Placid Oil Co. v. Taylor

• Decision Date: 13 April 1977
• Docket Number: No. 5910,5910
• Citation: 345 So.2d 254
• Parties: PLACID OIL CO., Plaintiff-Appellee, v. Watson TAYLOR et al., Defendants-Appellants.
• Court: Court of Appeal of Louisiana — District of US

Page 254

345 So.2d 254

PLACID OIL CO., Plaintiff-Appellee, v. Watson TAYLOR et al., Defendants-Appellants.

No. 5910.

Court of Appeal of Louisiana, Third Circuit.

April 13, 1977.

Rehearing Denied May 10, 1977.

Writ Refused July 1, 1977.

Clyde Lain, Jr., Monroe, for defendants-appellants.

Watson, Murchison, Crews & Arthur by R. Raymond Arthur, Natchitoches, for plaintiff-appellee.

Before DOMENGEAUX, GUIDRY and ROGERS, JJ.

GUIDRY, Judge.

This suit originally came before this court as a concursus proceeding instituted by Placid Oil Company to determine the ownership of certain mineral and royalty interests in two (2) twenty acre tracts of land, located in Natchitoches Parish, Louisiana. Impleaded as adverse claimants to the contested interests were certain Taylor heirs, who originally owned the land, and Mrs. Betty Beason, who claimed to own certain mineral interests therein. Following our decision in this matter on March 12, 1974, 291 So.2d 892 (La.App.3rd Cir., 1974), the Supreme Court, on May 31, 1974 granted a writ of certiorari, 294 So.2d 832 (1974). The Supreme Court, 306 So.2d 664 (1975), reversed our decision, and remanded the case to us for consideration of an issue which we had not previously passed upon. The issue presented on remand was argued and judgment was rendered deciding that issue on May 5, 1975, 313 So.2d 626 (La.App.3rd Cir., 1975). Writs were again applied for and the Supreme Court again remanded the case for re-argument under Article V Section 8 of the Constitution of 1974. The matter was re-argued before a panel of five judges and judgment was finally rendered on December 24, 1975. 325 So.2d 313, writs refused, March 12, 1976, 329 So.2d 455 (1976). ¹

Following final disposition of this matter the trial court ordered that the $190,879.00, representing mineral royalties deposited in the registry of the court by Placid Oil Company, be withdrawn and disbursed according to the dictates of the above referenced judgments.

On May 4, 1976 Nancy Williams Taylor, surviving spouse of Watson Taylor and one of the claimants in this matter, acknowledged receipt of $37,716.35, representing her royalty interest (36/72 of 1/4) in one of the two twenty acre tracts covered by the Placid Oil Company lease. As provided in that acknowledgment Nancy Taylor's funds were to be distributed as follows: ²

'1. Nine Thousand Four Hundred Twenty-Nine and 09/100 ($9,429.09) Dollars to Watson, Murchison, Crews & Arthur for legal services rendered in my behalf.

2. The sum of Three Thousand Five Hundred Fifty-One and 53/100 ($3,551.53) Dollars to Exchange Bank & Trust Company in payment of my note, which I hereby authorize my attorneys to pay.

3. The sum of Nine Thousand One Hundred Twenty-Two and 83/100 ($9,122.83) Dollars to be held by the Law Firm of Watson, Murchison, Crews & Arthur in escrow, or will be placed into the Registry of the Court; this sum being disputed between myself and Mr. and Mrs. James B. Johnson.

4. The sum of Fifteen Thousand Six Hundred Twelve and 90/100 ($15,612.90) Dollars paid to me in hand on this date.'

On May 27, 1976, shortly following Nancy Taylor's acknowledgment, James B. Johnson and his wife, Nancy moved for a rule to show cause why Daniel Murchinson of the firm of Watson, Murchinson, Crews & Arthur, should not be ordered to release to them the sum of $9,122.83 held in escrow. The rule was subsequently amended naming both, Daniel Murchison and Nancy Taylor as respondents.

In their pleadings relators allege that on March 23, 1974, by instrument recorded in Natchitoches Parish in Conveyance Book 316, page 871, and passed before Daniel Murchinson, Notary Public, Nancy Taylor sold them twenty-two acres of land. The sale, which was in consideration of the sum of $2,000.00 cash did not convey any mineral interest in the property. The Johnsons allege that no minerals were conveyed because the Notary would not include the same in the act of sale. The Johnsons further alleged that on March 30, 1974, Nancy Taylor, by act of sale passed before Buford Grappe, Notary Public, sold all of her oil, gas and mineral rights in the above described tract of land to them. The sale which was in consideration of the sum of $100.00 cash was recorded in Conveyance Book 317, page 185 of the records of Natchitoches Parish. ³

Based upon this latter instrument the Johnsons aver that Nancy Williams Taylor owes them the sum of $9,122.83, being that portion of the funds credited to the account of Nancy Williams Taylor in the concursus proceeding for the period from March 30, 1974 to the date of disbursement, less 25% Attorneys fees.

Following the filing of the aforesaid rule and on July 16, 1976, Nancy Taylor filed a petition for a declaratory judgment, praying that the instrument dated March 30, 1974, recorded in Conveyance Book 317, Page 185, records of Natchitoches Parish be rescinded, annulled and voided. ⁴ Petitioner admits that she did sign a document which purported to be a sale of oil, gas and other minerals to James and Nancy Johnson for the price of $100.00. Petitioner, however, alleges that the instrument is without effect because it was obtained by fraudulent means, conduct and practices on the part of James and Nancy Johnson. Petitioner alternatively alleges that the purported sale is null and void because it is lesionary. After filing an exception of prescription the Johnsons answered plaintiff's petition generally denying the allegations thereof. On August 13, 1973 a hearing was held on the claims set forth in the rule filed by the Johnsons and the petition for declaratory judgment filed by Nancy Taylor. The trial court awarded judgment in favor of the plaintiff, Nancy Williams Taylor, declaring that the instrument dated March 30, 1974, recorded in Conveyance Book 317, page 185, records of Natchitoches Parish was null and void. Accordingly, the trial court ordered that the funds held in trust by Daniel Murchinson, i.e., the sum of $9,122.83, be delivered to Nancy Williams Taylor. The trial court overruled the defendants exception of prescription.

Following the signing of the formal judgment the defendants filed a motion for a new trial and a motion to reopen the testimony. Defendants suggested that the matter should be reopened for the taking of additional testimony, namely that of Buford Grappe, the Notary Public before whom the annulled and voided sale was passed. A judgment was signed denying both motions.

Defendants James B. Johnson and Nancy Johnson appeal.

Defendants contend that the trial court erred when it held that the mineral deed from Nancy Taylor to James B. and Nancy Johnson was a nullity due to fraud and misrepresentation. Specifically, the defendants argue that the evidence presented is not clear and convincing proof that fraud or misrepresentation was present in procuring the signature of Nancy Taylor. Defendants also contend that the trial court erred when it did not, on its own motion, raise the exception of no cause of action since the pleadings filed by Nancy Taylor did not allege fraud and misrepresentation by particular acts. Presumably the defendants have abandoned their claim that plaintiff's action has prescribed since no mention is made of it in either brief or in argument before this court.

A review of the record indicates that shortly before March 23, 1974 (prior to the original litigation being finalized) Nancy Williams Taylor, James Bernard Johnson and Nancy Taylor Johnson went to the office of Mr. Daniel T. Murchinson in Natchitoches, Louisiana . Daniel Murchinson testified that the Johnsons at this time requested that an instrument be prepared by which Nancy Williams Taylor would convey some twenty acres of land to them.

We here observe that Nancy Taylor Johnson was the niece of Nancy Williams Taylor. Nancy Johnson's father was Pap Taylor, one of the claimants in the original action.

Murchinson testified that during this meeting with the Johnsons and Nancy Taylor the question of mineral rights was discussed. Daniel Murchinson, whose law firm had been representing Nancy Taylor for approximately 6 or 7 years, was totally, familiar with the situation regarding the concursus proceeding. After reminding Nancy Taylor of the substantial amount of money on deposit in the court Murchinson stated that he advised her that the mineral rights should be excluded from the sale. Murchinson testified that Nancy Taylor agreed indicating that she wanted her niece and her niece's husband to have her money upon her death. Nancy Taylor had no forced heirs. Murchinson further advised plaintiff that a last will and testament would be the proper way to accomplish this. Murchinson's testimony reflects that Nancy Taylor was in accord with the procedures he had outlined. Following this meeting Nancy Williams Taylor and the Johnsons returned to Murchinson's office on March 23, 1974 to execute the documents which he had prepared. Nancy Taylor signed the deed conveying her twenty two acres to the Johnsons. In this deed the vendor, Nancy Taylor, reserved all minerals underlying the property conveyed. At this same meeting Nancy Taylor executed her last will and testament which instituted James B. and Nancy Johnson as sole legatees.

One week later, on March 30, 1974, without the knowledge of Daniel Murchinson, Nancy Taylor executed an instrument by which she conveyed to James B. Johnson and Nancy Johnson all of her oil, gas, and mineral rights in the subject tract for the price of $100.00.

The testimony of Nancy Johnson was to the effect that her aunt, Nancy Taylor, definitely wanted the mineral rights to go with the property. ⁵ Nancy Johnson testified that, in accordance with her aunt's wishes, upon returning to her home in Monroe she contacted a lawyer who prepared a mineral deed covering the subject tract. Nancy Johnson and her husband then returned to Nancy Taylor's home in Campti, Natchitoches Parish, the following weekend with the prepared mineral deed. Nancy Johnson...