Torgeson v. Connelly

348 P.2d 63, 12 Oil & Gas Rep. 132, 1959 Wyo. LEXIS 3
CourtWyoming Supreme Court
DecidedDecember 16, 1959
Docket2874
StatusPublished
Cited by47 cases

This text of 348 P.2d 63 (Torgeson v. Connelly) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Torgeson v. Connelly, 348 P.2d 63, 12 Oil & Gas Rep. 132, 1959 Wyo. LEXIS 3 (Wyo. 1959).

Opinion

Mr. Justice PARKER

delivered the opinion of the court.

Plaintiff Vaughan B. Connelly sued A. C. Torgeson (and others who do not appear here) to quiet title in three Federal oil and gas leases. One of these has since expired and is not in issue. The other leases, Evanston 021741 and 021743, 1 in 1952 were owned by one Heintze who assigned an undivided one-half interest therein to plaintiff Connelly. This one-half interest is not contested in the present action. The remaining one-half interest in the two leases was assigned from Heintze to Davis and subsequently from Davis to Transco Gas and Oil Corporation. Transco on March 3, 1952, made an “operating” agreement with McElroy and Markey granting and subleasing the exclusive right to drill for oil and gas on certain lands, including the ones in issue here, with the provision that the sublessor would retain a 50 percent working interest in the lands and sublessees might elect to quitclaim as to certain portions of the lands and thereby be released from further obligations as to them. On May 19, 1952, McElroy sent this agreement to the Bureau of Land Management, U. S. Department of Interior, at Evanston, but the manager because of the termination of one of the leases mentioned therein and certain alleged wrong serial numbers on other leases returned that portion of the agreement which contained the only land description. On August 21, 1954, McElroy and Markey, with the consent of Transco, assigned all of their rights in the operating agreement with Transco to Torgeson, who recorded the assignment in Lincoln County but did not record the operating agreement with the attached exhibit containing the land description. Meantime, on June 5, 1953, Transco, ignoring its agreement with McElroy and Markey, executed unacknowledged assignments of its undivided one-half interest in each of the said leases to Austgen, which were placed of record in Sublette County on August 9, 1955. On August 11, 1955, Austgen executed unacknowledged assignments of his interest in the leases to plaintiff Connelly. These assignments were approved by the„Bureau of Land Management on October 12, 1955, and placed of record in Lincoln County on November 2, 1957, during the pendency of this suit. Connelly claims the interest here in issue by reason of the assignments from Transco to Austgen and Austgen to him, while Torgeson claimed his interest by reason of Markey and McElroy’s assignment of their operating agreement with Transco.

The district court gave judgment for plaintiff Connelly, quieting title in him, and defendant 2 has appealed, insisting that plaintiff failed to sustain the burden of proof, that defendant has legal rights in the leases, and that such rights are not dependent upon the Federal approval of the operating agreement. In the argument that plaintiff failed to sustain the burden of proof, defendant quotes § 66-119, W.C.S.1945, now § 34-20, W.S.1957:

“Every conveyance of real estate within this state, hereafter made, which shall not be recorded as required by law, shall be void, as against any subsequent purchaser or purchasers in good faith and for a valuable consideration of the same real estate or any portion thereof, whose conveyance shall be. first duly recorded.”

Defendant emphasizes that if plaintiff intends to claim by reason of this statute he must show due recording of the conveyance from Austgen, the payment of valuable consideration for it, and purchase without *66 notice or knowledge of the operating agreement.

Defendant cites §§ 66-114, 66-116, 66-119, and 66-130, W.C.S.194S, now §§ 34-18, 34-21, 34-20, and 34-26, W.S.19S7, which provide respectively that the conveyance be recorded in the county where the conveyed land lies, that it is notice to subsequent purchasers from the time of its delivery to the register, that every conveyance not recorded as required by law is void as against a subsequent purchaser in good faith for valuable consideration whose conveyance is first duly recorded, and that a register of deeds who shall record a conveyance not acknowledged is liable to a hundred dollar penalty. He argues:

“ * * * Under the clear provisions of our recording law they [the assignments from Transco to Austgen and Austgen to Connelly] were therefore not entitled to be recorded and acceptance and recording thereof * * * was a violation of the law. Since the statute has protected only a subsequent purchaser who first duly records, it follows that plaintiff has not brought himself within the protection of the law and under no circumstances can he claim to be a bona fide purchaser. * * ⅜»

Defendant cites none of the authorities which support such a view by holding that constructive notice 3 is a creature of positive law, ineffectual unless within the provisions of the statute. 66 C.J.S. Notice § 6; 45 Am.Jur. Records and Recording § 108; Annotation, 59 A.L.R.2d 1299.

Constructive notice by recording is, as we pointed out in Dame v. Mileski, Wyo., 340 P.2d 205, 208, a matter entirely dependent upon statute. 4 This is true notwithstanding the fact that in some jurisdictions persons have been charged with constructive notice of matters which have not been recorded in the manner provided by statute. One instance of this has occurred in California where the constructive notice has been accomplished by means of the statute regarding judicial'notice (§ 1875, Civil Procedure, West’s Annotated California Codes, 1955) which provides:

“Judicial notice. Courts take judicial notice of the following facts:
* ijc ⅜ ⅝ ⅝ ⅜
“3. Public and private official acts of the legislative, executive and judicial departments of this state and of the United States, and the laws of the several states of the United States and the interpretation thereof by the highest courts of appellate jurisdiction of such states.”

This statute, broad as it is, has been enlarged by the courts of that jurisdiction in their holding that since they take judicial notice of the proceedings in Federal bureaus the litigants are likewise charged with constructive notice of such occurrences. Livermore v. Beal, 18 Cal.App.2d 535, 64 P.2d 987; Arnold v. Universal Oil Land Co., 45 Cal.App.2d 522, 114 P.2d 408. In Wyoming our statute does not permit courts to take judicial notice of the occurrences in Federal bureaus, and it would therefore be purposeless to speculate on the propriety of litigants being charged constructively with facts which a court can judicially notice. In any event, the Wyoming legislative provisions are definite that the filing or leaving of a conveyance in any office other than that of the register of deeds cannot constitute constructive notice.

Lawyers and laymen alike have on occasion complained that, as to mineral rights, there is a lack of co-ordination between the State and the Federal Government which results in added efforts and expense for title examination.

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Bluebook (online)
348 P.2d 63, 12 Oil & Gas Rep. 132, 1959 Wyo. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/torgeson-v-connelly-wyo-1959.