Opinion ID: 1138846
Heading Depth: 1
Heading Rank: 4

Heading: hill v. thompson

Text: The recent case of Hill v. Thompson, 564 So.2d 1 (Miss. 1989), concerned sixteenth section commercial property in downtown Forest, Mississippi. In 1960, the lot was leased for a one-time payment of $7.50 for a ninety-nine year term and had been used for years as a gasoline and service station. Mr. Thompson, who had purchased the leasehold interest at a 1985 foreclosure sale, filed suit for confirmation of his title to a leasehold interest of the Sixteenth Section School Trust land. The chancery court confirmed title in Mr. Thompson. Even though there was full compliance by the lessee with § 211 and the statutes, under the authority of § 95 of the Mississippi Constitution, this Court reversed the judgment of the lower court and voided Mr. Thompson's lease, holding that the consideration given to lease the land was so inadequate as to amount to a donation, in violation of constitutional prohibitions. In voiding Mr. Thompson's lease for inadequate consideration, the Court upheld the rule of constitutional construction that a constitutional provision should be enforced even though such enforcement leads to harsh or obnoxious consequences. Had this Court upheld the chancellor's determination that Chevron's lease may exceed the twenty-five year constitutional limit as to existing drilling and/or production units merely because [s]uch an interpretation provides for the orderly development of oil, gas and mineral leases, we would be creating an exception to this rule of constitutional construction. The exception would have read: Constitutional provisions will be enforced by this Court as long as the enforcement imposes no harsh or obnoxious consequences on large oil companies. Just as this Court found that Mr. Thompson was on constructive notice that the consideration paid by his predecessor in title was grossly inadequate, Chevron was also on notice that its lease expired after twenty-five years. Further, we are without knowledge of whether the consideration paid by Chevron for this lease was sufficient to avoid the ire of § 95. There can be no doubt that in a clash between economic realities and constitutional realities, the Constitution prevails. As such, the chancellor's decision, while well written and thoroughly researched, which favored the economic realities, is reversed and remanded for a determination and accounting consistent with this opinion. THE PETITION FOR REHEARING IS GRANTED. THE ORIGINAL OPINIONS IN THIS CASE ARE WITHDRAWN AND THESE OPINIONS ARE SUBSTITUTED THEREFOR. AFFIRMED ON DIRECT APPEAL. REVERSED ON CROSS-APPEAL. REMANDED FOR A DETERMINATION AND ACCOUNTING CONSISTENT WITH THIS OPINION. ROY NOBLE LEE, C.J., HAWKINS and DAN M. LEE, P.JJ., concur. ROBERTSON and PRATHER, JJ., dissent. PITTMAN and BANKS, JJ., not participating. McRAE, J., not participating according to Supreme Court Internal Rules.