Broderick v. Stevenson Consol. Oil Co.

• Decision Date: 07 July 1930
• Docket Number: 6657.
• Parties: BRODERICK v. STEVENSON CONSOLIDATED OIL CO. et al.
• Court: Montana Supreme Court

290 P. 244

88 Mont. 34

BRODERICK v. STEVENSON CONSOLIDATED OIL CO. et al.

No. 6657.

Supreme Court of Montana

July 7, 1930

Rehearing Denied July 29, 1930.

Appeal from District Court, Toole County; R. M. Hattersley, Judge.

Action by Margaret C. Broderick, formerly Margaret C. Collette against the Stevenson Consolidated Oil Company, a Montana corporation, and another. Judgment for plaintiff, and defendants appeal.

Reversed and remanded for new trial.

Homer G. Murphy and Hurd, Hall & McCabe, all of Great Falls, for appellants.

Harris & Hoyt, of Shelby, for respondent.

ANGSTMAN J.

This is an action to quiet title to certain lands situated in Toole county. The cause was tried to the court without a jury. Judgment was entered for plaintiff, from which defendants appealed.

Under appropriate pleadings, evidence was introduced showing that plaintiff secured a patent to the lands from the United States on January 27, 1916. On June 27, 1922, she leased them to C. L. Emmons for oil and gas exploration, for a period of three years and as much longer as oil or gas was produced. The lease contained provision for forfeiture and privilege of paying a specified sum per acre as delay rental in lieu of drilling operations. The lessee was required to deliver to plaintiff one-eighth of all oil produced and to pay a royalty of one-eighth of all gas produced and sold. On December 29 1922, plaintiff, for a consideration of about $1,800 executed what is entitled an "Assignment of Royalty" to L. C. Stevenson, trustee, which, so far as important here, reads: "Know all men by these presents: That I, Margaret C. Broderick *** have and by these presents do grant, bargain, sell, convey, set over and assign and deliver unto L. C. Stevenson, Trustee, of Great Falls, Montana, the following, to-wit: six and one-quarter (61/4%) per centum interest in and to all of the oil, gas and other minerals in and under and that may be produced from the following described lands [here follows description of land as in the complaint] together with the right of ingress and egress at all times for the purpose of mining, drilling and exploring said lands for oil, gas and other minerals, and removing the same therefrom. And said above described lands being now under an oil and gas lease originally executed in favor of C. L. Emmons and now held by The Ohio Oil Company, it is understood and agreed that this sale is made subject to said lease, but covers and includes one-half of all the oil royalty and gas rental or royalty due and to be paid under the terms of said lease. It is agreed and understood that one-half of the money rentals which may be paid to extend the term within which a well may be begun under the terms of said lease is to be paid to the said L. C. Stevenson, Trustee, and in the event that the said above described lease for any reason becomes cancelled or forfeited, then and in that event, the lease interests and all future rentals on said land, for oil, gas and mineral privileges shall be owned jointly by said Margaret C. Broderick and L. C. Stevenson, Trustee, each owning one-half interest respectively in all oil, gas and other minerals in and upon said land, together with the same interest in all future rents."

On August 31, 1923, the lease by plaintiff to Emmons was assigned by Emmons to the Ohio Oil Company. On May 27, 1924, the Ohio Oil Company, by an instrument recorded July 29, 1924, canceled and annulled the lease and forfeited its rights thereunder. On January 10, 1923, L. C. Stevenson, trustee, assigned his interests under the instrument of December 29, 1922, to the Sunburst Consolidated Royalties Company, and the latter thereafter, in October, 1926, assigned its interests to the defendant Sunburst Oil & Refining Company. On March 3, 1928, the Sunburst Consolidated Royalties Company, acting for and on behalf of the Sunburst Oil & Refining Company, executed an oil and gas lease on the land involved to defendant Stevenson Consolidated Oil Company.

In her reply plaintiff pleaded misrepresentation on the part of the agent of L. C. Stevenson, tr...