Western Union Tel. Co. v. Jordan Petroleum Co.

1951 OK 367, 238 P.2d 820, 205 Okla. 452, 1951 Okla. LEXIS 705
CourtSupreme Court of Oklahoma
DecidedDecember 11, 1951
DocketNo. 34216
StatusPublished
Cited by1 cases

This text of 1951 OK 367 (Western Union Tel. Co. v. Jordan Petroleum Co.) 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
Western Union Tel. Co. v. Jordan Petroleum Co., 1951 OK 367, 238 P.2d 820, 205 Okla. 452, 1951 Okla. LEXIS 705 (Okla. 1951).

Opinion

HALLEY, V. C. J.

The facts involved in this case are covered principally by [453]*453stipulation. We shall refer to the parties as they appeared in the trial court.

Plaintiffs were the owners of an oil and gas lease covering 40 acres of land in Garvin county. The lease was dated June 18, 1946. Ben S. McClain and wife were the lessors and were entitled to the annual rentals of $40 for the privilege of deferring commencement of a well for one year. The First National Bank of Wynnewood was named as depository for the lessors.

About 4 o’clock on the afternoon of June 17, 1947, plaintiffs deposited $40 with the Oklahoma City office of the defendant and signed its regular money-order application, providing for charges for transmission and delivery to the First National Bank of Wynnewood to the credit of lessors for annual rental due June 18, 1947. The Western Union office at Wynnewood being closed for the day, the money-order telegram was forwarded to the Tulsa office, from which it was sent to Wynnewood about 9:30 a.m. on June 18th. Upon arrival of the message at Wynnewood, defendant’s agent made two attempts to telephone the message to the depository bank, but the line was busy each time. The message was laid aside with the intention of making manual delivery to the bank, but was inadvertently covered with other papers and overlooked for the remainder of the day. It was noticed again on the morning of June 19th, and was delivered to the bank at about 9:30 a.m. of that day.

The rental being due on the 18th and not being paid until the 19th, the lessors refused to accept payment, and on June 20th notified the plaintiffs in writing that the lease was forfeited for nonpayment of rental. Lessors were advised by their attorney that because of the delay in payment of rental was not the fault of the lessees, but was due to causes beyond their control, the lease was still in effect. However, the following December 2, 1947, the lessors executed another lease to Hubbell & Webb for a bonus or down payment of $6,000, which lease was duly placed of record.

On January 27, 1948, plaintiffs filed an action in the district court of Gar-vin county to cancel the Hubbell & Webb lease as a cloud upon their own title, and to declare their prior lease valid. On June 16, 1948, judgment was entered declaring plaintiffs’ lease valid and canceling the Hubbell & Webb lease. An appeal from that judgment was taken, but later dismissed, and the judgment became final.

Plaintiffs instituted the present action on September 30, 1948, to recover expenses, including attorneys’ fees, incurred in their action to cancel the Hub-bell & Webb lease and to establish the validity of their own lease. It was alleged that they had incurred expenses in the sum of $250, and that a reasonable attorneys’ fee was $2,500, or a total of $2,750. Judgment was entered for the plaintiffs in the sum of $2,750, the full amount prayed for, and the defendant has appealed.

A stipulation was filed covering most of the material facts, but there was disputed testimony upon the material fact of whether or not the defendant was notified that the money to be transmitted was for rental due June 18th. It was stated upon the face of the application for money-order telegram that the money was for “lease rental due B. S. McClain and wife on W/2 W/2 SE/4 Sec. 24-2N-1E, Garvin County.” A witness for plaintiffs testified that she advised defendant’s agent in Oklahoma City, when she filed the application, that the rental was due the next day, June 18th; but defendant’s agent testified that he had no notice of the due date of the rental. The same witness for plaintiffs also testified that she was told by defendant’s Oklahoma City agent on the 18th of June that the message had been “sent”. This was a correct statement of fact. It reached Wynnewood at 9:30 a.m. on the 18th of June, but was not delivered to the bank until about that hour on the 19.th.

[454]*454Defendant submits two propositions for reversal. It is first contended that defendant’s negligence was not the proximate cause of plaintiff’s damages, first, because such damages did not arise naturally from defendant’s breach of duty, and could not have been within the contemplation of the parties, and that an independent, intervening act was the cause of plaintiffs’ damages— that is, the execution of the new lease by the lessors.

The stipulation filed shows clearly that the lease was not forfeited or terminated by the delay of the defendant in delivering the rental due June 18, 1947, since the court held that the lease “is valid and in full force and effect” in the equitable action of plaintiffs to have their lease declared valid and the Hubbell & Webb lease canceled.

In Oldfield v. Gypsy Oil Co., 123 Okla. 293, 253 P. 298, and in Brazell v. Soucek, 130 Okla. 204, 266 P. 442, this court held that where the failure of lessee to pay rental on or before the due date provided in the lease is not due to the fault of the lessee, but is the result of forces beyond its control, the lessors are not entitled to forfeiture or cancellation. The undisputed facts show that the failure of lessees to abide by the express terms of the lease requiring that rental be paid on or before the due date, was not due to their intention to allow the lease to lapse, nor to their failure to take the necessary steps to have the rental deposited on the date it was due, and that their failure in this respect was not the fault of the lessees but was due entirely to the negligence of the defendant in failing to make prompt delivery of the money-order telegram. It reached Wynnewood at 9:30 a.m. on June 18th. The depository bank was only one block from defendant’s receiving station. It could have been delivered within five minutes at any time during banking hours on June 18th. Actual delivery was made 24 hours after its receipt at Wynnewood. There was positive testimony that defendant’s agent at Oklahoma City knew that the rental was due on the 18th. His failure to advise the agent at Wynne-wood doubtless caused the delay in delivery; but it has been held that notice to the receiving agent only is sufficient.

While it is true that this court has held under similar circumstances that the lease is not forfeited by a delay beyond the control of the lessee (Oldfield v. Gypsy Oil Co., Brazell v. Soucek, supra), and that lessors were so advised by their attorney, they refused to accept the delay rental and stood squarely upon the plain language of their lease contract, which said that unless the rental were paid on or before the due date the lease would be terminated.

Did the action of the lessors in executing a new lease to Hubbell & Webb on December 2, 1947, almost six months after default of rental payment on plaintiffs’ lease, constitute a new and independent, intervening cause, not within the contemplation of the parties, and resulting in the damages here sought to be recovered? We think such action on the part of the lessors constituted a natural and reasonably anticipative course. If a lessor believes that a lessee has defaulted in the payment of rental and forfeited the lease, the most natural thing for him to do is to sell a new lease. This is especially true where activity is great and large sums are being offered for leases as a down payment or bonus.

It cannot be argued with reason that the McClains would have executed a new lease on their land if defendant had promptly delivered the money-order telegram.

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Related

Perry Electric Construction Co. v. Western Union Telegraph Co.
1975 OK CIV APP 18 (Court of Civil Appeals of Oklahoma, 1975)

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Bluebook (online)
1951 OK 367, 238 P.2d 820, 205 Okla. 452, 1951 Okla. LEXIS 705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-union-tel-co-v-jordan-petroleum-co-okla-1951.