Placid Oil Company v. Taylor

313 So. 2d 626
CourtLouisiana Court of Appeal
DecidedSeptember 11, 1975
Docket4453
StatusPublished
Cited by5 cases

This text of 313 So. 2d 626 (Placid Oil Company v. Taylor) 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
Placid Oil Company v. Taylor, 313 So. 2d 626 (La. Ct. App. 1975).

Opinion

313 So.2d 626 (1975)

PLACID OIL COMPANY, Plaintiff and Appellant,
v.
Watson TAYLOR et al., Defendants and Appellees.

No. 4453.

Court of Appeal of Louisiana, Third Circuit.

May 5, 1975.
Rehearing Denied June 18, 1975.
Writ Granted September 11, 1975.

*627 Herschel M. Downs, Shreveport, and Armand A. Gutierrez, Dallas, for plaintiff-appellant.

Sam Nelken, and Whitehead & McCoy by C. R. Whitehead, Jr., Gahagan and Gahagan by H. C. Gahagan, Jr., Gerard F. Thomas, Jr., Natchitoches, Luther S. Montgomery, Shreveport, Makar & Whitaker by John Makar, Sam J. Friedman, Daniel T. Murchison, Natchitoches, Robert J. Donovan, Jr., Shreveport, for defendants-appellees.

Before HOOD, CULPEPPER and MILLER, JJ.

CULPEPPER, Judge.

Following our original decision in this case, 291 So.2d 892 (La.App.1st Cir. 1974), the Supreme Court granted certiorari, 294 So.2d 832 (1974). The Supreme Court reversed our decision but remanded the case to us for our consideration of an issue upon which we did not pass, La., 306 So.2d 664 (1975).

*628 This is a concursus proceeding, LSA-C.C.P. Article 4651 et seq. Placid Oil Company, as lessee under several oil, gas and mineral leases, deposited into court royalties accruing on two 20-acre tracts. Impleaded as adverse claimants to the royalties were (1) certain Taylor heirs, who originally owned the land, and (2) Mrs. Betty Beason, who claimed to own certain mineral interests.

The alleged dispute arose out of two mineral deeds from some, but not all, of the Taylor heirs to C. C. Copeland in 1964. The Taylors contended these mineral deeds were absolute nullities because the consideration by Copeland, a non-lawyer, was a contract to furnish legal services in clearing the titles of the Taylor heirs. Mrs. Beason, who later acquired the Copeland mineral interests, contended these deeds to Copeland were valid.

After suit was filed in the district court, Mrs. Beason compromised with 12 of the Taylor heirs. The district judge held the Copeland mineral deeds were null and void. However, he gave effect to the compromise agreements.

There was no appeal from the district court judgment by either Mrs. Beason or the Taylor heirs. Therefore, as between the adverse claimants the judgment of the district court is res judicata and fixes their respective proportions of royalty ownership.

However, Placid Oil Company appealed because its leases from the Taylor heirs provided only a 1/8 royalty, whereas the lease from Judge Jim Johnson, one of Mrs. Beason's predecessors in title, provided a ¼ royalty. Placid had deposited a full ¼ royalty attributable to the mineral interests in dispute, but it prayed for a refund as to all funds in excess of those necessary to satisfy the 1/8 royalty under the Taylor heirs' leases.

In our original decision, we agreed with the district judge that the Copeland mineral deeds were null and void. However, with one judge dissenting, we reversed that part of the judgment which gave effect to the compromise agreement between Mrs. Beason and 12 of the Taylor heirs. Thus, we held Mrs. Beason owned no part of the royalties on deposit, that the Taylor heirs owned the royalties, and that these royalties were payable under the leases from the Taylor heirs that provided for only a 1/8 royalty.

On writs, the Supreme Court held the Copeland mineral deeds are not absolute nullities on their face, nor was their absolute nullity proved by evidence showing that the services performed by Copeland were in violation of the statute prohibiting the practice of law by unlicensed persons. Thus, the Supreme Court recognized the validity of both the Copeland deeds and the compromise agreements.

At the conclusion of its decision, the Supreme Court remanded the case to our Court with the following statement:

"If there were no other issue remaining in this case, we would simply reinstate the judgment of the district court. However, by the brief filed in the intermediate court, we find that Placid Oil, in the alternative, had urged that at least some of the Copeland heirs (Should be Taylor heirs.) had executed a lease to it prior to the recordation of the Copeland deeds, so that (it is argued) as to the interest of these heirs (whether they compromised with Mrs. Beason or not) Placid's royalty liability could not exceed 1/8, as provided by such lease. As to this contention, we will follow our usual practice to remand to the intermediate court for consideration of those issues which have not been passed on by the prior courts, when resolution of them is necessary before entry of any final decree by us."

On remand to this Court, Placid points to the following facts which are shown by the record: One of Placid's leases, dated March 19, 1964 and recorded on April 3, *629 1964, was executed by Watson Taylor covering Tract 58. Another of its leases, also dated March 19, 1964 and recorded on April 3, 1964, was executed by Pap C. Taylor, Watson Taylor and Robert Taylor covering Tract 59. Both of these leases provide for royalty of 1/8. The interest of Robert Taylor is not involved in this litigation because he did not sell his mineral rights to C. C. Copeland. However, Pap C. Taylor and Watson Taylor sold all of their mineral rights to C. C. Copeland by a mineral deed dated April 3, 1964 and recorded on April 6, 1964, which was three days after the above described 1/8 royalty leases were recorded.

The mineral deed from Casson Pap Taylor and Watson Taylor to C. C. Copeland contains the usual clause that "This grant is subject to a mineral lease now affecting said lands but includes the same interest hereinabove set forth in and to all rights, rentals and royalties accruing under said lease." In view of this express recognition in the mineral deed to Copeland that the mineral grant by Casson Pap Taylor and Watson Taylor was subject to the prior recorded leases, Placid contends the only royalties acquired by Copeland were those provided for in the two leases, i.e., royalties based on 1/8.

Copeland sold his rights to L. M. Hudson on May 8, 1964, and Hudson sold his rights to Judge Jim Johnson on June 10, 1964. Both of these mineral deeds also contain the provision that the rights granted were subject to existing mineral leases. On February 5, 1965, Judge Jim Johnson executed the lease in favor of Placid Oil Company which provides for a ¼ royalty. Placid contends that when Judge Jim Johnson transferred all of his mineral interests to Mrs. Betty Beason by deed dated July 2, 1966, he conveyed the Pap C. Taylor and Watson Taylor mineral interests subject to the 1964 leases from Pap C. Taylor and Watson Taylor, which provided for only 1/8 royalties. Placid says that since it was not a party to the later compromise agreements, it is not affected by them. Placid claims the difference between the ¼ royalties deposited and the 1/8 royalties owed to those mineral interests leased by Pap C. Taylor and Watson Taylor in 1964.

The rule of law urged by Placid is that an oil, gas and mineral lease, entered into by a lessor who has purchased mineral rights subject to a prior lease granted by his predecessor in title to the same lessee, does not supersede, or effect a novation of, the prior lease, where the lessor has also acquired previously unleased mineral rights, and there is no stipulation in the second lease with regard to its effect upon the provisions of the lease granted by the lessor's predecessor in title. Placid cites LSA-C.C.

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Bluebook (online)
313 So. 2d 626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/placid-oil-company-v-taylor-lactapp-1975.