Stebbins v. New York State Natural Gas Corp.

79 Pa. D. & C. 1, 1951 Pa. Dist. & Cnty. Dec. LEXIS 306
CourtPennsylvania Court of Common Pleas, Tioga County
DecidedOctober 9, 1951
StatusPublished

This text of 79 Pa. D. & C. 1 (Stebbins v. New York State Natural Gas Corp.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Tioga County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stebbins v. New York State Natural Gas Corp., 79 Pa. D. & C. 1, 1951 Pa. Dist. & Cnty. Dec. LEXIS 306 (Pa. Super. Ct. 1951).

Opinion

Rosenfield, P. J.

(42nd judicial district, specially presiding),

— Plaintiff George A. Stebbins, by Joseph B. Stebbins, his next friend, and Joseph B. Stebbins, Milford H. Stebbins, Arnold J. Stebbins, and Erma Kilbourne, children of George A. Stebbins, and grantees in a deed from him and Theodore K. Karhan and Olga Kyofski, brought this bill in equity against defendant asking that two modification agreements entered into (1) between George A. Stebbins and defendant, and (2) between George A. Stebbins and Theodore K. Karhan and Olga Kyofski, be canceled and set aside, and that defendant be restrained and enjoined from entering upon the [3]*3premises described in those modification agreements, and from preparing the premises for the storage of gas, and for such other relief as may be necessary and proper. Plaintiff’s claim that the father was mentally incapable of entering into a modification agreement on June 10, 1949, that this agreement should be canceled as to Mr. Karhan and Mrs. Kyofski because they entered into the cancellation agreement only because Stebbins had done so, and the four Stebbins children claim that the modification agreement is invalid as to them because their father, George A. Stebbins, made a deed conveying the property to them antedating the modification agreement, though this deed was not recorded until after the modification agreement had been recorded. Plaintiff Olga Kyofski contended that the modification agreement was invalid as to her because her husband had not joined therein.

Defendant filed an answer thereto denying ' that George A. Stebbins was incapable of signing the contract on June 10, 1949, denying that any fraudulent representations were made to Stebbins, admitting that Joseph Kyofski, husband of the plaintiff, Olga, had not signed the modification agreement, denying that defendant had any notice of any deed from George A. Stebbins to his children until after it had contracted and placed on record the modification agreement, and averring that the modification agreement was legal as to Olga Kyofski, it being their contention that this agreement is a mere lease for the storage of gas in the place from which gas had previously been taken by defendant under lease from plaintiff.

Findings of Fact

1. All plaintiffs are adult citizens of the State of Pennsylvania.

2. Defendant is a New York State corporation authorized to transact business in Pennsylvania, with its principal office in Pittsburgh.

[4]*43. Under date of April 11,1935, plaintiff George A. Stebbins entered into an agreement with defendant’s predecessor in title in which he leased to the latter for the purpose of drilling for and producing oil and gas a certain tract of land in Clymer Township, Tioga County,' Pa., by lease recorded April 15,1935, in Tioga County recorder’s office in Deed Book 203 at page 325.

4. Under date of April 25,1935, Albert Karhan entered into a similar agreement with the lessee, defendant’s predecessor in title, under which they leased another tract of land in the same township for the same purposes by lease recorded in Deed Book 203 at page 362.

5. On September 28, 1935, the lessors mentioned in paragraphs 3 and 4 entered into what is known as a pooling agreement with lessee’s immediate successor in title. This was recorded in Deed Book 207 at page 125. The purpose of the agreement was to avoid the draining of each lot by a well on the other, and to provide a just distribution of the proceeds of a paying-well on either lot. The validity of this instrument and those mentioned in the proceding two paragraphs is not attacked by the bill in equity.

6. Present defendant is the successor of the lessee under the pooling agreement in lieu of the Potter Development Company.

7. Present defendant is successor to the lessee in the original lease agreements mentioned in findings 3 and 4.

8. On March 20, 1937, George A. Stebbins, “in consideration of $1.00 & natural love & affection” conveyed to Joseph B. Stebbins .86 of an acre of land which was part of the land that was under the original gas and oil lease entered into by George A. Stebbins. This deed was acknowledged November 22, 1938, and recorded March 11, 1947, in Tioga County Deed Book 245 at page 95.

[5]*59. No notice of the existence of this deed was given to defendant, or its predecessors, and no notice of the recording thereof was given to them, and they had no notice thereof at the time when the modification agreement of June 10,1949, was entered into between Stebbins and them, and this despite the fact that the lease contained the following provisions : “Lessees shall not be bound by any change in ownership of said land or the assignment of royalties thereon until furnished with original instrument of conveyance or assignment.”

10. On November 3, 1938, George A. Stebbins executed a deed in favor of his four children, Joseph B. Stebbins, Milford EL, and Arnold J. Stebbins, and Erma Kilbourne, plaintiffs herein, purporting to convey land covered by oil and gas lease mentioned in the third finding of fact. This deed was acknowledged on November 3, 1938, and recorded March 14, 1950, in Tioga County Deed Book 255 at page 198.

11. Until approximately the date of the recording of the deed, and until long after the recording of the modification agreements, the deed remained in the possession and the control of the grantor in a drawer of a bureau of his private room.

12. While this deed was in his possession and control, George A. Stebbins stated that he had “fixed everything so his children would get his property without any trouble”, and said, “I have the deed right here”. At the same time he contended that “he still owned the land in his own name”.

13. Up to the date of the modification agreements, George A. Stebbins continued to receive for his own benefit and use the income due the lessor under the oil and gas leases from the predecessor in title of defendant.

14. Since the date of the modification agreements defendant has, at the proper times, tendered payment of all rentals due under the gas and oil leases.

[6]*615. None of these payments or tenders were ever challenged and are not now challenged by plaintiffs on the ground that they should have been made to anyone other than to George A. Stebbins; and his children desired them to be so made, and never, even at the trial, asserted title thereto in themselves.

16. At least two of the family witnesses certified the right of their father to receive these payments by endorsing under his endorsement checks issued to him for rentals and payments due.

17. The only testimony in the case on the part of plaintiffs to the effect that the deed from George A. Stebbins to his children was delivered prior to the modification agreements is that of Joseph B. Stebbins, one of the parties plaintiff, and the leader in the attempt of plaintiffs to have the modification agreements declared void as to his father. He also testified that other members of the family knew of the delivery.

18. The deed of George A. Stebbins to his children was not delivered until about the date of recording, March 1950.

19. There is no evidence that the originals of the deeds of George A. Stebbins to his four children, and of George A. Stebbins to Joseph B. Stebbins were ever exhibited to defendant or its predecessor in title, as provided by the original oil and gas leases.

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Bluebook (online)
79 Pa. D. & C. 1, 1951 Pa. Dist. & Cnty. Dec. LEXIS 306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stebbins-v-new-york-state-natural-gas-corp-pactcompltioga-1951.