Elkins v. Townsend
| Decision Date | 07 April 1960 |
| Docket Number | Civ. A. No. 6380. |
| Parties | J. B. ELKINS v. Laura Stell TOWNSEND et al. |
| Court | U.S. District Court — Western District of Louisiana |
COPYRIGHT MATERIAL OMITTED
Roy M. Fish, Springhill, La., for plaintiff.
John T. Campbell, Charles A. Marvin, Campbell, Campbell & Marvin, Minden, La., for defendants.
At issue here is the ownership of an undivided one-fourth interest in the oil, gas and other minerals underlying the following described lands:
Northwest Quarter (NW¼) of Section 8, Township 23 North, Range 9 West, and the North Half of North Half of Northwest Quarter of Northeast Quarter (N½ of N½ of NW¼ of NE¼) of Section 8, Township 23 North, Range 9 West, LESS approximately five (5) acres, described as that part of the North Half of North Half of Northwest Quarter of Northeast Quarter (N½ of N½ of NW¼ of NE¼), Section 8, Township 23 North, Range 9 West, lying East of the main public road leading from Minden, Louisiana, to Magnolia, Arkansas, being in all 165 acres, more or less, situated in Webster Parish, Louisiana.
Incidental to the principal issue is the ownership of royalties, aggregating several thousand dollars, which are being held in suspense to the credit of this interest by Placid Oil Company, the purchaser of the petroleum products produced by the Carter Oil Company, the common lessee of both plaintiff and defendants.
The suit was filed in the State Court and timely removed here by defendants, on grounds of diversity of citizenship. It was brought by J. B. Elkins, a citizen of Louisiana, against Mrs. Laura Stell Townsend, and her children, Arthur G. Stell, Jr., and Mrs. Lucy Ann Stell Polter, all citizens of Texas. It arose in the following manner:
Prior to May 16, 1938, two brothers, W. G. Stell, a single man, and John T. Stell, husband of Nancy Stell, owned the above described lands in indivision and in equal proportions. On that date W. G. Stell sold to Arthur G. Stell, husband of Laura Stell, who was the only living child of John T. Stell, an undivided one-fourth interest in the minerals underlying the subject lands.
On July 30, 1939, Arthur G. Stell died intestate, being survived by his widow (now Mrs. Laura Stell Townsend), and two minor children, Arthur G. Stell, Jr., born on January 2, 1930, and Lucy Ann Stell (now Mrs. Polter), born on June 11, 1934.
Following his death, Mrs. Laura Stell Townsend was regularly appointed as guardian for her two minor children by the Probate Court of San Patricio County, Texas, where they were domiciled; and by appropriate ancillary proceedings, later held in Webster Parish, Louisiana, her appointment as such was recognized and confirmed by the Louisiana Court on January 14, 1943.
John T. Stell died on May 7, 1946, being survived only by his widow, Mrs. Nancy C. Stell, and his two minor grandchildren, Lucy Ann and Arthur G. Stell, Jr., who were his sole heirs at law. John T. Stell, who at the time of his death was a resident of Palo Pinto County, Texas, left a last will and testament, dated February 23, 1942, by which he bequeathed all of his property to his widow. This will was duly probated at his domicile in Texas.
Later, on September 3, 1946, Mrs. Nancy Stell, being advised that the bequest of all of her husband's Louisiana property to her encroached upon the legitime (LSA-Civil Code Article 1493) of the surviving forced heirs of the deceased — his two grandchildren — executed an authentic act of renunciation, specifically renouncing the bequest in her favor to the extent that it impinged upon their legitime; i. e., she renounced all of the bequest in her favor in excess of two-thirds of her husband's one-fourth community interest in the subject lands. This act of renunciation, together with a certified copy of the will, was duly recorded in Webster Parish, Louisiana.
Thus, as a result of the acquisitions, inheritances and renunciation above set forth, the ownership of the property here involved, on November 6th, 1946, was as follows:
Surface Ownership
W. G. Stell .............................. ½
Mrs. John T. (Nancy) Stell
(½ of ½ or ¼ as community
2/3 rds of ¼th by last will and testament
of John T. Stell, total) ................. 5/12ths
Lucy Ann and A. G. Stell, Jr
( 1/3 rd legitime of ¼th, or) ............ 1/12th
Mineral Ownership
W. G. Stell ................................ ¼th
Mrs. John T. (Nancy) Stell
(as above) ............................... 5/12ths
Mrs. Laura Stell Townsend, widow
of A. G. Stell, Sr., (community
½ of ¼th mineral interest purchased
by her husband from W
G. Stell on May 16, 1938) ................ 1/8 th
Lucy Ann and A. G. Stell, Jr. (½
of ¼th from father's succession
plus 1/3 rd legitime of ¼th from
grandfather's succession ( 1/8 th
plus 1/12th), total) ..................... 5/24ths
Shortly after the death of John T. Stell, negotiations developed for the sale of the subject property, which finally ripened into an agreement whereby the above listed owners of the property (both of the land and minerals) agreed to sell it to J. B. Elkins, plaintiff here, on the condition that the owners (vendors) might reserve to themselves (1) three-fourths of the oil, gas and other minerals underlying the property, and (2) all future rentals which might be paid under an oil and gas lease to which the lands were then subject, it being understood by all parties that Elkins was to receive the land and one-fourth of the minerals under the property.
The late Judge R. D. Watkins, a practicing attorney and City Judge in Minden, Louisiana, had represented Mrs. Laura Stell Townsend in having her qualified as guardian for her children. He likewise had prepared the act of renunciation on behalf of Mrs. Nancy Stell, and was also the attorney for Mr. Elkins, the prospective purchaser. He was contacted by the parties, employed by Elkins to examine the title to the property, and to see that the transfer was legally accomplished, and was employed on behalf of the Stells to prepare all legal proceedings and the deed necessary to carry out their agreement.
While Judge Watkins is now deceased, his file was produced in evidence, and the very first entry therein (undoubtedly made when he was first acquainted with the agreement) declares his understanding of the agreement of the parties thus:
"¾ int to be reserved in minerals by Stells Stells to get present lease rentals. other words all J. B. Elkins gets ¼ ------------------------------- Stells ¾ taxes prorated as of sale."
In consummation of the agreement, Judge Watkins then prepared in sequence:
After averring that the property was owned by the below-listed persons and in the following proportions:
Owners Surface Minerals
W. Garland Stell ½ ¼
Mrs. Nancy Stell 5/12 5/12
Mrs. Laura Stell
Townsend (None) 1/8
Garland Stell and
Lucy Ann Stell 1/12 5/24
(jointly)
the petition then alleged:
Following the issuance of that order, there was then prepared by Judge Watkins, and executed by all of the owners of the lands and minerals, the deed out of which this controversy has arisen. It was dated November 6th, 1946.
Pertinent portions of that deed read as follows:
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Elkins v. Townsend, 18612.
...Jr. and Mrs. Lucy Ann Stell Polter, to be declared the owner of the disputed interest.1 The district court held for the defendants. 182 F. Supp. 861. We I. Certain basic principles of Louisiana law must be borne in mind throughout the discussion of this case. First, in Louisiana there is no......
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Wiltbank v. Lyman Water Co.
...relates to and recognizes previouly existing conditions qualifying or limiting the title of the grantor in the thing.' Elkins v. Townsend (D.C.1960) 182 F.Supp. 861 at 872, citing United Gas Public Service Co. v. Roy, La.App.1933, 147 So. 705, 706. The Elkins case presents a comprehensive d......
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