DocketNumber: 2529, 2530
Judges: Blume, Parker, Riner
Filed Date: 4/7/1952
Status: Precedential
Modified Date: 11/16/2024
The controversy in these cases is, in the main, one as to the amount of oil and gas rights reserved in the lands here involved when the property was conveyed and
“The North Half (N%); the North Half of the South Half (Nj4S^4), the South Half of the Southeast Quarter (SJ4SEJ4) of Section Two (2); the North Half of the Northeast Quarter (Nj4NE^) of Section Eleven (11), Township Forty-three (43) North, Range Sixty-six <66); and West Half (W)4) of Section Ten (10); the South Half (Sy2) of Section Fourteen (14); Section Fifteen (15); the Northwest quarter of the Northeast Quarter (NW%NEJ4)> the East Half of the Northeast Quarter (EJ4NEJ4) of Section Twenty-one (21); the West Half of the Northwest Quarter (W)4NWj4), the South Half (Sy) of Section Twenty-two (22); the Northwest Quarter of the Southwest Quarter (NW%-SWJ4), The South Half of the South Half (Sy?Sy2) of Section Twenty-three (23); Section Twenty-six (26); Section Twenty-seven (27); the Northeast Quarter of the Northeast Quarter (NEj4NE%) of Section Twenty-eight (28); the North Half of the North Half (N>4Nj4) of Section Thirty-five (35), Township Forty-four (44) North, of Range Sixty-six (66), West of the Sixth Principal Meridian, containing Four Thousand One Hundred Twenty (4120) Acres, more or less, according to the Government Survey thereof; and all State school land and individual land leases identified and owned under lease by the Parties of the First Part, approximating Four Thousand (4000) acres, which includes Federal leases under Taylor Grazing Act, also including the leases covered by Land Utilization.”
The allegations of the petition, slightly abbreviated, are as follows: “Plaintiffs (that is to say appellants herein) are the owners in fee simple of the property here involved. On July 2,1946, they made and executed
Christy K. Smith filed an answer denying the allegations of the petition generally and setting forth that the contract for a deed was made and executed on October 8,1946, and that a deed for the property, which was in conformity with the agreement, was executed subsequently on January 4,1947.
The defendant, Preston T. McAvoy answered in similar language including the allegations that a warranty deed for the premises was executed on January 4. The execution of the deed was denied in the reply of plaintiffs.
Thereafter on January 8, 1949, Christy K. Smith brought an action against Mary A. Goodson and Velma Jean Koski and M. J. Koski, the latter’s husband, substantially setting forth the allegations which he had mentioned in the answers to the first action and also asked for a portion of the money paid to appellants under the R. V. Allen lease. A copy of the agreement for warranty deed was set forth, and a copy of the warranty deed, executed pursuant to the agreement, was attached. He prayed the court as follows:
“Wherefore, the Plaintiff Prays that this Court make a declaration of the rights of the respective parties in*449 and to said lands; that it be ordered and decreed that the plaintiff is entitled to have said Warranty Deed so that he may place the same of record; that Plaintiff is entitled to have the Abstracts of Title for examination and to have full performance in accordance with the agreement of the parties and that the defendants be required to deliver said executed Warranty Deed to the Plaintiff with said Abstracts of Title to the lands covered thereby for examination by Plaintiff’s attorneys and when said Plaintiff’s attorneys have examined said title and if the title be found merchantable that then and in that event the Court order the payment of Eight Thousand Five Hundred Dollars ($8,500.00) in the hands of the Clerk of this Court to the said defendants and that the plaintiff have and recover from the defendants the sum of money or such sum of money in such amount as shall have been paid by the former lessees of said lands * * * which the plaintiff is justly entitled to receive and that the plaintiff have such other further and different relief as upon the trial hereof may be just and proper and recover his costs of suit herein expanded.”
The answer of Mary A. Goodson and her associates contains substantially the same allegations as are contained in the action which she and Velma Jean Koski brought against Christy K. Smith and Preston T. Mc-Avoy and stating among other things that the warranty deed theretofore mentioned is a spurious invention and in no way binding upon them.
The evidence shows that the property involved herein was for sale on and before October 7, 1946. Christy K. Smith and his uncle, John Christensen, went to the ranch in question about noon October 7,1946, and it was then agreed that the purchase price of the property should be $35,000.00. The parties were to meet in the office of Preston T. McAvoy at Newcastle, Wyoming, on October 8,1946, in order to reduce the contract to writ
The dispute in the trial of the case was almost entirely confined to the question as to the amount of oil, gas and minerals reserved in the contract for warranty deed by appellants herein. The agreement in reference thereto will hereafter be set out in full. On February 28, 1951, the court entered judgment generally finding in favor of Christy K. Smith on all the issues in the case holding and declaring that the property in controversy is the property of Christy K. Smith. The court quieted title in him, subject, however, to an interest in the oil, gas and minerals under the land. The court held that one-third thereof is owned by Mary A. Goodson for life; one-third thereof by Velma Jean Koski for a term of twenty-five years, and that the remaining oil, gas and minerals under the land belongs to Christy K. Smith. The court gave judgment in favor of the latter in the sum of $266.66, being one-third of the money collected by Mary A. Goodson under the lease originally granted to Allen as heretofore mentioned, and directed an assignment of a State lease to be made to Smith which lease was a portion of the property agreed to be conveyed to Smith. The court further held that the agreement for a warranty deed and the warranty deed here-intofore mentioned are valid and binding, and that each of those instruments was freely and voluntarily signed by the grantors and acknowledged in due form of law. The court also directed the deed to be delivered to Christy K. Smith and that the last payment under the contract of $8,500.00 be turned over to the appellant herein, after examination and approval of the abstract
1. RESERVATION OF OIL AND GAS INTERESTS.
The main contention herein, as heretofore stated, revolves round the question as to the extent of the reservation of oil, gas and minerals in favor of Mrs. Goodson. It is agreed by the parties herein that the warranty deed heretofore mentioned corresponds with the award made by the court, namely that one-third of the oil, gas and minerals belongs to Mary A. Goodson for life, one-third to Velma Jean Koski for twenty-five years and the remainder to Christy K. Smith. It is contended, however, by counsel for appellants that no additional consideration was given when the deed was executed, and that hence the provision in the deed must correspond with those in the agreement for a warranty deed. We may concede that to be true for the purpose of this case. It is further contended that the reservation for oil, gas and minerals in the deed does not correspond with the reservation in the agreement therefor. The reservation in the agreement for warranty deed is as follows:
“The parties of the First Part except and reserve, and the Warranty Deed shall provide for the exception and reservation, for and in behalf of Mary A. Goodson of an undivided one-third of the oil, gas and other minerals in and under said land, and the use of the surface of said lands to drill and mine for and take away the said minerals with the right of regress, ingress and egress for so long and during the life of the said Mary A. Goodson, the intent hereby being that at the time of her demise the same shall revert to the Second Party; the parties of the First Part reserve and except, and the Warranty Deed when given shall provide for the reservation and exception, of all of the oil, gas and minerals in and under said lands, and the use of the surface of said lands to drill and mine for and take away the same, with the right of ingress, regress, and egress, an undivided one-third thereof for and in behalf of Velma Jean Koski for and during the term of twenty-five years (25) from and*453 after the date hereof, to-wit: October 8th, 1946, and at the end of said twenty-five (25) years, the said undivided one-third interest shall revert to the Party of the Second Part.” (Italics supplied.)
Counsel for appellants contend that in view of the fact that one-third was to revert or pass to Smith after the death of Mrs. Goodson and one-third more after twenty-five years, therefore Smith would receive no rights in any oil, gas or minerals until either the death of Mrs. Goodson or after the expiration of twenty-five years, respectively. In their opening statement in this case, counsel expressed their construction thus: “The middle clause reserves all the oil and gas forever. The first clause is a limitation upon the word ‘all’ and reserves one-third to Mrs. Goodson for life, and the third clause is a limitation on another third, reserving one-third to Velma Jean Koski for twenty-five years, leaving one-third reserved to Mrs. Goodson and Mrs. Koski forever.” (R. p. 6) Let us examine the reservation critically and dispassionately.
The clause in the second part of the reservation reading : “and the warranty deed when given shall provide for the reservation and exception,” is a clause not intended to enlarge the meaning of what immediately precedes, but was intended to carry it into effect. So eliminating that clause, and reducing the second part of the reservation to its simplest terms, it reads: “The parties of the first part reserve and except * * * of all the oil, gas and minerals * * * an undivided one-third thereof for and in behalf of Velma Jean Koski for and during the term of twenty-five years.” The English of this provision is flawless and clear. Some might consider the language somewhat stilted and put the proviso for the third before the other provision. Nevertheless, it is clear that one-third of all the oil, gas and minerals and nothing more is reserved by the second part of the reservation and that in favor of Mrs. Koski. The same thing is true if we read: “The warranty deed when given
To give any other construction to the reservation above mentioned and to give a predominant effect to the term “all” as counsel for appellants do, it is necessary for us to ignore the comma after “exception” and to strike “that the parties of the first part reserve” and read: “The warranty deed when given shall provide for the reservation and exception of all of the oil, gas and minerals” and stop there. The phrase “an undivided one-third thereof” might then be regarded as carved out “of all such oil, gas and minerals” in favor of Velma Jean Koski for twenty-five years. If that were the construction adopted, it would necessarily follow that under these provisions all the oil, gas and minerals would be perpetually reserved in favor of Mary Goodson, subject only to a third interest in favor of Mrs. Koski for twenty-five years. That, however, would be wholly inconsistent with the first clause which reserves for Mary Goodson only one-third for life. It would not alone be inconsistent to reserve to her such one-third on the one hand and all of it, as above mentioned, on the other, but such construction is also contrary to all the evidence in the case. Under the contract specific provisions were made for two-thirds — the major portion — of the oil and gas interests, namely one-third in favor of Mrs. Goodson for life, and another one-third for Mrs. Koski for twenty-five years. The term “all” appears in the clause, in the middle portion of the whole, which, as counsel for appellants contend, reserved all the oil and gas perpetually. But it is unreasonable to contend that after definite provisions were made for two-thirds of the whole, the smaller portion should then be designated by the term “all” — and that in the middle portion of the whole — a strange place in which to put such reservation of “all.” Hence we think that that term bears only the
The construction placed upon the reservation clause in'the argument by counsel for appellants is not even sustained by the testimony of his clients. Mrs. Koski, in her testimony, claimed no more than a third interest in the oil, gas and minerals for a period of twenty-five years. Mrs. Goodson claimed only a third interest but contended that that interest was permanent and not for life. She conceded that Christy Smith had a third interest (Q. 74, 88, 101, and 213). The construction placed upon the reservation clause by this court and by the trial court is amply sustained by other evidence. The witness John Christensen testified that the term of years was agreed upon; that Christy would not buy the property unless the oil interest was to revert to him at a certain time; that a life estate was mentioned and that Mrs. Goodson said she was going to live longer than twenty-five years. The witness Christy Smith (Q. 876) testified that Mrs. Goodson wanted one-third interest for life, that she was going to live longer than twenty-five years. The witness Neis Smith testified as follows: (Q. 2110-2112) “Q. Tell the court what was said, if anything, with respect to reservations on the matter of the oil and mineral that was contained in and under the lands ? A. That was very thoroughly discussed at that time. Q. Will you state what was said by Mrs. Goodson and what was said by Christy Smith with respect thereto? A. Well, the first thing that came up about it was when Velma Jean, as I remember it, came in and Mr. McAvoy asked her ‘Velma Jean, is it correct that you want twenty-five years ?’, and she said, ‘Yes it is.’ And her mother spoke up and says, T won’t accept that, I may live longer than that. I want life.’ That was the discussion at that time.” The witness Peter Smith (Q. 2270) said Mrs. Goodson “didn’t like what Velma
It is quite apparent from what we have said that this court could not, under the rules as to the conflict of testimony and the credibility of the witnesses, do anything else but affirm the judgment of the trial court in connection with the question here discussed.
2. ESCROW AGREEMENT AND WARRANTY DEED.
Mrs. Goodson and Mrs. Koski denied that they ever executed the escrow agreement in evidence and the warranty deed. The execution of the escrow agreement was testified to by McAvoy, Christy Smith and Neis Smith. So, it is sustained by ample testimony. The execution of the warranty deed is shown by the testimony of McAvoy as well as by the certificate of acknowledgment attached thereto by Betty Jean Fowler and, hence, is supported by ample testimony. Moreover while this court does not pretend to be an expert in handwriting, the various signatures of Mrs. Goodson and Mrs. Koski in evidence, some of which are admitted to be correct, indicate to us that both the escrow agreement as well as the warranty deed were signed and executed by them. We might add that the warranty deed is of comparatively minor importance in this case. It appears herein that Christy Smith has fully complied with the agreement entered into by him. So that in any event even if the deed above mentioned had not been executed,
3. FRAUD, DURESS, OR MISTAKE.
The petition of appellants was apparently drafted on the theory that the agreement for a warranty deed was obtained through fraud, duress, or possibly mistake. But the contract was signed by the parties, and it does not appear that Mrs. Goodson’s hearing was bad, or that she was unable to read. Judging from the record, she is an intelligent woman, and her handwriting is excellent. In the case of Moffett, Hodgkins & Clarke Co. v. City of Rochester, 91 F. 28, (C.C.A. 2nd Circuit), the court stated: “A court of equity cannot undertake to make a contract for parties which they have not made themselves, and would equally transcend its just powers by compelling a party to relinquish the fruits of a contract which he has honestly made, and in which there is no taint of wrong to affect his conscience. The recission or cancellation of a contract is certainly as drastic an interference with its provisions as a modification of it. The consequences may be equally or even more injurious to the party who is deprived of the benefit to which he is entitled by it.” We held in Bushnell v. Elkins, 34 Wyo. 495, 502; 245 P. 304, that: “When parties have deliberately put their engagements in writing, and such writing is complete on its face and is certain and definite as to the objects of their engagement, it is conclusively presumed that the whole contract of the parties and the extent and manner of their undertaking was reduced to writing, and cannot be contradicted, altered, added to or varied by parol or extrinsic evidence.” It is true, as pointed out in the same case, that a contract may be cancelled for fraud, duress or mistake, but the burden to prove these factors is upon the party asserting it. It is said in 3 Black on Rescission
In connection with the question of fraud and duress, counsel point out that Mrs. Goodson was tired; that when the agreement for warranty deed was drafted, it was late in the evening; that there was present a former Governor of this State; that men of large stature were present; that there was smoke in the room; that there was a good deal of talking in the room causing confusion. Attention is even called to the fact that Christy Smith conferred separately with the married daughter of Mrs. Goodson. Counsel have not cited us to any cases in which such facts have been held to constitute fraud or duress, and we venture to say that none can be found to that effect. Any finding by the jury to the contrary would have been set aside. The allegation that plaintiffs were overreached is a pure conclusion and does not aid them. The allegation that she was deprived of independent advice, too, is mere conclusion. That allegation, and the further allegation that respondent employed plaintiffs’ regular attorney will be considered hereafter. Neither of them are supported by the evidence.
Nor, we think, has any mistake been shown. The main evidence on that point is the evidence of Mrs.
In that connection it is stated in 1 Black on Rescission and Cancellation, 402, § 131, as follows: “A party cannot have relief against a contract or other obligation into which he has entered in ignorance of material facts, or under a mistake as to such facts, where no fraud or imposition was practiced upon him, and his ignorance or mistake is entirely due to his own negligence or lack of proper attention, or to the failure to exercise such reasonable care and thoughtfulness as may be expected in business transactions from men of ordinary care and prudence. Thus, for example, one who is too careless or too confiding to acquaint himself with the contents of a written instrument presented to him for his signature * * * cannot ordinarily base a claim to relief in equity on the fact that he was mistaken as to its identity, terms, or purport.” In 9 Am. Jur. 379, § 34, it is stated: “Negligence on part of the compainant (complainant), contributing to the mistake, will also prevent the securing of relief; the cases are practically unanimous in holding that mistake which results from failure to exercise that degree of care and diligence which would be exercised by persons of reasonable prudence under the same circumstances will not be relieved against. This rule is particularly applicable in cases where the mistake was due to the party’s failure to read * * * the paper he was executing.” The Iowa Supreme Court in Reid, Murdock & Co. v. Bradley, 105 Iowa 220, 74 N.W. 896, aptly stated as follows: “It is a general rule that negligence is an insuperable objection to relief in equity on the ground of mistake. In the case of Glenn v. Statler, 42 Iowa 107, we quoted with approval the rule an
When Mrs. Goodson testified that nothing was said about her having a life estate in a third interest in the oil, gas and minerals in the land, she was quite obviously mistaken. The agreement for a warranty deed alone— aside from, all the testimony contradicting her — shows that her memory was faulty. She, herself, admitted
4. MRS. GOODSON’S HOMESTEAD RIGHT.
Counsel for appellants argue that Mrs. Goodson’s homestead right was not properly conveyed. It is true that she acquired a homestead right when her husband died in 1942. § 3-4503, Wyo. Comp. Stat., 1945. That homestead right became her absolute property with some limitation. § 6-1504, Wyo. Comp. Stat., 1945. It would seem, however, that she is a little late in raising the question, above mentioned, for the reason that she abandoned her homestead when she gave voluntary possession of the property to Christy K. Smith on November 15,1946, and left the premises without any intention to return. A homestead right may be- abandoned. Arp v. Jacobs, 3 Wyo. 489, 27 P. 800, and see annotation to that case. See also 40 C.J.S. 639, 778, which in the last citation states: “It is very generally held that the widow’s right of homestead acquired by survivorship may be lost by abandonment * * * To constitute an
However that may be, Mrs. Goodson, both in the contract for the warranty deed and in the deed itself, waived her homestead right. Thus in the contract for the warranty deed, it is stated: “It is agreed and understood that there is included herein on behalf of Mary A. Goodson and Velma Jean Koski, the release and waiver of the rights of homestead and exemption laws of the State of Wyoming.” In the acknowledgment, it is stated that the grantors voluntarily executed the contract “including the release and waiver of the right of homestead ; the said Mary A. Goodson, a widow, and the said Velma Jean Koski, wife of M. J. Koski, having been by me first fully apprised of their rights and the effect of signing and acknowledging said instrument.” Similar provisions are contained in the deed. Mrs. Goodson testified that no notary asked her about release of her homestead right.
This court held in Rowray v. Casper Mut. Building & Loan Ass’n., 48 Wyo. 290, 45 P. (2d) 7, where a great number of authorities are reviewed, that evidence, to impeach a notary’s certificate of acknowledgment, must be cogent, clear, and convincing. See also 66 C.J.S. 619. The Supreme Court of Nevada reviewed the subject at length in Picetti v. Orcio, 57 Nev. 52, 58 P. (2d) 1046, and in the opinion on rehearing in that case in 57 Nev. 65, 67 P. (2d) 315. Quoting from the syllabi in 67 P. (2d) 315, it is stated: “Presumption in favor of notary’s certificate of acknowledgment, whether statutory or not, can only be overcome by clear, cogent, and convincing evidence amounting to a moral certainty. * * * Uncorroborated testimony of interested party is not generally such clear, cogent, and convincing evidence as is required to overcome presumption in favor of notary’s
Counsel for appellants lay particular stress upon the point that Mrs. Goodson was not apprised of her own homestead right. They asked her several times as to whether or not she had been so apprised. She answered in the negative. Counsel rely upon the provision of § 66-209, Wyo. Comp. Stat., 1945, which provides as follows: “Every owner or occupant of a homestead as established herein may voluntarily sell, mortgage, or otherwise dispose of or encumber the same; provided, that every such sale, mortgage, disposal or encumbrance shall be absolutely void, unless the wife of the owner or occupant of such homestead, if he have any, shall freely and voluntarily sign and acknowledge the instrument of writing, conveying, mortgaging, disposing of or encumbering such homestead; and the officer taking her acknowledgment shall fully apprise her of her right and the effect of signing and acknowledging such instrument.” The section was modified by the Legislature of 1949. As it stood, however, at the time of the contract in 1946, it was necessary to apprise a wife of the right of homestead. It did not provide that a widow who had no husband should be so apprised. Thus it was held in Bailly v. Sisseton Farmers’ State Bank, 35 S. D. 122, 150 N.W. 942, that a statute “making a conveyance by
5. PROFESSIONAL CONDUCT OF ATTORNEY.
Many pages of the brief of counsel for appellants are devoted to an attack on the professional conduct of Preston T. McAvoy who drafted the agreement for warranty deed and the deed itself. It would take us too far afield to refer to all the points contained in the brief in this connection. In our judgment, the attack is unwarranted. It is largely based on the claim that Mrs. Good-son was a defenseless woman unaccustomed to the ways of the world. The record before us shows she is intelligent, has a will of her own, and knew pretty clearly what she wanted. She had had the land for sale for some time and made Christy Smith come to her terms. McAvoy had been her attorney in settling the estate of her deceased husband and perhaps in some other matters. These matters had been finished, and the relationship of attorney and client had accordingly been terminated. He was not her attorney when the agreement in question was drafted. Mrs. Goodson on account of her past relationship with McAvoy insisted that it would be drafted in his office since she trusted him. There is no indication whatever that the latter had any motive for drawing any instruments which did not contain the wishes which she expressed to him. We cannot understand why he or any other attorney should have
After the controversy herein arose, McAvoy wrote to the present counsel for Mrs. Goodson and Mrs. Koski that in view of the fact that he was an escrow agent for both parties, he would take a neutral attitude in the case. It is insisted that he should have continued to do so; that he should not have appeared as counsel in the case for Christy Smith, and that the court should not
6. PAYMENTS TO JOINT CREDITORS.
The payments agreed to be made under the contract here in question were all made to Mrs. Goodson, except that the last payment of $8,500.00 was deposited with the clerk of the court. No payments were made to Mrs. Koski. Hence, it is argued by counsel for appellants that the contract is without consideration so far as Mrs.
7. DEMAND FOR A JURY.
Appellants demanded a jury which was refused. We think the action brought by Christy Smith against the appellants is an action for specific performance and no trial by jury may be demanded in such case. 50 C.J.S. 753, § 36. The questions involved in the action brought by the appellants against Christy Smith and Preston T. McAvoy are two-fold. On one phase of the case appellants ask for construction of the contract here in question. In our view, as heretofore stated, the contract is not ambiguous but its meaning is clear. It is stated in 17 C.J.S. 1279, § 616: “Ordinarily, the construction or legal effects of a contract must be determined by the court as a question of law.” In 17 C.J.S. 1287, § 617, it is said: “The construction of an ambiguous contract is a question of law for the court where the ambiguity can be clarified by reference to other parts of the con
Counsel for appellant contend however, that this case involves an action under our declaratory judgment act, and that we held in Holly Sugar Corp. v. Fritzler, 42 Wyo. 446, 474; 296 P. 206, 214, that a party is entitled to a jury trial in such a case. In calling the action one under the foregoing act, counsel grasps at one statement in the prayer of the action brought by Christy Smith, namely the first sentence thereof reading: “wherefore the plaintiff prays that this court make a declaration of rights of the respective parties.” We hardly think that that sentence alone makes the action necessarily one under the foregoing legislative act. But assuming otherwise, we hardly think that what we said in the Holly Sugar Corp. case can be construed as meaning that a
Other matters are mentioned in the brief of counsel for appellants. But this opinion is already too long. Suffice it to say that in our judgment none of these matters are of sufficient importance so as to deserve an argument thereon herein. We think that appellants had an eminently fair trial. We are unable to find any reversible error in the record and the judgment of the trial court must accordingly be affirmed. It is so ordered.
Affirmed.
Riner, J., and Parker, District Judge, concur.