Pure Oil Co. v. Bayler

58 N.E.2d 26, 388 Ill. 331
CourtIllinois Supreme Court
DecidedNovember 22, 1944
DocketNo. 28031. Decree affirmed.
StatusPublished
Cited by4 cases

This text of 58 N.E.2d 26 (Pure Oil Co. v. Bayler) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pure Oil Co. v. Bayler, 58 N.E.2d 26, 388 Ill. 331 (Ill. 1944).

Opinion

Mr. Chief Justice Fulton

delivered the opinion of the court:

While this is a proceeding under “An Act in relation to oil and gas interests in land,” - (Ill. Rev. Stat. 1941, chap. 104, pars. 25 to 33,) the real issues involve questions of title to 20 acres of unimproved land in Clay county, Illinois, where oil has been discovered and is being marketed by the Pure Oil Company under leases from all interested parties. In this case the original complaint was filed by the Pure Oil Company holding oil leases from all the parties claiming an interest in the lands in controversy. It represented that there was a dispute as to the ownership of the one-eighth royalty. By an order of court the royalty has been impounded awaiting the outcome of the suit and all claimants thereto ordered to file claims. The circuit court found the entire title to the land, and consequently the right to the proceeds of the one-eighth reserved royalty of oil and gas, is vested in various proportions among seven certain parties to the suit, who, with the spouses of five that are married, will hereinafter be referred to as appellees. Accordingly, this appeal was taken by the remaining 17 parties to the suit, hereinafter referred to as appellants, who contend that they should be decreed a part of the fee title and their resulting proportionate .share of the impounded monies arising from sales of oil already produced, and which may be produced in the future. Inasmuch as a freehold is thus involved, the appeal comes directly to this court.

The source of this dispute lies in a certain deed executed February 24, 1916. For the purpose of this suit, we may begin with the proposition that on that date Henry Gray owned the fee-simple title to the land in question which is described as: “The North half of the North East quarter South West quarter of Section Ten (10), Town two (2), Range Seven (7) East.” Being of advanced years, in failing'health and without children, he, together with his wife, Annie F. Gray, then and there signed and acknowledged a printed form of statutory warranty deed, the material parts of which were as follows (the printed parts of the deed being in standard type while the italics represent the filled-in portions written with ink) :

“The GRANTOR, Henry Gray and Annie F. Gray
husband and wife
of the County of Clay and State of Illinois, for and in considera-
support & maintainance
tion of the sum of Making provisions for each & one DOLLARS,
in hand paid, CONVEY and WARRANT to the survivor in Fee
Simple forever survivor to dispose of they
shall see fit to do the following described Real Estate

After this, was a description of the 20 acres in question, together with other real estate not involved herein, the signatures of the grantors, and the acknowledgment by the notary public. Said deed was duly recorded on the day following its execution, and four days thereafter Henry Gray died intestate survived by his said wife and his two sisters, Essie G. Davis and Emma G. Bayler, as his only heirs-at-law. Up. to this point the parties are in accord, but as to the legal effects of the above-quoted portions of the deed and subsequent events, there is a sharp conflict between counsel.

On behalf of appellees, it was proved that soon after the death of Henry Gray letters of administration were duly issued to his widow, and the inventory filed by her relative to the land in question contained the following statement: “All real estate owned by deceased reverted to Annie Gray at Henry Gray’s death by deed of record.” The estate was closed in March, 1917, and taxes on the land in question were paid by, or in the name of, Annie F. Gray, regularly, until her death, intestate, on October 5, 1921. The record further indicates that at least one incident of ownership over the land in question was exercised by Annie F. Gray from the period of 1916 to 1921 in that during that period she occasionally had, or permitted timber to be, removed therefrom.

Although the estate of Annie F. Gray was not probated, it does not appear to be disputed that her only heirs were her mother, Eliza J. Monroe, and a sister, Minnie A. Lee. The latter soon quitclaimed all her interests in the premises to said Eliza J. Monroe who, appellees claim, executed a deed in September, 1923, to one Alvin Stanford. For some reason, this alleged deed of 1923 was lost but the record contains evidence adduced by appellees to the effect that Alvin Stanford thereafter exercised some incidents of ownership over said land, such as occasionally cutting timber, making fence posts and removing firewood, building a small amount of fence, farming a few acres (the remainder of the land being covered by woods,) and payment of taxes down to the time of his death, in 1936. Upon discovering that the deed of 1923 had been lost or destroyed, he secured a new deed from Eliza J. Monroe and her husband, which was dated April 23, 1932, but was not recorded until discovered among his papers in December, 1941. In the meantime, on, to-wit, April 14, 1936, Alvin Stanford executed an oil and gas lease to one R. Z. McGowan, covering the entire 20 acres but reserving the usual one-eighth royalty. On March 18, 1937, McGowan assigned that lease to Pure Oil Company which subsequently discovered and marketed oil, as above stated.

Title to the 20 acres is then alleged by appellees to have passed from Alvin Stanford, by his duly executed and probated will, to Elias Stanford. The latter paid taxes for two years and on December 18, 1937, executed and delivered a deed to the premises to Roy Stanford and Amy Davis as equal tenants in common, who claimed to be the owners at the time of filing suit herein on- December 1, 1941. In the same month that Roy Stanford and Amy Davis received title as aforesaid, they executed a mineral deed to one half of the oil and gas under the premises to Eugene D. Stanford, Mary Stanford Ehler, Andrew Stanford and Elias Stanford. In November, 1941, Amy Davis executed a further mineral deed conveying a one-eighth interest to R. S. Jones, but because of this litigation that mineral deed and payment therefor are now being held in escrow.

Through the foregoing chain of conveyances and transfers, appellees Roy Stanford and Amy Davis contend that they each own an undivided one-half interest in the fee to the 20 acres of land involved, and the trial court so found. For the same reasons, appellees contend, and the trial court found, that they own and are entitled to the proceeds of the one-eighth reserved royalty in the following proportions: Roy Stanford one fourth, Amy Davis one eighth, Eugene D. Stanford one eighth, Mary Stanford Ehler one eighth, Andrew Stanford one eighth, Elias Stanford one eighth, and R. S. Jones one eighth.

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Bluebook (online)
58 N.E.2d 26, 388 Ill. 331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pure-oil-co-v-bayler-ill-1944.