Marshall v. Forest Oil Co.
Marshall v. Forest Oil Co.
Opinion of the Court
Opinion by
On August 28, 1895, A. H. Knauff, the owner of fourteen acres of land in Forward township, Butler county, granted to the appellant the exclusive right to drill and operate for oil and gas on it, for the term of ten years, “ and so long thereafter as oil and gas can be produced in paying quantities.” The consideration for this was $675, paid by the lessee at the time of the execution of the lease, and one eighth of all the oil and gas produced. The lessee agreed to commence operations within ninety days from the date of the lease, or after that period to pay the lessor $14.00 per month as a rental, until he should commence them. The lessee did not commence his operations at the expiration of the ninety days, but paid the rental to May 28, 1897. On the day preceding, May 27, he made a location and was about to commence, when, according to his testimony, he stopped in pursuance of an understanding with Knauff that, if he kept a man named Burr off the premises, the time for beginning work was to be indefinitely extended, and no rental was to be charged for the interval of inactivity. After May 27,1897, the lessee did nothing, and on May 22,1899, Knauff' leased the premises, for oil purposes, to S. S. Reeseman, who assigned the lease to the Forest Oil Company, the appellee. Subsequently, on October 20, 1899, Marshall, the appellant, brought ejectment against this company for the recovery of possession of the property. Service of the writ was accepted for Knauff, and, by leave of court, under plaintiff’s objection, he was made a party defendant. The verdict was for the defendants, and, on this appeal from the judgment entered, the court’s permission to make Knauff a party defendant to the suit, and its alleged failure to properly instruct the jury as to the forfeiture and abandonment of the lease by Marshall are assigned as error.
The writ was originally issued against the Forest Oil Company. as sole defendant. It was never actually served. Service was accepted for the company by its attorneys, and the sheriff received an acceptance of service from the attorneys of Knauff as “ party and owner in possession.” Return was made
The first point submitted by the plaintiff was, “ The plaintiff’s lease has not been forfeited by a failure to pay rentals.” Neither this nor the others were specifically answered by the court. The learned judge said of them all together, “The points above can all be answered in one answer. Before the plaintiff can recover the possession of the land described in the writ, he must convince you from the weight of the evidence that he has fully complied with the covenants in the lease and has done all he promised therein, unless he was released by the lessor, Knauff, or released from some of them by him as claimed by the plaintiff, which is a fact to be determined by you from the evidence.” In this general answer, the jury were instructed that there could be no recovery by the plaintiff, unless he had fully complied with his covenants in the lease and done all he had therein promised; and, in the general charge, the learned trial judge made clear what he meant in so instructing them. He told them that the plaintiff “ must commence the well or pay the rental, and unless ho has drilled the well, commenced
Reference
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- Marshall v. Forest Oil Company
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- Syllabus
- Ejectment—Service of process—Party in possession—Acceptance of service—Acts of April 13, 1807, 4 8m. L. 476, sec. 2, and May 4, 1852, P. L. 574. In an action of ejectment where the sheriff finds a party in possession other than the person named in the writ, he may, under the act of April 13, 1807, sec. 2, return an acceptance of service by such party, and such return will be equivalent to actual service and proof that it did appear to the officer that such party was in possession of the premises. If the prothonotary does not enter such person as a party when the writ is returned, he may subsequently be compelled to do so, and such correction of the record will not be considered as an amendment under the act of May 4, 1852, by adding the name of a defendant omitted by mistake, but it will bo considered as merely carrying out the express provisions of the act of April 13, 1807, sec. 2. Oil and gas lease—Forfeiture—Payment of rentals—Abandonment. Where a lessee in an oil and gas lease does not absolutely covenant to develop the land, but merely agrees that he will commence operations within a specified period, or thereafter pay a certain fixed sum monthly as rental, and there is nothing in the lease providing that it shall be forfeited by the nonpayment of the rental, the only forfeiture contemplated being that resulting from an abandonment of the lease and the removal of the lessee’s property from the premises, the lessor cannot, by an action of ejectment, enforce a forfeiture merely because the lessee failed to pay the rentals. In such a case the lessor’s remedy is to proceed for the collection of the rent due, and upon failing to recover it the lessee’s rights will be divested. Where an oil and gas lease does not provide for a forfeiture for nonpayment of rentals, but only by an abandonment by the lessee, it is error for the court so to charge the jury that the latter may be misled into the belief that a mere failure to pay the rental was a ground for forfeiture, although the subject of abandonment was submitted to them.