Legal Document

384 U.S. 63 86 Supreme Court Reporter 1301 16 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 369 Floyd Atlantic WALLIS, Petitioner,v.PAN AMERICAN PETROLEUM CORPORATION et al. Number 341. Argued Feb. 23 and 24, 1966. Decided April 25, C. Ellis Henican, New Orleans, La., for petitioner. E. L. Brunini, Jackson, Miss., Lloyd Judge Cobb, respondents. Mr. Justice HARLAN delivered the opinion of Court. 1 This case presents a question concerning 'federal common law' best explained after summary facts legal proceedings involved. 2 At stake in litigation are rights several tracts, aggregating 827 acres, oil-rich 'mud lumps' or islands owned by located mouth Mississippi River near Burrwood, Louisiana.1 In 1954 petitioner, Wallis, filed with Secretary Interior applications lease to exploit oil gas deposits tracts. Because tracts were deemed Wallis be 'acquired lands' rather than 'public domain lands,' these under Mineral Leasing Act Acquired Lands, which governs former, instead 1920, controls latter.2 Subsequently, entered into written joint venture agreement respondent .patrick McKenna giving one-third interest pending any issued those applications. Then who had exclusive management property his McKenna, sold Pan American Petroleum Corporation an option acquire might obtain then on file Secretary. 3 1956, fearing that prove public land, new same 1920.3 Thereafter ruled conflicting one more competitors rejected, 1958 1920 Act. See Morgan versus Udall, 113 U.S.App.D.C. 192, 306 Federal Reporter, 2nd 799. After was brought diversity action against him District Louisiana seeking declared owner virtue original agreement. also court oblige perform transferring American. 4 The actions consolidated, following nonjury trial held neither nor entitled disputed lease. 200 F.Supp. 468. judge law governed parties required create transfer mineral lease, thus excluding oral agreements as basis relief this case. decided available contemplated they would share only leases obtained Lands not granted other law. court's judgment favor ownership reserved whatever have damages, restitution, like remedies based conduct. 5 Over dissent, Appeals Fifth Circuit reversed, filing initial opinion, 344 432, petitions rehearing, further adhering its earlier result, 439. erred applying controversy it remanded 'applicable principles federal control issues. F.2d, at 437, 442. latter reasoned imposed pervasive regulation Act's policies impaired if thwart federally leases. acknowledged apparent conflict Tenth Circuit's decision Blackner McDermott, 176 498.4 We certiorari invited views States, 382 810, 80, 15 59, brief amicus curiae. now reverse Appeals. 6 before us is whether general state should govern dealings private validly 1920.5 Several related matters distinguished laid aside outset. 7 First, we concerned Erie R. company Tompkins, 304 64, 58 817, 82 L.Ed. 1188, diverged from practice relevant issues statute frauds, parol evidence, estoppel, trust remedies, so forth, ground no 'procedural' rules fell some similar rubric. generally Hanna Plumer, 380 460, 85 1136, 14 8. Respondents do argue merely 'housekeeping' courts may ordinarily differ but government-granted requires supplanting law, event rule normally such court. Dice Akron, & Y.R. Co., 342 359, 72 312, 96 398. Second, apart pre-empting interest, consider suggestions Louisiana's because land issue outside boundaries State transactions between occurred elsewhere. sitting obviously assumed choice matter apply own questions. Klaxon Stentor Elec. Mfg. 313 487, 61 1020, 1477. If challenge offered point below, has yet been passed Third, merits correctly interpreted implemented us; presumably presented resolved apply. 8 focus central deciding fashioned, guiding principle significant policy use premises must first specifically shown. It means enough that, assume, Congress could Constitution readily enact complete code governing among parties. Whether latent power exercised displace primarily Congress. Even where there legislation area, true instance, remembered 'Congress acts * background total corpus juris states *.' Hart Wechsler, Courts System 435 (1953). find threat identifiable press questions invoking strength having govern, cf. Yazell, 341, 351—353, 500, 506 507, 404, feasibility creating judicial substitute, U.A.W. Hoosier Cardinal Corp., 383 696, 701, 1107, 1111, factors. 9 dealing subject, prime repository starting Deitrick Greaney, 309 190, 60 480, 84 694; Reitmeister Reitmeister, Cir., 162 691. nothing expressing inconsistent area concerns here. providing development lands containing minerals, comprehensively regulates various aspects process. For example, issuance competing applicants, e.g., § 17(b), (c), 30 Code KF62 226(b), (c); measure actual leased tract, promote goals conservation safety, 30, 187; deals rent royalty payments made Government, 17(d), 226(d). Few provisions lend themselves all creation inter se 10 Perhaps most prominent 30a, 187a, provides shall assignable.6 Appeals' relied provision, together reasons why assignment policy, justifying However, fitting approach interposes unreasonable conditions assignability, can force instance concededly quite feasible route contracting so, namely, instrument. F.Supp., 471 n. 13. Section 27(d)(2), 184(d)(2), bears directly rendering unenforcible running three years without prior approval Secretary; however, section enacts pair narrow, self-sufficient statutory defenses, reason large contracts interests. 11 Nor respondents' position aided fixing qualifications lessees extent curtailing alien limiting lessee holder maximum number acres.7 Secretary, approve assignments obligations record titles shifted finally, entirely free disapprove assignees however valid their otherwise be.8 Finally, said concern lands, disputes over them justly resolved. Apart highly abstract nature showing adequate achieve it. 12 A concluding word about precedents Court, copiously cited litigation. least respondents sought support principle, repeated our cases, party subsequent transfers subject E.g., Wilcox Jackson ex dem. McConnel, 13 Pet. 498, 517, 264; Buchser Buchser, 231 157, 34 46, 166. Notwithstanding unchallenged grant apparently argued conveyed title outstanding equities retains hold until existing important approach, confine equitable arising receipt Irvine Marshall, 20 How. 558, 994. agent purchased name behalf two principals refused convey interest; although local aimed discourage undisclosed purchases proxy refusing enforce claims, displaced ordered recognized. take rest precise explanation: enforcement claim discouraged purchasing through agents threatened hamper Government selling land. How., 562. While appraisal interests debatable, beyond stage specific found That exists present already demonstrated. Other cases equity resolving seem distinguishable, asserted Massie Watts, Cranch. 148, 181, government itself flawed manner, see Widdicombe Childers, 124 400, 31 427. Having concluded controversy, vacate remand contentions urged, including prevail Vacated remanded. BLACK, substantially agreeing majority opinions Appeals, affirm judgment. challenged another suit, D.C., 468, 470, 2, accept premise ownership. Statutes-at-Large 913, §§ 351—359 (1964 ed.); 41 amended, 181 seq. ed.). distinction here, acquired citizen usually never appears wrong treated ineffective, 10; 43 Regulations 3212.1(b) (1965), separate each allowed. arguably decisions Fifth, Ninth, Circuits collected 40 Tulane L.Rev. 195, 199, nn. 18—20. How possible used specified precisely. intimated devices resulting constructive trusts, recognized Louisiana, useful thought embody frauds understandings proved. believe applicability refinement issue. something ones surrender time period persons dispose illegally involuntarily acquired, 27(g), 184(g); protecting bona fide purchasers seeks cancel violations Act, 27(h), 184(h). Nowhere suggested how interfere behind sections, whose basically relate vis-a-vis 1, 27(d), 184(d). Conceivably, data sections violated, 'controlled' within meaning statute; since relevance secure. unless assignee qualified fails post bond. Where dispute validity effect assignment, does decide he will settle McCulloch Oil California, Int. Dept. Decision A—30208 (Nov. 1964).

Classification Label: 9