State v. Huber Corporation

193 S.W.2d 882, 1946 Tex. App. LEXIS 817
CourtCourt of Appeals of Texas
DecidedMarch 27, 1946
DocketNo. 9539.
StatusPublished
Cited by5 cases

This text of 193 S.W.2d 882 (State v. Huber Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Huber Corporation, 193 S.W.2d 882, 1946 Tex. App. LEXIS 817 (Tex. Ct. App. 1946).

Opinion

BAUGH, Justice.

The State sued Continental Oil Company and J. M. Huber Corporation to recover, as delinquent, $58,240 rentals al leged to be due on a ten-year river bed oil and gas lease issued by the Commissioner of the General Land Office to the Marland Oil Company, dated February 7, 1927, on 2,080 acres of the Canadian River bed in Hutchinson County. This lease was assigned by the Marland on *883 October 17, 1929, to the Continental Oil Company; subsequently on August 9, 1935, and January 31, 1936, assigned by the Continental to J. M. Huber Corporation; and renewed, on February 7, 1937, by the J. M. Huber Corporation for another ten-year period. The defendants lodged special exceptions to the State's petition, asserting that under certain statutes therein pleaded, no such rentals were due the State as a matter of law, which exceptions were by the trial court sustained, and the State having declined to amend, the suit was dismissed; hence this appeal.

The facts alleged were that pursuant to Chap. 83, Acts of 1917, a permit was issued to one Ray Wheatley on August 24, 1925, to prospect for oil and gas on the land in question. Wheatley assigned the permit to the Marland Oil Company, which developed the land, made proof thereof as required by law, and secured the oil and gas lease thereon from the Land Commissioner on February 7, 1927. This lease provided that it should run “for a term of ten years, with the right of renewal, or renewals,” and further that: “In addition to the two dollars per acre already paid on each acre included herein, the owner of the rights herein conveyed shall pay a like sum annually hereafter in advance on the area included herein, which shall be paid on or before the expiration of each year during the life, of this contract * * ‡»

The foregoing language was in keeping with, and obviously based upon, the provisions and requirements of Chap. 83, § 7, Sub. 2, Acts of 1917, p. 160, which provided: “Upon the payment of two dollars per acre for each acre in the permit a lease shall be issued for a term of ten years or less, as may be desired by the applicant, and with the option of a renewal or renewals for an equal or shorter period, and annually after the expiration of the first year after the date of the lease the sum of two dollars per acre shall be paid during the life of the lease, * * *.”

This section of the 1917 Act was amended in 1925 (Acts 1925, 39th Leg., Ch. 140, § 1, Vernon’s Ann. Civ.St. Art. 5.344, “so as to read as follows:” “Upon the payment of $2.00 (two dollars) per acre for each acre in the permit a lease shall be issued for a term of ten (10) years, or less, as may be desired by the applicant, and with the option of a renewal or renewals for an equal or shorter period, and immediately after the experation (expiration) of the first year after the date of the lease, the sum of (two) ($2.-00) dollars per acre shall be paid during the life of the lease, * *

It is the contention of the State that the 1925 amendment did not relieve the lessee and its assignees from the payment of the $2 per acre annual rental; and the contention of appellees that the provisions of the law are read into and made a part of the lease; and that the 1925 amendment, properly construed, required the lessee to pay only the down payment of $2 per acre and one rental payment of $2 at the beginning of the second year of such lease; that such payments had been made by the lessee; that no further rental payments were reguired for a renewal of such lease in 1937; and consequently that nothing is due the State as further rentals.

The contention of the State is predicated upon its construction of the statutes involved; and its reliance upon the case of Grayburg Oil Co. v. Giles, Tex.Sup., 186 S.W.2d 680, as controlling here under the doctrine of stare decisis. The Attorney General in his brief admits that “The lease in question was issued on February 7, 1927, when Chapter 140 was in force. The payment of rentals on this lease is governed by the provisions of that Act.” The lease in question was executed on a printed form, obviously drawn to conform with the 1917 Act, and does not embody the language of the 1925 Act. It is conceded by all parties, however, that the language of the statute in force at the time, authorizing execution of such lease and prescribing its terms, is to be read into and deemed to be a part of the lease.

The 1925 Act, in so far as rentals- were concerned, did not merely amend the 1917 Act (Sec. 7, Sub. 2 thereof) by making an addition thereto, but amended same “so as to hereafter read as follows” and changed the word “annually” as applied to rentals to read “immediately”. It is true that the language “during the life of the lease” was retained; and the State insists that this latter clause, either manifests an intention of the Legislature to require such payments each year during the life of such lease; or at least makes its meaning ambiguous and uncertain, which ambiguity and uncertainty should be construed strictly in favor of the State. However, the Legislature in rewriting and re *884 enacting this section of the 1917 Act, did change the word “annually” to read “immediately”. It must have had some purpose in doing so. The two words have separate and distinct meanings. To sustain the State’s contention that the Legislature intended the word “immediately” to mean “annually” would be not merely to restrict or enlarge its meaning to effectuate a clear intent; but would amount to a clear judicial substitution of language of different meaning. If the Legislature had meant that rentals should be paid annually, as the 1917 Act provided, then there would have been no purpose whatever in changing the language clearly and expressly so providing. And if the language “immediately after the experation (expiration) of the first year after the date of the lease” had been intended merely to fix the time of payment of such rental, then to effectuate a continuance of annual rentals, it would be necessary for us to read into the Act “and a like sum each year thereafter during the life of the lease,” or language of similar import. This would clearly be adding to the law by judicial construction something which apparently the Legislature had designedly omitted; and something which, had it so intended, could easily have been •so stated. This the courts have no authority to do.

It is a canon of statutory construction that literal meaning of a statute may be disregarded where the intent of the law is plain, ascertainable from its own provisions, and where, to give the language used a literal meaning, would work an .absurdity or manifest injustice. Gilmore v. Waples, 108 Tex. 167, 188 S.W. 1037; Sutherland on Stat. Construction, §§ 364, .368; SO Am.Jur., §§ 240, 241, pp. 233-237; Annotations: 3 A.L.R. 404, 126 A.L.R. 1325. While the 1925 Act did retain and .carry forward the language of the 1917 Act “during the life of the lease,” it would be a strained construction, we think, to hold that this language evidences a legislative intent that by the word “immediately” the Legislature meant “annually”. The very fact that the Legislature in rewriting the statute itself substituted the word ■“immediately” for the word “annually” indicates a contrary intent. This clause may therefore be regarded as surplusage.

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Bluebook (online)
193 S.W.2d 882, 1946 Tex. App. LEXIS 817, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-huber-corporation-texapp-1946.