Pyle v. Henderson

63 S.E. 762, 65 W. Va. 39, 1909 W. Va. LEXIS 7
CourtWest Virginia Supreme Court
DecidedJanuary 26, 1909
StatusPublished
Cited by26 cases

This text of 63 S.E. 762 (Pyle v. Henderson) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pyle v. Henderson, 63 S.E. 762, 65 W. Va. 39, 1909 W. Va. LEXIS 7 (W. Va. 1909).

Opinion

Brannoh Judge:

Thomas Bunfill, 3d February, 1897, made an oil and gas lease of 60 acres of land to A. B. Campbell and J. W. Swan. The lessees paid Bunfill a cash bonus or consideration for the lease" of fifty-five dollars. The lease is for a term of fire years, and so long thereafter as oil and gas shall be found in paying quantities or rental paid thereon. The lease contained a clause on which this litigation turns. “Provided, however, that this lease shall become'null and void and all rights hereunder shall cease and determine unless a well shall be completed on said premises within three months from the date hereof, or in lieu thereof thereafter the parties of the second part shall pay to the parties of the first part fifteen dollars for each three months’ dela3r, payable in advance, until such well is completed.” 3STo well was put down under this lease, nor was the fifteen dollars commutation money paid. On 5th May, 1897, Bunfill made an oil and gas lease of the same tract to C. E. Pyle.- The contest is between those claiming under these conflicting leases. When the first lease was made Bunfill owned only seven undivided ninths of the tract. Iiis brother John owned one ninth, and the Sindledecker heirs the other ninth. Thomas Bunfill secured a conveyance from John Bunfill of ,his ninth, 15th March, 1897, before the three months limit in the clause quoted above had expired. He never did get in the ninth interest of the Sindle-deckers. Some of them were infants, and under a judicial proceeding Miller, trustee, acquired that share of the oil and gas. Pyle, the second lessee, assigned an interest in his lease to Hard- ' man, and Pyle and Hardman assigned the second lease to Miller, trustee, and thus Miller claimed the whole, except reserved royalties to Pyle and Hardman. The first lease came to be owned by Campbell, Swan, Stealy and Henderson. Ho possession was [41]*41taken under the first lease, but nnder tire second wells were drilled and oil produced. Pyle, Hardman and Miller, trustee, claiming under the second lease, brought a chancery suit against Henderson and others, claiming in their original and amended bills under the second lease as superior to the right of those claiming under the first lease; claiming that all right under it had ceased before the second lease was añade because of failure to drill a well or pay the fiftéen dollars commutation money, as demanded by the clause of the first lease quoted abore; alleging that they were in possession operating for oil under the second lease; and seeking to enjoin the claimants under the first lease from entering and boring for oil, and to cancel said first lease as a cloud upon their title. The defendants filed a cross-bill answer setting up their title under their first lease, and praying that the second lease be cancelled. A decree was entered holding the second lease void and cancelling it, and declaring the first lease good and valid, and dissolving an injunction which had 'been awarded against the claimants under the first lease entering or operating. The decree conceded to Miller his right to the Sindledeeker share. Prom this decree Pj-le and others •appeal.

One argument made for the second lease is, that the first has no covenants binding the lessees to do anything, unless they wished; that it binds the lessees for nothing until they should get oil, either to drill a well or pay money; that the lessor could have no suit for money or to coonjpel operations of development of oil. It is thence contended that the contract wants an.essential of a binding contract, namety, mutuality. Under this view the lessor could renounce or revoke the lease at any time, because if not binding the lessee for anything, neither would it bind the lessor, and hence the second lease would be an electioir by Bunfill aiot to be bound, and'would confer good title. For this contention we are cited the case of Eclipse Oil Co. v. South Penn Co., 47 W. Va. 84, and Glasgow v. Chartiers Oil Co., 153 Pa. 48. We differentiate the present case from the Eclipse case from the fact that aio money was paid as a bonus in that case, whereas, one of fifty-five dollars was paid for the lease iaa this^case. We cannot see that when a lessee pays a araoney consideration for the right or privilege of boring for oil within a fixed tiaaae, and in default of so doing or paying money as [42]*42an alternative, he has no vested right of exploration, but his privilege may he revoked at anjr moment, whether the limited time has expired or not._ If that be the true view, the clause of cesser is needless, because a revocation could be made for want of mutuality only. It would seem to me that a lease of this character, the lessor receiving valuable consideration for the privilege of exploration for oil, would confer a valid right of exploration for the time and on the terms spoken in it. Such would seem to be the intent of the parties, and the justice of the matter, notwithstanding the contract imposed no obligation on the lessee to drill or pay. The lessor has been paid his price for giving such privilege. It seems that this was the construction of the Eclipse Case in the opinion by Judge McWhoeteR in Harness v. Eastern Oil Co., on p. 250 of 49 W. Va. Denying the aptness in that ease of the Eclipse case, he said, “In that case the lessee had paid nothing, had done nothing ” In Lowther Co. v. Guffey, 52 W. Va. 88, Judge Dent, who prepared the opinion in the Eclipse Case, differed the two cases because of one dollar paid as a bonus. That lease imposed no obligation on the lessee. In Tibbs v. Zirkle, 55 W. Va. 49, a point held is, “An option given for a valuable consideration can not be revoked until the time limit therein has expired. If such option is without consideration, it' may be withdrawn or revoked at any time before acceptance.” So, we cannot say that from mere want of mutuality Bunfill could ignore the first lease.

The lessees under the first lease neither drilled a well within three months nor paid the money in place of it stipulated in that lease. For the second lease it is contended that such failure of itself caused the death of that lease; that it would work this result without any act on the part of the lessor declaring a forfeiture, even had the second lease not been made; that Bunfill could have remained quiet, done nothing to manifest an intent to insist upon the death of the leáse, and it would have come to its end absolutely from such failure alone; that the “paper is self-destructive.” It is said the document contains no words calling for an act declaring a forfeiture to end it. The contention for the first lease is, that an oil lease implies a warranty of good title, and that as .Bunfill did not have the Sindle-decker ninth, the title was not. good, and work of development could not be safely done, and he could not insist on a forfeiture. [43]*43Counsel for the second lease say that there is no place for forfeiture, as the first lease was at an end. So mnch is this so that the end of the. lease, its death from want of compliance with its terms, could not he waived, and that the second lease could have no effect as a declaration or act of forfeiture; that the land had been already freed from the first lease, without the second lease; that nothing but a new lease to the first lessees would do. Those claiming under the first lease say that as Bun-fill’s title was defective, and as he agreed to an extension of time for boring a well or paying money in its place, as below stated, he could not enforce a forfeiture; that Bunfill was in no condition to 'enforce a forfeiture.

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Bluebook (online)
63 S.E. 762, 65 W. Va. 39, 1909 W. Va. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pyle-v-henderson-wva-1909.