Oklahoma Natural Gas Corp. v. Lay

1935 OK 868, 51 P.2d 580, 175 Okla. 75, 1935 Okla. LEXIS 816
CourtSupreme Court of Oklahoma
DecidedSeptember 25, 1935
DocketNo. 25301.
StatusPublished
Cited by11 cases

This text of 1935 OK 868 (Oklahoma Natural Gas Corp. v. Lay) 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
Oklahoma Natural Gas Corp. v. Lay, 1935 OK 868, 51 P.2d 580, 175 Okla. 75, 1935 Okla. LEXIS 816 (Okla. 1935).

Opinion

PER CURIAM.

The plaintiff in error will be referred to as defendant, and the defendants in error will he referred to as the plaintiffs.

This is an action brought by Julia A. Lay, personally and by her son and next friend, W. P. Lay, as plaintiffs, against the Oklahoma Natural Gas Corporation for a rescission of contract of purchase of 20 shares of preferred stock in defendant company of the par value of $100 each, on the ground that Julia A. Lay was mentally incompetent and of unsound mind at the time of purchase of such stock. The transaction was made on the 13th day of November, 1929, on which day the defendant company issued its stock certificate for 20 shares to Julia A. Lay, for which said Julia A. Lay paid $2,000. The plaintiffs plead that a disaffirmance and rescission of such contract of purchase was made on or about August 15, 1932, at which time a return of said stock certificate and all dividends received were tendered to defendant company. At the same time plaintiff demanded a return of $2,000, with legal interest from date of purchase contract.

To this petition the defendant demurred, which demurrer was overruled. The answer admits that Julia A. Lay acquired 20 shares of stock in defendant company on the 13th day of November, 1929, for which she paid $2,000. Otherwise, the answer is in effect a general denial.

A jury was called. The plaintiff offered the evidence of two daughters, a son, and a merchant where Julia A. Lay traded, and rested. Thereupon, the defendant demurred to the sufficiency of such evidence to support a judgment. This demurrer was overruled, and the defendant elected to stand on its demurrer to the evidence. The plaintiff then moved for an instructed verdict. Thereupon, the court instructed the jury to return a verdict in favor of plaintiff for $2,000, with interest at 6 per cent, per annum from November 13, 1929, which was done. Upon this verdict judgment was rendered for plaintiff. To reverse this judgment, the defendant appeals.

The gist of the testimony was that Julia A. Lay was about 68 years of age at time of the trial, and that some twelve years before purchase of this stock, she was canning-berries and she either had a. stroke or became overheated. A doctor was called at the time. This doctor was dead at time of the trial of this case. After the canning incident, the plaintiff suffered with severe headaches at times. This affliction at canning time caused a partial loss of hearing- and affected her memory. She would become restless at times, nervous and take crying spells, lasting a half day and longer occasionally. She was about 65 years old when the stock was purchased. She did some of the housework and took eggs to the store and exchanged for merchandise. She would tell her children that her husband was drinking and *76 refer to empty pickle bottles as evidence. Her children swore that tlieir father never drank. This would indicate some degree of' delusions. Many other incidents were related by the witnesses. All four witnesses said that plaintiff was not mentally competent to transact so important an act of business as purchase of $2,000 of stock in a corporation. This opinion was given after each witness had first related acquaintance and dealings with her, and his or her observations of her conduct, act and demeanor.

We do not understand that plaintiffs claim (hat Julia A. Lay was “a person entirely without understanding.” The right to rescind is based on section 9403, Okla. Stat. 1931, which is as follows:

“A conveyance or other contract of a person of unsound mind, but not entirely without understanding, made before his incapacity has been judicially determined, is subject to rescission without prejudice to thei rights of third persons, as provided in the article on extinction of contracts.”

The petition pleaded that plaintiff, Julia A. Lay, “was mentally incompetent and of unsound mind,” on tire date of the transaction of the purchase of said stock. We think that this is a sufficient allegation to meet the requirements of above section, and that the court did not err in overruling the demurrer of the defendant to the petition of the plaintiffs.

Wé think that the lay witnesses might give their opinion as to her competency to ‘transact business.

“In a suit to cancel a deed on the ground of mental incapacity of the grantor, nonex-pert witnesses acquainted with the grantor, and who have had sufficient opportunity to inform themselves of her mental condition, having stated the facts which they observed and upon which they base their opinion, may express an opinion as to her competency to execute the conveyance.” Campbell v. Dick, 71 Okla. 186, 176 P. 520.

To the same effect are the following decisions of the Oklahoma court: Conwill v. Eldridge, 35 Okla. 537, 130 P. 912; Farmers & Mer. Bank v. Haile, 46 Okla. 636 149 P. 214; In re Carney’s Guardianship, 110 Okla. 165, 237 P. 111.

The counsel for defendant contend in their brief that unsoundness of mind cannot be established by lay testimony alone, and that some expert testimony is necessary. They cite no authoritiesi directly to this point. We do not think that the cases cited by them are applicable to this kind of a case. The court knows of no decision requiring expert testimony in this kind of a case.

The trial court heard the evidence and saw the demeanor of the witnesses, and held that the evidence of the plaintiffs was sufficient to justify a rescission. Counsel for defendant contend that the evidence was not sufficient to show that Julia A. Lay was “a person of unsound mind” as defined by the statute.

Section 9396, Okla. Stat. 1931, is as follows:

“Persons of unsound mind, within the meaning of this chapter, are idiots, lunatics, and imbeciles.”
“The word ‘lunacy’ was originally used to designate periodical sanity, but it is not confined to that meaning now, and is generally regarded as having the same extent of meaning as the word ‘insanity.’ In its strictest sense, the term implies unsoundness of mind, and either by statute or by construction the term ‘lunacy’ may mean or include every kind of unsoundness of mind except idiocy.” 32 C. J. 615.

A lunatic is a person affected by lunacy. See Webster’s Dictionary. It will be thus observed that a lunatic is an insane person, or a person of unsound mind.

“The word ‘insane’ ordinarily implies every degree of unsoundness of the mind or of mental derangement, from temporary nervous excitement to acute insanity, and therefore includes the extreme case of an entire want of understanding.” 32 C. J. 613, par. 82.

“ ‘Unsoundness of mind’ has been judicially declared to be synonymous with ‘insanity.’ It exists where there is an essential privation of the reasoning faculties, or .where a person is incapable of understanding and acting with discretion in the ordinary affairs of life.” 32 O. J. 621, par. 71.

“A lunatic is a person of deranged or unsound mind; a person whose mental faculties are in the condition called ‘lunacy’; one who possessed reason, but through disease, grief, or other cause has lost it. The term is especially applicable to one who has lucid intervals and may yet, in contemplation of the law, recover his reason.

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

Related

State v. Billhymer
561 P.2d 311 (Arizona Supreme Court, 1977)
Warner v. Kiowa County Hospital Authority
551 P.2d 1179 (Court of Civil Appeals of Oklahoma, 1976)
Boswell v. Groves
1963 OK 284 (Supreme Court of Oklahoma, 1963)
Volk v. Volk
121 N.W.2d 701 (North Dakota Supreme Court, 1963)
Bellah v. Cooke
1959 OK 232 (Supreme Court of Oklahoma, 1959)
Mock v. Stricklin
1957 OK 90 (Supreme Court of Oklahoma, 1957)
Dean v. United States
150 F. Supp. 541 (W.D. Oklahoma, 1957)
Marten v. Wagner
1947 OK 67 (Supreme Court of Oklahoma, 1947)
Thlocco v. Magnolia Petroleum Co.
141 F.2d 934 (Fifth Circuit, 1944)
Beman v. Kinser
1942 OK 218 (Supreme Court of Oklahoma, 1942)
Leonard v. Tulsa Bldg. & Loan Ass'n
1938 OK 641 (Supreme Court of Oklahoma, 1938)

Cite This Page — Counsel Stack

Bluebook (online)
1935 OK 868, 51 P.2d 580, 175 Okla. 75, 1935 Okla. LEXIS 816, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oklahoma-natural-gas-corp-v-lay-okla-1935.