Raines v. Dunson

83 So. 224, 145 La. 1011, 1919 La. LEXIS 1824
CourtSupreme Court of Louisiana
DecidedNovember 3, 1919
DocketNo. 23384
StatusPublished
Cited by2 cases

This text of 83 So. 224 (Raines v. Dunson) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Raines v. Dunson, 83 So. 224, 145 La. 1011, 1919 La. LEXIS 1824 (La. 1919).

Opinion

Statement of the Case.

DAWKINS, J.

The applicant herein, E. R. Bernstein, seeks to prohibit R. T. Layne, in whose favor judgment was rendered as an interested third party appealing in the above cases, from proceeding against him (Bernstein) by summary rule to compel an accounting for certain funds held in his hands, as trustee or conventional sequestrator, for the benefit of whoever might be successful in said litigation.

In the two suits of Raines and Herndon against Dunson and others, attacking certain mineral leases, judgment was rendered in the court below in favor of defendants, and the plaintiffs appealed. Subsequently, Raines and Herndon were held to have abandoned their appeals, and, having been denied the right, under an allegation of interest in the matter, to intervene in this court and oppose the dismissal of said appeals, Layne, himself, prosecuted an appeal from the judgment of the district court in said causes. On hearing of Layne’s appeal (82 South. 6901) this [1013]*1013court reversed the judgment of the lower court as to Layne, and annulled the said first leases in so far as they affected his rights under leases obtained from the plaintiffs therein subsequent to those which were annulled, reserving to the defendants in that litigation the right to test the validity of Layne’s leases.

Pending the litigation, just mentioned, the parties thereto entered into the following agreement, to wit:

“This agreement, by and between E. M. Brown, Jr., and F. L. Dyer of Caddo parrish, Louisiana, and J. B. Rountree of Quitman, Ga. (the said Rountree represented herein by his agent, E. M. Brown, Jr.), hereinafter referred to as the parties of the first part; R. T. Layne, of Caddo parish, hereinafter referred to as the party of the second part; and W. R. Ramsey, of Oklahoma City, Oklahoma, hereinafter referred to as the party of the third part, witnesseth:
“Whereas the parties of the first and second parts are both the holders of oil and gas leases, covering two hundred (200) acres of land in Caddo parish, Louisiana, particularly described as follows, to wit (here follows description unnecessary to quote), the said parties of the first part having obtained the' interest held by them by mesne conveyances from C. E. Dunson. as shown by the several leases covering said lands, recorded in Caddo parish, Louisiana, and the said party of the second part having acquired the interest claimed by him from J. H. Herndon and D. H. Raines, as shown by leases recorded in Caddo Parish, Louisiana; and
“Whereas a suit is now pending wherein the validity of the leases in favor of the parties of the first part is assailed and said leases are sought to be canceled and set aside; and
“Whereas said lands will depreciate in value as oil and gas land on account of drilling on adjacent lands, unless developed for oil or gas without delay; and
“Whereas the said parties of the first and second part, without in any way prejudicing the rights of either of them or of any one in said litigation now pending relative to said leases, or the rights of either under their respective leases, desire to secure the development of said property; and
“Whereas the said party of the third part has proposed to enter into a contract looking to the development of said property, the proceeds therefrom to be held by a trustee to be hereinafter provided for until the validity of said leases has been passed upon by final judgment of the Supreme Court of the State of Louisiana, thereafter to be delivered to the party or parties legally and rightly entitled to receive the same;
“Now, therefore, this agreement witnesseth: [Then follow the stipulations with reference to the development of the property.]
“ * * * And all of the parties hereto do now name, designate and appoint E. R. Bernstein of Shreveport, Louisiana, to act as trustee, to receive and hold the considerations provided hereinafter, and the said E. R. Bernstein, personally present, accepts said appointment as trustee.
“All of the wells drilled under this contract on said lands shall belong jointly and equally to the party of the third part and to said trustee, and the proceeds from all of said wells shall be divided equally between the party of the third part and said trustee; the portion paid to said trustee to be used in the further development of the said property, and, after the termination of the litigation herein-above referred to, be paid and delivered by the said trustee to the party rightly entitled to the same, as hereinafter provided.
“When the suit above referred to now pending in the Supreme Court of the State of Louisiana, and the rights of the first and second parties under their respective leases shall have been finally decided and determined then trus■tee shall dispose of all amounts in his hands in the following manner, to wit:
“In the event that the leases held by the parties of the first part are held to be valid and enforceable contracts, then and in such case, the trustee shall deliver to the said parties of the first part the sum of twelve thousand, five hundred dollars ($12,500.00), or his pro rata part as hereinabove provided together with interest accrued thereon, and the balance of the proceeds from the sale of oil paid into his hands, after deducting such expenses as he may (have) paid as trustee on account of development other than the three (3) first wells, as hereinabove provided; and in the event that the said leases held by the parties of the first part, are held by final judgment to be null and void and are canceled, then and in such event the said trustee shall pay to the said party of the second part, the said sum of twelve thousand, five hundred dollars ($12,500.00), or his pro rata part as hereinabove provided together with interest accrued thereon, and the balance of the proceeds from the sale of oil paid into [1015]*1015his hands, after deducting such expenses as he may have paid as trustee on account of development other than the three (3) first wells, as hereinabove provided.’’

This agreement was signed by all of the persons designated as the parties of the first part, party of the second part, party of the third part, and by the applicant herein, E. R. Bernstein, as trustee.

After the judgment of this court above referred to became final, Layne applied to the court below for a rule, directed to Bernstein, individually and as trustee, to compel an accounting for the funds coming into his hands under the terms of the agreement jhst quoted. An order was issued, directing Bernstein be notified, individually and as trustee, that said rule would be made absolute unless good cause to the contrary were shown on July 14, 1919. On the day fixed for the hearing, Bernstein excepted to the proceeding by rule on the ground that the applicant was without right to proceed against him in the summary manner thus adopted. This exception was overruled by the court below, and Bernstein was ordered to answer the rule; whereupon he gave notice of his intention to apply to this court for writs of certiorari and prohibition, but the lower judge proceeded with the trial, and only withheld judgment in the matter after being advised of the preliminary order issued by us herein.

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Related

Foret v. Stark
16 So. 2d 79 (Louisiana Court of Appeal, 1943)
Mohawk Oil Co. v. Layne
270 F. 841 (W.D. Louisiana, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
83 So. 224, 145 La. 1011, 1919 La. LEXIS 1824, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raines-v-dunson-la-1919.