Title Insurance & Trust Co. v. Amalgamated Oil Co.

218 P. 71, 63 Cal. App. 29, 1923 Cal. App. LEXIS 231
CourtCalifornia Court of Appeal
DecidedJuly 16, 1923
DocketCiv. No. 3938.
StatusPublished
Cited by12 cases

This text of 218 P. 71 (Title Insurance & Trust Co. v. Amalgamated Oil Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Title Insurance & Trust Co. v. Amalgamated Oil Co., 218 P. 71, 63 Cal. App. 29, 1923 Cal. App. LEXIS 231 (Cal. Ct. App. 1923).

Opinion

CURTIS, J.

On April 10, 1919, plaintiff’s testator, C. C. Conroy, executed and delivered to one Thomas H. T. Purman a lease of certain land situated in the county of Los Angeles. The lease gave to the lessee the exclusive right to enter upon the lands described therein, and to drill for, produce, extract, and take oil, gas, asphaltum, and other hydrocarbon substances from said land, and is what is commonly ■known and referred to as an oil lease. On May 9, 1919, said Thomas H. T. Purman and his wife, Jessie Purman, assigned said lease to the defendant herein, the Amalgamated Oil Company.

The portions of the lease material to a decision of this case are as follows:

“This agreement, made and entered into this 10th day of April, 1919, by and between C. C. Conroy, a single man, hereinafter called the lessor, and Thomas H. T. Purman, hereinafter called the lessee, both of the city and county of Los Angeles, state of California.
“Witnesseth: For and in consideration of the sum of ten ($10.00) dollars, in hand to the lessor paid, and of other valuable considerations, the receipt of all of which is hereby acknowledged, the lessor has leased, let and demised, and by these presents does lease, let and demise, unto the lessee the land hereinafter described, . . .
“The lessee shall hold said lands for the period of twenty years from the date hereof, unless otherwise forfeited by the lessee in accordance with the terms of this lease; and the lessee hereby leases from the lessor the above described lands for the purposes aforesaid and upon the conditions and for the considerations herein set forth.
“The lessee agrees that within one (1) year from the date hereof he will commence to drill a first well on the demised property and continue said operation of drilling with due diligence unless prevented by causes beyond his control, till oil is found therein in paying quantities or the lease abandoned, . . .
“Upon the violation by lessee of any of the provisions, terms or conditions of this lease, lessor may, by notice to lessee as provided, cancel and set aside this lease, and said *31 cancellation shall take effect thirty (30) days after giving such notice, and then only in the event that said provision, term or condition, or provisions, terms and conditions, has or have not in the interim been complied with by lessee.
“In the event lessee has not begun the operation of drilling the first well within one year from date hereof, lessor agrees to extend the time therefor one year for the additional considerations of six hundred ($600) dollars for the first month, seven hundred ($700.00) dollars for the second month, eight hundred ($800) dollars for the third month, nine hundred ($900) dollars for the fourth month, one thousand ($1000) dollars for the fifth month, eleven hundred ($1100) dollars for the sixth month, twelve hundred ($1200) dollars for the seventh month, thirteen hundred ($1300) dollars for the eighth month, fourteen hundred ($1400) dollars for the ninth month, fifteen hundred ($1500) dollars for the tenth month, sixteen hundred ($1600) dollars for the eleventh month, and seventeen hundred ($1700) dollars for the twelfth month thereof. Said considerations shall be paid monthly in advance and shall cease at the beginning of drilling operations or the abandonment or forfeiture of this lease. '
“Lessee reserves the right to forfeit this lease, in whole or in part, at any time he may elect, by the payment of ten dollars, as liquidated damages in full, to lessor for so doing.”

It does not appear that the lessee, or his assignee, the defendant herein, ever entered into possession of the lands described in said lease, or ever commenced the drilling of any well thereon. We assume that no such entry was made, and that no well ivas ever drilled, for it was stipulated at the trial that the defendant, by virtue of the right given it under the assignment, had elected to keep said lease alive, by the payment of the monthly payments as provided in said lease, and had paid to the said C. C. Conroy the monthly payments provided for in said lease up to and including the payment of $1,500 for the month 'of January, 1921.

The case was submitted upon an agreed statement of facts, and among other stipulations were the following:

“That, during the month of February and prior to February 9, 1921, the defendant, by its officers authorized *32 therefor, issued its voucher check in the sum of $1,600.00, payable at and drawn upon the Farmers & Merchants National Bank of Los Angeles, Cal., in payment of the monthly rental for the month of February, 1921, and sent said check to the said C. C. Conroy through the United States mail. That thereafter and in due course said check was received and accepted by said C. C. Conroy. That thereafter and on the 9th day of February, 1921, the defendant telegraphed to the Farmers & Merchants National Bank at Los Angeles, Cal., instructing said bank to refuse payment on said check.
“That thereafter and on the 10th day of February, 1921, during the regular banking hours, said check duly indorsed was presented by said C. C. Conroy to said Farmers & Merchants National Bank for payment, and payment was refused. Said voucher check with its indorsements and duly marked ‘payment refused’ is in words and figures as follows :
66636
Expense Voucher Form 219-E Standard
No. 2011
Amalgamated Oil Company Los Angeles, Cal., Feb. 3, 1921, to C. C. Conroy, Dr. Registered in February, 1921, 1819 Montrose St., Los Angeles, Calif.
For rental from February 10th, to March 10th, 1921, of property situated in the San Francisco Ranch, Los Angeles County, California, as per terms of lease dated April 10, 1919,
$1,600.00#
Feb 5 1921
Examined: W. Hutchison For the Auditor. Approved: H. M. Giannini, for the Auditor. Approved: F. T. Wilkinson.
Approved for payment R. F. Henley, For the Auditor.
When signed by the Treasurer or his duly authorized representative and properly indorsed by Payee, this voucher becomes a SIGHT DRAFT on this Company for One Thousand Six Hundred Dollars ($1,600#) in full settlement of above account and is payable through Farmers and Merchants National Bank, Los Angeles, Cal.
B. J. Rose, For the Treasurer.
*33 (Indorsed with rubber stamp on the face of said check ‘PAYMENT STOPPED,’ also Clearing Hse. Stamp)
(Reverse or back of said check) ‘Indorse here: This Voucher is indorsed as an acknowledgment of the receipt of payment in full of account as stated within. C. 0. Conroy, Payee. ’
“It was further stipulated that on said 10th day of February, 1921, and at or about the hour of 4:00 o’clock P.

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Bluebook (online)
218 P. 71, 63 Cal. App. 29, 1923 Cal. App. LEXIS 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/title-insurance-trust-co-v-amalgamated-oil-co-calctapp-1923.