Case Title: Lott v. Kees

Citation: 165 So. 2d 106

Docket Number: 

State: alabama

Court: Alabama Supreme Court

Date: 1964-05-28T00:00:00Z

Document:
165 So. 2d 106 (1964)
Alex LOTT et al.
v.
Corbin C. KEES and Mary Haynes Kees.
1 Div. 177.

Supreme Court of Alabama.
May 28, 1964.
Howell, Johnston & Langford, Mobile, for appellants.
Z. B. Skinner, Jr., Mobile, and J. O. Moss, Lucedale, Miss., for appellees.
PER CURIAM.
This appeal from a final decree of the circuit court of Mobile County, in equity, presents for consideration, under appropriate assignments of error, Aspect C of the bill of complaint, as amended.
This aspect of the suit seeks to have (8) oil, gas and mineral leases executed by appellants (the Lotts) to appellees (the Kees) declared null and void because the only consideration for each of the leases sought to be set aside was a champertous agreement of the lessees (the Kees) to hire a lawyer and pay all expenses of a lawsuit, if necessary, to clear title to the land leased, namely, a vacant lot consisting of about two acres situate in the Town of Citronelle, Alabama, which, if the suit were successful, would clear the lessors' (the Lotts') title to the surface and 1/8th royalty interest in the minerals, and would give to the lessees (the Kees) a clear leasehold interest under each of the mineral leases here involved.
It appears from the pleading and the evidence that the Kees were approached by one Herman Emerson, who introduced them to the Lotts at the home of one of them in Mobile County; that at this meeting *107 a discussion took place with reference to the title of the lot here under consideration. It was agreed that the Lotts, the appellants, would execute and deliver the several mineral leases by the terms of which the Kees were to acquire a leasehold interest in the oil or minerals that might be found under the lot. It further appears that leases followed the usual pattern of royalty division, 7/8ths to the Kees and 1/8th to the lessors (the Lotts). The lease was for a term of ten years "and as long thereafter as oil, gas or other mineral is produced from said land or land with which said land is pooled hereunder."
The lease contains paragraph 1, which reads as follows:
The testimony of the Kees was that they did not pay to the lessors the initial rental consideration of $10.00, but did agree to hire a lawyer, if necessary, and otherwise defray all expenses in clearing the title to the lot which was the subject of the lease.
Before the instant suit was filed, the Kees employed an attorney to clear the title; and, also, the Kees themselves spent much time in the probate office at Mobile doing research work in an effort to find record data that affected the title to the property; also, they employed a title company to prepare and furnish an abstract of title. Negotiations were begun with a Dr. Moorer, who had purchased the lot from the State of Alabama, which, in turn, had acquired the property at a sale for state and county taxes. Pending the instant suit filed by appellants (the Lotts), the Kees caused a suit to be filed against Dr. Moorer to clear the title. Prior negotiations and this suit culminated in an agreement with Dr. Moorer whereby the latter quitclaimed the lot for the benefit of the Lotts. The deed recited a consideration of $2500.00. It appears that other factors entered into the settlement. The title was cleared.
Also, we are impressed from the evidence that the Kees initiated successful exploratory drilling for oil and that the share of the Lotts is being held in escrow for them pending the outcome of this litigation.
The trial court held in its final decree that the several leases were valid and subsisting instruments and denied relief to complainants. Hence, this appeal with appropriate assignments of error addressed to the decree of the court in denying relief under Aspect C of the complaint.
We advert to the doctrine of champerty as it relates to contracts and other transactions between laymen, which is the status of the parties to this suit. We quote from 10 Am.Jur., Champerty and Maintenance, § 14, p. 560, as follows:
We also refer to the case of Brown v. Bigne, 21 Or. 260, 28 P. 11, 14 L.R.A. 745, 28 Am.St.Rep. 752, from which we quote extensively as follows:
We have carefully read the text of the evidence in the case at bar, from which we conclude that the transaction between the appellants (the Lotts) and the appellees (the Kees) was not infected with champerty or vitiated thereby. The Lotts were colored people, some of whom, if not all, had a very limited education, and were anxious to redeem the lot, if possible, which they inherited from their ancestor, and which had been sold for payment of state and county taxes. We are also impressed that they were without funds to finance the necessary investigations and legal procedure to effect redemption and clear the title. They were dependent on financial aid from some source that was not freely available to them. They were seeking help.
The Kees, who were in the oil and mineral leasing business, agreed to finance the necessary investigation and the initiation of legal procedure to protect the interests of the Lotts and effect title in them.
We further observe that the oil and mineral leases obtained in exchange for this help did not exact benefits to the Kees that were uncommon or foreign to the usual and customary leases obtained in transactions relating to land without title blemishes.
We are impressed from the evidence that the parties entered into the transaction in good faith, and with no intention on the part of the Kees of officious intermeddling in a controversy or with the desire to promote or foster unnecessary litigation. Vaughan v. Marable, 64 Ala. 60(4). The leases which the Kees obtained were not unreasonable or unjust, but provided a fair and equitable participation to all parties concerned. Vaughan v. Marable, 64 Ala. 60, supra.
In view of the fairness of the transaction and the need of the Lotts for immediate financial help in trying to retrieve their otherwise lost property, we do not think the advancement of financial help violated any principle of law or public policy. The Lotts acquired a clear title to the surface of the land, in which the Kees in no wise participated, and, also, an equitable royalty in the minerals. The transaction was not entered into for the purpose of stirring up strife and litigation, or harassing others, but we think in good faith for the purpose of testing the tax title acquired.
The rule of this case does not apply to rights which are not assignable.
As observed in Brown v. Bigne, supra, the relation of attorney and client did not exist, and this opinion is confined to the case before us.
The decree of the trial court is therefore affirmed.
The foregoing opinion was prepared by B. W. Simmons, Supernumerary Circuit Judge, and was adopted by the court as its opinion.
Affirmed.
LIVINGSTON, C. J., and GOODWYN, COLEMAN and HARWOOD, JJ., concur.