201 P. 352 | Wyo. | 1921
Lead Opinion
The plaintiffs in error, plaintiffs below, bring this action against the defendant in error, defendant below, to cancel of record two oil and gas leases held by defendants on 80 acres of land in Fremont County, and for damage in the sum of $400,000 for failure to cancel said leases of record and for failure to drill. A demurrer was sustained to the original petition. An amended petition was filed. From this, on motion, were stricken all matters relating to damage. The plaintiffs complain of this action here. How
1. We are cited to Vaught v. Pettyjohn & Co., 104 Kans. 174, 178 Pac. 623; Kelly v. First State Bank, 145 Minn. 321, 177 N. W. 347; A. L. R. 929 and other eases which hold that where a party maliciously puts of record a void instrument affecting title to property, he is guilty of slander or defamation of title and liable for special damages arising therefrom. Counsel for plaintiffs desire us to extend that rule to a case of a mere failure to release an instrument which was rightfully recorded, but should have been can-celled of record by reason of subsequent events. They call our attention to no authority where that has been done; and despite the fact that questions of like kind must naturally have arisen time and again in some of the older states, we have found no case holding such rule. In order to constitute defamation of title it is essential that it be published. (Arnold v. Producers Oil Co. (Tex. Civ. App.) 196 S. W. 735; Potosi Zinc Co. v. Mahoney, 36 Nev. 390, 135 Pac. 1078; Coffman v. Henderson, 9 Ala. App. 553, 63 So. 808; Schoen v. Casualty Co., 147 Ga. 151, 93 S. E. 82, 25 Cyc.
Aside from this, we might add that- the second amended petition in this case fails in other respects to state a cause of action for defamation of title. Attorneys fees are claimed, but these are not recoverable in any event. (Mickie v. McGehn, supra; Cohen v. Minzesheomer, 118 N. Y. S. 385; Hubbard v. Scott, 85 Or. 1, 116 Pac. 33 and cases there cited.) This is in consonance with the general rule that ordinarily attorneys fees are not recoverable. (15 C. J. 114.) The special damages which plaintiffs apparently, claim by reason of such defamation is that they were prevented from leasing or selling the land to parties other that Martel and Lee without setting out the names or the price; that they were compelled to enforce their rights at great expense and loss of time; that they could have sold the land to Martel and Lee for a greater sum in the absence of the cloud of title, without naming the sum, and without therefore naming the damages sustained thereby, since the additional amount would, of course, in such case be the damages sustained. Now defamation of title of property was not considered harmful at common law and not actionable unless special damages were shown. And since these special damages are the gist and heart of the action, a peculiar strictness governs in respect to the pleadings and evidence. As was said in Griffin v. Isbell, 17 Ala. 186: “There is, perhaps, no other civil action which has been treated so strictly by the courts. ’ ’ Hence the special damages must be specifically pointed out or the petition is demurrable. It is not sufficient to allege in general terms that the plaintiff has been damaged or that he has been prevented from making a sale; if the property could have been sold for more than its value, or for more than it actually brought, the amount thereof must be stated and the parties must be named. It
2. The ratification agreement of the first lease contains, as stated, a covenant to erect, within 90 days, a standard rig in order to drill a well 3,000 feet deep if necessary; also to drill offset wells, without providing when this should be done, presumably, therefore, whenever required. These covenants, it is charged, were not complied with, and counsel for plaintiff, relying upon the maxim ubi jus ibi remé-dium, where there is a right, there is a remedy, claims that damages follow as a matter of course. We have no fault to find with the maxim “Remedium” is, however, in the singular, not in the plural, as counsel seems to read it. And it may be further said in passing, since counsel'for plain
“If the defendant was entitled to any damages, he was entitled to recover all his damages. If he recovered any damages, the amount recovered must be deemed all his damages. If he should receive all his damages, he would be made whole and there would be no occasion for awarding rescission. The defendant has his election of two remedies ; either to denounce the contract and rescind it, or to affirm it and claim damages. To take one remedy was to waive the other. Having declared upon a rescission he was entitled to be put in statu, quo and to recover back whatever of the purchase price he had paid. * # ' * But the rescission being awarded such remedy must be deemed complete. He- cannot have rescission without repudiating the contract, nor damages without affirming it.”
The quotation is from a case where rescission was made on the ground of fraudulent representations. But the doctrine of election of remedies is not confined to cases of fraud. (Pickle v. Anderson, 62 Wash. 552, 114 Pac. 177.) It applies whenever a party takes an inconsistent position, whether arising from claims' that carry a different measure of damages or otherwise. A claimant cannot “blow both hot and cold. ’ ’ When a party in a case like this, sues upon a covenant, he affirms the contract as valid and that position is inconsistent with rescission, termination and dis-affirmance thereof. The principle herein announced has been applied in numerous cases and under various conditions. Thus, in case’of ordinary contracts, a party cannot rescind it and also sue for a breach thereof. (13 C. J. 623; Chesley v. Coal Company, 19 N. D. 18; 121 N. W. 73; Seymour v. Warren, 47 Misc. 316, 93 N. Y. S. 651; Genet v. Canal Company, 28 App. Div. 328, 51 N. Y. S. 377; Tyler v. Bldg. Co. (Cal. App.) 190 Pac. 209; Timmerman v. Stan
“What was the status of the contract and of the parties thereto after plaintiff had rescinded it? The rescission of it wiped out the contract, so far as basing any affirmative action on it relating to its enforcement, or for damages for its breach. It destroyed all its vitality, and the relation of the parties thereto as an express contract was the same as though it never had been entered into. ’ ’
In the case of Rose v. Rundell, supra, plaintiff, the vendor, commenced an action to recover an installment due under a contract. Thereafter he declared the contract forfeited for the non-payment of an installment falling due subsequently, and, similar to the proceedings in the case at bar, pursued an action for termination of the contract to final judgment and decree before obtaining judgment in the first action. The court said:
*176 "But clearly, whenever the vendor elects to declare the contract forfeited by the vendee, and does so, and procures a final judicial decree fully and finally abrogating the contract, all other undetermined and coexisting rights cease .and are determined. If the óontract is abrogated, it is not ‘in a sense deadened,’ to use appellant’s words, but it is absolutely dead. It is functus officio. If it is so as to one party, it is so as to the other. It cannot thereafter be revived and made a live contract by one party alone. The vendor alone cannot breathe the breath of life into it. All unpaid balances, not liquidated in judgment, are waived from the instant that the contract is declared extinct. The appellant elected and chose to formally and solemnly dis-affirm and declare forfeited the unexecuted provisions for the benefit of the respondent by bringing, prosecuting, and pursuing to judgment his cause No. 98871, for the judicial termination thereof. That constituted an abandonment of the action then pending for the recovery of any unpaid purchase money under the contract. By that election he must abide. ’ ’
The same principle has been stated in a number of cases involving oil leases; (Ray v. Gas Co., 138 Pa. St. 576; 20 Atl. 1065; Agerter v. Vandergrift, 138 Pa. St. 593; 21 Atl. 202; Willis v. Gas Co., 130 Pa. St. 222; The Woodland Oil Co. v. Crawford, 55 Ohio St. 161; 44 N. E. 1093; Allen v. Narver, 178 Cal. 202, 172 Pac. 980.) In the last case cited, the defendant had agreed to drill a well, or to pay $100 per month. The court, speaking of the right to recover the amount agreed to be paid and the alternative right of rescission, says:
" It is quite true that by another provision of the lease it was provided that a failure on the part of the lessees to comply with the conditions thereof, or their failure to diligently prosecute the work of drilling and producing oil, would render the lease null and void and of no effect. This provision constitutes an option given to the lessor, which, in lieu of insisting upon the payment of the $100 per month*177 as provided in that portion of the-lease hereinbefore quoted, he might or might not exercise at his election. ’ ’
The case of Wolf v. Guffey, 161 Pa. 276, 28 Atl. 1117, is, we think, decisive of the case at bar. In that case the defendant had agreed to drill and complete a well within six months, and in case of failure to do so to pay to plaintiff $260 within three months thereafter. Upon the expiration of the nine months, plaintiff forfeited the lease, but subsequently brought his action for damages. The court held that the right to damages was lost and said in part:
‘ ‘ In this case it was the act of the lessor which rendered the lease null and void and without effect between the parties. Within six days after his right of action accrued, and without demanding payment of the sum sued for, he let the premises to the Philadelphia Company for a term of twenty years. This was prompt, plain decisive election by him to enforce the forfeiture clause, and thenceforth the lease was a nullity and the rights and liabilities arising from it were extinguished. ’ ’
In the case of Indiana Oil etc. Co. v. McCrory, 42 Okl. 136, 140 Pac. 610, to which we are cited, damages were claimed for improper drilling on a developed piece of oil land. That case, therefore, has no bearing on this. The case of Keppner v. Lemon, 176 Pa. St. 502, 35 Atl. 109, 197 Pa. St. 430, 47 Atl. 353, presents an action for specific performance to compel the drilling of future wells and for damages arising by reason of draining oil from the land in question by other wells placed within a few feet of the dividing line. The land was known to contain oil and had one producing well thereon. After all the oil had been drained from the land, the lessee surrendered the lease, and the court held that the lessor should be compensated for the oil ' that had been drained away by the wells on the adjoining land. It will be noted that the lessor did not ask any rescission, but that this was in fact made by the lessee, and the decision can probably be further explained on the theory, if on no other, that the court allowed the damages in order to put the parties in statu quo — a principle generally ap
“When a contract is rescinded while in the course of performance, any claim in respect to performance, or of' what has been paid or received thereon, will ordinarily be referred to the agreement of rescission, and in general no such claim, can be made unless expressly or impliedly reserved upon the rescission. ’ ’
Affirmed.
Rehearing
ON PETITION FOR REHEARING
The plaintiffs, plaintiffs in error here, have filed a petition for rehearing and have set up various different grounds therefor. Without taking them up separately, we shall take up the substance of them briefly.
1. Counsel thinks that the principle of election of remedies is not applicable to the case. Among other things he states that the principle does not apply to leases “A” and “ C, ” meaning both leases, except the ratification agreement of the first lease. We cannot at all understand this argument. This principle is applied in the original opinion only, to the ratification agreement, that only containing a. covenant to drill. Hence we shall not refer to this matter further. As to the ratification agreement, containing the covenant, the points made seem to be as follows: (a) That it is like a case where a man leases land for $1000, of which $500 is paid down and the balance of $500 to be paid later; that the court by its decision deprives plaintiffs of the payment of the last installment. Without conceding that the situations are alike, the trouble with the argument is that plaintiff insists upon both the payment as well as the cancellation of the lease, two remedies which, under the agreement in the ease at bar, we have shown are inconsistent. Counsel says there is no inconsistency. He cites no authority, and takes his position in face of all 'the "authorities cited
2. The other claim of defendant is that plaintiff should have damages because defendant failed to release of record the leases entered into. The points made, if we understand counsel, are substantially these: (a) that the remedy in equity granted by the law is not sufficient; plaintiffs should have damages in addition; that though the common law grants no such additional remedy, we should give one; though other courts hav.e not done so, we should do so. That this would be judicial legislation is plain, (b) The second lease, first given to Paul, counsel say was void ah initio; that we held that to record a void instrument is actionable as slander of title. We did not so hold. We cited several cases, to which our attention had been called by counsel, which hold that where a party maliciously puts of record a void instrument affecting title to property, he is guilty of defamation of title. There is no claim, allegation 'or pre
A rehearing herein is accordingly denied.
Rehearing denied.