Wallace v. Brooks

1944 OK 76, 147 P.2d 784, 194 Okla. 137, 1944 Okla. LEXIS 386
CourtSupreme Court of Oklahoma
DecidedFebruary 8, 1944
DocketNo. 30890.
StatusPublished
Cited by13 cases

This text of 1944 OK 76 (Wallace v. Brooks) 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
Wallace v. Brooks, 1944 OK 76, 147 P.2d 784, 194 Okla. 137, 1944 Okla. LEXIS 386 (Okla. 1944).

Opinions

RILEY, J.

This is an appeal from a judgment and decree against plaintiffs in error, who were plaintiffs below, in an action wherein they seek to establish a trust in oil, gas, and other mineral rights in and under a tract of land which had been sold to the defendant Lillian Brooks under an order of sale in a mortgage foreclosure proceeding.

In 1929 the defendant Walter Brooks purchased the land here involved, consisting of 525.48 acres, situated in Hughes county, from the plaintiff B. C. Wallace. At that time said land was mortgaged to the Federal Land Bank to secure an indebtedness of about $10,- *138 000. In the deed from B. C. Wallace to Walter Brooks, Wallace reserved to himself one-half of the oil, gas, and other minerals in and under said land, together with a right of ingress and egress for the purpose of developing same. As a part of the consideration, Walter Brooks assumed and agreed to pay the mortgage indebtedness to the Federal Land Bank. This was expressly provided in the deed.

On October 1, 1931, B. C. Wallace sold, and by mineral deed conveyed, to J. H. Rogers, Thomas E. Nix, and W. G. Rogers, trustees of Pan Mutual Royalties, a trust estate, one-fourth interest in and to all the oil, gas, and other minerals in and under said land. For some two or three years the defendant Walter Brooks paid the installments on the mortgage, but defaulted on the payments due for the years 1932, 1933, and 1934, and also failed to pay the taxes on said land. In November, 1934, the Federal Land Bank brought suit to foreclose the mortgage. B. C. Wallace and his wife, Walter Brooks and his wife, and Pan Mutual Royalties were made parties defendant. Brooks and wife and Wallace and wife did not answer or otherwise appear. Pan Mutual Royalties appeared, setting up its interest, and prayed for the marshaling of assets and that in case of sale the land be first offered subject to its mineral rights. On July 29, 1935, judgment and decree of foreclosure was entered. The court in that action held that defendant Walter Brooks had assumed and agreed to pay the mortgage indebtedness, and personal judgment was entered against him. B. C. Wallace was served by publication, and judgment in rem only was entered as to him. The decree ordered that if the judgment was not paid within six months the land be sold without appraisement. It also provided that the land be first offered for sale subject to the mineral rights of Pan Mutual Royalties.

The judgment was not paid, and in due course an order of sale was issued and the land sold at sheriff’s sale. At the sale Walter Brooks, George Oli-phant, an attorney representing either Walter or Lillian Brooks, or both, and C. O. Lucas, attorney for the Federal Land Bank, were present. The land was bid in in the name of Lillian Brooks, who is a daughter of defendant Walter Brooks, on a bid of $12,000. The sale was confirmed on March 19, 1936, and sheriff’s deed was issued to Lillian Brooks. On the same day, this action was commenced by B. C. Wallace and Mary Wallace, his wife, and Pan Mutual Royalties, by and through 'its trustees above named, against Walter Brooks, Alice Brooks, and Lillian Brooks, wherein the plaintiffs seek an order and decree declaring that the defendant Lillian Brooks holds said land in trust for the benefit of plaintiffs as to the undivided one-half of the oil, gas, and other minerals and mineral rights, that is, one-fourth to plaintiffs B. C. Wallace and Mary Wallace, and one-fourth to Pan Mutual Royalties, and for a decree quieting title in plaintiffs accordingly.

As grounds therefor plaintiffs allege in substance the facts stated above, and further allege that at the time Walter Brooks acquired said land and assumed and agreed to pay said mortgage, he was a man of considerable wealth; that he owned and possessed real and personal property of a value in excess of $50,-000, and was amply able to pay and satisfy said mortgage indebtedness or respond in damages for his failure so to do; that in order to avoid his obligation and agreement and in order to cheat and defraud plaintiffs of their mineral rights in said land, he entered into a conspiracy with the defendant Alice Brooks, his wife, and Lillian Brooks, his daughter, and in furtherance of such conspiracy, without any consideration, he made and transferred to Alice and Lillian Brooks and others his lands and personal property, and then, being without money or property, failed, neglected, and refused to pay the mortgage indebtedness, which resulted in the foreclosure of said mortgage and the sale of said land; that Walter Brooks in truth and in fact is and was the purchaser of said land at said sheriff’s sale *139 with the money and funds of said Walter Brooks; that defendants Alice Brooks and Lillian Brooks acquiesced in and contributed to said conspiracy and scheme so as to make it appear that the mineral rights of plaintiffs were extinguished by said sheriff’s sale and deed, and that in truth and in fact, although the legal title was vested in Lillian Brooks, under the facts and law Lillian Brooks became and is now trustee in said land for said Walter Brooks and these plaintiffs.

The defendants Walter Brooks and Alice Brooks answered separately by general denial and disclaimer of any right, title, or interest in the land. The defendant Lillian Brooks answered separately denying the allegations of the petition except as to certain specific admissions, and alleged in substance that the purchase was made by her in good faith with funds of her own; that the remedy of marshaling assets sought and obtained by plaintiff Pan Mutual Royalties amounted to an election of remedies by that plaintiff.

Reply was by general denial, and the issues thus joined were tried to the court, resulting in the general findings in favor of defendants and judgment for defendants.

There are 12 assignments of error, but plaintiffs in error group them all under one general proposition: “That the judgment is contrary to law and contrary to the evidence.”

It is first asserted that the evidence shows that Walter Brooks was the real purchaser of the land at the foreclosure sale and that the legal title was placed in the name of his daughter, Lillian Brooks, for the purpose of defrauding plaintiffs.

This is an action in equitable cognizance, and it is well established that in such an action this court on appeal will review and weigh the evidence, and if it appears that the judgment is clearly against the weight of the evidence, will reverse the same and render or cause to be rendered such judgment as the trial court should have rendered. Sticelber v. Iglehart, 169 Okla. 453, 37 P. 2d 638; Christburgh v. Anderson, 179 Okla. 552, 66 P. 2d 902; Mid-Continent Petroleum Corporation v. Bettis, 180 Okla. 193, 69. P. 2d 346; Finley & Lollar v. Dean, 184 Okla. 456, 88 P. 2d 366.

There is but little conflict in the evidence, and where there is conflict, that part of the evidence is of little importance. There is some conflict as to who did the actual bidding at the sheriff’s sale. Plaintiffs’ witnesses, the officer who conducted the sale, and Lucas, attorney for the Federal Land Bank, testified that as they remember it, the defendant Walter Brooks placed the bids in behalf of Lillian Brooks. However, they both admitted their memory was not clear on the question and that they might be mistaken.

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Cite This Page — Counsel Stack

Bluebook (online)
1944 OK 76, 147 P.2d 784, 194 Okla. 137, 1944 Okla. LEXIS 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-v-brooks-okla-1944.