Creeden v. North
| Decision Date | 01 November 1932 |
| Docket Number | 21364. |
| Parties | CREEDEN v. NORTH. |
| Court | Oklahoma Supreme Court |
Syllabus by the Court.
1. Where there is an oral agreement between the owner of letters patent and a purchaser thereof for a good consideration to sell such letters patent, and pursuant thereto the owner executes a written assignment of such patent embodying the terms of the oral agreement, and places the same, together with the letters patent, in a bank with written instructions signed by both parties, to deliver same to said purchaser upon the payment on or before a certain date by the purchaser of the consideration state in money without reservation, the transaction operates as an escrow.
2. The depositary of an escrow is the agent of both parties to the same. The contract of deposit is not revocable at the mere will of either of such parties, nor will the death of either of them abrogate the contract of deposit.
Appeal from District Court, Creek County; Fred A. Speakman, Judge.
Action by Z. H. North against Bertha Creeden, as administratrix of the estate of Artis C. Campbell, deceased, and another. From a judgment in favor of the plaintiff, the defendant named appeals.
Affirmed.
Paul M Cameron and Louis Loeffler, both of Bristow, for plaintiff in error.
Hughes & Ellinghausen, of Sapulpa, for defendant in error.
This is an action to recover the possession of two letters patent the one covering a process for treating pipe, tubing, casing etc., used in producing and transporting crude oil, the other covering a machine for treating waste portions of crude oil. The action also includes the possession of a written assignment of said patents from the patentee, Artis C. Campbell, to defendant in error, plaintiff below.
The action was brought originally by North against the American National Bank of Bristow, Okl., as escrow holder. The defendant bank answered, and in substance disclaimed any interest other than a mere escrow holder, and set out that Mrs. Bertha Creeden, purporting to represent the heirs of Artis C. Campbell, the deceased, claimed the property in question, and had served notice upon the bank not to deliver same to North, and prayed the court to require Mrs. Bertha Creeden and the heirs of Artis C. Campbell to appear and defend or relinquish their claim as against said defendant. It then pleaded that it was willing to dispose of the property as the court might direct. Thereupon the court entered an order that Mrs. Bertha Creeden, or the administrator of the estate of Artis C. Campbell, if one had been appointed, be required to come in within twenty days of service of a copy of the order and maintain or relinquish their claim to said property. Thereafter Bertha Creeden, having been appointed administratrix of the estate of Artis C. Campbell, filed her answer, alleging in substance that the assignment of said patent, together with certain other agreements relative thereto, had been signed by the patentee, Artis C. Campbell, on the 21st day of May, 1929; that immediately upon the signing of said assignment and other papers they, and the letters patent, were deposited in and accepted by the American National Bank under an agreement and instructions in writing as follows:
"The American National Bank, Bristow, Oklahoma.
You are hereby instructed upon the payment of $500.00, on or before thirty (30) days from the date hereof by Z. H. North to deliver the following:
Assignment of United States Patents #1513371 covering process for treatment of Crude Oil with the original patent dated Oct. 28th, 1924, and assignment of United States patent #1529688 covering machine for the treatment of waste portions of crude oil with the original patent dated March 17th, 1925. Also agreement between the undersigned affecting the above transfer.
To Z. H. North and to deliver a receipt for the above amount to Z. H. North showing date of delivery and amount paid. If the above amount is not paid on or before 30 days same are to be returned to Mrs. Artis C. Campbell.
It is agreed by the undersigned, that these instructions are binding on our heirs, executors, or assigns.
Signed and delivered this 21st day of May.
She further alleged that Artis C. Campbell died on the 6th day of June, 1929; that at the time of his death plaintiff had not paid the $500, referred to in the escrow agreement or any part thereof to said Artis C. Campbell, and had not deposited same in said bank as provided in said escrow agreement; that on June 17th, 1929, and before plaintiff North had paid or offered to pay said sum of $500, she had served written notice upon the bank not to deliver the letters patent to plaintiff for the reasons therein stated, which were in substance that the escrow agreement was void because not completed prior to the death of Artis C. Campbell, and that the agreement for the sale and assignment of the letters patent and the escrow agreement itself were obtained from the said Artis C. Campbell under duress, undue influence, and at a time when the mind of the said Artis C. Campbell was so impaired as to render him incompetent to enter into a valid contract. She also alleged that the consideration was grossly inadequate.
Plaintiff replied thereto by general denial, and the issues thus joined were tried to the court, resulting in findings of fact and judgment in favor of the plaintiff. From these findings and judgment the administratrix appeals.
Nearly all the evidence taken goes to the mental capacity of the patentee and the question of the adequacy of the consideration. The other facts are not in dispute. It is conceded that North deposited the $500 in the bank within the 30 days, but after the death of Campbell, and that the bank had the money when this suit was commenced.
The trial court specifically found that Artis C. Campbell, at the time of entering into the contract, was seventy-one...
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