Ruwaldt v. W. C. McBride, Inc.

57 N.E.2d 863, 388 Ill. 285
CourtIllinois Supreme Court
DecidedNovember 22, 1944
DocketNo. 27931. Reversed and remanded.
StatusPublished
Cited by12 cases

This text of 57 N.E.2d 863 (Ruwaldt v. W. C. McBride, Inc.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ruwaldt v. W. C. McBride, Inc., 57 N.E.2d 863, 388 Ill. 285 (Ill. 1944).

Opinion

Mr. Justice Gunn

delivered the opinion of the court:

E. J. Ruwaldt and Kenneth M. Bayer filed their amended complaint in equity in the circuit court of Jefferson county to restrain appellants, W. C. McBride, Inc., Theresa Hoppa, Richard Hoppa, Lillian Hoppa, Edward Hoppa, Chester Hoppa, Martha Punicki and Marion Handyman and the respective spouses of those appellants who were married, from operating under a certain oil lease purporting to include the same land as contained in a lease held by appellees, and to confirm an oil lease on said premises made and delivered to appellees prior to the one under which W. C. BcBride, Inc., was attempting to drill. Answers were filed denying the validity of appellees’ lease, and a counterclaim was filed asserting W. C. McBride, Inc., had the only valid oil and gas lease. After said issues had been so formed, evidence was taken and the issues decided in favor of appellees upon all points. Appeal is taken directly to this court because a freehold is involved. Cravens v. Hubble, 375 Ill. 51.

John Hoppa died April 24, 1936, owning seventy-one acres of land in Jefferson county. He left surviving him a widow, Theresa Hoppa, and six children, one, Richard, a minor, living with his mother in Jefferson county, and five others who were living in Chicago. December 4, 1940, the widow and her minor son, Richard, executed an oil and gas lease to appellees on said seventy-one ‘acres, being in standard form, for five years, or as .long as oil and gas was produced in paying quantities, and providing for a delay-payment privilege of one dollar per acre per year in case a well was not drilled within one year. This instrument was filed for record December 7, 1940. March 18, 1941, the remaining five Hoppa heirs, together with the respective spouses of those who were married, signed and acknowledged the same lease in Chicago, after which it was again recorded in Jefferson county. The mother and all of the heirs executed a lease of the premises to W. C. McBride, Inc., July 24, 1941.

The lease to appellees, when signed and executed by the widow and minor son, included as grantors the names of all of the other Hoppa heirs, and referred to them collectively as “lessor (whether one or more.)” March 14, 1941, there was written in longhand on the face of the lease beneath the description the following: “If no well be commenced within (60) sixty days on adjoining property this lease shall be void from the following date— 3-14-41, or void 5-14-41and on the left-hand margin appeared “(3-14.-41.)” Through these words is drawn a line in ink, which would indicate the clause had been eliminated by scratching out. It is not disputed that this clause, or its elimination, was inserted upon the face of the lease without the knowledge of Theresa Hoppa.

The lease from Theresa Hoppa and Richard Hoppa was procured by Ruwaldt and Bayer, and both lessors were consulted in the negotiations. The negotiation leading to the change in the lease by the insertion of the sixty-days’ clause on March 14, 1941, was transacted by Richard Hoppa with Bayer and a man by the name of Riddle. They were together for the purpose of getting Richard to go to Chicago to see the other heirs when Richard wanted to know when they were going to commence drilling on the land. This led up to the insertion of the sixty-days’ clause upon the face of the lease. It then developed there had been some talk about paying Richard and his mother $100 for assisting in procuring the signatures of the other heirs, and when Richard called attention to this he was told by Bayer that he could not have both the sixty-days’ clause in the lease and the $100, whereupon Richard said he would take the $100 and agreed to have the lines drawn through the clause scratching it out of the lease. Richard denies this to the extent of saying the sixty-days’ clause was never canceled. There are, however, several witnesses and a number of circumstances which justify the circuit court in' finding to the contrary. A number of persons saw the lease before the heirs in Chicago were visited, with the clause scratched out, and Richard made a number of statements to different persons in effect admitting the clause had been scratched out, and there was testimony of experts to the effect the lines scratching out the clause could not have been written upon the paper to exceed a half hour after the clause had been written upon the face of the lease.

The negotiations with the five remaining heirs took place in March, 1941, through Riddle, who had been present when Richard and his mother signed the lease. All of these heirs testified the sixty-days’ clause was not scratched out. Riddle says it was. There is testimony of at least seven other witnesses, apparently disinterested, who, either from actually seeing the lease or hearing statements from Richard, all prior to the time the lease was taken to the Chicago heirs, indicated the sixty-days’ clause had been placed upon and eliminated from the lease before presentation to the five children in Chicago. There was also substantial inducement for the heirs to find something which would invalidate the appellees’ lease, inasmuch as each heir, except Richard, received $1000 for signing the new lease with W. C. McBride, Inc., and Richard received $5000, and there was an agreement that they should also receive an overriding royalty of one eighth. The chancellor found from the evidence that the lines drawn through the drilling clause were made within one-half hour after the clause was written, and that both the clause was written and the lines scratching it out were drawn through it before it was presented for signature to the Chicago heirs.

Since the effect of the alteration by writing in of the sixty-days’ clause or its scratching out is one of the principal points of contention in the case, as to its effect upon one, all, or any of the appellants, it is necessary to first consider the claim that the lease delivered to appellees is a joint lease, and, therefore, if it is void as to one it is void as to all.

It is not disputed that Richard Hoppa was a minor at the time he signed the lease, and had a right to repudiate it and render it void as- to him. It is also contended the alteration of the lease by the insertion of the above-mentioned clause rendered it void as to Theresa Hoppa. If the instrument was joint in its nature, and was only to become effective upon all of the lessors joining therein, consideration of the other points would become unnecessary.

The lease in this case recites a cash consideration of one dollar. All the tenants in common and their spouses and the widow are referred to as “lessor (whether one or more),” and, in fact, in áll materials it is the sanie form of lease and describes the parties in the same manner as the mineral deed involved in Logue v. Von Almen, 379 Ill. 208. In that case we held there was nothing in the terms of the deed that prevented it becoming operative as to those who had signed, or which made its operation dependent upon the condition that all of the owners should sign, and that the evidence showed the lessee came into the possession of the deed from the several grantors with the intent such transfer or possession should be a completed delivery. We also said that where a deed shows on its face it is intended to be jointly executed, so that all grantors should be bound by its conveyance, the signing and delivery by a.part of such grantors would not make a complete delivery.

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Bluebook (online)
57 N.E.2d 863, 388 Ill. 285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruwaldt-v-w-c-mcbride-inc-ill-1944.