Westerman v. Dinsmore

71 S.E. 250, 68 W. Va. 594, 1911 W. Va. LEXIS 19
CourtWest Virginia Supreme Court
DecidedFebruary 7, 1911
StatusPublished
Cited by5 cases

This text of 71 S.E. 250 (Westerman v. Dinsmore) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westerman v. Dinsmore, 71 S.E. 250, 68 W. Va. 594, 1911 W. Va. LEXIS 19 (W. Va. 1911).

Opinion

PoeeenbaRgeR, Judge:

The appellants, C. G. Westerman and others, filed their bill in the circuit court of Pleasants county for relief against forfeiture of an oil and gas lease, in which they were interested, and to enjoin the appellees from operating under a subsequent one on the same land. The preliminary injunction, granted thereon, was dissolved and the bill dismissed.

The old lease for a term of two years, dated Aug. 17, 1907, covering 77 acres, executed to L. J. Murphy, by Lloyd Bailey and wife, contained the following condition: “Provided that this lease shall become null and void unless operations shall be commenced on the premises and a well completed, unavoidable delay or accident excepted, within two months from the date •hereof, or unless lessee shall pay at the rate of Fifteen Dollars per month payable monthly in advance thereafter for each additional month such completion of well is delayed.” Murphy obtained from William Rutteneutter a similar lease, bearing the same date, on an adjacent tract of land, containing 22 S acres. On Uov. 4, 1907, he assigned three-fourths of each of these leases to Westerman, for and in consideration of $750.00, which was paid, Murphy agreeing, as part of his contract with Wester-man, to drill and complete a well on the Rutteneutter lease, and such additional wells, as should be agreed upon, were to be drilled at their joint expense. Four unproductive wells were drilled on the Rutteneutter land by March 4, 1908, but none on the Bailey tract. Such further dispositions of interests in the leaseholds were made that A. E. Brast became the owner of three-sixteenths, P. A. Schunruck of two-sixteenths, W. P. Simmons of three-sixteenths, Justus Eakin of two-sixteenths, L. J. Murphy of three-sixteenths and Westerman of three-sixteenths. The expense incurred on account of these 'leases and the work done as aforesaid amounted to about $3,000.00, and the casing and other materials and appliances on the Rutteneutter lease were worth several hundred dollars. Under the Bailey ■ lease, rentals were paid but no drilling done, while operations were in progress oil the other property. These rentals were paid oh the day, named in the. lease, until July, 1908, when there was a delay of ten days, which Westerman, who was attending to that branch of the business, explained by saying it had resulted from confusion' in dates, rental under the other lease having been [597]*597paid, when that under the Bailey lease should have been. This was accepted by Noland, Executor of the will of Bailey who had died. Instead of paying on August 17th for the month commencing on that date, Westerman delayed payment until about Aug. 26th, and Noland returned his check, saying “As you failed to pay last month’s rental when due, the Baileys thought you did not want the le^se longer, and notified me that they had leased the land to - another, and for me not to receive the rent, if sent.” To this Westerman made no reply; nor did he or any one else, holding under the lease, render or pay any further rentals.

On August 22, 1908, before the remittance of the rental that should have been paid on the 17th, the Bailey devisees had executed a new lease to L. J. Murphy, the same person who had taken the former lease. In the new lease, the old one was recognized by the following clause: “This lease being upon the same land leased to L. J. Murphy by Lloyd Bailey during his lifetime.” It was recorded on the 29th day of August, 1908._ On the 21th day of November, L. J. Murphy assigned seven-eights of his interest in this lease to his son, E. 0. Murphy, in consideration of $130,00. On December 3rd,'he assigned the remaining one eighth to the same party in consideration of ■ $50.00. On November 28th, R. O. Murphy assigned a five-eighths interest in the lease to John B. Murphy, of Washington* Pa., in consideration of $100.00, the assignor agreeing to put down a well on the lease with reasonable diligence. On December 1, 1908, R. O. Murphy assigned, to Elmer Edmonds, a one-eightli interest in the lease and agreed to pay'him $350.00, in consideration of his completing a well on the lease. On the 29th day of December, R. O. Murphy assigned, to L. D. Dins-more, his remaining one-fourth interest, together with like interests in three other leases he had, one on other lands of the Baileys, another on lands of Mrs. S. P. Lamp and another on lands of Mrs. Maggie Lamp, Dinsmore paying him $3,650.00 cash and agreeing to pay, keep and perform all the covenants contained in said leases, and pay all outstanding indebtedness against the interest so assigned. On December 18th, John B. Murphy, in consideration of $200.00, assigned to W. McK. Smith, a one-fourth interest in the Bailey lease. Edmonds and the Murphys completed a producing well on the Bailey tract about [598]*598the 22nd day of December, 1908. On the question of notice, the following facts are material: Westennan was informed by Noland’s letter of August 26th that a new lease had been executed, but the name of the lessee was withheld. The lease under which Westennan and his associates claimed was not admitted to record until December 29, 1908, at 12:50 P. M. The new lease and the assignments of interests therein were recorded very soon after the execution thereof, Dinsmore’s on Dec. 29th and W. McK. Smith’s on Dec. 30, 1908. As to when Westerman ascertained that L. J. Murphy was the new lessee, the evidence is conflicting, but it leaves no doubt that he had sufficient information to put him upon inquiry as to the fact early in December, 1908. Murphy and others endeavored to charge him with notice in October, 1908. He claims not to have known of any entry upon the leased premises bjf the new lessees until December 29, 1908, a few days after the well had been completed. Nor did he ever give any notice to Murphy or any one else, claiming under the new lease, of his intention to try to hold the property under the old one. The institution of this suit, on the 15th day of March, 1909, was the first act of the plaintiffs, signifying intent to resist the claims asserted under the new lease.

Time is of the essence of a condition to pay rental or commutation money to prevent forfeiture of an oil or gas lease for failure to drill a well within a stipulated time. For this universally recognized proposition, not denied or questioned in the argument, no authority need be cited. However, it may be possible that this quality can be extinguished by subsequent parol agreement or conduct, just as it can be imparted, in the same way, to an agreement in which it did not originally exist. This is rather suggested in Hukill v. Myers, 36 W. Va. 639, and Railroad Co. v. Triadelphia, 58 W. Va. 487. Both of these cases, as well as many others, assert jurisdiction in equity, based upon estoppel and waiver, to relieve from the effect of non-compliance with a condition in which time is made essential, on proof of a course of conduct by the parties contrary to the terms of the stipulation as to time. Jurisdiction in equity to relieve against forfeitures of certain kinds and within certain limitations, without proof of such previous conduct, is also^ firmly established. Whether, in the former class of cases, essentiality of time is eliminated from the contract by conduct, or allowed to remain.and [599]*599relief from tlie forfeiture given, is rather an academic question, since the result is the same in either event. But, if conduct may extinguish it, as suggested, it will most assuredly restore it, for it may be imparted by conduct to stipulations of which it was not originally a part. Jackson v. Lignon, 3 Leigh 161.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Simmons v. Wilson
250 S.W.2d 638 (Court of Appeals of Texas, 1952)
Shropshire v. Hammond
120 S.W.2d 282 (Court of Appeals of Texas, 1938)
Dwelly v. Rocklin
133 A. 85 (Supreme Court of Rhode Island, 1926)
Wetzel v. Jones
84 S.E. 951 (West Virginia Supreme Court, 1914)

Cite This Page — Counsel Stack

Bluebook (online)
71 S.E. 250, 68 W. Va. 594, 1911 W. Va. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westerman-v-dinsmore-wva-1911.