Uzee v. Bollinger

178 So. 2d 508
CourtLouisiana Court of Appeal
DecidedJuly 1, 1965
Docket6428
StatusPublished
Cited by5 cases

This text of 178 So. 2d 508 (Uzee v. Bollinger) 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
Uzee v. Bollinger, 178 So. 2d 508 (La. Ct. App. 1965).

Opinion

178 So.2d 508 (1965)

Lucille UZEE, Plaintiff-Appellant,
v.
Donald BOLLINGER, Defendant-Appellee.

No. 6428.

Court of Appeal of Louisiana, First Circuit.

July 1, 1965.
Rehearing Denied September 27, 1965.

*509 R. Gordon Kean, Jr., of Sanders, Miller, Downing, Rubin & Kean, Baton Rouge, Guzzetta & LeBlanc, Thibodaux, F. D. V. de La Barre, New Orleans, for appellant.

Victor A. Sachse, of Breazeale, Sachse & Wilson, Paul M. Hebert, Baton Rouge, John X. Allemand, Thibodaux, Moise S. Steeg, Jr., of Steeg & Shushan, New Orleans, for appellee.

Before ELLIS, LOTTINGER, LANDRY, REID and BAILES, JJ.

ELLIS, Judge.

By deed dated August 13, 1945 Miss Lucille Uzee sold a tract containing eighty (80) arpents of land to Mr. Donald Bollinger. The deed contains the following language:

"It is well understood and agreed between the parties hereto that the vendress, Miss Lucille Uzee, reserves from this sale one-fourth (1/4) of all oil, gas, sulphur and other minerals on, in and under the property hereinabove described and presently conveyed.
"It is further agreed and understood between the parties that the vendee herein, Donald Bollinger, is granted the exclusive right to lease the aforedescribed property for oil, gas, sulphur and other minerals and to receive therefrom the whole of the rental or bonus money from said lease."

On December 30, 1964, defendant granted a mineral lease which provided for a 1/8 base royalty. This lease ultimately became the property of The Texas Company who drilled a single but productive well. Defendant thereafter became dissatisfied and successfully prosecuted a suit to have that lease canceled. Bollinger v. Texas Company, 232 La. 637, 95 So.2d 132.

On April 21, 1954, just prior to the institution of that suit, defendant granted a top lease providing for a 1/8 base royalty to Mr. Louis J. Roussel and entered into a collateral agreement with him, wherein Mr. Roussel agreed to pay defendant $3,500.00; to pay all costs in connection with the suit against The Texas Company; to hold defendant harmless "* * * from any such expenses, as well as any losses, damages or suits which may directly result from the execution of this agreement or the execution of the * * * lease * * *"; and to make certain loans to defendant during the pendency of the suit against The Texas Company. The agreement required Mr. Roussel to execute an overriding royalty interest in favor of defendant equivalent to 1/16 of all minerals produced. The agreement specified that the overriding royalty interest "* * * is not to be reduced or otherwise divided because of the ownership by any other person * * * of royalties or minerals in the said tract * * *". Also in that agreement Mr. Roussel bound himself to grant a production payment to defendant of $25,000.00 payable out of 1/16 of 7/8 of the minerals produced, and a second *510 similar production payment of $10,000.00 to defendant's attorneys. Other portions of the collateral agreement are not important here.

On June 28, 1957, following the successful conclusion of Bollinger v. Texas Company, supra, defendant executed an amendment to the top lease in favor of Mr. Roussel to show that in executing the original top lease defendant had acted individually and as the agent and attorney in fact for Miss Uzee.

Payments to the defendant under the collateral agreement were made, as were payments to plaintiff of 1/4 of 1/8 of the minerals produced.

Dissatisfaction with Mr. Roussel and his assignee, Republic Petroleum Corporation, developed and on January 29, 1960, defendant filed suit to cancel the lease granted to Mr. Roussel on April 21, 1954. The pleadings in that suit fully disclosed all of the facts regarding the top lease and collateral agreement and plaintiff was made a defendant in that suit as she had been in the suit against The Texas Company. After trial, but before the rendition of judgment, the Bollinger v. Roussel suit was compromised, and, in consideration, defendant received an additional 1/16 overriding royalty interest and a $45,000.00 production payment, payable out of 1/16 of the net working interest of Republic Petroleum Corporation.

The instant litigation was begun in March 1963 by Miss Uzee who is the usufructuary of the reservation contained in the original 1945 deed to Bollinger. The lower court rendered judgment dismissing plaintiff's demands and she, along with Mr. Clarence Arcement, who is her friend and agent and the owner of the naked interest in the mineral reservation, has appealed. Miss Uzee is attempting to have her reservation recognized as a mineral interest and to force Mr. Bollinger to account for 1/4 of the two production payments and for 1/4 of the two overriding royalties granted him in the collateral agreement and in the compromise.

Mr. Louis J. Rousell was made a third party defendant by Mr. Bollinger under the above "hold harmless" agreement.

Plaintiff contends that defendant was her agent and had the duty of utmost fair dealing in connection with the leasing of what plaintiff claims is her mineral servitude. Claiming that this standard was not met, plaintiff seeks an interest in both the production payments and overriding royalties. In the alternative, plaintiff claims that, at a minimum, she is entitled to one-fourth of the two overriding royalties as these could have been and should have been secured by defendant in the form of additional interests in production.

Plaintiff has relied on Horn v. Skelly Oil Co., 224 La. 709, 70 So.2d 657, and Namie v. Namie, La.App., 134 So.2d 572, as creating a fiduciary relationship between a landowner holding executive rights and a mineral servitude owner.

In the Horn case the Supreme Court characterized the reservation in question as a mineral servitude and the grant of the privilege of leasing that interest as a mandate coupled with an interest. However, only the nature of the reservation was important in that case, there being no claim that a fiduciary duty was created. Nor does the Namie case establish the fiduciary relationship or impose a duty of utmost fair dealing on the holder of the executive right. In that case, Nomie Namie sold land to his brother, Joe, reserving a mineral interest, including half of all bonus and rental. Within the ten year period Joe granted a lease which provided that the $4,000.00 bonus be placed in escrow pending title examination. The court followed the doctrine of Mulhern v. Hayne, 171 La. 1003, 132 So. 659, that a joint lease with a primary term running past the expiration date of an outstanding interest keeps the interest alive during the lease period. The question in the case was one relating to prescription.

*511 In order for the plaintiff to establish a fiduciary relationship between herself and the defendant and thereby successfully maintain this action for an accounting, it is necessary that the relationship of principal and agent exist. The lower court found that the law of this state as applied to the facts before the court did not support such a relationship and with this we concur. There are a number of cases which reject the doctrine of agency with reference to the person having the right to lease land.

In the case of Hightower v. Maritzky, 194 La. 998, 195 So. 518, the defendants contended that, by a similar reservation, the plaintiff had been appointed agent for the defendant and that, therefore, prescription was inapplicable to the case as it could not run in favor of an agent against the principal. In rejecting that argument the court said at page 520:

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Bluebook (online)
178 So. 2d 508, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uzee-v-bollinger-lactapp-1965.