Opinion ID: 1149453
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: To understand the issues involved, it is necessary to set forth certain pertinent facts disclosed in the record. L.A. Holmes and Allie Z. Holmes acquired the 140 acre farm and started living on it in 1934. The farm is located seven or eight miles southwest of Elmore City in Garvin County. Prior to the time they moved on the farm the Holmes' resided in the vicinity of Elmore City and had maintained a checking account and had done banking business at the First State Bank of Elmore City since 1911. Defendant A.L. Brewer is cashier and managing officer of the bank and had been cashier for forty years. In 1942, Mr. and Mrs. Holmes rented the farm to a Mr. Blevins and moved to New Mexico. In 1943, they moved from New Mexico to California and placed the renting of the farm in the hands of Brewer, one of the defendants in error. Brewer, as rental agent of the Holmes, thereafter rented the farm to John R. Main and his wife, Leora, for an annual cash rental of $80.00. Each time Brewer collected the rent from Main he deposited it in Holmes checking account at the bank and mailed Holmes a copy of the deposit slip for said payment. In October, 1946, the Holmes returned to Oklahoma to visit their son, T.C. Holmes, who was living near Pauls Valley, Oklahoma, and other relatives and acquaintances. While the Holmes were visiting on their farm, L.A. Holmes and John Main discussed a sale of the farm for $2,000.00, with Holmes reserving an undivided one-half interest in the minerals. Holmes told Main that if he decided to sell the farm, he would place a deed to convey the farm to Main in the hands of Brewer. If Main were able to raise the $2,000.00, he could pay said amount and get the deed from Brewer. T.C. Holmes testified that he was with his father, L.A. Holmes, when Mr. Holmes discussed the sale of the land with Brewer. He testified that Mr. Holmes asked Brewer about the oil activity around the farm and that Brewer stated,    it's deader'n a mackeral and that it would be a darned good deal to sell the farm for $2,000.00, with only one-half of the minerals, and that I'd (Brewer) advise you to sell it; that Holmes said if he decided to sell the property that he would send Brewer the deed and    Mr. Main, if he comes up with the $2,000.00, you will know how to fix it, and Mr. Brewer said he did. T.C. Holmes further testified that Brewer asked Holmes how much time John Main would have and L.A. Holmes stated thirty days, and that Mr. Brewer said, What do you want me to do in case he doesn't (get the money)? and his father answered, Return the deed back to me. At that time Sohio Oil Company had been engaged in drilling the Sohio-Howard No. 1 well located two and one half miles from the Holmes farm, for approximately one year. The well was referred to as a tight hole and had created no activity at that time. L.A. Holmes suffered a heart attack on his return to California and did not reach his California home until the middle of November, 1946. On November 20, 1946, Holmes and his wife wrote a letter to the First State Bank of Elmore City and enclosed a deed to the farm. The deed was in favor of John Main, dated November 20, 1946, and conveyed the surface and reserved one-half of the minerals in the grantors. The letter contained the following: Enclosed find deed from L.A. Holmes and wife to John Main, a married man conveying 140 acres in Garvin County. Kindly deliver said deed to John Main when you can collect for our account the sum of $2,000.00. When you have collected said $2,000.00 kindly deposit the same to our account and send us a duplicate deposit slip. Any expenses incurred hereby will be born by John Main. Thanking you in advance, we remain Encl. P.S. Kindly notify us if this matter is not taken care of in 30 days. There is a presumption that the letter and deed were received in due course of the mails after it was mailed on November 20, 1946, and defendants state in their brief that we can assume that said deed was received by the bank some three or four days later. In this connection see 31 C.J.S. Evidence § 136d; and Keeling v. Travelers Insurance Co., 180 Okl. 99, 67 P.2d 944. Therefore, soon after November 20, 1946, Brewer came into possession of the deed from L.A. Holmes and Allie Z. Holmes in favor of John Main. There is no evidence in the record whatsoever that Brewer ever notified Holmes that the matter was not taken care of. The testimony of John Main, submitted by deposition, was that he went to the bank prior to November 20, 1946, and three or four times after that and inquired of Brewer if the deed was there, and that Brewer advised him that he didn't know anything about the deed. The testimony also discloses that Main received a letter from Holmes the last of November or the first of December, 1946, advising him the deed to the farm had been sent to the bank and the deal was ready to be closed and that one of the trips to the bank by Main was made after the receipt of the letter from Holmes, and Brewer still advised him that he didn't know anything about the deed. In giving such statements, Main was no certain as to the exact time when he asked Brewer about the deed, i.e., whether it was before or after Brewer received the Holmes-Main deed. In December, 1946, the Sohio well began to get favorable showings of oil on drill stem tests. Although the well was being drilled as a tight hole the results of these tests became somewhat known in the vicinity and generally among lease brokers, and there was considerable activity in leasing and the sale of minerals. Rineharts Oil Reports dated January 3, 1947, reported the Sohio well as drill stem test flowed oil and gas; 7-5/8 8256'; cored 10,542-45' for sand with good stain, Drilling 10,666', (tight hole). On January 2, 1947, defendant McKey went to the home of T.C. Holmes, son of L.A. Holmes, and asked if his parents could be reached by telephone in California. McKey told T.C. Holmes that he intended to go to California and wanted to visit Mr. Holmes while he was there. On January 2, 1947, the following letter from Holmes was mailed to the bank: January 2, 1947 Just a few lines in regard our place Mr. main never got the money and the time is out and Charley McKey call this morning and sed he wanted it and you can make the deads over to him and be sure to make thim out For half roualty and sent the papers to us. i will close. L.A. Holmes In A.L. Brewer's deposition, which was admitted in evidence as admissions or statements against interest, he stated that the first conversation that he had with McKey regarding the land was after McKey told him that he had bought it from Holmes and that he prepared the deed from Holmes to McKey at that time; that he could not recall whether it was agreed that he was getting an interest in the property at that immediate time but soon thereafter. Mr. Brewer was further asked. Question: What was Mr. McKey to pay for the property? Answer: Two Thousand Dollars. Question: And when was you to get your interest in it, as soon as the deed comes back? Answer: Well now I can't answer positively when, I don't recall whether it was that time that we discussed it, however, after he worked out the deal and got it  in fact of the business, at that time no one individual  we three were not in a position to invest two thousand dollars in the property of that kind. Question: What were you supposed to have paid for it? Answer: I was to pay one-third of the cost of it. Mr. Brewer prepared the deed from Holmes to McKey and mailed it to Holmes in California. The following letter was then received by Mr. Brewer from Holmes: Jan. 8, 1947 Mr. Lee Brewer I have received the new Deed but dident understand why their were only one copy. As you know I want a paper made & sign by a notary showing I have one half undivided oil rights so will you fix such a paper and send it with the Deposit slip for the $2,000.00 as he has the other Deed, and I have a paper to keep showing my rights, and I then sign and send the new Deed back to you. And one thing I payed for the other Deed and I feel now that Charley must pay for this new Deed so will expect a reply with paper soon. Your Truly, L.A. Holmes Salinas, California East Salinas, Branch. The deposition of Mr. Brewer further discloses that he and McKey discussed what arrangements would be made with John Main. He stated    in the conversation it was discussed that John be paid something for his trouble in the matter since he was trying to sell it and that it was agreed to pay him a hundred dollars and one year's rent on the place. Brewer stated that he still had the Holmes-Main deed in his possession when he obtained the Main-McKey deed on January 11, 1947, and that he paid Main the $100.00, or credited Main's account for $100.00, and that he was given credit for the $100.00 in their final settlement. Brewer and McKey both stated that Brewer was acting as the agent of McKey in the McKey-Main transaction. However, the record shows that prior to January 11, 1947, Brewer and McKey had agreed that Brewer would receive an undivided one-third interest in the property. Therefore, Brewer was not only acting for McKey, he was also acting for himself when he secured the Main-McKey deed. On January 11, 1947, the same date Brewer secured the Main-McKey deed from Main the following letter was written to Holmes by Brewer: Dear Mr. Holmes: I am enclosing copy of deed, certified by me to be a copy of deed to Charlie, I will personally see that only one half of the oil, gas and minerals go to Charlie. I am enclosing the copy and $3.00 to pay the notary fee. I will appreciate you sending deed as soon as convenient, I am also enclosing deposit fee for $2,000.00. Best of luck, Yours very truly, A.L. Brewer The bank statement of L.A. Holmes discloses a deposit to his account on January 13, 1947 in the sum of $2,000.00; the bank statement of C.E. McKey discloses a withdrawal of $2,000.00 on January 13, 1947. On January 15, 1947, L.A. Holmes and Allie Z. Holmes mailed the Holmes-McKey deed to Brewer. In addition to the Rineharts Report, dated January 3, 1947, listing the Sohio Well as heretofore set out, there appeared in the local papers during the latter part of January that the same was a big producer and had opened a major oil play for the Garvin County area. The evidence discloses that Brewer, McKey and Vaughn each paid an undivided one-third of the total costs of the farm and that McKey conveyed by separate deeds to both Brewer and Vaughn an undivided one-third interest on February 7, 1947.