Title: Clark v. Carter

State: mississippi

Issuer: Mississippi Supreme Court

Document:

351 So. 2d 1333 (1977) Nolan CLARK et al. v. Willie Mae CARTER et al. No. 49639. Supreme Court of Mississippi. November 2, 1977. Rehearing Denied November 30, 1977. Riddell & Dabbs, Tally D. Riddell, Quitman, Heidelberg, Woodliff & Franks, Luther M. Thompson, Brunini, Grantham, Grower & Hewes, John M. Grower, Jackson, for appellants. Bacon & Smith, L.O. Smith, Jr., Gerald, Brand, Watters, Cox & Hemleben, Martha W. Gerald, Jack W. Brand, Scott P. Hemleben, Jackson, Hugh Craig Forshner, New Orleans, La., John M. Sims, Heidelberg, Robert H. McFarland, Bay Springs, for appellees. Before SMITH, BROOM and LEE, JJ. LEE, Justice, for the Court: Nolan Clark, et al., have appealed from an order of the Chancery Court of the First Judicial District of Jasper County, Mississippi, holding that an instrument designated "Mineral Right and Royalty Transfer" is a royalty transfer rather than a mineral deed. The sole question involved is whether or not the instrument is a mineral deed or a royalty transfer. Numerous parties, including oil companies, were involved in the litigation. The oil companies obtained leases from all parties, and their interest in the *1334 case is to have the owners of the minerals and royalty determined in order to make proper disbursement of oil royalties. The case was tried on stipulations, exhibits and pleadings. The chancellor overruled demurrers and construed the instrument to be a conveyance of royalty rather than minerals. The instrument involved is a Form R-101 "Mineral Right and Royalty Transfer," [See Appendix] which has been used in Mississippi for a number of years. It is a printed form with blank spaces to be filed in, including a space for the description of the property. After the description, the following words were typed in the instrument: The instrument was executed by Will Carter and Dollie Carter to W.T. Rowell, grantee, was witnessed by Mrs. Leroy Wells and Carter I. Arledge, and was acknowledged by Mrs. Grace B. Arledge, notary public. The date of the instrument is June 26, 1944. On the same date, an oil, gas and mineral lease was executed by Will Carter and Dollie Carter to W.T. Rowell, lessee. It was also witnessed by Mrs. Leroy Wells and Carter I. Arledge, and acknowledged by Mrs. Grace B. Arledge. The inference is that the instruments were executed contemporaneously. They were recorded on July 14, 1944, the oil, gas and mineral lease being recorded four (4) minutes prior to the R-101 instrument, which indicates that they were received in the chancery clerk's office simultaneously. It is significant that Will Carter and Dollie Carter were Negroes, that Dollie Carter could neither read, write nor sign her name, and that Will Carter could not read or write, although he could sign his name. Obviously, they could not have prepared the instrument, and, therefore, the inference and presumption are strong that both instruments were prepared by the grantee, W.T. Rowell, and that the intention phrase set forth above was written into the R-101 instrument by Rowell. Appellants rely upon the case of Ford v. Jones, 226 Miss. 716, 85 So. 2d 215 (1956). In that case, Jones conveyed to Ford by Form R-101 an undivided one-fourth (1/4) of the minerals in certain lands. After the description the following words were written: The chancery court held the instrument to be a royalty conveyance, but this Court construed it to be a conveyance of the minerals, stating that the provisions written after the description were not inconsistent with the printed provisions of the instrument. The Court said: *1335 We distinguish Ford from the present case. In Ford there was no lease executed contemporaneously with the transfer instrument. Here, the oil, gas and mineral lease is pertinent to the intention of the parties. In Ford the circumstances surrounding the grantors and information as to who prepared the instrument are not indicated, while here, it is undisputed that the grantors were illiterate and unlearned and could not have prepared it. If the present R-101 instrument was intended to be a conveyance of minerals, the intent provision typed therein would become useless because the grantee would own all royalty by reason of owning the minerals. Furthermore, there would have been no reason to obtain and record the oil, gas and mineral lease since a mineral conveyance would vest the executive rights in Rowell. In discussing the rules for construction of deeds or contracts, this Court said in Sumter Lumber Co. v. Skipper, 183 Miss. 595, 184 So. 296 (1938): See also Richardson v. Moore, 198 Miss. 741, 22 So. 2d 494 (1945). In Shepard v. John Hancock Mutual Life Ins. Co., 189 Kan. 125, 368 P.2d 19 (1962), the Supreme Court of Kansas was confronted with the problem of whether or not a certain instrument should be construed to be a royalty transfer or a mineral deed. The Court held that a contemporaneously executed mortgage may be considered for its evidentiary value in determining the intent of the parties and said: *1336 See also Doe v. Bernard, 15 Miss. (7 Sm. & M.) 319 (1846). Although the terms of a contract generally are construed more strongly against the grantor or maker when they are vague and ambiguous, it is also an established principle of law that such terms are construed more strongly against the party preparing the instrument. In 2 Summers, Oil & Gas § 372, at 487-491 (1959), the rule is stated as follows: In Stampley v. Gilbert, 332 So. 2d 61 (Miss. 1976), this Court stated: See also Globe Music Corp. v. Johnson, 226 Miss. 329, 84 So. 2d 509 (1956); Love Petroleum Co. v. Atlantic Oil Producing Co., 169 Miss. 259, 152 So. 829 (1934); Home Mutual Fire Ins. Co. v. Pittman, 111 Miss. 420, 71 So. 739 (1916). We have carefully considered the entire record, the conditions surrounding the parties at the time of the execution of the instrument, and the particular situation of the parties. We conclude that it was the intent of the parties that the R-101 instrument convey royalty interest and not mineral interest and that the Carters retained the mineral rights together with the right to execute oil, gas and mineral leases. The judgment of the lower court, therefore, must be and is affirmed. AFFIRMED. PATTERSON, C.J., INZER, SMITH, P. JJ., and ROBERTSON, SUGG, WALKER, BROOM and BOWLING, JJ., concur. STATE OF MISSISSIPPI, COUNTY OF JASPER KNOW ALL MEN BY THESE PRESENTS: That Will Carter and wife Dolly Carter, of Vosburg, Jasper County, State of Mississippi, hereinafter called grantor (whether one or more and referred to in the singular number and masculine gender), for and in consideration of the sum of Ten and No/100 and other valuable considerations paid Dollars ($10.00) and other good and valuable considerations, paid by W.T. Rowell hereinafter called grantee, the receipt of which is hereby acknowledged, has granted, sold and conveyed and by these presents does grant, sell and convey unto said grantee an undivided entire ( all ) interest in and to all of the oil, gas and other minerals of every kind and character in, on or under that certain tract or parcel of land situated in the County of Jasper , State of Mississippi, and described as follows: *1337 TO HAVE AND TO HOLD the said undivided interest in all of the said oil, gas and other minerals in, on and under said land, together with all and singular the rights and appurtenances thereto in any wise belonging, with the right of ingress and egress, and possession at all times for the purpose of mining, drilling and operating for said minerals and the maintenance of facilities and means necessary or convenient for producing, treating and transporting such minerals and for housing and boarding employees, unto said grantee, his heirs, successors and assigns, forever; and grantor herein for himself and his heirs, executors and administrators hereby agrees to warrant and forever defend all and singular the said interest in said minerals, unto the said grantee, his heirs, successors and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof. Grantee shall have the right at any time (but is not required) to redeem for Grantor by payment, any mortgages, taxes or other liens on the above described lands, in the event of default of payment by Grantor, and be subrogated to the rights of the holder thereof. This conveyance is made subject to any valid and subsisting oil, gas or other mineral lease or leases on said land, including also any mineral lease, if any, heretofore made or being contemporaneously made from grantor to grantees; but, for the same consideration hereinabove mentioned, grantor has sold, transferred, assigned and conveyed and by these presents does sell, transfer, assign and convey unto grantee, his heirs, successors and assigns, the same undivided interest (as the undivided interest hereinabove conveyed in the oil, gas and other minerals in said land) in all the rights, rentals, royalties and other benefits accruing or to accrue under said lease or leases from the above described land; to have and to hold unto grantee, his heirs, successors and assigns. WITNESS the signature ____ of the grantor s this 26th day of June , 19 44 . Witnesses: STATE OF MISSISSIPPI, COUNTY OF Jasper This day personally appeared before me, the undersigned authority in and for the above styled jurisdiction, the within named Will Carter and his wife, Dolly Carter who acknowledged that t he y signed and delivered the above and foregoing instrument on the day and year therein named as their free and voluntary act and deed. Given under my hand and official seal, this the 26th day of June , A.D., 19 44 . *1338 =========================================================================== Filed for record at 8:35 o'clock A. M., this 26th day of June , A.D., 19 44 and recorded in Book No. 14 , Page 577 on 14th day of July . A.D., 19 44 .