Thompson v. Inman

482 P.2d 927
CourtSupreme Court of Oklahoma
DecidedMarch 23, 1971
Docket42454, 42459
StatusPublished
Cited by27 cases

This text of 482 P.2d 927 (Thompson v. Inman) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompson v. Inman, 482 P.2d 927 (Okla. 1971).

Opinion

WILLIAMS, Justice.

This case involves a controversy over the ownership of a 160-acre tract of land with improvements thereon, in Douglas County, Nevada, described as:

East Half (E/2) of the Southwest Quarter (SW/4) and the West Half (W/2) of the Southeast Quarter (SE/4) of of Section 17, Township 12 North, Range 21 East.

*929 The land was homesteaded by J. H. In-man, Jr., and his wife, Betty Jean Inman, after they moved to Nevada from the vicinity of Thomas, Oklahoma, in 1956. Inman had been reared on a farm north of Thomas, where he was well acquainted with Clyde B. McNeill, who later became the owner of that town’s C. B. McNeill Grain Company. For a short period after he was discharged from military service, apparently with some undescribed disability, in 1951 or 1952, Inman trained horses for McNeill.

For the purpose of residing with his family on the above described Nevada land during the seven months of one year required of disabled veterans (in lieu of the three years required of others) to obtain a homestead patent, Inman built a three-room cabin there. During at least a part of the time that the Inmans were in Nevada, Betty Jean worked for that State’s Industrial Commission at Carson City, and established a bank account in her individual name in said city’s branch of the First National Bank of Nevada.

In 1959, Inman obtained title to the Nevada homestead by patent from the United States, and listed said property for sale with one Matheus of the Carson City Realty Company. Soon thereafter, at least part of the Inman family returned to Oklahoma, and Betty Jean became employed by the aforementioned C. B. McNeill Grain Company as a bookkeeper.

About this time, McNeill was interested in acquiring from the U. S. Government in Nevada what was termed “desert-entry land”. According to Inman’s testimony concerning the rules and regulations governing such acquisitions, if a person owned as much as 80 acres of land adjoining desert-entry land, he could make application to the Government to sell at public auction 720 acres of said desert-entry, non-isolated land, and, if his application was approved, he could then purchase it at the highest bid submitted at a public auction sale, which (at the time involved) usually ranged from $3.00 to $10.00 per acre. It may also be gathered from In-man’s testimony that the landowner, who first established his right to the water under it, had priority to its use over those owning adjoining land overlying the same underground water supply. As Inman’s homestead had the necessary area to qualify him for the purchase of two 720-acre tracts of desert-entry land, he and McNeill devised a scheme through which they hoped that, by Inman’s ostensibly sharing his ownership with McNeill, they could each qualify for the purchase of one such tract. Accordingly, they signed a witnessed, but undated, typewritten agreement entitled “Purchased Option”, which reads as follows :

“This agreement between J. H. In-man seller party of the first part and C. B. McNeill buyer party of the second part seller agree that second party will endorse note to the bank in which the proceeds will be received by the first party.. This in effect being a loan on 80 acres of land located in Nevada described as NE 40 of the SW ½ and the NW 40 of the SE ¼ Section 17 T 12N R21E Douglas County.
“Both parties will endeavor to purchase an additional 720 acres each from Federal Government adjoining each 80 they now own. If successful second party will pay the Government up to $3.00 maxim per acre. In this event also will pay first party $2,000.00 bonus for this 720.
“If not successful second party will have option to purchase 80 acres described above for 5,000 consideration. If first party did not pay above note and was paid by second party this amount would be deducted from 5,000 purchase price. If Option was refused then first party will have one year to sell and repay the $2,000 to second party.
“First party agrees to give second party first mortgage on above described 80 acres.”

By 1961, the aforementioned Nevada real estate broker, Matheus, had been unable *930 to sell the subject real estate for the price Inman desired, and it had apparently been taken off of the market. Inman and Mc-Neill then proceeded with their efforts to use it to obtain desert-entry land.

McNeill died on October 7, 1965, and, in less than three weeks thereafter, the County Court of Custer County appointed a Stillwater man, V. M. Thompson, Jr., as the executor of his estate.

During the next month thereafter, In-man made a trip to Nevada to see Matheus again and listed the subject property for sale at the reduced price of $250.00 per acre. Sometime during the following month, Matheus sold it to a California client, Mr. Satcho, and his three partners, Palmer, Cage, and Thompson, in parcels of 40 acres each, for a total price of $40,-000.00. By the terms of the sale, these buyers were each to pay $10,000.00, $5,-500.00 of which was to be in cash. Deeds were put in escrow to be delivered to them by the Title Insurance and Trust Company of Carson City. Thereafter, a sum approximating $22,000.00 was paid to said Company on the purchase price by the named purchasers; and said Company, pursuant to its instructions, deposited the money in Betty Jean Inman’s aforementioned Carson City bank account, from which it was thereafter paid to the In-mans by checks drawn on said account.

In the meantime, the McNeill estate’s executor, Thompson, hereinafter referred to as “plaintiff”, came into possession of an instrument purporting to be a warranty deed dated June 12, 1961, from Inman and his wife, Betty Jean, to the same 160 acres, and he caused it to be filed for record in Douglas County, Nevada, on December 31, 1965.

After plaintiff discovered that deeds conveying the same land from the Inmans to the above named California purchasers had been filed for record a few days before the latter one, he instituted the present action against Mr. and Mrs. Inman, hereinafter referred to also as “defendants”. In addition to alleging that defendants sold the subject Nevada real estate to McNeill as evidenced by the above described 1961 deed (a copy of which he attached to his petition) and that defendants had subsequently resold the same real estate to the above named California purchasers, plaintiff’s petition conceded that the latter were probably bona fide purchasers for value without notice, but further alleged that, at that time, Inman was not the owner of the property and that the sale to the California purchasers was made pursuant to a conspiracy and scheme of the defendants to defraud McNeill’s estate of the property, its ownership and the benefits thereof. Plaintiff also alleged, among other things, that the reasonable value of the real estate involved is $1,000.00 per acre and that the “fraudulent activities of the defendants” in dealing with it as alleged has resulted in damage to plaintiff in the amount of $160,000.00. Plaintiff prayed for judgment against defendants in that amount as actual damages, and for the further sum of $100,000.00 in exemplary damages, and for other relief not necessary to describe.

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Bluebook (online)
482 P.2d 927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-inman-okla-1971.