Villines v. Conatser

1931 OK 535, 2 P.2d 1024, 151 Okla. 144, 1931 Okla. LEXIS 573
CourtSupreme Court of Oklahoma
DecidedSeptember 15, 1931
Docket19747
StatusPublished
Cited by5 cases

This text of 1931 OK 535 (Villines v. Conatser) 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
Villines v. Conatser, 1931 OK 535, 2 P.2d 1024, 151 Okla. 144, 1931 Okla. LEXIS 573 (Okla. 1931).

Opinion

McNEILL, J.

This is an appeal from the judgment of the district court of Pottawatomie county rendered on the 9th day of March, 1928. The parties will be referred to as they appeared in the trial court, John A. Villines and Minnie C. Villines, his wife, plaintiffs in error, as plaintiffs, and John A. -Conatser, defendant in error, as defendant. Plaintiffs were the owners of and resided on a tract of land, comprising 193 acres, and had executed two mortgages on same in favor of the Oklahoma- Farm Mortgage Company, the first mortgage being to secure plaintiffs’ coupon notes to that company for $7,000, bearing interest at the rate of 7 per cent, per annum, and the second mortgage to secure a note 'in the sum of $1,400.

Plaintiffs having failed to pay the taxes on the premises in question for a number of years, and being in default of payment of interest on said notes, the Oklahoma Farm Mortgage Company instituted foreclosure proceedings against plaintiffs in the district court of Pottawatomie county on the second note and mca-tgage, and obtained a judgment against said plaintiffs for the amount due on said noté and decreeing foreclosure of the premises in question. The lands were thereafter advertised to be sold at public auction at 2 p. m. on August 24, 1925. On this- day the plaintiff, John A. Villines, stopped at Romulus. Okla., on his way to Tecumseh, and took the matter up with defendant in reference to stopping the sale, if possible. At that time, defendant agreed to pay off the judgment against the land, court costs, taxes, abstract fees, etc., to the amount of $2,750, in consideration of which plaintiff agreed to convey to defendant an undivided one-eighth interest in and to the oT and gas royalty in the land. Plaintiffs gave defendant their note for $2,750 due on December 1, 1925, and a second mortgage on the land to secure the same. Later, another interest coupon on the $7,000 first mortgage to the Oklahoma Farm Mortgage Company became due and payment of same was demanded of plaintiffs, and foreclosure proceedings threatened in the event of nonpayment. PlainFffs were at the time unable to pay the same and after a discussion of the demands of the Oklahoma Farm Mortgage Company for the payment of t-he interest coupon due, said plaintiffs and said defendant entered into a further agreement designated as an agency or optional contract dated October 30, 1925, by the terms of which said defendant was appointed as agent to sell the premises in question, and was given an option on same expiring on June 1. 1926. Defendant also agreed to pay the additional $710 interest due to the Oklahoma Farm Mortgage Company, and extended the due date on the plaintiffs’ note of $2,750, to which had been added said additional interest from December 1, 1925, to June 1, 1926. Both parties liad the right to sell the premises in question for $12.500. A certain 80 acres of land in question was to sell for not less than $6,000, being approximately $75 an acre, another SO acres of said premises for not less than $4,000, or not less than $50: an acre, and the remaining at not less than $2,- *145 500, or approximately $62.50 an acre. Either party hacl the right to sell one-half of the royalty for not less than $17.50 per acre and to apply the proceeds on (he payment of the indebtedness to the Oklahoma Farm Mortgage Company and to defendant. At the same time the plaintiffs executed to defendant a warranty deed to said premises subject to the Oklahoma Farm Mortgage Company note of $7,000, which deed was placed'in escrow in the Tecumseh National Bank at Tecumseh, Okla., with instructions to the bank that, in the event of inability of the piaintiffs or defendant to sell the land in question on or before June 1, 1926, and to pay the amount due, the Tecumseh National Bank was authorized and directed to deliver said deed out of escrow to defendant, and that plaintiffs’ indebtedness to the defendant should thereupon become and be canceled. Plaintiffs had the contract examined by their attorneys before the same was signed.

Pursuant to said agreement, defendant paid the $710 due on said interest coupon and also an additional tax certificate, 'increasing plaintiffs’ indebtedness to the defendant in the sum of $3,550.

On an adjoining tract of land, about one-half mile south of the main body of plaintiffs’ land, a well for oil known as the Pear-' son well, had been commenced for sometime and was being drilled. This well was in the course of drilling for three or four years,. and plaintiffs apparently relied on paying their indebtedness on the strength of this well being brought in as a -producer, and relying on this hope the time of payment of plaintiffs’ indebtedness to defendant had been extended from December 1, 1925, to June 1, 1926. Even though said time was extended for the payment of said indebtedness of plaintiffs to defendant, neither plaintiffs nor defendant had succeeded in making disposition of the premises or the royalty prior to the completion of the well.

Plaintiffs were unable to pay their indebtedness to defendant, or any part thereof, or anything upon the mortgage owing to the Oklahoma Farm Mortgage Company, and being unable to find a purchaser for the land or royalty, no oil having been produced from said drilling well, and some question having arisen as to whether the same was considered as a failure or not, the Tecumseh National Bank, on June 2, 1926. in accordance with the terms of the agency contract, delivered aforesaid warranty deed to the defendant, and the same was by the defendant placed of record, and the plaintiffs were so advised. Up' to this time, there is little dispute as to the facts in the case. Sometime thereafter, plaintiffs were requested to execute to defendant a quitclaim deed to the premises in question. It is this deed around which, the center of controversy turns. Plaintiffs contend that the quitclaim deed was executed with the understanding that the same should not operate as a quitclaim deed, but as a mortgage. The quitclaim deed was dated September 17, 1926, and was executed and acknowledged and delivered to the defendant on the 5th day of October, 1926, which was about a month previous to the time that the Pearson well came in as a small producer. Defendant had paid off and discharged the $7,000 to the Oklahoma Farm Mortgage Company, and executed and filed a release of the mortgage made by plaintiffs to the defendant, and all of plaintiffs’ indebtedness 'both to the defendant and the Oklahoma Farm Mortgage Company, which plaintiffs’ attorneys stipulated amounted on the date of the execution of the quitclaim deed to $12,133.87, was canceled and discharged. After execution of the quitclaim deed, plaintiffs continued to stay on the premises, and there is testimony to the effect, offered on behalf of the defendant, that plaintiffs recognized the defendant’s right to the premises and paid him rent thereon, and plaintiff John W. Yillines stated to different persons that he had sold the property to defendant.

On the 9th day of March, 1928, the court made and filed findings of fact and conclusions of law in the case as follows;

“Findings of Fact.

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Bluebook (online)
1931 OK 535, 2 P.2d 1024, 151 Okla. 144, 1931 Okla. LEXIS 573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/villines-v-conatser-okla-1931.