Munn v. Hoyt
Munn v. Hoyt
Opinion of the Court
By Division B, composed of Justices O’NIELL, LAND, and BAKER.
Plaintiff has instituted this suit against F. D. Hoyt and his assignee, the Sinclair Oil Company of Louisiana, Incorporated, t'o cancel and annul and to have declared null and void and of no effect a certain oil and gas lease .on 100 acres of land in Webster parish, on the ground that, after said lease had been duly signed by plaintiff and by the defendant Hoyt, and after the delivery of the same to Hoyt, he falsely and fraudulently altered and changed the description of the land before recording said lease, so as to exclude from same two 40-acre tracts originally embraced in said lease, and so as to include in same one 40-aere tract and two 20-acre tracts which the plaintiff had not leased to Hoyt.
The defendant Hoyt and his codefendant, the Sinclair Oil Company of Louisiana, Incorporated, have filed a joint answer, in which it is alleged that the alterations and changes in said lease were made with the full knowledge and consent of the plaintiff, and that said company acquired said lease in good faith. Defendants also allege that plaintiff is estopped from denying the validity of said lease as recorded:
(1) Because plaintiff knew that he did not own the minerals under 80 acres of the land originally included in the lease, and, if plaintiff had no intention of allowing said change to be made in the description, then plaintiff executed said lease for the purpose of perpetrating a fraud upon defendant and obtaining the benefit of a test well without carrying out his agreement.
(2) Because, after the assignment of the lease to defendant company, it brought in a well producing large quantities of gas, thus proving up the territory.
(3) Because .plaintiff is estopped from securing the judgment asked for in his petition by having admitted the validity of- said lease in his petition, especially in so far as same covers and affects the N. W. *4 of S. W. % of N. W. % of section 29, township 23, range 9, a 20-acre tract.
Defendants pray that the demands of plaintiff be rejected, and, in the event that his demands ,be not rejected in all respects, then that his demands’be rejected, especially in so far as they apply or refer to the 20-acre tract in question.»
The judgment of the lower court canceled and annulled and declared null and void and of no effect the lease, except as to the 20-acre tract, and reserved to defendants the right in other proceedings to enforce any
The lease in question was taken as a part of a block or community lease. The plaintiff instituted the. present suit as soon as he had discovered the changes made in the description of the land in the lease, and after he had called Hoyt’s attention to same. Hoyt promised jilaintiff to grant him a release as to the 80 acres included in the lease by alteration, hut afterwards failed and refused to do so. Plaintiff owned one-half of the minerals under the 80-acre tract, which Hoyt excluded from the lease by erasure before recording the same, and previous to bringing this suit. Plaintiff offered his services to Hoyt to assist him in obtaining a lease from the owner of the other half of the minerals, hut Hoyt declined this offer.
Hoyt therefore altered the lease without consulting plaintiff about it, and the alteration is material, as it included a 40-acre tract and a 20-acre tract in section 29, township 23, range 9, and a 20-acre tract in section 30, township 23, range 9, an entirely different section, which plaintiff had not leased to him.
As the lease in question includes this 20-acre tract, by the consent and agreement of the parties .thereto, it remains valid an'd binding upon them to that extent, although null and void as to the other lands therein described and included through alteration.
The reservation, therefore, in the judgment of the lower court to defendants of the right in other proceedings to enforce any claims they may have to a lease on one-half of the land under which plaintiff owns -the minerals is clearly erroneous, for the plain reason that plaintiff has made no contract to lease to defendant the SO acres of land included in the lease by alteration, and the court is powerless to make such a contract for the parties without their consent, or reserve to defendants any right to enforce such a con-, tract.
To the contract of lease, as to that of sale, three things are absolutely necessary, to wit, the thing, the price, the consent. C. C. art. 2670.
There is no consent here .as to the thing nor as to the price of the 80 acres included in the changed’ contract of lease. Therefore there is no contract, and no rights to be reserved under the same to defendants, except as to the 20 acres lawfully included in said lease.
It is therefore ordered that the judgment appealed from he amended by striking out the reservation made to defendants of the right in other proceedings to enforce any claims they may have to a lease on one-half of the land under which plaintiff owns the mineral rights, and said judgment, as amended, is affirmed.
Reference
- Full Case Name
- MUNN v. HOYT
- Cited By
- 5 cases
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- Syllabus
- (Syllabus by Editorial Staff.) I.Alteration of instruments Evidence held to show that one of the lessees altered the lease without the knowledge or consent of plaintiff lessor, and-that he did so fraudulently, and that the alteration was material, as it included two tracts not leased to such defendant. 2. Alteration of instruments In an action to cancel a lease, on the grormd that after it had been duly signed lessee had falsely and fraudulently altered and changed the description to exclude 80 acres included therein, and to include 30 acres not leased,. a charge that lessor is estopped to contest the validity of the recorded lease held frivolous where lessee discovered even before the lease was recorded, and long before the well was drilled, that lessor did not own the mineral under the 80-acre tract in the original lease, so that he could not have possibly defrauded lessee and his assignee by allowing the 80 acres to remain in the lease, and getting the benefit of a, test well as was alleged if lessor did not intend to allow the change made in the description. 3. Alteration of instruments Where lease was executed, rights vested by virtue thereof in lessee to that part of the land in which lessor owned the minerals were not destroyed or divested by lessee’s alteration of the description to exclude part of the land arid include other land not leased, and the lease was correctly declared null and void as to all land described therein except the land in which he owned the minerals. 4. Alteration of Instruments &wkey;>2 — Test of materiality is not actual injury. The test of materiality of an alteration of a lease is not that it caused actual injury and it is unimportant whether it was beneficial or injurious to the party whom it is sought to charge and in determining materiality the intent in making the alteration and its consequent effect are not to be considered. 5. Alteration of instruments In determining the materiality of the alteration of a lease, the question is not whether the party to be charged thereunder has been or could be injuriously affected, but whether or not his rights have been materially affected, and whether the contract in its altered condition is the contract into which he entered, for that is material in a legal sense which might become material in some event. 6. Alteration of instruments (&wkey; 16 — Court may not grant rights as to land placed in lease by unauthorized alteration. A reservation in a judgment in action to cancel a lease giving defendants, one of whom had unlawfully altered the lease, the right in other' proceedings to enforce any claims to a lease on one-half of the land under which plaintiff owns the minerals, is clearly erroneous where such lands were included only by such alteration, in view of Civ. Code, art. 2670, stating requirements of valid lease. 7. Landlord and tenant Where a lease has been materially and fraudulently altered since its execution by one claiming under it, the good faith of the holder of such lease is of no consequence, and the maker’s defense of alteration cannot be avoided by proof that the defendant is a bona fide holder for value, who took without knowledge of the alteration, or of any fact putting him on inquiry.