Blackburn v. Union Oil Co.

MUSSELL, J.

Plaintiff appeals from a judgment for defendants quieting title to fractional oil and gas interests.

[776]

Plaintiff’s complaint contains the usual allegations in actions to quiet title. Some of the defendants disclaimed any interest in the property described in the complaint and the others filed answers setting forth their respective claims to interests in the property involved.

Defendants George Galatas and his wife claimed title to one-half of 1 percent of all oil, gas, and other hydrocarbon substances produced, saved, and sold from a part of the property described in the complaint and base their claim thereto on a “Landowner’s Oil Royalty Contract” executed by O. P. Blackburn and others dated June 2, 1937. Defendants Warren E. Ten Eyck and his wife allege that since September 12, 1934, they have been and now are the owners of 1 percent of all oil, gas, or other hydrocarbon substances produced, saved, and sold from a portion of the property involved, and base their claim to title on a grant deed to them executed by O. P. Blackburn and others on September 12,1934.

Defendants A. B. Ruddock and his wife claim title to one percent of the oil and gas, etc., in the same property obtained by them through deed from Blackburn and others in November, 1934, of which interest these defendants now own six-tenths of 1 percent, the other four-tenths of their interest having been by them conveyed to defendant Robert H. Miller on December 28,1934.

At the trial the plaintiff admitted the due execution, recording and delivery of the instruments by which defendants claimed title but claimed that the transfers of these interests were violations of the Corporate Securities Act in that no permit to sell had been obtained as required by the act. After introducing in evidence certificates from the Corporation Commissioner to the effect that 0. P. Blackburn did not have a broker’s or agent’s license to sell securities in his name for the year 1934, or thereafter, plaintiff called defendant George Galatas as a witness. The following testimony was then taken and proceedings had:

“Q. You are one of the defendants in this case? A. Yes sir. Q. And did you buy a one half of one percent interest in an oil development at one time? A. That is right. Q. And that was in the Weed Patch area? A. That is right. Q. And who did you buy that from? A. Prom Mr. Pred Blackburn. Q. Did you have any conversation with him at the time? A. Yes. Q. And who was there ? A. The conversation was, he said ‘I will sell you a one half of one per cent’-Mr. Baker : (Interrupting) I would like to get in an objection before he