Sun Oil Co. v. Stout

46 So. 2d 151, 1950 La. App. LEXIS 583
CourtLouisiana Court of Appeal
DecidedApril 28, 1950
Docket7491
StatusPublished
Cited by10 cases

This text of 46 So. 2d 151 (Sun Oil Co. v. Stout) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sun Oil Co. v. Stout, 46 So. 2d 151, 1950 La. App. LEXIS 583 (La. Ct. App. 1950).

Opinion

46 So.2d 151 (1950)

SUN OIL CO.
v.
STOUT et al.

No. 7491.

Court of Appeal of Louisiana, Second Circuit.

April 28, 1950.
Rehearing Denied May 31, 1950.

Jodie Stout, Rayville, W. M. Phillips, Shreveport, Herold, Cousin & Herold, Shreveport, Hussey & Smith, Shreveport, Cotton & Bolton, Rayville, M. T. Monsour, Shreveport, for appellants.

C. T. Munholland, Monroe, for appellee, Mount Ollie Baptist Church No. 4.

Warren Hunt, Rayville, for Sun Oil Co.

KENNON, Judge.

Alleging that it was purchaser of oil produced under a lease from the owners of a designated forty acre tract of land in Richland Parish, Louisiana, and that it was unable to distribute the proceeds of the sale of royalty oil to the satisfaction of all the claimants thereto, plaintiff, acting under the provisions of Act No. 123 of 1922, deposited the 1/8th landowner-royalty proceeds in Court and impleaded some forty claimants, praying to be relieved of further liability for the payment of the royalty or for costs of court.

Among the defendants was the Mount Ollie Baptist Church No. 4, whose answer set forth that it was the owner of a one acre tract approximately seventy yards square in the southeast corner of the tract, in controversy by virtue of a deed dated October 7, 1925 from one John Davidson, who was then the owner of the forty acre tract.

This church's answer further set forth that it had not executed any oil and gas lease to the plaintiff or to any other parties *152 and was therefore the owner of 1/40th of the entire amount of oil produced from the forty acre tract. The answer concluded with the prayer that the church be recognized as owner of the one acre tract, including full mineral rights, and as such awarded 1/40th of the gross production, or, in the alternative, be awarded 1/8th of 1/40th with reservation of its rights to claim 8/8ths of the production from the church acre.

The answer of the other defendants set forth various claims and interests which are no longer at issue because at the trial of the case all defendants, except the Mount Ollie Baptist Church No. 4, agreed on a proportion of ownership and distribution of proceeds for 39/40ths of the entire tract, and all united in a denial of the one acre interest claimed by the defendant church. When this stipulation was filed, the District Court rendered judgment awarding 39/40ths of the royalties deposited to the defendants other than the Mount Ollie Baptist Church No. 4, and directed the Clerk to disburse same (less a designated reserve for court costs).

Judgment was further rendered recognizing the Mount Ollie Baptist Church No. 4 to be "owner of one acre of ground" in the drilling unit described, and decreeing this defendant to be entitled to 1/40th of all funds deposited in the registry of the Court, or thereafter accruing and deposited. The judgment reserved to the defendant church the right to claim the full 8/8ths of production from its described one acre tract.

From this judgment, all defendants except the Mount Ollie Baptist Church No. 4 have appealed to this Court.

The only testimony in the record is that presented by the defendant, Mount Ollie Baptist Church No. 4, which established the amount of money deposited in the registry of the Court by the purchaser of oil produced from the forty acres in controversy as a drilling unit under the terms and provisions of General Order No. 96 of the Department of Conservation, which was identified and offered in evidence. The record further established that only one well was drilled on this tract and that same was placed in the approximate center.

The defendant church offered in evidence a deed dated October 7, 1925 from one John Davidson to the defendant church, covering the one acre tract claimed by it. This deed was on a regular printed form for a cash deed in which it was stated that the vendor had "sold, conveyed and delivered" the property described. Relative to consideration, the deed contains the following paragraph: "The price for which the above sale and donation is made is that the herein above described property is to be used exclusively for the purpose of erecting a house of worship and for other purposes, with the distinct understanding that when and if the said property should ever be used for any other than Church purpose or if it should ever be discontinued as a church, then and in that event the title thereto is to revert to the owner of the forty of which this one acre is a part and be the property of the then owner of the said forty."

By stipulation of counsel for all parties, it was agreed that a church was built on the one acre tract soon after its acquisition in 1925, and that the vendee had used the tract and the church building thereon continuously since that date and was so using the premises at the date of the trial. No evidence was presented as to who is the present owner of the surface title to the forty acre tract.

Appellants' contention is that the intent of the parties to the above instrument was to convey only a servitude and that the defendant church acquired thereby no right beyond that of using the surface for religious purposes. Appellee contends that the instrument conveyed a fee title with a resolutory condition enforceable only in a direct action brought by the owner of the forty acre tract of which the one acre is a part.

The question presented, while a difficult one, is not new to the Louisiana jurisprudence. We find the applicable rule of law, together with citations of authority, contained in the following quotation in appellants' brief from the fairly recent *153 Louisiana Supreme Court case of Rock Island A. & L. R. Co. v. Gournay, 205 La. 125, 17 So.2d 89: "It is well-settled in this State that in deciding whether a fee simple title to land has been conveyed or a servitude or right-of-way thereupon has been granted by a deed, the intention of the parties thereto must be determined from the stipulations in the entire instrument, with a view of giving effect to all of the provisions therein contained and thereby avoid neutralizing or ignoring any of them or treating any of them as surplusage. Noel Estate v. Kansas City Southern & G. R. Co., 187 La. 717, 175 So. 468; Hunter Co., Inc., v. Ulrich, 200 La. 536, 8 So.2d 531; Parish of Jefferson v. Texas Co., 192 La. 934, 189 So. 580; Glassell v. Richardson Oil Co., 150 La. 999, 91 So. 431."

The Noel case, supra, quoted extensively in appellants' brief, was one in which the plaintiff had conveyed certain lands to the defendant railroad company. The language of the deed relevant to the present issue being as follows: "* * * containing nine & 68/100 (9.68) acres, more or less, said tract of land herein described is sold and conveyed for railroad purposes only and this grant shall be in perpetuity or so long as it is used by said Company, its successors, or assigns, for railroad purposes, but if abandoned by said Company for such use and purpose, then said land shall revert to the grantor herein or his heirs or assigns."

The Court reached the conclusion that the instrument granted a servitude only and "not the title to the land in fee simple with a resolutory condition." The Hunter Company and Parish of Jefferson cases, supra, both involved the conveyance of a right-of-way for canal purposes. In each of these cases, the Court found from an examination of the entire instrument and the surrounding circumstances that it was the intent of the donor to grant a servitude for the purposes expressed and not to convey the fee simple title with a resolutory condition.

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Cite This Page — Counsel Stack

Bluebook (online)
46 So. 2d 151, 1950 La. App. LEXIS 583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sun-oil-co-v-stout-lactapp-1950.