Pure Oil Co. v. Sturm

182 N.E. 875, 43 Ohio App. 105, 13 Ohio Law. Abs. 27, 1930 Ohio App. LEXIS 352
CourtOhio Court of Appeals
DecidedNovember 20, 1930
StatusPublished

This text of 182 N.E. 875 (Pure Oil Co. v. Sturm) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals 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. Sturm, 182 N.E. 875, 43 Ohio App. 105, 13 Ohio Law. Abs. 27, 1930 Ohio App. LEXIS 352 (Ohio Ct. App. 1930).

Opinion

*30 ROBERTS, J.

Some trouble and confusion have arisen by reason of the fact that the plaintiffs in their original petition set out in detail their version of how they happened to fail to make the rental payment due May 9, 1927. It was wholly unnecessary for them to do so. They brought their action and based their alleged rights to the lease, the leased premises, and the gas produced therefrom, upon the proposition that the lease was existing and effective. They might well have phrased their petition as they did their amended petition, asserting the validity and effectiveness of the lease, and thereby throwing the burden upon the defendants of taking the affirmative and showing how the lease, not otherwise criticized, had become ineffective and void, as claimed by the defendants. This method of pleading gave the defendants the seeming advantage of standing upon the defensive. It has been the consistent claim and position of the plaintiff all through this case that their lease has at all times been valid and effective. The allegation concerning the failure to pay the rental was simply an explanation of what the defendants had taken as an excuse, or a reason, for executing a top lease upon the premises in question. What the referee evidently has in mind, without using the term, in thus summarily disposing of the issues, is what is usually known as a departure in pleading, more frequently occurring between the petition and the reply, in which a new, separate, and independent action is set up in the reply or in a later pleading, wholly different from the original cause of action. Such is not the fact in this case. In the petition and in the amended petition the plaintiffs base their cause of action upon their lease, and not otherwise. The issue presented by the plaintiffs is precisely the same in the amended petition as in the petition; that is, the rights accruing to them under the terms of the lease. The surplusage of the original petition, digressing concerning the failure to pay, is followed by a denial, in effect, of this default in payment in any way affecting their rights under the lease. There is no departure in this case and no change in cause of action.

It is further the conclusion of the referee and this was also urged upon him by counsel for the defendants, in effect that the cause of action of the plaintiffs was based upon an alleged mistake, and that, because it was not a mutual mistake of the defendants as v?ell as the plaintiffs, the plaintiffs have not shown a cause of action in their pleadings, and therefore for this reason also they must fail in this action. Numerous authorities have been cited in brief and in the referee’s report upon this proposition, concerning which time will not be devoted to discussion. What the referee *31 'and counsel for the defendants presumably had in mind in asserting this proposition is that general rule that, when relief is sought by one party from the obligation oí a contract, it is essential that the mistake be mutual to both parties. The issues of this action are upon the lease in question. In attempting to enforce it, on the part of the plaintiffs, and a claim that it has been breached, by the defendants, the plaintiffs are not relying upon any mistake for their cause of action. In the unfortunate surplusage of their petition, they set out how it happened that they failed to make the specified payment, through inadvertence or misapprehension, and follow that up with the claim that their mistake, or failure, was not important and does not justify a forfeiture of the lease, as claimed by the defendants. This contention regarding “mistake” is wholly foreign to the issues, and has no application in this case.

Another issue, and this is the most important one, is what effect, if any, the failure to make the specified payment had upon this lease. The plaintiffs claim that under the circumstances and environments it was unimportant and did not breach the lease or affect its validity. The defendants, on the other hand, claim that the failure to pay did breach the contract, and gives them a right to declare it forfeited, and to consider it no longer effective, and to give a good subsequent lease to the defendant Sturm. This lease, in form, is what is usually known as an “or” lease, and contained no forfeiture clause. It is the contention of counsel for the defendants that the payment of the delay rentals was a condition subsequent in the lease, and that failure to make a payment when due a-endered the lease void at the option of the defendants. They cite as authority, first, upon this proposition, the case of Benedict v Lynch, 1 Johns. Ch. (N.Y.), 370, 7 Am. Dec., 484, which they assert is the leading case in the United States upon this subject.

In the quotation from this authority contained in brief, concerning when specific performance may be required, it is .said at page 375 of 1 Johns. Ch., “where the party who applies for a specific performance has omitted to execute his part of the contract by the time appointed for that, purpose, without being able to assign any sufficient justification or excuse for his delay; * * * the court will not compel a specific performance.”

In the instant case there is no dispute about the facts involved in the failure to make the payment. The plaintiff companies, in addition to the 25-acre tract in question, had the lease of another tract immediately south of the one in dispute, and about the same size. These tracts were originally under one ownership, but the northerly tract, the one in dispute, was sold to the defendant May. These tracts are separated by a public road. In February, 1927, the plaintiffs drilled in the well on the southerly tract, located 127 feet south of the northerly line. That being a producing well, it was not subject thereafter to delay rentals; while the northerly May tract was so subject to delay rentals, no well having been drilled on that lease. The plaintiff companies seem to have had quite an elaborate system of bookkeeping, maps, and records, concerning their respective holdings and duties in relation thereto. A mistake was made in the numbering of these two tracts. The plaintiffs’ well was on the southerly tract, properly known as Lease No. 4411-A, but by a mistake this number was placed upon the south tract, and the tract in question was wrongfully numbered 4412-A.

After the drilling in of the plaintiff’s well, delay payments should have ceased to Mr. Brown, the owner of the lower tract, and have been continued to Mr. May, the owner of the upper tract, but by reason of this mistake the rental.due May 9, 1927, was sent to Mr. Brown instead of the defendant May. Immediately thereafter, being cognizant of the delay rental not reaching Mr. May within the proper time, the defendants got busy, and as a culmination of several transfers the defendant Sturm secured the lease upon which he relies for his title in this case. The plaintiffs knew nothing about this • mistake until about two months later, when their office was advised by the defendant Sturm that he had a lease upon this tract of land. The plaintiffs immediately thereafter became busy and discovered the situation, as above stated, tendered payment to Mr. May, and deposited payment for him in the bank, and did everything within their power then to carry out the terms of the lease.

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Bluebook (online)
182 N.E. 875, 43 Ohio App. 105, 13 Ohio Law. Abs. 27, 1930 Ohio App. LEXIS 352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pure-oil-co-v-sturm-ohioctapp-1930.