Reynaud v. Bullock

196 So. 29, 195 La. 86, 1940 La. LEXIS 1058
CourtSupreme Court of Louisiana
DecidedFebruary 5, 1940
DocketNo. 35517.
StatusPublished
Cited by48 cases

This text of 196 So. 29 (Reynaud v. Bullock) 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
Reynaud v. Bullock, 196 So. 29, 195 La. 86, 1940 La. LEXIS 1058 (La. 1940).

Opinions

ROGERS, Justice.

The question presented on this appeal is whether plaintiff is entitled to a one-sixteenth instead of a one-thirty-second royalty on the oil produced from 58 acres of land situated in the Little Bayou Oil Field in the Parish of Iberia.

The record shows that, in the year 1912, the plaintiff Hector F. Reynaud, acquired 58 acres of swamp or low land in the Parish of Iberia. On October 16, 1916, plaintiff executed a mineral lease covering the land to Gorge J. Sabatier. On December 6, 1916, plaintiff sold to Arthur Schexnayder an undivided one-fifth interest in the minerals. underlying the property. On March 2, 1917, plaintiff sold to J. W. Gardiner and C. O. Noble an undivided one-half interest in *90 the land, including the minerals. Schexnayder joined in this deed to divest himself of any interest he might have in the undivided one-half interest transferred to Gardiner and Noble, stating that he and the plaintiff had entered into a separate agreement amending the terms of their original contract. Subsequently, Gardiner sold his interest in the land to H. C. Hanszen. In the collateral agreement entered into- between Schexnayder and the plaintiff Reynaud, it was stipulated that in lieu of theif5, original agreement, Schexnayder was to receive only one per cent of the royalty due Reynaud under the Sabatier lease. On February 25, 1922, Gardiner and Noble, together with plaintiff, executed an oil and gas lease to H. S. Sealy. This lease was for a primary term of three years and it provided that if the lessors owned a less interest than the entire fee, the royalty should be paid to the lessors “in proportion which lessor’s interest bears to the whole and undivided fee.” On March 1, 1922, Schexnayder ratified this lease, plaintiff agreeing that Schexnayder’s royalties were to be paid direct to him.

The next transaction, which is the one directly involved in this suit, was a sale executed by plaintiff to C. W. Wolke. This sale was executed on March 24, 1927. Wolke was acting for F. N. Bullock to whom he transferred the property which he acquired from plaintiff. Later Bullock sold and donated to his wife, Laura Jacobs Bullock, the rights he had acquired from Wolke.

On December 22, 1933, Hanszen, the vendee of Gardiner, Noble and F. N. Bullock granted an oil and gas lease on the property to C. A. Richardson. The lessee, Richardson, assigned the lease to the Texas Company, which drilled a well on the property. This well became a producer some time in the month of March, 1936. From that date up through September, 1938, the well produced 1,523,621.87 barrels of oil, of a value of $1,680,611.42. Of this amount The Texas Company is holding in suspense, awaiting the final disposition of this suit, the sum of $50,588.19, representing a one-thirty-second royalty interest.

After the completion of the first well, plaintiff brought this suit, impleading as defendants, C. W. Wolke, F. NA Bullock, Laura J. Bullock, and The Texas Company. Plaintiff prayed for judgment decreeing him to be entitled to a one-sixteenth royalty of all the oil, gas and other minerals produced from the 58 acres of land described in the petition, or in the alternative, that the instrument on which this claim is based, be reformed so as to grant plaintiff that relief. After defendants had answered, the case was fixed for trial and, on the date of the trial, defendants filed and re-urged exceptions of no right or cause of action, which were referred to the merits. The case was then tried on the merits and resulted in a judgment decreeing that plaintiff was entitled to receive a one-thirty-second royalty on the oil produced from the land, and ordering The Texas Company to pay defendants the $50,588.19, which that company was holding subject to the outcome of this litigation, and to make all future payments to defend *92 ants accordingly. Plaintiff has appealed from the judgment.

The instrument, which the court is called upon to review in this case, is the deed that plaintiff executed in favor of Wolke on March 22, 1927.

Plaintiff assigns as error here, first, that the trial judge erred in construing the deed as written so as to give plaintiff a one-thirty-second instead of a one-sixteenth royalty; and second, that the trial judge erred in failing to pass on plaintiff’s alternative demand to reform the deed so as to make it express the true intention of the parties, that plaintiff was to receive a one-sixteenth royalty.

The primary question to be disposed of arises under plaintiff’s contention that the trial judge erred in construing the language of the deed which' is the subj ect matter of this litigation. The part of the deed describing what was sold by Reynaud to Wolke and what was reserved by Reynaud reads as follows:

. “The undivided one-half of that certain tract of land situated at Little Bayou, Iberia Parish, State of Louisiana, measur-. ing Fifty Eight (58) acres in superficial area and Bounded North by land of Schwing and Sealey et als; South by land of. Seth C. Sumeral formerly; East by Gulf Refining Company of Louisiana fee tract and west by land of A. A. Bernard et als.

“It is, however, distinctly understood and agreed the vendor reserves unto himself, his heirs and assigns in perpetuity a one-sixteenth (1/16) royalty of all the oil, gas and minerals produced and saved from said premises and a royalty of twenty five cents per ton for all salt and sulphur mined and marketed off said lands herein transferred; said royalty to be delivered to the vendor or assigns, free of costs of production and said royalty shall be paid to the said vendor, heirs or assigns in the proportion that his ownership is of the whole tract above described. And it is further declared that the said C. W. Wolke, vendee, having this day acquired from Arthur'. Schexnayder by act passed before undersigned Notary Public, all of his rights, titles, and interest in and to all the minerals, including oil, gas, salt, sulphur, ‘ and other minerals owned by him as acquired by him from the vendor H. F. Reynaud and effecting the property herein, transferred, that a similar royalty as above provided shall be paid to the H. F. Reynaud, his heirs and assigns in the proportion of said ownership as acquired by said Wolke from said Schexnayder — It being understood that the total royalty to be paid to said H. F. Reynaud, his heirs and assigns is fixed at one-sixteenth (1/16) based upon an ownership of an undivided half interest in the property hereinabove described.

“Should said property above described be partitioned in kindly, then and in that case the royalty due said H. F. Reynaud, his heirs and assigns shall be orie-sixteenth on the share allotted to the said C. W. Wolke .or assigns and a royalty of twenty five cents per ton for salt and sulphur on said allotted share.”

*94 The deed, of course, should be construed as a whole in order to arrive at the intent of the parties. This rule is laid down hy Article 1955 of the Civil Code which says that “all clauses of agreements are interpreted the one by the other, giving to each the sense that results from the entire act.” See Bremer v. Lane, 185 La. 543, 169 So. 568; Gibson v. Zylks, 186 La. 1043, 173 So. 757.

According to the recitals of the deed, Reynaud sold to Wolke an undivided one-half of a tract of land measuring 58 acres in superficial area, the sale being made with certain reservations.

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Bluebook (online)
196 So. 29, 195 La. 86, 1940 La. LEXIS 1058, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reynaud-v-bullock-la-1940.