103 Wash. 359 | Wash. | 1918
— Appellant, plaintiff, a corporation, was organized in April, 1916, and is engaged in procuring oil and gas leases for the purpose of developing the properties for the production of oil and gas. About the date of organization, defendant employed one Arthur C. Harris, a stockholder, to act as its agent in securing oil and gas leases. It was considered advisable to take the leases in the name of Harris, who later should assign them to the company. Thus acting, Harris obtained a number of such leases in Benton county. All money needed therefor, including the ex
This action was commenced about April 16,1917, for a judgment declaring defendants to be the holders in trust of the title to the property involved. Defendants answered, denying generally, upon which pleadings a trial was had, resulting in a dismissal of the cause of action upon the theory that the case was one in which plaintiff was seeking to establish by oral testimony an express trust in real estate, the trial judge remarking that such procedure is not permissible under our statute, although being entirely satisfied by a preponderance of the evidence that the appellant would be entitled to a judgment if nothing more than chattel interests were involved. The Walla Walla Oil, Gas & Pipe Line Company, a corporation, plaintiff below, appeals.
Because of the supposedly migratory character of oil and gas, which are not fixed in place like coal and other solid minerals, such contracts as those involved in this case convey no interest in, nor create any incumbrance upon, the land or any oil or gas found therein. The land is still to be considered in the possession of the grantor; the contract amounts only to a license entitling the licensee to search and dig for oil and gas according to the terms of the grant, and appropriate the produce to his own use on payment of
As to the leases assigned to O’Brien and thence to Spokane Wyoming Oil & Gas Company, respondents O’Brien and Spokane Wyoming Oil & Gas Company claim they are entitled to protection as innocent purchasers. There is some proof from interested parties in favor of such claim, but we are satisfied by the clear preponderance of the evidence that, prior to the transfer to O’Brien by Vallentine, O’Brien and Alvis had full information of appellant’s rights and that the respondent' corporation; which was shortly formed by O ’Brien and Alvis as its leading spirits and officers, is chargeable with that notice and entitled to no protection.
Appellant confesses, however, that Vallentine was to receive some of its stock for his services in adjusting its dispute with Harris, the amount of which we are not advised by the record. This amount will be ascertained by the trial court and, upon delivering it to Vallentine or depositing it in court for him, the trial court will decree a conveyance or assignment to appellant by respondents of all oil and gas leases held by them and mentioned in this cause.
Main, C. J., Parker, Tolman, and Fullerton, JJ., concur.