Woodley v. Hollingsworth

98 So. 87, 154 La. 686, 1923 La. LEXIS 2007
CourtSupreme Court of Louisiana
DecidedNovember 12, 1923
DocketNo. 25424
StatusPublished
Cited by2 cases

This text of 98 So. 87 (Woodley v. Hollingsworth) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woodley v. Hollingsworth, 98 So. 87, 154 La. 686, 1923 La. LEXIS 2007 (La. 1923).

Opinion

By the WHOLE COURT.

ROGERS, J.

Plaintiffs, as the owners of a mineral lease covering lands in the parishes of Red river and De Soto, instituted this suit against defendant, claiming $17,000 for an alleged deficiency of 30 acres in the property in the former parish, and for the price of a lease subsequently executed by defendant of 16 acres of the land in the latter parish. The demand was for $2,000 for the shortage in land and for $15,000 for the value\ of the posterior lease.

Defendant denied liability, averring there was no deficiency, but only a misdescription, through error, of the 30 acres, and that the failure of plaintiffs to develop the property as required by the lease contract operated as a forfeiture of whatever right or interest they had therein.

There was judgment for defendant, and plaintiffs have appealed.

The lease in question was executed on April 17, 1919, for a cash consideration of $5,000. It affected five separated tracts of land containing, in the aggregate, 118 acres. One of these tracts is described in the deed as:

“Thirty acres known as R. A. Perryman tract out of the west half of the southeast quarter (W. % of S. E. %) lying south of Honey bayou, in section 8, township 12 north, range 10 west.”

It appears, however, that the Perryman tract is not lo'cated in the W. % of the S. E. of section 8, but is situated in the W. % of the E. % of the S. E. % of section 8.

Something more than three months after the execution of this lease, the owner of the W. % of the S. E. % of section 8 instituted proceedings to enjoin the lessor (the present defendant) “her agents and representatives”, from entering upon his said property.

In the belief that plaintiff in this injunction proceeding was asserting title to property owned by her, defendant filed an exception of no cause of action and a motion to dissolve the injunction.

Upon ascertaining, subsequently, that none of her property .was involved in the proceeding, and as she, in turn, was not claiming any of,the property of plaintiff therein, defendant consented to a judgment making permanent the injunction applied for.

On September 12, 1919, the lessor (present defendant) filed suit against lessees (present plaintiffs) to cancel the lease of April 17, 1919, on the ground that the agreement had been violated by defendants’ failure to drill a well for oil or gas on said property within a reasonable time after the signing of the contract; that, although more than four and a half months had elapsed, the lessees had made no effort whatever to drill a well, notwithstanding 30 days was a reasonable time in which to begin drilling operations.

On November 16, 1920, defendant, for a cash consideration of $15,000, entered into the mineral lease with H. L. Hamilton of the 16 acres of land in De Soto parish.

On November 22,1921, the present suit was instituted. Plaintiffs also filed pleas of estoppel in the district court and in this court.

The lease of April 17, 1919, among other things, provided:

“It is mutually agreed and understood, and is the essence of this contract, that the said grantee shall, within a reasonable time, prosecute diligently the drilling of a well for oil or gas on the within described premises, drilling said well to a depth of 3,000 feet, unless oil or gas is found in paying quantities at a lesser depth. * * * It is expressly agreed and.understood that should the grantee fail or refuse to carry out the obligation to drill said well as above set forth, then, in such event, and on such default, this lease shall wholly cease and determine.”

Defendant contends it was agreed, at the time of the execution of said lease, that plaintiffs were to begin drilling operations imme[689]*689diately on some part of the leased property, and that they had not only not complied with said obligation, but had not even attempted to comply therewith, and that, by reason of lessees’ default in this particular, the lease became forfeited.

It is not disputed that the lessees took no steps whatever to drill a well 'for oil or gas upon any portion of the property affected by the lease.

It further appears that lessees, although they had knowledge of the Robertson injunction suit shortly after it had been filed, took no action against their lessor for the rescission of the lease, nor made any demand for the reformation of the instrument. Lessees slept on the proposition from April 17, 1919, until November 22, 1922, a period of more than 31 months, when they suddenly awoke and instituted the present suit.

Plaintiffs’ position seems to be that, notwithstanding nothing was done by them towards complying with the stipulations of their contract, the lease continued to remain in full force and effect, and that the option was theirs to drill a well upon the property at any time they saw fit.

Plaintiffs’ position is untenable. It is shown by the testimony that at the time of the execution of the lease another company was drilling a well, with favorable indications, in section 19, in close proximity to the leased property, and that the immediate drilling of an offset well was one of the requirements of plaintiffs’ lease. Within a week after the signing of the lease, however, the well in section 19 proved to be a failure, and plaintiffs called upon Messrs. G. W* and W. R. Hollingsworth, at the town of Gahagan, to obtain a delay in drilling on the property.

While there is some conflict in the testimony as to what occurred in the conversation had between the parties at this meeting at Gahagan, it is shown that it was plaintiffs’ desire to obtain an extension of the time within which to begin drilling operations, which, in itself, was a clear acknowledgment that the reasonable time set forth in the lease was understood to*mean the immediate commencement of the work.

Mr. Woodley, one of the plaintiffs, testified that in the conversation it was agreed that it would be best to await other developments before beginning drilling operations. This is denied by the two Hollingsworths, who testified that they had consented to' a delay of only ten days. As time is all important in such contracts, the probabilities .support the testimony of the Messrs. Hollingsworth. But, however that may be, the burden of proying the granting of the extension is upon plaintiffs, and they have not discharged that burden.

The parties expressly stipulated in the lease that it was “the essence of the contract” that drilling should be commenced “within a reasonable time” and prosecuted with diligence. They thus emphasized a condition which is inherent in all oil and gas leases. So much is time considered to be an “essence” of such leases that the court is without power or right to grant an extension for performance. Murray v. Barnhart, 117 La. 1024, 42 South. 489.

The term “reasonable time” is a relative one, and its meaning is dependent upon the circumstances of the particular case in which the court is called upon to define it.

In the case at bar it is shown, as heretofore stated, that at the time the contract was entered into a well was being drilled by other parties in section 19, with every indication that it would be brought in as a producer.' It is also shown that lessees had several idle drilling rigs in the vicinity, and that they were in a position to put one of said rigs into immediate use.

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

Related

Taylor v. Stanley
4 F.2d 279 (W.D. Louisiana, 1925)
Spencer v. Transcontinental Oil Co.
2 F.2d 273 (W.D. Louisiana, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
98 So. 87, 154 La. 686, 1923 La. LEXIS 2007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodley-v-hollingsworth-la-1923.