Shell Petroleum Corp. v. Calcasieu Real Estate & Oil Co.

170 So. 785, 185 La. 751, 1936 La. LEXIS 1218
CourtSupreme Court of Louisiana
DecidedApril 27, 1936
DocketNo. 33472.
StatusPublished
Cited by42 cases

This text of 170 So. 785 (Shell Petroleum Corp. v. Calcasieu Real Estate & Oil Co.) 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
Shell Petroleum Corp. v. Calcasieu Real Estate & Oil Co., 170 So. 785, 185 La. 751, 1936 La. LEXIS 1218 (La. 1936).

Opinions

O’NIELL, Chief Justice.

This is an interpleader suit. The object is to determine who is entitled to the royalty of one-eighth of the oil produced by the Shell Petroleum Corporation as lessee of a tract of land, having an area of 81 acres, formerly belonging to the matrimonial community between G. W. Johnston and his wife, who were the lessors. The contest is between Mrs. Johnston, on the one side, and the holders of the title emanating from the matrimonial community, on the other side. Only half of the one-eighth royalty is in contest. Mrs. Johnston concedes that the other defendants, who are her opponents, and whose title emanates from the matrimonial community between her and her husband, own half of the one-eighth royalty. Mrs. Johnston’s claim is founded not upon her half interest in the community estate, but upon the fact that the lease, from which the one-eighth royalty came, is a lease of two tracts of land, of equal area, one tract belonging to the community estate and the other to the separate estate of Mrs. Johnston. The 81 acres of land which belonged to the matrimonial community between Mr. and Mrs. Johnston is described as the W. % of S. W. of section 18, T. 9 S., R. 6 W. No drilling has been done on the remaining tract of 81 acres, which was included in the lease, and which belongs to Mrs. Johnston and is under her separate administration and control. Her tract of land is the W. % of S. W. of section 17, in the same township and range. She contends that the lease is not a severable lease, or two separate leases, but a joint lease, under which the value of the royalty of one-eighth of the oil produced from either tract of land should be paid to the lessors jointly — one-half for Mrs. Johnston and one-half for the parties holding title from the matrimonial community between her and her husband. The judge of the district court held that the lease was intended to be a joint lease, and in fact would be a joint lease but for the fact that the lessors were husband and wife; but the judge decided that the lease was not valid as a joint lease because the original lessors were husband and wife. *755 Mrs. Johnston has appealed from the decision.

None of the other defendants, among whom the fund deposited in court by the Shell Petroleum Corporation was ordered distributed, has either appealed or answered Mrs. Johnston’s appeal. These defendants, who are the appellees, are the Calcasieu Real Estate & Oil Company, Inc., and the Reconstruction Finance Corporation, and the liquidating trustees of the Calcasieu National Bank, in Lake Charles. The rights of all of them are derived, through mesne conveyances, from a sheriff’s sale, made in the foreclosure of a mortgage on the 81 acres of land which belonged to the matrimonial community between Mr. and Mrs. Johnston, and from which tract alone the oil was produced. The mortgage was on record at the time when the contract of lease was made; but the mortgagee signed and placed on record an instrument subordinating his mortgage to the lease, and agreeing that, in the event of a foreclosure of the mortgage, the 81 acres of land then affected by the mortgage would continue to be subject to the lease. The consideration paid to the mortgagee for subordinating the mortgage to the lease was $405, which was half of the cash bonus (at $5 per acre) paid by the lessee for the lease.

We agree with the judge of the district court that the lease in question was intended to be, and is in fact, a joint lease. The instrument does not in terms declare that it is a joint lease; but there are many expressions in it which, taken together, indicate that the intention of all of the parties was. that the lessors were making a joint lease. The lessors are referred to in the singular number, or as one party to the contract, in every instance where they are referred to at all throughout the instrument. For example, in the first paragraph, it is declared: “That G. W. Johnston and Mrs. N. L. Johnston, * * * herein called Lessor (whether one or more), * * * does hereby grant, demise and lease unto Shell Petroleum Corporation,” etc. The reason why the parenthetic phrase is there — “whether one or more” — is that the contract was made on a printed form. For that reason none of the printed words or phrases was chosen especially for this identical contract; but the words and phrases used in all of such printed forms of contracts, which are intended for general use, such as mining leases, insurance policies, etc., are worded with great care and by men of expert knowledge and experience in such matters, and with the idea of avoiding disputes, by providing for any and every condition that may prevail, or contingency that might arise. Hence it is quite likely that the printed phrase in this contract, “herein called Lessor (whether one or more),” was -adopted not merely for the sake of brevity or for convenience, but for the purpose of dealing with the lessors, if there should be two or more, not severally, or with each lessor separately, but with both or all of them jointly and collectively, as a combination or group of individuals having a mutual interest in the transaction. That method of dealing with two or more lessors is advantageous to the lessee, in the fulfillment of his obligations, where *757 two or more separate tracts of land, owned separately by the lessors, are embraced in one lease.

Another fact which, to some extent at least, indicates that the lessors intended to make a joint lease is that the two tracts of land, which are situated three-quarters of a mile apart, and are owned separately, are included in one description, without any indication of separate ownership— thus:

“The West Half (W%) of the Southwest Quarter (SW%) of Section Seventeen (17), and the West Half of the Southwest Quarter (SW%) of Section Eighteen (18), all in Township Nine (9) South, Range Six (6) West, Louisiana Meridian, Jefferson Davis Parish, Louisiana.”

Another significant declaration appears in the next paragraph, which follows immediately the description of the land, and which is all printed except the acreage, “One Hundred and Sixty-two (162)”— viz.:

“2. Subject to the provisions of paragraph TO’ hereof, for the purpose of determining the amount of any money payment hereunder, said land shall be considered to comprise One Hundred and Sixty-two (162) acres, even though it actually comprise more or less; but it is Lessor’s intention to lease hereby all of the land and interest in land owned by Lessor in said sections,” etc.

The significant part of this paragraph, 2, is in the statement of only the total area of the land leased, instead of the area of each tract, and in the reference to the “Lessor’s intention” and the “land owned by Lessor in said sections,” thus dealing with the lessors collectively, or as one party, “for the purpose of determining the amount of any money payment hereunder.” Although it does not appear in the record, and is not important, a computation, from the dimensions of each of the two sections, as they appear on the official photolithograph of the township, shows that the total area of the two tracts described in this lease is 162.16 acres, one tract having an area only .07 of an acre less than 81 acres, and the other having an area only .23 of an acre more than 81 acres.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Armstrong Airport Concessions v. K-Squared Restaurant, LLC
178 So. 3d 1094 (Louisiana Court of Appeal, 2015)
City of Alexandria v. Cleco Corporation
740 F.3d 339 (Fifth Circuit, 2014)
Tel-Americom, L.L.C. v. Columbia Telecommunications, Inc.
789 So. 2d 627 (Louisiana Court of Appeal, 2001)
Commercial Nat. Bank v. Rowe
666 So. 2d 1312 (Louisiana Court of Appeal, 1996)
Sun Exploration & Production Co. v. Rogers
451 So. 2d 587 (Louisiana Court of Appeal, 1984)
Pasquier, Batson & Co. v. Ewing
367 So. 2d 28 (Louisiana Court of Appeal, 1979)
Hall v. Arkansas-Louisiana Gas Co.
359 So. 2d 255 (Louisiana Court of Appeal, 1978)
Ralph F. Howell v. Union Producing Company
392 F.2d 95 (Fifth Circuit, 1968)
Hall v. LeMay
191 So. 2d 720 (Louisiana Court of Appeal, 1966)
Leonard v. Barnes
404 P.2d 292 (New Mexico Supreme Court, 1965)
Loubat v. Audubon Life Insurance Company
177 So. 2d 281 (Supreme Court of Louisiana, 1965)
Killam v. Commissioner
39 T.C. 680 (U.S. Tax Court, 1963)
Sinclair Crude Oil Co. v. Oklahoma Tax Commission
1958 OK 110 (Supreme Court of Oklahoma, 1958)
Dees v. Hunt Oil Co.
123 F. Supp. 58 (W.D. Louisiana, 1954)
Thomas Gilcrease Foundation v. Stanolind Oil & Gas Co.
266 S.W.2d 850 (Texas Supreme Court, 1954)
Bourg v. Hebert
70 So. 2d 116 (Supreme Court of Louisiana, 1953)
Berman v. Brown
70 So. 2d 433 (Supreme Court of Louisiana, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
170 So. 785, 185 La. 751, 1936 La. LEXIS 1218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shell-petroleum-corp-v-calcasieu-real-estate-oil-co-la-1936.