ATLANTIC RICHFIELD COMPANY, Sinclair Oil Corporation and Sinclair Oil and Gas Company, Appellants, v. The STATE of Oklahoma, ex rel. The WILDLIFE CONSERVATION COMMISSION In and For said STATE et al., Appellees. MABEE PETROLEUM CORPORATION, Gammill Oil Company and John C. Oxley, Appellants, v. The STATE of Oklahoma, ex rel. The WILDLIFE CONSERVATION COMMISSION In and For said STATE et al., Appellees.
Nos. 54234, 54245
Supreme Court of Oklahoma
Feb. 8, 1983
659 P.2d 930
A mortgage provision by which any incident of the borrower‘s title is surrendered—however slightly—to the will of the lender—directly or obliquely—must be deemed to contravene all the basic concepts applied in equity to a land security transaction. These are: (a) a lender is not allowed to exact a greater interest in his borrower‘s estate than a lien to be impressed as security for the debt,
R. Scott Savage, Moyers, Martin, Conway, Santee & Imel, Tulsa, for appellants, Mabee Petroleum Corp., Gammill Oil Co. and John C. Oxley.
Jan Eric Cartwright, Atty. Gen., Victor G. Hill, Jr., Brent S. Haynie, Jerry C. Blackburn, Asst. Attys. Gen., Oklahoma City, for appellees.
OPALA, Justice:
The questions posed on certiorari are: [1] Does the purchaser at a judicial sale acquire any interest in the subject property prior to confirmation? and if so, [2] Is a quit claim deed, executed by the purchaser before the sale is confirmed, effective, after confirmation, to invest the transferee with legal title? and [3] When the purchaser at partition sale was the common source of title for all parties in a quiet-title suit, was an alleged collusion between him and the land‘s court appraiser (his immediate transferee who was then under legal disability, pursuant to
We hold that: (a) upon payment of the purchase price, the buyer at judicial sale acquires equitable title to the subject property, which may be transferred by quit claim deed prior to judicial confirmation of the sale; (b) upon the court‘s confirmation, equitable title so transferred will ripen into full legal title; and (c) as between the parties-opponent herein, whose titles—derived through a common source—stand affected by the same infirmity, the one holding the older title from that source must prevail.
The State of Oklahoma, ex rel. the Wildlife Conservation Commission [State], sought to quiet its title in certain Latimer County land. The State derived its title by a 1935 warranty deed from J.W. Martin [Martin] who acquired title by a 1930 quit
The trial court found (1) that equitable title passed to Weaver at the judicial sale and thereafter to the appraiser by quit claim deed from Weaver; and following issuance of sheriff‘s deed, it ripened into legal title; (2) that the deed from Weaver to McKissick was executed after the quit claim deed to the appraiser, as well as after confirmation of sale and issuance of sheriff‘s deed—all of which prior transfers were recorded and constituted notice to McKissick and his successors and (3) the later purchase by the appraiser was not of itself indicative of fraud or collusion between Weaver and the appraiser.
Affirming the trial court‘s decree, the Court of Appeals held that (1) a quit claim deed may effectively transfer to another equitable title obtained by a purchaser at a judicial sale prior to judicial confirmation; and that following such confirmation, the equitable title so transferred would ripen into full legal title; and (2) that Martin, as the property‘s appraiser, held title that was merely voidable and thus not subject to collateral attack in the instant suit.
We granted certiorari on the petition of the appellants (oil companies) and now reaffirm the trial court‘s decree.
I.
The oil companies question the sufficiency of Weaver‘s title at the time he executed the quit claim deed to the appraiser, i.e. before confirmation of sale and execution of the sheriff‘s deed. The law is well settled that a successful bidder at the sheriff‘s sale does acquire equitable title and certain other inchoate rights of ownership in the property, subject to confirmation and payment of the purchase price.3 Such equitable title—obtained upon payment of the purchase price to the sheriff—can effectively be quit claimed to another prior to confirmation. When, following confirmation of sale and the delivery of the sheriff‘s deed, legal title becomes vested in the purchaser, it will inure to the benefit of his prior grantee.4
II.
Oil companies contend that an appraiser in a partition action cannot, either directly or indirectly, purchase the appraised lands at a subsequent sheriff‘s sale and that title to property acquired by an appraiser is void ab initio because the statutory disability which attaches to him is personal and perpetual.
The predecessor of
At the time Oklahoma adopted the Kansas statute, Kansas had not yet judicially tested its counterpart provisions with respect to indirect sales to an appraiser. The point pressed on us here—that an appraiser is personally forever barred from acquiring the affected property—remains unsettled in Oklahoma. Some jurisdictions have addressed this question and determined that under certain circumstances a person under the appraiser‘s disability may later acquire the appraised property. In those cases, the purchase was neither shown to have occurred at, nor to have been connected with, the judicial sale in which the official was involved.8 Other jurisdictions have held that the validity of a post-sale purchase by an official—in light of a statutory prohibition like or similar to that in
We need not intimate here any view on (1) whether the title acquired by Martin, the appraiser, was void or merely voidable or (2) whether the
While, ordinarily, in a quiet title suit the plaintiff bears the burden of establish
A common source of title is found where both parties claim under the same individual by virtue of transfers in their respective chains of title.14 Both the State and oil companies derive title through Weaver, the purchaser at judicial sale. Because any attack launched on the theory of a prearranged judicial sale to Martin would strike at the validity of title obtained by the purchaser at that sale (since its effect would impute an infirmity not only in Martin‘s title but also in that of McKissick‘s predecessor, Weaver), oil companies cannot challenge here the State‘s title without derogating from their own. A party cannot claim both under and against the same deed.15 Where both plaintiff and defendant claim title through the same party (in this case, Weaver), each side is estopped to deny the validity of such common grantor‘s title or his right to convey.16 Oil companies cannot hence defeat the State‘s title by a claim that the purchase at judicial sale was made indirectly for one ineligible to take and hence void. This is so because their own titles are derived from the very same purchaser at sale.17
Neither party is ever required to go behind the common source to establish the validity of his title,18 and this rule has been followed even where there was an allegation that the common source obtained title by fraud.19 In cases addressing this question, courts have held that where both parties claim through a common source any defect in the title of the common source is immaterial.20
The trial court found that, at the time of Weaver‘s conveyance to McKissick, the deed from Weaver to Martin, along with the confirmation of sale and the sheriff‘s deed, was already filed of record and that this constituted notice to McKissick.25 Under our recording statutes, the State‘s title, derived directly, from Weaver, is prior and thus stronger,26 and the State clearly is entitled to the equitable relief sought.27
Judgment of the trial court quieting title to the subject real property is affirmed.
BARNES, C.J., and IRWIN, LAVENDER and HARGRAVE, JJ., concur.
SIMMS, V.C.J., and WILSON, J., concur in result.
HODGES and DOOLIN, JJ., dissent.
SIMMS, Vice Chief Justice, specially concurring in result:
The partition sale at issue here occurred 53 years ago. In my opinion the time to challenge that sale or the subsequent transfer because of
Although I agree that the trial court correctly held in favor of the state, I cannot join in this decision. The majority gratuitously expresses in dicta that not only does
First, it is not plain to me that
Clearly, even if
Proper challenge to the sale or subsequent transfer could have been made at the time by motion to set aside the sale, motion objecting to confirmation or a direct appeal on same ground.2 We have no direct attack here. So far as we are aware, the parties in the partition action were satisfied with the amount of the commissioners’ valuation, they received their fair and full share of the money, did not appeal the judgment and never challenged the subsequent transfer. Nonetheless, the majority uses this case to make
The majority relies on the construction of this statute by Kansas when we adopted it. The decision in Galbraith v. Drought, 24 Kan. 421, 422 (1880) does not support the holding in this case, however. There the challenge by reason of an ineligible purchaser was initiated immediately after the sale transaction. Galbraith does not sanction complaint about a sale fifty years after the event.
Kansas has, in fact, rejected the rule adopted by the majority here, and held that an attack on a sale by reason of an alleged ineligible purchaser, must be brought within the applicable statute of limitations. In Shell Oil Co. v. Board of County Comm‘r‘s., 171 Kan. 159, 231 P.2d 220 (1951), that court held that although a county commissioner was an ineligible purchaser in a county tax foreclosure sale, an action to vacate the proceedings may not be commenced after the specific applicable statute has run. The court held that was true whether the sale and deed were considered void or merely voidable.
Title 12, O.S.1981, § 93 clearly governs actions commenced to challenge partition proceedings. It provides:
“Actions for the recovery of real property, or for the determination of any adverse right or interest therein, can only be brought within the periods hereinafter prescribed, after the cause of action shall have accrued, and at no other time thereafter:
(1) An action for the recovery of real property sold on execution, or for the recovery of real estate partitioned by judgment in kind, or sold, or conveyed pursuant to partition proceedings, or other judicial sale, or an action for the recovery of real estate distributed under decree of district court in administration or probate proceedings, when brought by or on behalf of the executor debtor or former owner, or his or their heirs, or any person claiming under him or them by title acquired after the date of the judgment or by any person claiming to be an heir or devisee of the decedent in whose estate such decree was rendered, or claiming under, as successor in interest, any such heir or devisee, within five (5) years after the date of the recording of the deed made in pursuance of the sale or proceeding, or within five (5) years after the date of the entry of the final judgment of partition in kind where no sale is had in the partition proceedings;
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(6) Numbered paragraphs 1, 2, and 3 shall be fully operative regardless of whether the deed or judgment or the precedent action or proceeding upon
which such deed or judgment is based is void or voidable in whole or in part, for any reason, jurisdictional or otherwise; provided that this paragraph shall not be applied so as to bar causes of action which have heretofore accrued, until the expiration of one (1) year from and after its effective date.”
The provisions regarding partition were added by Laws 1945, p. 37, § 1. Since 1946 then, 5 years has been the time limitation for attempting to set aside a deed or judgment because an allegedly ineligible purchaser took title after a partition sale.
Before 1945, the relevant time would have been 15 years under
We have statutes of limitations to avoid just the situation which the majority creates here: allowing the rights of parties to be decided not by prior judgments of courts of law and filed documents, but by testimony about what someone did or did not do, or did or did not intend to do, fifty years ago.
I am authorized to state that Justice WILSON joins with the views expressed herein.
