Pauline Oil & Gas Co. v. Fischer

1939 OK 7, 90 P.2d 411, 185 Okla. 108, 1939 Okla. LEXIS 263
CourtSupreme Court of Oklahoma
DecidedJanuary 10, 1939
DocketNo. 27931.
StatusPublished
Cited by10 cases

This text of 1939 OK 7 (Pauline Oil & Gas Co. v. Fischer) 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
Pauline Oil & Gas Co. v. Fischer, 1939 OK 7, 90 P.2d 411, 185 Okla. 108, 1939 Okla. LEXIS 263 (Okla. 1939).

Opinion

WELCH, V. C. J.

Abe Fischer, defendant in error, hereinafter referred to as plaintiff, commenced this action in the district court of Pawnee county against the Pauline Oil & Gas Company, a corporation, plaintiff in error, hereinafter referred to as defendant, to quiet title to an oil and *109 gas lease, to recover materials, machinery, tools, and appliances thereon, and possession of the premises covered by the lease, and for damages. Judgment was for the plaintiff, and defendant brings appeal.

The plaintiff’s claim of title is based upon a conveyance from the sheriff following a sale under execution growing out of an award of the Industrial Commission against the Geraldine Oil Company. The defendant’s claim of title is based upon a conveyance from a trustee for the benefit of creditors, following an assignment to said trustee by the Geraldine Oil Company.

On August 30, 1934, the Industrial Commission granted an award to 'Sam Rain-bolt against J. W. Snyder, employer, and tfce Geraldine Oil Company, the owner of the property involved, which company was secondarily liable for the award. On October 11, 1934, the Geraldine Oil Company made an assignment of the property to a trustee for the benefit of creditors.

On December 8, 1934, the award of the Industrial Commission in favor of Sam Rainbolt was filed of record in the district court of Pawnee county.

On January 21, 1935. sale was made by the aforesaid trustee of the property involved herein to the defendant.

On September 13, 1935, execution was issued on the judgment in favor of Sam Rain-bolt by virtue of the award obtained in the Industrial Commission, said execution out of the district court being directed to the properties of the Geraldine Oil Company ; and on September 17, 1935, levy was made under said execution on the property involved herein.

On October 24, 1935, upon its voluntary petition, the Geraldine Oil Company was adjudged bankrupt in the United States District Court.

On November 12, 1935, sheriff’s sale was made of the property involved, pursuant to the execution and levy aforementioned; and following confirmation of said sale on June 10, 1936, sheriff’s deed was issued to the purchaser, the plaintiff herein. On June 4, 1936, the United States District Court approved and confirmed the sale of said property made by the trustee for the benefit of creditors to the defendant on - January 21, 1935.

Upon the pleadings, and after the introduction of all the evidence, the trial court directed a verdict for the plaintiff and assigned as his reason therefor that the judgment of the Industrial Commission constituted a lien upon all the property of the Geraldine Oil Company and that said lien was not destroyed by either the assignment for the benefit of creditors or by the subsequent bankruptcy proceedings.

Since the right of plaintiff to recover depends on the strength of his own title, and since his title is assailed, we should first test the validity thereof.

It is plaintiff’s theory that by purchase at the sheriff’s sale he obtained title superior to the title of the former purchaser at the trustee’s sale, and that although the levy on the property, as on execution, was in less than four months of bankruptcy, and the sheriff’s sale was some weeks after bankruptcy, -that his title was unaffected thereby. This theory is founded upon plaintiff’s contention that a lien in favor of the judgment creditor existed prior to the assignment for the benefit of creditors, and that such lien continued in full force until the sheriff’s sale and confirmation of sale, and that such lien was unaffected by anything that intervened. If that theory is sound, the plaintiff rightfully recovered.

Upon the other hand, it is contended against plaintiff’s title that no lien in favor of the judgment creditor had attached in October, 1934, when the property assignment for the benefit of creditors was made, nor even in January, 1935, when the trustee for creditors sold the property to the defendant. It is also asserted against plaintiff’s title that, since the sheriff’s execution levy on the property was made in less than four months of bankruptcy, the same was void by virtue of section 67, subdivision E, of the bankruptcy act of 1898, as amended June 27, 1934, which in material part provides as follows:

“That all levies * » * or other liens, obtained through legal proceedings against a person who is insolvent, at any time within four months prior to the filing of a petition in bankruptcy against him, * * * shall be deemed null and void in case he is adjudged a bankrupt, and the property affected by the levy * * * shall be deemed wholly discharged and released from the same. * * *”

And if either of thése contentions or theories is correct, the plaintiff cannot prevail.

The federal court, in approving the sale theretofore made to the defendant by the trustee for creditors, seems to have proceeded upon the theory that the filing of the judgment for record in the district court *110 of Pawnee county did not create a lien on the property involved, and that no such, lien existed, since the judgment creditor had not up to the time of such sale followed the recording of the judgment with the issuing of any execution.

It is to be noted that, although the judgment creditor filed his judgment for record in the district court of Pawnee county in December, 1934, he did not follow with execution until nine months later, in September, while bankruptcy intervened the following October. And in the meantime, in January, the trustee for creditors had sold the property pursuant to assignment theretofore made the preceding October.

The authority of such a judgment creditor to proceed by recording judgment and issuing execution is found in section 13366, O. S. 1931, 85 Okla. St. Ann. sec. 42, which reads in part as follows:

“If payment of compensation or an installment thereof duo trader the terms of an award, except in ease of appeals from an award, be not made within ten days after the same is due by the employer or insurance carrier liable therefor, the commission may order a certified copy of the award to be filed in the office of the court cleric of any county, which award whether accumulative or lump sum shall be entered on tlm judgment docket of the district court, and shall have the same force and be subiect to the same law as judgments of the district court. Upon the filing of such certified copy of the commission’s award a writ of execution shall issue and such process shall be executed and the cost thereof taxed, as in the case of writs of execution, on judgments of courts of record, as provided by the Code of Civil Procedure. * * *”

It seems clear from the language of the act that the force and effect of such a judgment so filed and recorded is the same, as respects the questions here involved, as the rendering and recording of a district court judgment.

In First National Bank of Healdton v. Dunlap, 122 Okla. 288, 254 P. 729, this court held that the rendering and recording of a district court judgment did not create a lien upon an oil and gas lease, and the sale of same by the judgment debtor before issuance and levy of execution passed title clear of any lien.

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

Related

Wellington Resource Group LLC v. Beck Energy Corp.
975 F. Supp. 2d 833 (S.D. Ohio, 2013)
Halliburton Oil Producing Co. v. Grothaus
1998 OK 110 (Supreme Court of Oklahoma, 1998)
Cate v. Archon Oil Co., Inc.
1985 OK 15 (Supreme Court of Oklahoma, 1985)
Hinds v. Phillips Petroleum Co.
591 P.2d 697 (Supreme Court of Oklahoma, 1979)
De Mik v. Cargill
1971 OK 61 (Supreme Court of Oklahoma, 1971)
Pruitt v. Mid-Continent Pipe Line Company
1961 OK 96 (Supreme Court of Oklahoma, 1961)
Champlin v. Frantz
1949 OK 278 (Supreme Court of Oklahoma, 1949)
Standard Accident Ins. v. United States Cas. Co.
1947 OK 390 (Supreme Court of Oklahoma, 1947)
Pauline Oil & Gas Co. v. Fischer
1941 OK 341 (Supreme Court of Oklahoma, 1941)
Fischer v. Pauline Oil & Gas Co.
309 U.S. 294 (Supreme Court, 1940)

Cite This Page — Counsel Stack

Bluebook (online)
1939 OK 7, 90 P.2d 411, 185 Okla. 108, 1939 Okla. LEXIS 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pauline-oil-gas-co-v-fischer-okla-1939.