow agreement, we think there is no ground for question as to the conclusion that the leasehold *575 rights became effective upon the date of execution of the instrument of lease. The fact that actual delivery of the bonus consideration recited in the lease was delayed cannot be regarded as affecting the rights of the parties to the lease.

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Bluebook (online)
134 So. 2d 572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/namie-v-namie-lactapp-1961.