R. N. Turnbow Oil Investments v. Grace Fulghum

CourtMississippi Supreme Court
DecidedDecember 13, 2002
Docket2003-CA-00050-SCT
StatusPublished

This text of R. N. Turnbow Oil Investments v. Grace Fulghum (R. N. Turnbow Oil Investments v. Grace Fulghum) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R. N. Turnbow Oil Investments v. Grace Fulghum, (Mich. 2002).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2003-CA-00050-SCT

R. N. TURNBOW OIL INVESTMENTS

v.

MRS. MAURICE T. McINTOSH, GRACE FULGHUM, ANN FAGAN TOLBERT, WALTER FAGAN, III

DATE OF JUDGMENT: 12/13/2002 TRIAL JUDGE: HON. J. LARRY BUFFINGTON COURT FROM WHICH APPEALED: COVINGTON COUNTY CHANCERY COURT ATTORNEYS FOR APPELLANT: GLENN GATES TAYLOR DONALD JAMES BLACKWOOD, JR. ATTORNEY FOR APPELLEES: SI M. BONDURANT NATURE OF THE CASE: CIVIL - REAL PROPERTY DISPOSITION: REVERSED AND RENDERED - 03/18/2004 MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE PITTMAN, C.J., EASLEY AND DICKINSON, JJ.

DICKINSON, JUSTICE, FOR THE COURT:

¶1. This unusual case requires us to decide whether a chancery court may amend a sixty-eight-year

old decree, based upon a claim that the decree was inaccurate. We find that, under the circumstances of

this case, it may not.

FACTUAL BACKGROUND

¶2. In 1932, H. M. McIntosh filed suit in the Covington County Chancery Court against R. N.

Turnbow, who failed to file an answer, resulting in a default judgment. According to the complaint,

McIntosh and Turnbow orally formed a partnership in 1930 to acquire oil, gas and mineral interests in the name of the partnership, “R. N. Turnbow.” The 37 exhibits attached to the complaint described the

instruments, lands and interests that were subject to the alleged partnership, along with Exhibit 38 which

described an Oil and Gas Lease between Turnbow and Earnest W. Pettis.

¶3. McIntosh asked the court to “enter an order, ordering, adjudging and decreeing the Complainant

to have one-half interest of all the interest now held by R. N. Turnbow, accurately and definitely

setting out said interest in said decree and ordering and decreeing it to be divided in kind between

the Complainant and R. N. Turnbow . . . .” (emphasis added).

¶4. On April 25, 1933, the chancellor entered a decree pro-confesso, which stated, inter alia:

It is therefore ordered, adjudged and decreed that a decree pro-confesso enter admitting all the material allegations of complainants original bill of complaint so far as the defendant, R. N. Turnbow, is concerned, and that final decree enter before the adjournment of this court.

¶5. On May 3, 1933, the chancellor entered a decree, which stated, inter alia:

It is therefore ordered, adjudged and decreed by the court that all right title and interest as shown of record by royalty conveyance and deeds to R.N. Turnbow in the Chancery Clerk's office of Covington County, Mississippi pertaining to or touching the hereinafter described land is held by the said R.N. Turnbow as grantee therein in trust for himself and H.M. McIntosh, the complainant herein the name of R.N. Turnbow as grantee in said deeds being used as a partnership name in which the said R.N. Turnbow had a one-half interest and that said H.M. McIntosh held a one-half interest.

It is therefore ordered, adjudged and decreed that as to all of the lands hereinafter described as shown by conveyance of record in the Chancery Clerks office of Covington County, Mississippi the interest of the said R.N. Turnbow and H.M. McIntosh are jointly each owning a one-half interest therein. (emphasis added).

¶6. The May 3rd decree also found McIntosh entitled to half the proceeds from a “deed or royalty

conveyance” from Turnbow to Earnest W. Pettis. The decree provided a legal description of the property

covered by the Pettis lease which is the only description of property within the decree.

2 ¶7. On October 31, 1933, the chancellor entered a decree which referred to the May decree, and

further referred to McIntosh’s “undivided lease interest in the land described in said above-

mentioned decree . . .” and which ordered the new holder of the Pettis lease to pay certain royalties to

McIntosh. (emphasis added). No appeal was taken from either decree.

¶8. After the entry of the October decree, over sixty years quietly passed. During this period of time,

all witnesses to the relevant events died, including Turnbow, McIntosh and T. Price Dale, the learned

chancellor who entered the decrees in 1933.

¶9. Then, in 2000, natural gas wells were successfully drilled on land which was described in exhibits

to the McIntosh complaint, but which was not described in any of the decrees entered by the chancellor.

¶10. The next year, the McIntosh heirs, Mrs. Maurice T. McIntosh, Mrs. Grace Fulghum, Mrs. Ann

Fagan Tolbert and Walter Fagan III, filed this suit in the Covington County Chancery Court against R.N.

TurnbowOil Investments, the successor to Turnbow's partnership interests–seeking a declaratory judgment

that they were entitled to half the royalties produced by the natural gas wells. They also sought a

declaratory judgment fully describing the land which should have been covered by the first decree. The

complaint did not, however, seek relief under any provision of the Mississippi Rules of Civil Procedure.

¶11. Finding that the 1933 decree should have granted McIntosh a one-half interest in mineral rights to

13 sections of land–some 2,369 acres–in addition to the land covered by the 1933 decree, the chancellor

granted summary judgment to the McIntosh's heirs. From this summary judgment, Turnbow Oil appeals.

STANDARD OF REVIEW

¶12. This Court employs an abuse of discretion standard of review when examining a court's decision

to grant or deny relief pursuant to Miss. R. Civ. P. Rule 60. Perkins v. Perkins, 787 So. 2d 1256,

1260-61 (Miss. 2001); Bruce v. Bruce, 587 So. 2d 898 (Miss. 1991).

3 ANALYSIS

¶13. Our courts of equity have always enjoyed broad, remedial powers to fully adjudicate the claims

and interests of the parties. Hall v. Wood, 443 So. 2d 834, 842-43 (Miss. 1983). The juxtaposition of

equity and law has, from time to time, created difficulty in understanding precedent. A case decided one

way in circuit court might enjoy a completely different outcome, if brought in chancery court, because of

the application of equitable principles not available in a court of law. Indeed, then-Chief Judge Benjamin

N. Cardozo once stated in dissent:

One could give many illustrations of the traditional and unchallenged exercise of [equity]. It runs through the whole rubric of accident and mistake. Equity follows the law, but not slavishly nor always. Hedges v. Dixon County, 150 U. S. 182, 192, 14 S. Ct. 71, 37 L. Ed. 1044. If it did, there could never be occasion for the enforcement of equitable doctrine. 13 Halsbury, Laws of England, p. 68.

Graf v. Hope Bldg. Corp., 254 N.Y.1, 9, 171 N.E. 884. 887 (1930) (Cardozo, C.J., dissenting)

¶14. The McIntosh heirs’ argument is that equitable powers of the chancery court are broad enough to

grant relief awarded by the trial court. In supporting their argument, they point out:

The remedial powers of our chancellors are sufficient to vindicate the claims and interests of all litigants. Those powers are as broad as equity and justice require. Those powers have always been marked by flexibility and expansiveness so that appropriate remedies may be decreed to satisfy the needs of the particular case. The chancellor’s remedial powers are marked by plasticity. Equity jurisdiction permits innovation that justice may be done.

Hall, 443 So. 2d at 842-43.

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Related

Hedges v. Dixon County
150 U.S. 182 (Supreme Court, 1893)
WHITNEY NAT. BANK v. Smith
613 So. 2d 312 (Mississippi Supreme Court, 1993)
Briney v. US Fidelity & Guar. Co.
714 So. 2d 962 (Mississippi Supreme Court, 1998)
Bruce v. Bruce
587 So. 2d 898 (Mississippi Supreme Court, 1991)
Perkins v. Perkins
787 So. 2d 1256 (Mississippi Supreme Court, 2001)
Hall v. Wood
443 So. 2d 834 (Mississippi Supreme Court, 1983)
Graf v. Hope Building Corp.
171 N.E. 884 (New York Court of Appeals, 1930)

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