Raines v. Ligon, 109.

Decision Date15 January 1930
Docket NumberNo. 109.,109.
Citation37 F.2d 633
PartiesRAINES v. LIGON et al.
CourtU.S. Court of Appeals — Tenth Circuit

Wellington L. Merwine, of Okmulgee, Okl., for appellant.

V. R. Biggers, of Wewoka, Okl. (Biggers, Wilson & Aldridge, Pryor & Stokes, and A. M. Fowler, all of Wewoka, Okl., on the brief), for appellees Ligon, Mainard, Garner, Brixey, and Casey.

C. Dale Wolfe and W. M. Haulsee, both of Wewoka, Okl., for appellee Mathis.

Before LEWIS, PHILLIPS and McDERMOTT, Circuit Judges.

PHILLIPS, Circuit Judge.

This is a suit in equity brought by Maceo Raines to cancel: (1) A warranty deed running from plaintiff and N. H. Raines, her husband, to J. A. Ligon, conveying 120 acres of land in Seminole county, Oklahoma; (2) certain conveyances of undivided fractional interests in the oil, gas and mineral rights therein, from Ligon to W. E. Casey, J. D. Garner, Mabel Garner, Herman Shepard and J. L. Mainard; and (3) certain conveyances of undivided fractional interests in the oil, gas and mineral rights therein from Shepard to J. F. Remy and O. Brixey.

The complaint alleged that the plaintiff is a resident of Springfield, Tennessee; that she had employed one J. A. Burrows, of Lima, Oklahoma, as her agent, to sell such tract of land; that, on March 5, 1926, an oil well was being drilled in the vicinity of such land; that such well was then producing some oil and gas and was giving indications that it would come in as a commercial well; that plaintiff had no knowledge of the oil and gas development in the vicinity of such land; that, on March 5, 1926, the above named grantees, with the knowledge that Burrows was plaintiff's agent, induced Burrows to go to Springfield and negotiate with plaintiff for the conveyance of such land to them for $10,500; that such amount was a grossly inadequate consideration; that such grantees, in order to induce Burrows to violate his trust, agreed to pay him a large sum of money, as commission for his services, and to pay his traveling expenses from his home in Oklahoma to Springfield and return; that, pursuant to such agreement with such grantees, Burrows went to Springfield, advised plaintiff to sell such land for $10,500, induced her to execute and deliver a deed for such land to J. A. Ligon and concealed from her the fact of the drilling of such well and of the increased value of such land on account thereof.

The complaint further alleged such conveyances of the oil, gas and other mineral rights in such land and that such grantees took such conveyances with the knowledge that Ligon had procured such deed to the land by fraud and deceit.

The complaint tendered a restoration of the amount paid for such land and prayed for cancellation of such deeds and conveyances.

Ligon filed an answer denying specifically the allegations of fraud and alleged that Burrows, as agent for the plaintiff, approached him on March 5, 1926, and offered to sell such land to him; that he agreed to buy the land for $15,000; that Burrows thereupon went to the home of plaintiff and procured the deed; that such deed, with sight draft for $10,500 attached, was forwarded to the Farmers' National Bank at Wewoka, Oklahoma; that plaintiff appeared in person at the bank, on the day the draft was presented to Ligon, and directed the bank not to deliver the deed until further notice from her; that plaintiff then entered into negotiations with Ligon for the sale of the land; that such negotiations continued for about fifteen days; that during such period plaintiff was in the immediate vicinity of the land and knew of the oil development near the land; that, as a result of such negotiations, plaintiff sold the land to Ligon for $15,000; that such sum was the reasonable market value of the land.

Each of the other grantees filed separate answers denying the allegations of fraud and alleging that they were bona fide purchasers for a valuable consideration, without notice of such alleged fraud.

The evidence showed the following facts: Plaintiff was a Negro woman, twenty-five years of age. She resided with her husband, N. H. Raines, a negro physician, in Springfield, Tennessee. Plaintiff employed Burrows, a negro school teacher, who lived in the immediate vicinity of the land, to act as her agent in the sale of the land and authorized him to sell the land for $10,000 cash or $12,000 — one-third cash and the balance in deferred payments. Burrows was to receive, as his commission, any amount he could sell the land for in excess of the prices above stated. On March 6, 1926, Burrows approached J. L. Mainard, who was acting for himself, Ligon, M. F. Mainard and E. C. Aldridge, and agreed to sell the land to them for $14,000. A deed, reciting a consideration of $10,500, running to Ligon, as grantee, was prepared and delivered to Burrows. J. L. Mainard instructed...

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1 cases
  • Rothman v. Wilson, 9595.
    • United States
    • U.S. Court of Appeals — Ninth Circuit
    • July 19, 1941
    ...v. Wesley et al., 5 Cir., 37 F.2d 201; United States v. Board of Nat'l Missions of Presbyterian Church, 10 Cir., 37 F.2d 272; Raines v. Ligon, 10 Cir., 37 F.2d 633; Ladd v. Perry, 7 Cir., 40 F.2d The general rule is against the attorney's acquisition of interests antagonistic to those of hi......

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