Schultz v. Cities Service Oil Co.

86 P.2d 533, 149 Kan. 148, 1939 Kan. LEXIS 24
CourtSupreme Court of Kansas
DecidedJanuary 28, 1939
DocketNo. 34,088
StatusPublished
Cited by7 cases

This text of 86 P.2d 533 (Schultz v. Cities Service Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schultz v. Cities Service Oil Co., 86 P.2d 533, 149 Kan. 148, 1939 Kan. LEXIS 24 (kan 1939).

Opinion

The opinion of the court was delivered by

Harvey, J.:

This was an action to quiet title. The trial court rendered judgment for plaintiff. The defendant, the Cities Service Oil Company, has appealed.

The record, insofar as it pertains to the question presented here, may be summarized as follows: On and prior to June 1, 1928, R. L. Schultz was the owner of a described section of land in Reno county, and on that date he and his wife executed to the Guaranty Title and Trust Company, trustee, two certain mortgages in the form of trust deeds covering the land to secure the payment of certain notes described therein. On September 13, 1929, for a valuable consideration, R. L. Schultz and wife executed to the Sedgwick Oil Company an instrument denominated “Conveyance of Mineral Interests and Royalty.” By its terms they granted, sold and conveyed unto the Sedgwick Oil Company an undivided one-half interest in and to all the oil, gas and other minerals in- and under and that may be produced from the section of land, together with the right of ingress [149]*149and egress for exploring and operating and storage purposes. It was specifically made subject to an oil and gas lease in favor of the Empire Oil and Refining Company of the same date. It provided that the grantee was to have and to hold the described property, and all rights pertaining thereto, for a period of fifteen years, or as long thereafter as oil or gas is produced in commercial quantities, if discovered within that time, and it contained this paragraph:

“And said grantor does hereby bind himself, his assigns and successors in interest, to warrant and forever defend all and singular the said property unto the said grantee, its assigns and successors in interest, against every person whomsoever lawfully claiming, or to claim, the same, or any part thereof.”

On May 14, 1931, the Guaranty Title and Trust Company, trustee, began an action to foreclose its two trust deeds. Personal service was had upon R. L. Schultz and wife. The Empire Oil and Refining Company and the Sedgwick Oil Company were made parties defendant and served by publication. The attorneys for plaintiff in that action wrote those companies, advising them of the filing of the action and sending a copy of the petition, and received a reply from their attorney under the date of July 30, 1931, acknowledging the receipt of the letter, with enclosure, advising that the oil and gas lease on the land to the Empire Oil and Refining Company had been transferred and was then owned by the Cities Service Gas Company, also that the Sedgwick Oil Company had a conveyance of one-half of the minerals under the land; that these interests were acquired September 13, 1929, and that the mortgages sought to be foreclosed, being dated June 1, 1928, are “undoubtedly ahead of our various interests as above stated. I think it will be satisfactory to us if you have the journal entry of judgment show definitely the several interests of our three companies as above stated and provide also that we are entitled, each of us, to eighteen-months period in which to redeem from the foreclosure sale. Also,that at the sale the land shall first be offered subject to our lease, and if it cannot be sold in that way that then it be sold in its entirety.” Judgment was rendered in the foreclosure action September 14, 1931, and the decree was framed in accordance with the requests contained in the letter of the attorney for the Empire Oil and Refining Company and the Sedgwick Oil Company. An order of sale was duly issued and the property was sold October 26, 1931. At this sale the property was first offered subject to the oil and gas lease to the Empire Oil and Refining Company and the mineral [150]*150deed to the Sedgwick Oil Company. On this offer no bids were received and the property was then offered free and clear of those instruments and was sold to Standish Hall, trustee, for the full amount of the judgment contained in the decree of foreclosure. The period of redemption was fixed at eighteen months, and in harmony with the request of the attorneys for the oil companies, and a certificate of purchase was issued to the purchaser at the sale. The decree of the court provided that in default of redemption the defendants, and each of them, were forever barred of all rights, title or interests in or lien upon the property.

On April 6, 1933, before the expiration of the period of redemption, R. L. Schultz and wife executed a quitclaim deed to the property to one Chester Mills, and on the same day Chester Mills conveyed the property to Wilbur Harrison by warranty deed. On April 11, 1933, Standish Hall, trustee, assigned the certificate of purchase to Chester Mills, who assigned it to Wilbur Harrison on December 27, 1934. By that time the period of redemption, which apparently had been extended, had expired, and on that date, December 27, 1934, the sheriff’s deed was issued to Wilbur Harrison, who on the same date conveyed the land by special warranty deed to R. L. Schultz.

On February 29, 1936, the Sedgwick Oil Company executed and delivered to the Empire Oil and Refining Company a deed for its interest in this property. Thereafter, by an amendment to its charter, the name of the Empire Oil and Refining Company had been changed to the Cities Service Oil Company.

The petition in this action was filed December 8, 1937. So far as here important the petition alleged that plaintiff was the owner of the fee-simple title to and in the full, peaceful and actual possession of the property, and that the defendants, among whom were the Cities Service Oil Company, formerly Empire Oil and Refining Company, and the unknown officers, successors, trustees and assigns of the Sedgwick Oil Company, have, or claim to have, some title to, interest or estate in, or lien upon the property adverse to plaintiff, the exact nature and character of which claims were unknown to plaintiff, and plaintiff asked defendants to set up any such claims they have adverse to plaintiff, and that plaintiff have judgment quieting his title against them.

In its answer the defendant Cities Service Oil Company claimed to be the successor in interest to the Sedgwick Oil Company and the [151]*151owner' of all the mineral rights conveyed by R. L. Schultz and wife to that company by the mineral deed dated September 13, 1929. This claim is based upon the warranty clause contained in that instrument. It was contended by the Cities Service Oil Company in the trial court, because of this warranty clause and notwithstanding the fact that the rights of the Sedgwick Oil Company in the property had been barred by- the foreclosure action, that as soon as R. L. Schultz again became the owner of the property the mineral deed again became effective. The trial court held against that contention, hence this appeal.

Appellant contends that R. L. Schultz is estopped by the warranty clause in the mineral deed of September 13, 1929, to assert against appellant full title to the property under the deed he received from Wilbur Harrison, December 27, 1934. It is contended that by virtue of this warranty clause any title which Schultz later acquired to this property immediately inured to the grantee in the mineral deed and to appellant as its successor in interest. It is argued this estoppel against Schultz is not affected by the fact that he received the after-acquired title through the foreclosure of mortgages in existence at the time the mineral conveyance was executed.

Our pertinent statute reads:

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Cite This Page — Counsel Stack

Bluebook (online)
86 P.2d 533, 149 Kan. 148, 1939 Kan. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schultz-v-cities-service-oil-co-kan-1939.