I refer to the report of a former decision in this case for a full statement of the facts.
We start with the fact that Jones was owner of three undivided tenths in fee in possession, and owner of a life estate for the life of Mrs. Williamson in the remaining seven-tenths, and the plaintiffs owners of the remainder in fee in those seven-tenths after the end of the life estate, a vested remainder; and, in this condition of right to the land, Jones bored twenty-three wells upon the land, and produced from May, 1892, to December 21, 1895, six hundred and twenty-two thousand, two hundred and eighty-one barrels of petroleum oil therefrom, valued at five hundred thousand, two hundred and ninety-eight dollars. Did he have right to bore for this oil? He claims that he had, and that every barrel of it is his, without liability to account to the plaintiff's; while the plaintiffs claim that he had no right to bore and produce this oil, but, having done so, he must account to them for full seven-tenths. Did Jones, as tenant for life, have right to extract this oil? He had not. Petroleum oil, in its place in the land, is a part of the land itself, just as are coal, timber, and iron. Bettman v. Harness,
It is sought to show that Jones, as life tenant, had right to all the oil, by the case of Koen v. Bartlett,
It is urged strenuously, with great elaboration and ability, by counsel, that they are barred by the doctrine of estoppel in pais; that their conduct works this result. Here I first remark that a clear legal title to land, requiring written conveyance to transfer it, is, by this theory, to be devested out of its owners, and invested practically as effectually in others as if such conveyance existed. A clear, strong case of estoppel is required for such a result. What is the conduct of these parties bringing about this result? As to Mrs. Williamson, she having procured the decree of sale, and received its proceeds, is estopped. That is res judicata under our former decision. As ' to the other devisees of David Hickman, what have they done or left undone to estop them? It is said they ought to have made themselves parties to this suit. There is no force in this. Perhaps they did not want their land sold. There was no ground for the sale of their remainder for the debts of Thomas Jones, deceased, except perhaps one of their seven-tenths, as Jones’ heirs had conveyed their interest before the suit. If anybody wanted to sell their land for debt, or because partition could not be made, or other cause, he must bring them and their estate before the court. Strange that any one is to lose his land because he did not cause himself to be sued. Counsel for Jones make their chief point under this head of estoppel by saying: “Because these plaintiffs stood by for eighteen months, and made no claim to the land or oil, knowing that Oapt. Jones in good faith, and believing he had a perfect title in fee simple to the farm, was making great expenditures on the land in developing it as oil territory, and had paid forty thousand dollars to buy interests of his co-purchasers, Tennant and Haskell, and paid up the deferred installments of the purchase money for the land, which he would not have done unless he had believed that he had the sole and unquestioned title thereto, the said plaintiffs intending, if Captain Jones succeeded in developing the farm as oil territory, to bring this suit. If lie did not succeed, they would let the sale stand without attack, and they would finally take and enjoy the avails and proceeds of the
Admit, however, these as facts, they do not bar the plaintiffs. First, they do not predicate, nor does any evidence, any contract between the parties, giving Jones a right. The plaintiffs stand in no wise bound to Jones by any contractual relation. Then, to bar them, you must show such conduct as is misconduct amounting to fraud, and this is not shown by these facts, or others in the circumference of the case. Most of the cases cited to support this estoppel are cases in which there was privity or obligation springing from contract, or constructive or other trust. Such are Clark v. Hart, 6 H. L. Cas. 633; Sumner v. Seaton, 47 N. J. Eq. 119 (
Again, it is not clear they knew their title, especially as some — nearly all — were infants and married women. If a
1. The record in the cases stated that Thomas Jones died leaving ten heirs; and the petition of Engle and Williamson, on which the sale of the whole tract was first based, stated that Eliza Williamson only owned a life estate in seven-tenths. Who owned the remainder? The very decree of sale declares : “It appearing to the court that the interests held by 0. Engle as trustee as aforesaid are for the use and benefit for life of Eliza Williamson by virtue of a provision in the will and codicil of said David Hickman.” Who owned the remainder? This record put this question to a purchaser. Prudence would make a man inquire where the real estate in the land was. A purchaser at a court sale purchases under the rule of caveat emptor (look out buyer). The court or commissioner warrants nothing. One buying at such a,sale is held — conclusively held — to have notice of all the facts which the record, if inspected, would communicate. Stout v. Mercantile Co., 41
Counsel would explain why these remainder-men were not made parties, saying the lawyer in the case thought, as Jones’ heirs were parties, and Mrs. Williamson owner of a life estate in seven-tenths and three-tenths in fee, they were not necessary parties, as Hickman purchased shares of Jones’ heirs after his death, and they were liable to his debts.- They were not liable, except one of the seven-tenths; and anyhow they owned legal title to the remainder in fee, and were absolutely necessary parties, and neither they nor their estate were before the court, and their estate was not sold under the decree, and it was a nullity as to the remainder-men. No matter who made the mistake in the conduct of the suit, or how it came about, it could not prejudice these remainder-men. They can be bound only by record, not by a - mere supposition, or even proof, that they knew or approved of it. The decree and deed under it conveyed no title. Mrs. Williamson, though before the court, was only life-tenant of the seven-tenths, and there is no privity between life tenant and remainder-men, so that the presence of a life tenant as a party by representation makes the remainder-man a party. “A stranger, who is not a party or a privy, can neither be barred nor aided” by a judgment or decree. Bart. Oh. Prac. 213; 2 Pom. Eq. Jur. § 813. Engle was a dry trustee; the real owners of the remainder were the remainder-men. The trustee could not represent their interest. Even a'creditor under a deed of trust, not merely a trustee, must be a party; much more the remainder-man in a case of dry trusteeship, where it is proposed to sell the very corpus or fee of the land, and all rights whatsoever therein. It is essential that there be before the court not merely the owner of particular estate, but also the owner of the first vested estate in reversion or remainder, and this was in these remainder-men. IDaniell, Oh. Prac. 227, 228;
The title of these plaintiffs vested before April 1, 1869, and therefore the interests of the married woman were not separate estate. A distinction is made in a brief between land that is separate estate and that not separate estate, the theory being that as to separate estate the married woman may lose it by estoppel in pais, whereas she cannot so lose land not separate estate; but as, under our statute, her sole deed is void in both cases, and she could only pass either class of land by a deed with privy examination (when this transaction occurred), and now by ac-knowledgements, her husband joining, I do not see where any distinction comes in. Whether a married woman, by positive, intentional fratid, can lose her land,. when her sole deed will not devest her of it, the authorities are divided. I should say that, as the law scrupulously limits her power of alienation to one only mode, she could not do so; that she could not do indirectly what she could not do directly by a solemn deed, because it is the policy and positive provision of statute that she shall be disabled by an act of hers to part with her land except in one way. Bige-
How as to infants? Positive intentional fraud would bar an infant of 'years of discretion, but mere silence or quiescence surely will not. I think the weight of authority is that matter sufficient to raise an estoppel, if unconnected with a contract, would bar an infant from asserting a right even to land. It must, however, be intentionally fraudulent. Mere silence or quiescence, as in this case, will not do so. Bigelow, Estop. 600; 2 Pom. Eq. Jur. § 815. The deed of a married woman is void; an infant’s only voidable, — a difference.
I have discussed the question whether or not the plaintiffs are barred by the doctrine of estoppel in pais as an open question unaffected by the former decision, though it may be said plausibly that it did decide against that defense, in deciding that Jones must account on some basis. If a good bar, he would not have to account, and the court would have dismissed the bill. That decision did not decide finally that Jones rightfully bored for oil. It did not decide how much Jones should be charged, nor on what basis. That decision was, in terms, in these matters, not final, but provisional.
There cannot possibly be anything in the contention that laches bars relief. The delay from the judicial sale was only eighteen months; from the commencement of boring, some less. The statute of limitations gives ten years. The many cases of laches cited are cases of deeds or other things procured by fraud, as in Whittaker v. Improvement Co.,
Having reached the conclusion that the plaintiffs have right to relief, the next question is as to what shall be
It is claimed for Jones, if he is not allowed all the oil, he should pay only one-eight.h of the seven-eighths as royalty. If he had worked already open wells, it might be more plausible to say so; but- he first penetrated the soil as a wrongdoer, in a legal view. If an' open well, it would be lawfully used by a life tenant, and probably by a tenant in common, as one mode of enjoyment of his share. I say probably. That matter is not before us. Rust v. Rust,
In Newman v. Newman, 27 Grat. 722, the court had to determine the basis of an account between co-tenants of an iron mine. On pages 722 and 728, President Moncure refers to the cases of Graham v. Pierce, and Early v. Friend, and quotes from Graham v. Pierce, the distinctions between the two cases there stated. The opinion says : “That was the case of a lead mine, while this is the case of an iron mine; and there seems to be no difference in principle between them on the subject we are now •considering.' A tenant of such property necessarily uses a part of the subject, itself, and maybe such uses render the residue of the subject of little or no value. It. may be discovered by explorations and operations that the property is of great value, or the contrary. To rent it for a certain sum is to make a bargain of speculation and hazard, which is always objectionable in such cases, as it. is almost sure to operate unequally on the parties; whereas to carry on operations upon it for the joint and equal benefit of all the owners in proportion to their respective interests in the subject, and by the agency of persons (whether they have an interest therein or not) who may be amply compensated for their trouble, complete justice will be done to all parties concerned. It may be said that to carry on the business required a capital, which one of the parties did not have. But that matter may be adjusted by allow
In Dodge v. Davis,
It does seem 'to me on authority and reason that an account of rents and profits is the true basis. I cannot see how, where there, is no lease, no contract, no tacit understanding between the parties, no past mode of business, but one not the true owner has used and received rents and profits from land of other people, you can charge an annual rental, and not their fraction of rents and profits received by the occupier.
What is to be done with the money to which the plaintiffs are entitled? Does it go to them at once, or is it to be put at
As above shown, by reference to McSwinney on Mines, it goes at once to the plaintiffs, and Jones has no right to interest on it during the life estate.: (1) Because he is, in a legal point of view, a wrongdoer, and, if given interest, this would give him the benefit of his own wrong. In Williams v. Duke of Bolton, 1 Cox, Ch. 72 (3 P. Wms. 268), a tenant for life committing waste, who owned the next existent estate of inheritance, subject to an intermediate contingent remainder, was not allowed to take advantage of his own wrong in cutting timber, but the fund was kept for the contingent remainder-men, and he was made to pay interest on it from the time the money for the timber was received. There are instances where the reversioner or remainder-man, during a life estate in another, wrongfully severs minerals, the proceeds are invested, and the income paid to the life teaut during life, though the minerals really belonged to the wrongdoer, because he could not take advantage of his wrong against the tenant. McSwinney, Mines, 65. This is doubtful, but shows how far courts go against one doing the unlawful act.
(2). Jones is not entitled to interest, because he did not own a drop of the oil belonging to the owners of the seven-tenths. Tie is not entitled to the oil, and, of course, is not entitled to the income of interest from its proceeds.
The decree gave the collateral heirs of Dr. Weirich, husband of Laura Weirich, shares in the amount charged to Jones for the oil. I think this was error. Laura Weirich was a child of David Hickman, outliving her father, dying childless, leaving her husband, to whom by her will she gave all her interest in the estate of her father, “both as legatee and residuary distributee under his last will.” The will of her father gave her a legacy of six hundred dollars and some silverware. By clause fourteen he provided that his real estate not before disposed of (and this land had been given to Mrs. Williamson for life with remainder to her sisters) be sold, and out of it and his personalty his debts paid and the bequests he made, and the residue divided equally among his daughters, among them Laura Weirich. The will of Laura Weirich would give her husband her legacy of six hundred dollars and the silverware, and her
As to the alleged error in not decreeing that the purchase money under the judicial sale, paid by the purchaser, be refunded to the purchaser, that was not,'cognizable in this case, but by some proceeding or step in the case in which the sale was had, or other independent proceeding, whatever it may be.
This decision may be burdensome to Jones, who appears to be a man of great energy, business capacity, and merit, and I will not conceal the wish that we could,' consistently with law, be more favorable to him; but we are bound by the law, seemingly very plain, and in itself‘logical and well established. The plain and simple showing of the voluminous record and contestation in this case is that he has taken sole and exclusive possession of land belonging in greater fraction to others, and of his own accord drawn from it vast quantities of oil belonging to them in clear law, and sold it, and reaped rich return, and the true owners demand their own under the law. If he was mistaken in his own judgment as to the title, or from mis-advice, it is a misfortune that is to be regretted, but for which the plaintiffs are not legally responsible; and if he knew of the defect of title, and he surely had enough to warn him and put him upon inquiry before embarking in
I have said so much only in consideration of the pecuniary magnitude of the case, and in deference to the elaboration, in the ora.1 arguments and briefs of distinguished counsel, of the points involved in the case, which do not seem to me to be very difficult of solution, up to this point. As stated above, the charge against Jones is to be by rents and profits, not by annual rentals; but this presents a question which has given me great perplexity, and this is the question, what shall be credited to Jones against rents and profits? — especially whether he shall be repaid expense of boring wells. Where one man, in possession under a hostile defective claim or title, makes permanent, improvements, the common-law gave him no pay for them, as he voluntarily put them upon the land of another; but our Code (chapter 91) gives compensation therefor if, when the improvements are made, there is “reason to believe the title good under which he or they were holding.” As shown above, warning was given Jones by Tennant, his agent, and by the record under which he purchased, of the rights of the plaintiffs, and our Court has held that this notice precludes allowance for improvements. Hall v. Hall,
It- is difficult to ignore the ¡force of that argumentation in this case. In fact, if we turn to the case of Foster v. Weaver, 118 Pa. St. 42 (
But there are other considerations. We are in a court
In conclusion, I must not omit to say that our holding in allowing cost of wells is fortified by the precedent of Ruffners v. Lewis’ Ex’rs,
Reversed and Remanded.
