Smith v. Kennon

175 So. 763, 188 La. 101, 1937 La. LEXIS 1336
CourtSupreme Court of Louisiana
DecidedJune 21, 1937
DocketNo. 34288.
StatusPublished
Cited by16 cases

This text of 175 So. 763 (Smith v. Kennon) 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
Smith v. Kennon, 175 So. 763, 188 La. 101, 1937 La. LEXIS 1336 (La. 1937).

Opinion

ODOM, Justice.

Plaintiff prosecutes this appeal from a judgment dismissing his suit on exceptions of no cause of action.

The facts disclosed by his petition are that on August 10, 1933, Walter, Wimberly, Clover, and Berther Kennon and Dianah Kennon Franks, who are joint owners of 80 acres of land in Webster parish, executed in his favor'an oil and gas lease thereon, the lease to extend over a period of five years from its date; a certified copy of the lease contract being attached to and made a part of the petition. The lease contract recites that for the consideration of $40 cash, in hand paid, “and other good and valuable considerations,” the lessors “granted, demised, leased and let ■* * * unto the said lessee, for the sole and only purpose of mining and operating for oil and gas, and laying pipelines and building tanks, power stations and structures thereon to produce, save and take care of said products, all that certain land situated in the Parish of Webster, State of Louisiana, described as follows : South West 4 of North East 4 and North West 4 of South East 4 of Section Thirty five Township Eighteen, Range Nine, West Containing 80 acres, more or less.”

It is stipulated that the lease shall remain in force for five years “(hereinafter called ‘primary term’), and as long thereafter as oil, gas or either of them is produced from said land by Lessee or the obligations in-lieu of production are fulfilled.” The contract contains the usual oil and gas royalty clauses and provides that if drilling operations are not commenced on the said land by August 10, 1934, one year from the date of the lease, “this lease shall then terminate as to both parties, unless Lessee shall pay or tender to Lessor or to the credit of Lessor in Peoples Bank and Trust Co., Bank at Minden La., (which bank is Lessor’s agent) the sum of Forty & No/100 (40.00) Dollars ($40.00) (hereinafter called ‘rental’), which shall extend for twelve months the time within which drilling operations may be commenced. Thereafter, annually, in like manner, and upon like payments or tenders, the commencement of drilling operations may be further deferred for periods of' twelve months during the primary term.”

The petition shows that on August 18, 1933, ten days after the lease was made, the lessee, plaintiff here, sold the lease to another in so far only as it covered the NW^4 of the SEJ4 of section 35, township 18 north, range 9 west. The lease contract provides that in case it should be assigned “as to a part or as to parts of the above described lands and the assignee or assignees of such part or parts shall fail or make default in the payment of the proportionate part of the rents due from him or them, such default *105 shall not operate to defeat or affect this lease in so far as it covers a part or parts of said lands upon which said Lessee or any assignee thereof shall make due payment of said rental.”

The lessee having assigned the lease in so far as it covered the NW^4 of the SEt4 of section 35, he thereafter owned it only in so far as it covered the SW^ of the NE% of said section, and the amount thereafter to be paid by him as delay rental was $20 per annum instead of $40.

In paragraph 5 of plaintiff’s petition he alleged that on August 6, 1934, which was four days less than one year from the date of the lease, he deposited in the Peoples Bank & Trust Company of Minden, La., the sum of $20 to the credit of the lessors, Wimberly Kennon, Berther Kennon, Walter Kennon, Dianah Franks, and Clover Ken-non, “which deposit was accepted by said bank on said date”; the deposit having been made “as the delay rental provided for in the lease * * * and for the purpose of continuing said lease in full force and effect, as to the said Southwest Quarter of Northeast Quarter (SW^4 of NE%), for period of August 10, 1934, to August 10, 1935.”

In paragraph 6 of his petition plaintiff alleged that on August 9, 1935, he deposited the sum of $20 to the credit of Walter Ken-non, Clover Kennon, Berther Kennon, and Wimberly Kennon, as delay rental called for by the lease and for the purpose of continuing it in full force and effect as to the SWJ4 of NE)4' of said section for the period of one year from August 10, 1935, to August 10, 1936.

We note that according to the petition this latter deposit was made to the credit of only four of the five lessors. But the reason for this is explained in paragraph 7 of the petition, which recites that at the time the lease was made Dianah Kennon Franks, -one of the co-owners, orally requested plaintiff to pay to the other lessors signing the lease “all delay rentals that plaintiff may elect to make, under the terms of said lease.”

The suit was filed on July 18, 1936, which was before the end of the period to which the lease had been extended by the payment of delay rentals, according to the petition.

Paragraph 9 of the petition reads as follows : “That the oil and gas lease executed in favor of plaintiff, described in Paragraph 1 hereof, is in full force and effect.”

In paragraph 3 of the petition it is alleged that on December 6, 1935, Clover Kennon, Walter Kennon, D. A. Kennon Franks (who is the same person as Dianah Kennon Franks referred to above), and Berther Kennon executed a purported oil and gas lease in favor of the G. H. Vaughn Drilling Company, covering that part of the above land described as the SW^4 of the NE}4, section 35, township 18 north, range 9 west, containing 40 acres more or less; this being that portion of the 80 acres leased to plaintiff on which he had retained the lease. A certified copy of said purported lease was attached to and made part of the petition. In paragraph 4 it is alleged that on December 16, 1935, W. L. Kennon (who is the same person as Wimberly Kennon above referred to) executed an oil and gas lease to the G. H. Vaughn Drilling Company *107 similar to that described in paragraph 3, a copy of which is attached to and made part of the petition.

So that, according to the petition, while plaintiff’s lease was still in full force and effect as to the SW^ of the NE14, the same persons who granted the lease to him granted a similar oil and gas lease on the same land to another party. By referring to the lease contracts granted to the G. H. Vaughn Drilling Company, we find that, as alleged, .they are executed by the same landowners who had, on August 10, 1933, leased the land to plaintiff for the same purpose, that is, for exploring it for oil and gas and the reduction of those minerals to possession and ownership. The reason, apparently, why there were two leases made to the Vaughn Drilling Company was that four of the five co-owners of the land lived in Webster parish, La., and the other lived in Oklahoma. The leases covered the same land and are identical in terms. The only difference is in the dates, the one executed in Louisiana being dated December 6, 1935, and the one executed in Oklahoma dated December 16, 1935.

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Cite This Page — Counsel Stack

Bluebook (online)
175 So. 763, 188 La. 101, 1937 La. LEXIS 1336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-kennon-la-1937.