Petroleum Exchange Inc. v. Poynter

64 N.W.2d 718, 1954 N.D. LEXIS 78
CourtNorth Dakota Supreme Court
DecidedMay 26, 1954
Docket7396
StatusPublished
Cited by16 cases

This text of 64 N.W.2d 718 (Petroleum Exchange Inc. v. Poynter) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petroleum Exchange Inc. v. Poynter, 64 N.W.2d 718, 1954 N.D. LEXIS 78 (N.D. 1954).

Opinion

SATHRE, Judge.

The plaintiff corporation brought this action against the defendant A. M. Poynter for damages for breach of an alleged agreement to accept from the plaintiff assignments of two oil and gas leases covering lands in Emmons County, North Dakota.

The complaint sets forth two causes of action. The first cause alleges that on the 16th day of April 1952 plaintiff and the defendant through his agent W. M. Berger, entered into a contract whereby plaintiff agreed to assign to defendant one oil and gas lease covering 1,042 acres of land in Emmons County, North Dakota and .that defendant agreed to pay plaintiff the sum of $2,605 on or before 30 days from the presentment of the draft issued by the said W. M. Berger by and on behalf of the defendant. The second cause of action alleges that pn the same date an identical agreement was made as to 481.81 acres of land in Emmons County and that the defendant agreed to pay $1,204.50 on or before 30 days from the presentment of the draft issued by said Berger as agent of the defendant. The complaint then alleges that the plaintiff was at all times ready and able to perform the contracts and that the defendant refused to perform the same. Judgment is demanded for the sum of $1,-042.00 and $712.70.

The defendant answered by general denial, except that it admitted the corporate existence of the plaintiff, and as a further defense he denied specifically that W. M. Berger was his agent or that he ever ratified or approved said assignments and that he never honored or accepted the drafts, or that he personally or through an agent or agents entered into any contract relations with the plaintiff for the acceptance of assignment-of the leases referred to in the complaint.

The plaintiff corporation and defendant are both engaged in the purchase, sale and assignment of gas, oil and mineral leases in the State of North Dakota. The plaintiff contends that on or about April 12, 1952 it negotiated with one W. M. Berger, an agent of the defendant for assignment to the defendant of two oil and gas leases covering land in Emmons County, North Dakota. These leases were .obtained by the plaintiff from the owners of the land involved on or about the 11th. day of March 1952. W. M. Berger testifying for the plaintiff stated that he was a salesman *720 for Sears Roebuck and that' occasionally he contacted land' owners and obtained oil and gas leases from them and subsequently sold of assigned them;at a profit. He contacted the defendant A. M. Poynter and inquired whether he was interested in taking assignments of gas arid oil leases. Poynter advised him that he was interested in talcing such leases and he handed Mr. Berger some of his contract or assignment forms and also sqme of his sight draft forms. The draft forms carried Poynter’s printed name thereon. ; There'after W. M." Berger secured from the plaintiff two assignments in which he'inserted defendant’s 'name as assignee, and Mr. Berger drew two sight drafts signed .by himself on the First National Bank of Bismarck, payable in IS days upon approval-of title, and then delivered the assignments to one Mr. Locke who thereafter forwarded them to the defendant A. M. Poynter at his place of business at Shreveport, Loüisiana. ' The defendant refused to accept the assignments and the drafts and the assignments were returned to plaintiff’s manager Mr. Mills, and were retained by him. One of the assignments was thereafter reassigned by plaintiff to a third party. Plaintiff then brought his action against the .defendant to recover‘the full purchase price of one assignment and the difference in the price obtained for the second a.ssignméñt and the price fixed by the terms of. the assignment'.

The case- was tried in the district court of Burleigh County, North Dakota, before the Honorable Geo-. Thom Jr., district judge and a jury. The jury returned a verdict in the sum of $1,016 and judgment was. entered and the defendant appealed.

When both parties had rested the defendant made a motion for a directed verdict in his' favor -upon the grounds that the leases were • agreements for leasing or asr signment of an • interest in real property and under the provisions of Section 9-0604 NDRC 1943, Subdivision 4, -were required -to be in writing; that there is no proof in the record of any contract in writing by the defendant to purchase the assignments; that the said leases or assignments were in violation of the - Statute of Frauds of this State in that the amount involved exceeded $500; that neither the defendant or, any person or agent in his behalf had ever signed any memorandum in writing accepting the said assignments; that the defendant had at no time accepted the assignments but rejected the same ■and refused to accept the same .on the ground that the plaintiff did not have good title to said leases. The motion was denied and the issues were submitted to the jury and the jury returned a verdict for the plaintiff for $1,016. Thereafter in due time the defendant made a motion for judgment, notwithstanding the verdict which motion was denied. .The defendant appealed from the judgment and from the order denying his motion for judgment notwithstanding the verdict.

There is a conflict in the evidence as to whether or not Berger was the ostensible agent of the defendant Poynter and if this were the only issue in the case it was properly ■ submitted to the jury and the jury having returned a verdict for the plaintiff it should not be disturbed. -There,is however, no evidence in the record.that W. M. Berger had written authority from the defendant as' his agent to purchase and accept the oil and gas leasés and assignments involved in this action.'

The defendant contends 'that ‘ plaintiff brought this action to enforce an agreement for acceptance of transfers o-f interests in real property and since Berger, alleged agent of defendant, was not authorized in writing to make such acceptance, plaintiff’s action was barred by the statute of frauds, section 9-0604. NDRC 1943, Subdivision 4.

The real issue on this appeal is therefore whether under the provisions o-f said Section, -Berger was authorized as'- the agent of the defendant to accept the assignments ' in question and to bind him to their terms. Section 9-0604 .provides:

“The following contracts are. invalid, unless the same or some note or memorandum thereof is in writing and *721 subscribed by the party to 'be charged, or by his agent:
******
“An, agreement for the leasing fo-r a -longer period than 'one year, or for the sale, of real property, or of an interest therein. Such agreement, if made by an agent of the party sought .to be charged, is invalid unless the authority of the agent is in writing subscribed by the party sought to be charged.”- ■ . , '

The first question presented is whether under the statute quoted’ ’ an oil, gas and minera.1 lease or an assignment thereof in the form of the leases and assignments involved in the instant case is an interest in reah property. While this question has not been considered by this court it has been held by the courts in most of the oil producing states that oil, gas and mineral leases are transfers of "interests ■ in real property. In the case of Piney Oil & Gas Co. v. Allen, 235 Ky. 767, 32 S.W.2d 325

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Cite This Page — Counsel Stack

Bluebook (online)
64 N.W.2d 718, 1954 N.D. LEXIS 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petroleum-exchange-inc-v-poynter-nd-1954.