# Petition for a Writ of Certiorari — Thlocco v. Magnolia Petroleum Co.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for a Writ of Certiorari
- **Published:** January 1, 1944
- **Citation:** 323 U.S. 785

## Text

IN THE

Supreme Court of the United States
October Term 1944

AMEY THLOCCcO, LoRIN Ray, Guardian of the Person and
Estate of Amey Thlocco, an incompetent person, and
OREL BusBy, Special Guardian Ad Litem,

Petitioners,
VERSUS
MAGNOLIA PETROLEUM COMPANY

PETITION FOR A WRIT OF CERTIORARI TO
THE UNITED STATES CIRCUIT COURT OF
APPEALS FOR THE FIFTH CIRCUIT
and
BRIEF IN SUPPORT THEREOF

. r o-,
€ fr atti oxy
Le a7 LS af

OREL Busy,
Ada, Oklahoma

J. W. GORMLEY,

Dallas, Texas

Attorneys for Petitioners.
OF COUNSEL:

BUSBY, HARRELL AND TRICE,
TOUCHSTONE, WIGHT, GORMLEY & TOUCHSTONE.

KE. Dunean & Co.. Brief Printers, Dallas

ENE Ts isla Pe tS BAR SE A A OEE TO IE SII IT

INDEX

Page
I FU 6s iaiscinenctinin ering nienasenibienson 2
PIE sirnrecccidesansesisieccostshnsedetnnadnuahomentanaess 2
DIE FGI sincicrsviiesinesiavinisiobinninesapacqipasombiiins 2
II crises ccnp aps vigneicinpivesseenthinde rbonrispleaeaeiis 5-15
NNER FIO Siihiinescinsctenssdictcetinionioniercnummnniens, 28
AE GE TATE ao vccscictisciccinccixtsrscncsricmmmnsianel 28

Argument:
1. Restrictions:
(a) Effect of Federal Acts:

(1) Act of May 27, 1908, amended April
12, 1926, and extended May 10,
1928, imposing restrictions upon
certain lands and funds of mem-
bers of Five Civilized Tribes .......... 2

(2) Act of January 27, 1933 authorizing
creation of a trust of property of
restricted Indians only through ap-
proval of Secretary of Interior ...... 16

(b) Whether such restrictions follow funds
and lands of restricted Indians out of
Oklahoma into Texas: .........................0080

2. Opinion violates Section 1, Article IV of the
Constitution of the United States ...............0..... 17

Ce SBA NIL II VEIL IEEE Aa EI Fal PME COLT IE IE ESERIES RSL AOA ANE Si ORE OLB a

INDEX—Continued
Page

3. Opinion ignoring status of Amey Thlocco as
defined by state of her residence and declaring
her competent in Texas violates Rule 17, Fed-
eral Rules of Civil Procedure ..................0::ceees

4. Federal courts, which have no probate au-
thority, cannot in a collateral proceeding pass
upon a status of competency of one already ad-
judicated incompetent by proper court of state
alana dicta tchicctescucielieedias teinctnwenhonioncncinysciens

on

An adjudicated incompetent citizen of Okla-
homa cannot be divested of property in Texas
without ancillary guardianship proceedings
as provided by Articles 4285, 4286, Revised
I GE TINE sacs scincsseessieckcovenstcsvnecns

6. Application of Section 7425a, Revised Civil
Statutes of Texas:

(a) Opinion holding the trust, if any, was an
express trust is erroneous ............0006

(b) Definition of express, resulting and con-
INI cacccncehamnesieseittouisicpnkinidasixwiinses

(c) If not an express trust, Section 7425a,
supra, has no application to fact situa-
RE INE Gictleigthcncktarablacigs eunrcsacsinavatnn potacae te

10.

INDEX—Continued

{(d) Magnolia could not be an innocent pur-
chaser if there was a resulting, or con-
structive, or void trust ............................

A lease void in its inception in Oklahoma can-
not become valid by transfer to a respondent in
Texas claiming to be an innocent purchaser

(a) Definition of “innocent purchaser” in
PE Sole Nae theta ccuksraciceincta cough tiimunin sobeciared ie

A full blood, enrolled, restricted and adjudi-
eated incompetent Indian cannot ratify an
oil and gas lease by any personal act ............

Ratification does not arise out of entry of
NII =k ahieh cas iatdeacidhandone shaneglin inativeinsbciiscicsas’

(a) Effect of Oklahoma Federal court judg-
ments in actions in which Amey Thlocco
a intent TN ee Ose eT Or eae

Opinion herein is contrary to opinions of Fed-
eral courts of other circuits and of the Supreme
Court of the United States 0... eeeeees

aac iweahils pking ilinado

SINE iiss bait vakiaedink cat hedabsaicsapaisvnpeainenvmnsucatonteetatien

Page

40

32

31

32

36

45

Citations
Page
CASES:
American Surety Co. of New York v. Fitzgerald,
OF ie We OE TIE cukcininindcccccid. 24, 39
Anding v. Perkins, 29 Tex. 348 ...........ssseeseeeees 44

Baker v. Schofield, 243 U. S. 114, 61 L. Ed. 626 25
Baldridge v. Caulk, (1925) 237 P. 453, 110 Ok.

BE eat cad ti apaessahncancmcencaclanbanieenliemananenaniae 17
Brader v. James, 246 U. S. 88, 96; 62 L. Ed. 591,

Gils SS Bae. Ch, BR: BBG. 0. csciscsisicccirenere 18
Briggs v. McBride, 190 S. W. 1128 ............. cee 25
Bunch v. Cole, 263 U. S. 250; 68 L. Ed. 290; 44

NN: Ce FENN Be science dcccsieeecpestaneeneieias 18
Burgess v. Bosen, 31 Fed. Sup. (2) 352 ............04 18

Cage v. Eastburn & Company, 23 S. W. (2) 65 28,25

Clinkenbeard v. United States, (10 Cir.) 109 Fed.
OO Te i eta lie eae aaa seeeene 16

Cravens v. Amos, 64 Okl. 71, 166 P. 140 «0.0.0... 18
Donahue v. Vosper, 243 U. S. 59, 61 L. Ed. 592 45
Downs v. Hubbard, 123 U. S. 189, 31 L. Ed. 114 45
Ellis v. Davis, 109 U. S. 485, 3 Sup. Ct. Rep. 327,

OF Te Fe kiieenvicnidoinnmitnesatinaeen 21, 38
Ewert v. Bluejacket, (8 Cir.) 259 U. S. 128, 66
Bi, Se IE ea caiveshidixsaicinaaeincucndiesanvgenndenaian 26, 46, 47

Cases:
Page
Grand Court of Order of Calanthe of Texas v.
Eveliew, 129 8. Wi. 1B) TRG cvcciccsicdicissoeecsneuss 23, 25

Gulf Production Company v. Continental Oil Com-
pany, 182 S. W. (2) 553, 164 S. W. (2) 488 34,39

Gulf Production Co. v. Oldham, et al., 274 S. W.

OER ON, DE AM RMN IN LR BRAS og CK Tene N 24, 39
Hand v. Errington, 238 S. W. 567 (Tex. Civ.), 242

Oe E+ BER een a eh 44
Houston Oil Company v. Hayden, et al., 135 S. W.

SIE: - sscmadinmnisecenecinsaudighatns taakeaenae 25, 31, 40
Humble Oil & Ref. Co. v. Campbell, 69 Fed. (2)

DPE -ssssctennsnpteorssacsacscintion tase nauigesebesea aihaditeta anne 25,31, 44
In re Baptiste’s Will, (1925) 237 P. 854, 110

UR, TIE: anciciseacesncckadscoisatacts te eae 17
In re Nitey’s Estate, 52 P. (2) 215 ....... eee 34
Jones et al. v. Sun Oil Company, et al., 153 S. W.

LB) PER aciatcnctiua eaaaeenenae Sve panacabiahial 24, 39
Kelsey v. Trisler, et al., 74 S. W. 64 oo. 24, 39
Kendall v. Ewert, (8 Cir.) 259 U. S. 128, 66 L.

NER, MT issvieikesinu th biiiciery in tnccadondes ating aeCnimaadae 26, 46

Kiker v. United States, (8 Cir.) 63 Fed. (2) 957... 6, 35

Klaxon Company v. Standard Electric Manufac-
turing Company, 313 U.S. 487, 61 S. C. 1020 4

Cases:

Lewis v. Cantlonam, 2 Tem. 423 sncccscissscccicicccconin

McCamey v. Hollister Oil Co., et al., 241 S. W.
TO sscessincecins Gapanietsiccohstigied tocatedainns teaser teodniae

McWhorter v. Oliver, 2 S. W. (2) 281

eee e eee eeeeneeeee

Martinez et al. v. Gutierrez, et al., 66 S. W. (2)
678

eee eRe ee eee eH EEE HEE HEHE HEHEHE HEHE HEHE EHH E EEE EH EEEEEEH EEE EES

Merrell v. United States, 140 Fed. (2) 603

seen ee eennes

Merriman v. Russell, 39 Tex. 278, 284

Minnesota v. United States, 305 U. S. 382

eee enneee

Mullen v. Pickens, 250 U. S. 590, 63 L. Ed. 1158,
40 Sup. Ct. Rep. 31

eee eee EEOC ECCS e ECCS e Oe TCC eee eee eee eres

Mullen v. Simmons, 234 U.S. 192 ...... ees

Murray v. Ned, (10 Cir.) 135 Fed. (2) 407 ...... 16, 29, 47
Neal v. Holt, 69 S. W. (2) G08 ............ccsssscssseseseees 39
Neblett v. Valentino, 92 S. W. (2) 482 0.0.00... 23, 24, 39
O’Callaghan v. O’Brien, 199 U. S. 89, 25 Sup. Ct.

Rep. 727, GO Le. Ghd, 104 ...ciossesssccovesssssesseessvarenes 21

Oklahoma Natural Gas Corp. v. Lay, 51 P. (2)

BHO (ORIR.) cvcsesccsocsscssvsorvesveassvsnsshipnecsonanetacsniiedes 34
Poorman vy. Carlton, (Kansas) 253 P. 424.000... 20, 38
Pure Oil Co. v. Clark, 56 S. W. (2) 852 wo... 24, 39

Kedmon v. Leach, 130 S. W. (2) 873 wows 21, 39

Cases:
Page
Rodriguez v. Vallejo, 157 S. W. (2) 172 0.0... 23, 31
Rollow v. Taylor, 104 Okl. 275, 231 P. 224 ............
Schrimpsher v. Stockton, 183 U. S. 290 .......... eoane 47
Ne Se FI, Tee c. FOW vonevticdecticliptsvesererteremss 34
Sperry Oil & Gas Co. v. Chisholm, 264 U. S. 488,
68 L. Ed. 808, 44 Sup. Ct. Rep. 372 ............ 18
Strader v. Graham, 10 How. 82, 93, 13 L. Ed.
TET. sEucrekcashasdie co ccasoinnaneeass aakphacantene ta tances: 38
Studebaker Bros Mfg. Co. v. Hunt, ‘Tex Civ.
PD) Fr a eo RE biisccenreinentechcajdcbetecnivoesaseuss 19
Sutton v. English, 246 U. S. 199, 38 Sup. Ct. Rep.
BOA EE Fi Tie WOE vsctntsieceneencie ius: 21
Testerman v. Burt, 289 P. 315, 143 Okl. 220 ...... 40

Texas & N. O. Ry. Co. v. Jones, 103 S. W. (2) 1043 24,39

Three Foretops v. Ross, County Treasurer, 235
RE RR TV EVE Ee a 5 EE 17, 29

Tiger, Marchie, v. Western Invest. Co., 221 U.S.
286, 55 L. Ed. 738, 31 Sup. Ct. Rep. 578 ......

United States v. Brown, (8 Cir.) 8 Fed. (2) 564 18, 29

United States v. Corporation of President, etc.,

(30 Cir) 100 Fok. 62). BGG i eiccchcsscns 18
United States v. Fitzgerald, 201 Fed. 295 ............ 17
United States v. Gray, 201 Fed. 290 00... 17

Cases:

ina ovis k cee eau a es batieiganpidenamionnecienel eon
United States v. Hellard, 88 L. Ed. 929 ...............

United States v. Merrell, (10 Cir.) 140 Fed. (2)
602

EbeaSASe CREDO CCEDEESDSUSES CECOASESCEESAA CERES SSEY TEREST OHEO SUS COSNE SS

United States v. Pearson, County Treasurer, 231
Fed. 270

PRPTTTITITITT Te

United States v. Rickert, 188 U. S. 432, 488, 47 L.

Ed. 532, 536, 23 Sup. Ct. Rep. 478 .............0+
United States v. Thurston County, Nebraska, et

ae! 2 ey Seeeennnrenieeemersmetertenrerren tt 17
United States v. Williams, (10 Cir.) 139 Fed. (2)

OI eset ick, i cctawepeerekdvscanpaeeommenaniaanainnees 16, 29, 47
United States v. 7405.3 acres of land, (4 Cir.)

ee Ge Ge oo ci nctcewnudn ncaa 18
Ward v. United States, (10 Cir.) 189 Fed. (2)

Fe ak heeiiccectotisrinctiireccne 16, 29, 47
Whitchurch v. Crawford, (10 Cir.) 92 Fed. (2)

ie ee CIR GALERIE oe SERN OI He Pane NIRS BO 26, 46
Wilkinson v. Owens, et al., 72 S. W. (2)

I Scie 2) nc wapansunvaan ian eaisucineman ich 22, 24, 26, 39
Woodall v. Adams, 7 S. W. (2) 922 ..........ccceeeeeeees 23, 25

Worst v. Sgitcovich, 42 S. W. 72 ......eeeseseseseseeteens 25

STATUTES:

Section 1, Article IV. Constitution of the United
BE : akties nth tercadip enn anal nema

Act of May 27, 1908, See. 1, 35 Stat. 312 oo...
Act of April 12, 1926, Sec. 1, 44 Stat. 239.000...
Act of May 10, 1928, Sec. 2, 45 Stat. 495 ..0..0..

Act of March 2, 1931, 46 Stat. 1471, as amended
by act of June 30, 1932, 474 Stat. 474, 25
ie chs Mas, SIE cca bcadsioicnaccokenny exnabehemead taba scdpeas

Act of January 27, 1933, Sec. 8, 47 Stat. 777

Act of May 19, 1937, 50 Stat. 188, 25 U.S. C. A.
IE ah ee ea Bee a

Rule 17, Federal Rules of Civil Procedure ............
Article 4285, Revised Civil Statutes of Texas ......
Article 4286, Revised Civil Statutes of Texas ......
Article 6627, Revised Civil Statutes of Texas ......

Section 16, Title 15, Oklahoma Statutes (Con-
IN ~ «ick aici cidacchuck tensvannianuabotaadiiaentiatemiinnteeness

Section 8, Title 30, Oklahoma Statutes (Guardian
i PUNE © has s iat atinthaes meaiaatnaabalbdieareindaspeieaiones

Section 852, Title 58, Oklahoma Statutes (Probate
i ETS TNR Monee EPCS aE REED

66

66

66

MISCELLANEOUS:
Page

Act of May 26, 1790, Title 28, Ch. 17, U.S. C. A.,
ER Re ireeir ser rein Ramee ere ie ORIEN 20

Section 2, Article III, United States Constitution 49
Article 4132, Revised Civil Statutes of Texas ........ 8
2 PTY On THOMA, SEG, BOG, SEE cscs cierncu...:, 17

al

Handbook of Federal Indian Laws, by Felix S.
Cohen, foreword by Harold L. Ickes, intro-
duction by Nathan R. Margold ............., 17

Be as ks ies IE Ge ircensvisiestitianissicsingiieceronisiion 19

Restatement of the Law, Trusts, pp. 5, 6, 1244,
I ME ear baskets eked tctnantenicn oneniseedians 19, 40

Restatement of the Law, Restitution, pp. 642, Par.
Pe IN sincicencinchinscsicinitegoemmnnapaton sti eaniwatianee 40

65 C. J., Trusts, pp. 223, 224, 225, 363, 740 ......19, 40
i A: I. SERS skiowaiecdncsaiahamntaeoReene 26, 44
Vol. 4, Words and Phrases, Second Series, p. 127 26

Rule 38, Revised Rules of the Supreme Court of
SII RMU: sii tescdsstantaiencegMeokonaiabeereaionecniveteemiates 28

No.

IN THE

Supreme Court of the United States
October Term 1944

Amey THLOCCO, LORIN Ray, Guardian of the Person and
Estate of Amey Thlocco, an incompetent person, and
OREL Busby, Special Guardian Ad Litem,

Petitioners,
VERSUS

MAGNOLIA PETROLEUM COMPANY

PETITION FOR A WRIT OF CERTIORARI TO
THE UNITED STATES CIRCUIT COURT OF
APPEALS FOR THE FIFTH CIRCUIT
and
BRIEF IN SUPPORT THEREOF

Amey Thlocco, by her Guardian ad litem, Orel Busby,
and by Lorin Ray, duly appointed Oklahoma guardian of
her person and estate, prays thav a writ of certiorari is-
sue to review the judgment of the United States Circuit
Court of Appeals for the Fifth Circuit, which became fi-
nal May 23, 1944, affirming the judgment of the United

2

States District Court for the Eastern District of Texas,
Texarkana Division, dated May 12, 1943.

Opinion Below

The District Court did not file an opinion in this
cause. The opinion of the Circuit Court of Appeals is
reported in 141 Fed. (2) 934.

Jurisdiction

The judgment of the Circuit Court of Appeals was en-
tered on April 12, 1944, and petition of appellants for re-
hearing was overruled on May 23, 1944.

The jurisdiction of this court is invoked under Sec.
240 (a) of the Judicial Code as amended by the Act of
February 13, 1925.

Questions Presented

1. Whether the lower courts correctly held that Amey
Thloceo, an enroller restricted full blood Seminole In-
dian, was not entitled to invoke the Act of May 27, 1908,
sec. 1, 35 Stat. 312, as amended April 12, 1926, sec. 1,
44 Stat. 239, and extended May 10, 1928, sec. 2, 45 Stat.
495 (Appendix, infra, P. 49), imposing restriction upon
certain lands and funds of members of the Five Civilized
Tribes of Indians; also, the Act of January 27, 1933, sec.
8, 47 Stat. 777 (Appendix, infra, p. 49), authorizing
the creation of a trust of property of restricted Indians

igs > Rm OF Wed SET EN OEE NS
Sek pens
RS

3

only through the approval of the Secretary of the In-
terior.

2. Whether such restrictions imposed upon certain
lands and funds of members of the Five Civilized Tribes of
Indians are confined to such funds and lands only in
the State of Oklahoma, or whether such restrictions fol-
low such funds and lands beyond the territorial limits of
that state and into the State of Texas.

3. Whether the judgments of the lower Federal courts
in Texas which refused to accept the status of Amey Thloc-
co as determined by the proper courts of Oklahoma, the
state of her residence, declaring her an incompetent, are
violative of the full faith and credit clause of the Fed-
eral Constitution.

4. Whether the judgments of the lower courts in Texas
in holding that in the premises declared upon, the district
court could ignore the status of Amey Thlocco as defined
by Oklahoma, the state of her residence, and declare her
a competent in Texas, is violative of Rule 17 of the Fed-
eral Rules of Civil Procedure.

5. Whether a Federal district court in Texas, which
has no probate authority to appoint a guardian, as dis-
tinguished from a county or state court of Texas which
does have such authority, may pass upon the status or
competency of one already adjudicated incompetent by a
proper court of Oklahoma.

4

6. Whether the judgments of the lower courts and the
opinion of the Circuit Court in the premises declared upon,
are inconsistent with the opinion of this Court in Klazon
Company v. Standard Electric Manufacturing Company,
313 U. S. 487, 61 S. C. 1020; especially since the public
policy of both Oklahoma and Texas is to the effect that
an incompetent may be divested of title to real estate only
through proper guardianship sale, and there was no guar-
dianship sale of the property involved here, either in an
Oklahoma or a Texas state probate court.

7. Whether the lower courts correctly held that Art.
7425a, Revised Statutes of Texas, is properly applicable to
Texas realty, title whereof was vested in a duly adjudi-
cated incompetent resident of Oklahoma by a judicially
approved compromise and settlement of a valid Oklahoma
judgment, to compensate appellant for restricted funds
filched by a faithless guardian, in view of the fact that
the Texas Trust Act of which Art. 7425a is a part is
conclusive that it was beyond the legislative intent that |
said Act should apply to estates in guardianship.

8. Whether the so-called trust, if there was a trust as
a matter of law, was an express trust as pronounced by
the Texas courts or a resulting or implied trust as con-
tended by petitioners. Section 7425a as applied in favor
of respondent depends upon the nature of the trust in-
volved here.

9. Whether an oil and gas lease executed in Oklahoma
and void in its inception under Oklahoma laws may be-

come valid by assignment to a respondent in Texas claim-
ing to be an innocent purchaser under the laws of notice.

10. Whether the lower courts correctly held that Mag-
nolia Petroleum Company was an innocent purchaser in
the premises within the purview of Art. 6627, Revised
Statutes of Texas, as the term “innocent purchaser” in
such premises has been defined by the courts of Texas.

11. Whether a full blood, enrolled restricted and ad-
judicated incompetent Indian can ratify a void oil and gas
leas and estop herself from proclaiming its invalidity by
any personal act.

12. Whether the judments of the lower courts and the
opinion of the Circuit Court are not in direct conflict with
many opinions of this court and the opinions of other
circuit courts hereinafter pointed out. If conflicting, wheth-
er the particular questions involved herein should be passed
upon and settled directly by the Supreme Court of the
United States.

Statement

Amey Thlocco is a duly enrolled full blood Seminole
Indian, Roll No. 1516. She has always resided in We-
woka, Seminole County, Oklahoma. She received moneys
from her restricted allotted lands and at the death of her
full blood Indian father in 1929 she inherited certain re-
stricted lands and moneys. Almost immediately she be-
came a victim of swindlers, with the result that she was

6

duly adjudicated an incompetent and both her person and
estate were placed in guardianship in 1929. Her incom-
petency was further declared by Federal Judge Williams
whose findings were reviewed and approved by the Tenth
Circuit Court of Appeals in Kiker v. United States, 62
Fed. (2) 957. (R. 115)

The first guardian of her person and estate, Hugh
Barham, misappropriated approximately $16,000 of the
restricted funds of Amey Thlocco. When this misappro-
priation was discovered, Barham was removed; his ac-
count was surcharged with the amount of his misappro-
priation; Kenneth Mainard was appointed his successor
as guardian and ordered to institute suit against the sure-
ty of Barham in the Oklahoma district court, which he did.
In this suit judgment was rendered against said surety and
in favor of the estate of Amey Thlocco in the full amount
of his misappropriation. (R. 115)

Thereafter, Fidelity Union Casualty Company, a Texas
corporation, the surety of Barham, tendered compromise
and settlement of this judgment (R. 118), which was duly
approved (R. 124) by the County Court of Seminole
County, Oklahoma, in which the guardianship was pend-
ing. Among the res thus tendered by the Surety Company
was the fee title to certain realy in Titus County, Texas.
The title to the mineral estate in one of these tracts of

Texas realty is the res in controversy in this suit.

7

The order approving the compromise and settlement
was entered November 15, 1934 (R. 124). This order re-
cites that the court found the compromise and settlement
“to the best interests of the estate of Amey Thlocco” and
ordered Kenneth Mainard, her guardian, to “satisfy the
judgment against the Surety Company upon delivery to
him of good and sufficient deeds.”

Mr. M. S. Robertson, then United States Probate At-
torney at Wewoka, Oklahoma, also approved the compro-
mise and settlement and furnished this guardian and his
attorneys with a form of deed specifically designating that
the deed be excuted by the Surety Company to Kenneth
Mainard “as Trustee for Amey Thlocco”. (R. 224) Instead
of forwarding the form of deed furnished them by the
United States Probate Attorney, Mr. Ledbetter, attorney
for Walter Billingsley who had been appointed guardian
ad litem for Amey Thlocco in the Oklahoma court, wrote a
letter to Fidelity Union Casualty Company instructing it
(R. 226) to execute the deed “to Kenneth Mainard, Trus-
tee’. This it accordingly did on November 15, 1934. (R.
131) Admittedly Mr. Ledbetter so instructed Fidelity
Union Casualty Company to thwart the guardianship code
of Texas. (R. 746) He profited by this later, in his deal-
ings with the Magnolia on this property. (R. 748, 757)

Although this deed was duly recorded in Titus County,
Texas, it was never exhibited to the County Court of
Seminole County, Oklahoma, or to the United States Pro-
bate Attorney at Wewoka, Oklahoma. Kenneth Mainard

ba

$25 READ NMS GAA att NETRA TN AMEE TILIA B LILO AAAS CRIS PARLE GE 5 ET) SIE TL Ey HO EE RAE 8 EI NEI ANB ONT E

8

never qualified as guardian of this Texas estate of Amey
Thocco nor was there an ancillary guardian in Texas ever
appointed as provided by the Texas statutes. Art. 4132,
4285, Chapter 13, Revised Civil Statutes, Texas. ( Appen-
dix, infra, p. 64), Kenneth Mainard paid the taxes on
these Texas lands out of moneys he received as Oklahoma
guardian of the estate of Amey Thlocco.

On February 14, 1936, Kenneth Mainard, acting in
the dual capacity of guardian and trustee for Amey
Thlocco, filed in the County Court of Seminole County,
Oklahoma, through his attorneys, Billingsley and Ken-
nerly, an application to sell an oil and gas lease on 130°)
acres of these Titus County, Texas lands to Bat Shuna-
tona of Wewoka, Oklahoma, then the law partner of
Mr. Ledbetter, for $5 per acre. (R. 52) On the same day
an order was entered by the County Court of Seminole
County, Oklahoma, approving the sale of said lease to
Shunatona; the oil and gas lease was executed on that
day by “Kenneth Mainard, Trustee”, for a consideration
of $5 per acre. (R. 1386) Mr. Ledbetter admitted he was
the moving spirit in procuring the lease and owned an
interest in it. (R. 748, 757) On this point the trial court
found (R. 68):

“* * * that the purchasers of the said oil and gas lease
in question were Bat Shunatona and his law part-
ner, Louis Ledbetter, both of whom had been for
many years residents of Wewoka, Oklahoma, and
knew all the circumstances surrounding the condi-

oe Fae we -s Vibe POE PIM Tg OU EP YS EUR gy QO ER TOE RE
- al

9

tions of the the title to said lands in Titus County,
Texas; that the laws of Oklahoma with reference to
guardianship sale or sales of trust property were not
complied with, either as to the jurisdiction of Okla-
homa County Courts of guardian’s sales of oil and
gas lease or as to the jurisdiction of District Courts
of Oklahoma over the sale of oil and gas leases by a
trustee.”

Four days after the execution of the lease Mainard,
Ledbetter and Billingsley went to Dallas, Texas and re-
sold this mineral estate to Magnolia Petroleum Company
for $50 per acre. On this point the trial court found (R.
70) :

“5 That the said original lease shows on its face
that it was executed in Seminole County, Oklahoma
on February 14, 1936, by Kenneth Mainard, Trus-
tee, to Bat Shunatona of Wewoka, Oklahoma, for a
consideration of $5.00 per acre; that the said Ken-
neth Mainard, trustee and guardian together with
Louis Ledbetter, appeared at plaintiff’s office in Dal-
las, Texas, within a short time thereafter with said
original lease and an assignment of the same, which
assignment had been executed by Bat Shunatona in
Seminole, County, Oklahoma, with the name of the
assignee not filled in; that Kenneth Mainard then
entered into negotiations for the sale and assign-
ment of said lease with Charles Gladden, then vice-
president of and lease purchasing agent of plain-
tiff; that the said Charles Gladden was a former
resident of Wewoka, Oklahoma and then in the em-
ployment of the Magnolia Petroleum Company; that
he was personally acquainted with Kenneth Mainard

10

and Louis Ledbetter and knew they were residents
of Wewoka, Seminole County, Oklahoma; that the
said Kenneth Mainard, trustee, offered said lease
to Charles Gladden for a consideration of $50.00 per
acre; that after said lease was offered to him in his
office the said Gladden then consulted with Ralph
Talley and examined the Magnolia’s maps which were
in an office other than his own; that he directed
Talley to purchase the lease in question at a price
not to exceed $50.00 per acre; that he then introduced
Kenneth Mainard and Louis Ledbetter to Ralph Tal-
ley who concluded the negotiations for the purchase
of said lease for $50.00 per acre; that one requirement
made by plaintiff with reference to title was that
a new assignment of the lease be procured from
Shunatona with the name of Magnolia Petroleum
Company written into the same as assignee.”

Magnolia Petroleum Company had a branch office with
a lease purchaser in charge at Wewoka, Oklahoma, at
the time it purchased this lease. Petitioners contended the
evidence was clear and convincing that this lease pur-
chaser knew in advance all the facts with reference to
Amey Thlocco’s ownership of the lands and of the pur-
ported lease sale at Wewoka, Oklahoma. The trial court
found (R. 55-56, 68-70) that the Magnolia had a district
office located in Wewoka, Oklahoma; that Dow Dunaway,
its lease purchaser in charge, was advised by the United
States Probate Attorney in advance of the prospective
sale of the lease on Amey Thlocco’s Texas lands; that
Dunaway in advance of the sale obtained a description

11

of the lands in Texas. The court further found, however,
that the information he obtained as Magnolia’s agent was
not acquired as a part of his duties or within the scope of
his employment. Dunaway died prior to the trial of the
ease and his evidence was not available.

The proof also showed that prior to the purported
lease sale in Wewoka, Oklahoma a well for oil and gas was
drilling near the Thlocco property in Texas and that Mag-
nolia was receiving geological information and, through
its agents and officials, knew the value of this lease prior
to the purchase from Mainard and Ledbetter (R. 275-
277). Petitioners contended that Magnolia was willing
to take a chance on its title rather than have a guardian
appointed for Amey Thlocco in Texas and have a public
sale of the lease in Texas. Petitioners also argued that
this evidence showed collusion and fraud between Main-
ard, Ledbetter, et al. and Magnolia in the original sale
and resale of the lease to Magnolia. This evidence caused
the trial court to make the following observation during
the trial: (R. 420)

“Billingsley, Ledbetter, Mainard, they were all to-
gether. I would not believe any of them. They were

not taking any chances, Shunatona’s check was not
cleared until after Magnolia’s check cleared the bank.”

The checks referred to were Shunatona’s check to Main-
ard for $653.50 and Magnolia’s check to Shunatona for

$6,537.50. (R. 717) These checks represented the respec-
tive sale prices of the lease.

®. RAK MN aba EAD at.

emo DEIR

98 IAS FEO REEL LE TOT LPS BEE

sn ee cA CEE A CCE REIL OE COC OOD EEL DEDIE DENA IEE DEE IED ALLA LEAPDD LIE LAMLE LL LLDE DAN

12

Magnolia entered on the property and drilled a num-
ber of wells which produced. It then filed this action in
the United States District Court for the Eastern District
of Texas, Texarkana Division, against Amey Thlocco to
quiet title to its leasehold and test its validity.

Motion to dismiss for lack of jurisdiction over the per-
son of Amey Thlocco was filed (R. 5), in which the
trial court was advised that Amey Thlocco is a full blood
restricted Indian. The court refused to dismiss the ac-
tion. Subsequently Magnolia filed a “Suggestion of Plain-
tiff of Uncertainty of Status of Defendant, Amey Thloc-
co” (R. 14) and therein suggested the appointment by
the trial court of a guardian ad litem so it could carry
on its litigation against Amey Thlocco and quiet title to
its lease in a Texas Federal district court. The court found
(R. 15) that Amey had been “adjudged an incompetent
under the laws of the State of Oklahoma, but that her
status under the laws of the State of Texas has not been
determined” and then proceeded to appoint a guardian
ad litem for her so Magnolia could continue its litigation
against her in a Texas Court. Nowhere in its pleadings
did Magnolia advise the court that Amey Thlocco was a
full blood restricted Indian. Nor did it notify the Secre-
tary of the Interior pendency of this action or make the
United States Government a party defendant. Minnesota v.
Uinted States, 305 U.S. 382; United States v. Hellard, 88
L.. Ed. 929.

13

For answer to plaintiff’s complaint Amey Thlocco set
up her incompetency and the personal restrictions exist-
ing against her as a full blood Indian and the restricted
status of the land in question. She alleged that she was
the real and beneficial owner of the lands which stood
wrongfully in the name of Kenneth Mainard as trustees;
that the oil and gas lease to Shunatona was not executed
in Oklahoma by lawful authority; that plaintiff in taking
the lease knew of her ownership, or knew or was acquainted
with facts sufficient to put it on inquiry; that Magnolia
acquired nothing by its purchase of the lease. She prayed
that the action be dismissed for want of jurisdiction over
her, or, in the alternative, if it be not dismissed, that she
have a cancellation of the oil and gas lease and an ac-
counting as to, and recovery of, all proceeds resulting from
the drilling of the wells less the actual cost of said drill-
ing and operations.

In reply Magnolia filed a general denial and pleaded
various Texas statutes of limitation, also ratification of
the lease by Amey Thlocco.

On the question of Amey Thlocco’s competency, in its
findings the trial court held that although Amey had been
adjudicated an incompetent person by the proper court of
Oklahoma, the state of her domicile, which court had placed
both her person and her estate in guardianship, neverthe-
less the judgment of the Oklahoma court was not binding
on the Federal district court in applying the Texas stat-
utes of limitation and adverse possession. It further held

14

that she was of sound mind at the time of the excution
of the lease and had been continuously of sound mind down
to the present time.

The trial court refused to consider or value evidence
offered relative to the question of the restrictions on
Amey’s funds or the restrictions on lands received by her
in lieu of these funds. The court took the position that
petitioners were seeking to place an Oklahoma state re-
striction, not a Federal restriction on these lands and that
the laws of the State of Texas would not recognize such.
(R. 227, 228)

The trial court held for the plaintiff, Magnolia Petro-
leum Company,on all points and based its decision on pow-
ers of the trustee (Mainard) to transfer Texas property
according to the terms of Section 7425a, Vernon’s Anno-
tated Civil Statutes of Texas (Appendix, infra, p. 65).
The trial court held in substance that Mainard held title
to the Texas property as trustee through a deed which did
not disclose the names of the beneficiary and that a pur-
chaser (Magnolia) could deal with the trustee with full
reliance on his power to act by virtue of said Section 7425a
supra. It also held that under the fact situation here there
was neither a resulting or a contructive trust but an ex-
press trust which enabled the trustee to deal freely with
such lands.

The Fifth Circuit Court upheld the decision of the trial
court. It did not discuss or analyze any of the Congressional

aa * nase no on rine ee iE eC ON Ee RD

15

Acts or Federal statutes hereinafter set forth relative to
the protection of Indian wards of the United States Gov-
ernment, nor did it cite or analyze any decision of any state
or federal court interpreting these Acts. On this point it
said:

“* * * But if we should assume that the land was
restricted, nothing in the federal statutes nor in the
decisions construing them gives warrant for appel-
lant’s claim that they operate to remove land in
Texas from the operation of Texas laws, and par-
ticularly nothing in them operates as a barrier to

the running of the Texas Statutes of Limitation.”
(R. 848)

Reasons for Granting the Writ

There are a number of far-reaching and important ques-
tions involved in this appeal. They are:

1. The question of restricting alienation on lands ac-
quired by or for full blood restricted Oklahoma Indians in
states other than Oklahoma and the method of transfer
thereof. This particular question should be passed upon
and settled directly by the Supreme Court of the United
States.

The trial court erroneously found that the lands in ques-
tion were not and never had been restricted. The Cir-
cuit Court’s opinion affirmed this finding.

Amey Thlocco acquired the lands in question as the
equivalent of and in lieu of restricted funds regardless

Ae te

OE eM

16

of the method of transfer from the Fidelity Union Casual-
ty Company. The only money Amey Thlocco ever had was
(a) from her own allotment, and (b) from the allot-
ment of her father, Teewee, full blood restricted Seminole
Indian, and in either case the money would have been
restricted since the funds came from full blood restricted
lands.’

These funds were under the supervision of the Secre-
tary of the Interior, which made them restricted funds
under the terms of the Act of Congress of January 27,

1“Where property in its original state and form has once been im-
pressed with a trust, no change of that state and form can divest it of
its trust character, so long as it remains capable of clear identification.

“Where land was purchased for a full-blood Choctaw Indian from pro-
ceeds of his original restricted allotment, he was an ‘allottee of such
lands’ within statute imposing qualified restrictions on interest in re-
stricted land acquired by inheritance or devise from allottee. Act May
27, 1908, Sec. 1, 35 Stat. 312; Act May 27, 1908, Sec. 9, 35 Stat. 315, as
amended by Act April 12, 1926, Sec. 1, 44 State, 239; Act May 10,
1928, Sees. 1, 2, 45 Stat. 495.

“If statute regarding qualified restrictions on Indian land was am-
biguous, the doubt was to be resolved in favor of the Indian. Act. May
27, 1908, Sec. 9, 35 Stat. 315, as amended by Act April 12, 1926, See.
1, 44 Stat. 239.”

Ward v. United States (10 Cir.), 139 Fed. (2) 79, 80.

“Where land was acquired with funds derived from restricted allot-
ment of Indian and was held under the same trust, it constituted ‘lands
allotted to members of the Five Civilized Tribes’ within statute creating
restrictions. Act May 10, 1928, Sec. 1, 45 Stat. 495.”

United States v. Williams, (10 Cir.) 139 Fed. (2) 83.

Murray v. Ned, (10 Cir.) 135 Fed. (2) 407; United States v. Grisso,
(10 Cir.) 188 Fed. (2) 996; Clinkenbeard v. United States, (10 Cir.)
109 Fed. (2) 730.

pe

cl ” eee PR EONS TS Ly ON CE AREY NE WL ASME
we

17

1933, sec. 8, 47 Stat. 777. (R. 227, 535)° The courts have
universally held, as applied to funds of restricted Indians,
that no change in the form of the property divests it of
the trust and its restricted character.*

2. The holding of the lower courts, to the effect that
nothing in the Federal statutes or the decisions interpreting
them removes restricted Indian lands from the operation
of local state statutes of limitation and adverse posses-
sion, is contrary to numerous decisions of this court and

other circuit courts.

This question has been passed upon as federal question
squarely and in contrary manner by state courts, other
cireuit courts, and by the Supreme Court of the United
States in the following cases:

Baldridge v. Caulk, (1925) 237 P. 458, 110 Okl. 185;

In re Baptiste’s Will, (1925) 237 P. 854, 110 Okl.
267 ;

Burgess v. Bosen, 31 Fed. Sup. (2) 352;

United States v. Rickert, 188 U. S. 482, 438, 47 L.
Ed. 532, 536, 23 Sup. Ct. Rep. 478;

2See Sec. 6 of Act of May 27, 1908; Act of July 14, 1918; Sec. 8,
Act of January 27, 1933. (Appendix, infra, p. 61).

2U. S. v. Gray 201 Fed. 290; U. S. v. Thurston County, County, Neb-
raska, et al, 143 Fed. 287; U. S. v. Fitzgerald, 201 Fed. 295; 2 Perry
on Trusts, 835, 836, 837; Three Foretops v. Ross, County Treasurer,
225 Pac. 334; U. S. v. Pearson, County Treasurer, 231 Fed. 270; also
cases cited in U. S. v. Pearson County Treasurer, supra, which are fol-
lowed in that opinion; see also Chapter 10, p. 195, Handbook of Federal
Indian Laws, by Felix S. Cohen, mmol by Harold L. Ickes, intro-
duction by Nathan R. Margold, published by the United States Depart-
ment of Interior.

18

Sperry Oil & Gas Co. v. Chisholm, 264 U. S. 488, 68
L. Ed. 803, 44 Sup. Ct. Rep. 372;

United States v. 7,405.3 acres of land, (4 Cir. 97
Fed. (2) 416;

United States v. Corp, of President, ete., (10 Cir.)
101 Fed. (2) 156;

Cravens v. Amos, 64 Okl. 71, 166 P. 140;

Bunch vy. Cole, 263 U.S. 250, 68 L. Ed. 290, 44 Sup.
Ct. Rep. 101;

Marchie Tiger v. Western Invest. Co., 221 U. 8S. 286,
55 L. Ed. 738, 31 Sup. Ct. Rep. 578;

Mullen v. Pickens, 250 U. S. 590, 63 L. Ed. 1158,
40 Sup. Ct. Rep. 31;

Brader v. James, 246 U. S. 88, 96, 62 L. Ed. 591,
595, 38 Sup. Ct. Rep. 285;

United States v. Brown, 8 Fed. (2) 564.

3. The holding of the lower court to the effect that
under the fact situation here “it is quite clear that the
trust in question here was neither resulting nor con-
structive but an express trust created for the purpose of
enabling Mainard, as trustee, to deal freely with the
Texas lands, and that in terms and in fact it is directly
within both the purpose and the language of the statute
(Texas) ” is erroneous.

19

Amey Thlocco was a _ full-blood, incompetent In-
dian, a resident of the State of Oklahoma; she was not
sui juris, and was incapable of creating a trust. As to her
it was a resulting or constructive trust, if any was created.

137 A. L. R. at page 469;

Studebaker Bros. Mfg. Co. v. Hunt, (Tex. Civ. App.)
38 S. W. 1134;

Merriman v. Russell, 39 Tex. 278, 284;

Restatement of the Law, Trusts, pp. 5, 6, 1244, 1245,
1249;

Restatement of the Law, Restitution, pp. 642, par.
160 (g);

65 C. J., Trusts, pp. 2238, 224, 225, 363, 740.

(b) Since the res of the trust was funds belonging
to Amey Thlocco and lands in lieu thereof, and at the
time the purported trust was created (November 15,
1934) the Act of Congress of January 27, 1933 (Appen-
dix, infra, p. 19) was in operation, any attempted trust
powers vested in Mainard would have to be approved by
the Secretary of the Interior. Robertson, United States
Probate Attorney, attempted to protect Amey Thlocco in
the manner of taking the deed but his instructions were
disregarded. However, only with the approval of the Sec-
retary of the Interior could such a trust have been created.
Act of January 27, 1933, supra. That approval was not
obtained.

ANG Ie

20

4. The holding of the lower courts was erroneous in
that it permitted a collateral attack in a Federal court
of Texas on a valid existing judgment in Oklahoma.

There is no Federal statutory provision for the ap-
pointment of a guardian in a Federal court. Therefore, the
appointment of a guardian in an Oklahoma county court
was res adjudicata as to a Federal district court, particu-
larly since the question of Amey Thlocco’s incompetency
had never been raised in a county or a district court of
the State of Texas. This precluded a Federal trial judge
from striking down the judgment of the Oklahoma county
court or making an original finding of fact contrary to
that judgment pleaded and proved.

United States v. Merrell, (10 Cir.) 140 Fed, (2)
602 ;*

Poorman v. Carlton, (Kansas) 253 Pac. 424°

Act of May 26, 1790, Title 28, Ch. 17, U. S. C. A.
See. 2, Art. 3, United States Constitution ;

4 United States v. Merrell, 140 Fed. (2) 602: “A state court having
first exercised jurisdiction, its judgment is exclusive of federal jurisdic-
tion and not subject to collateral attack unless the absence of juris-
diction over the subject matter, or lack of power to render judg-
ment, affirmatively appears from the face of the proceedings. * * *
A county court’s adjudication appointing administrators for the estate
of decedent, which judgment was not void on its face, was not subject to

- eollateral attack in a federal court exercising concurrent jurisdiction.”

5 Poorman v. Carlton et al., 253 Pac. 424 (Kan.): “Under the pro-
vision of the Constitution of the United States, which requires that
full faith and credit be given to the judicial proceedings of every other
state, a judgment of a court of competent jurisdiction in Oklahoma,
declaring an Osage Indian an incompetent person and appointing a
guardian for his estate, establishes the status of the Indian which fol-
lows him into this state.” ay

+

— RES ELMS A POA EON EEN PML EER MEI ET sy eects

21
| Ellis v. Davis, 109 U. S. 485, 3 Sup. Ct. Rep. 327,
27 L. Ed. 1006;
Sutton v. English, 246 U.S. 199, 38 Sup. Ct. Rep. 254,
62 L. Ed. 664;

O'Callaghan v. O’Brien, 199 U. S. 89, 25 Sup. Ct.
Rep. 727, 50 L. Ed. 101.

5. Eliminating the question of restrictions and all
Federal questions, the decision of the trial court was er-
roneous because it divested an incompetent citizen of
Oklahoma of property in Texas without ancillary guar-
dianship proceedings as provided by the Texas statutes.
Articles 4285-4286, Revised Civil Statutes, Texas. (Ap-
pendix, infra, p. 64).

Amey Thlocco, a resident of the State of Oklahoma all
her life, had been duly adjudicated an incompetent in
Oklahoma and full faith and credit should have been given
the findings of the Oklahoma court on this point. This
is particularly true since the local and public policy of
the State of Oklahoma and of the State of Texas is to
the effect than an-incompetent can only be divested of
property by a gurdianship sale.

Redmon v. Leach, 130 S. W. (2) 873 (Writ of error
dismissed by Supreme Court with notation “Cor-
rect judgment”’);

Martinez et al v. Guiterrez, et al., 66 S. W. (2)
678;

99

ond td

Wilkinson v. Owens, et al., 72 S. W. (2) 330.

The holding of the trial court so far departs from the
accepted and usual course of judicial proceedings by a
lower court as to call for an exercise of this court’s power
of supervision.

6. The decision of the lower courts is erroneous in
its interpretation and application of Section 7425a, Re-
vised Civil Statutes of Texas, (Appendix, infra, p. 65)
because said statute contemplated a legal trust created by
one sui juris. The trust here was neither a legal trust
nor one created by a person sui juris. Amey Thlocco, a

restricted full blood Indian, legally adjudged an incompe-
tent person, could not and did not create the trust in ques-
tion and the decision erroneously holds that here was
created an express trust. Robertson, the United States
Probate Attorney, testified (R. 228, 229) that Amey was
not consulted when the deed to Mainard was executed,
had no part in the creation of the trust, did not have the
mental capacity to know the meaning of a trust and would
not have known how to create a trust had she been con-
sulted.

If a trust resulted from the acts of other parties, Main-
ard could only have been a resulting or constructive trus-
tee, in which event the Texas laws of notice would not
apply and the case of Gulf Production Company v. Con-

naesie . . FRI pha LTO oI LT ONES GOS MEN ROT
aes
eS

23

tinental Oil Company, 182 S. W. (2) 553, 164 S. W.
(2) 488 has no application here.°

Cage v. Eastburn & Company, 23 S. W. (2) 65;
McWhorter v. Oliver, 2S. W. (2) 281;
Woodall vy. Adams, 78. W. (2) 922;

Grand Court of Order of Calanthe of Texas v. Ebel-
ing, 129 S. W. (2) 715;

Rodriguez v. Vellejo, 157 S. W. (2) 172.

_

v.
Fifth Cireuit Court was erroneous in its application of
Section 7425a, Revised Civil Statutes of Texas (Appen-
dix, infra, p. 65), to the fact situation here, in that
said section was never intended to permit a trustee to
transfer lands of an incompetent who was incapable of

The opinion of the trial court as affirmed by the

creating a trust. Such a construction of the Act would
create a means for gross fraud in depriving innocent
persons of their property as illustrated here. The decision
in applying said Section 7425a is to thwart the public

‘The Texas Constitution requires the Texas Statutes to be codified
under separate and distinct titles. All statutes governing the relations
between guardians and wards are contained in Title 69 of the Texas
Code entitled “Guardian and Ward.” Article 7425a is incorporated into
Title 125a captioned “Trustees”. No Texas court has ever held that
Article 7425a applies to estates in wardship. Manifestly, Article 7425a
does not apply to Trustees ex maleficio. Moreover, the Supreme Court
of Texas has recently held it Neblett v. Valentino, 92 S. W. (2) 432, that
one who purports to act as a Trustee for a ward assumes the statutory
obligations of a guardian. Finally, the Texas Courts have repeatedly
held that trusts created to thwart the public policy of the State as de-
fined in the Statutes are absolutely void and unenforceable. McCamey
v. Hollister Oil Company, et al., 241 S. W. 689.

-

24

policy of Texas by permitting the transfer of an incom-
petent’s property without a proper guardianship sale.’
This is contrary to the local and state policy. The case
relied upon in the decision, Gulf Production Company vy.
Continental Oil Company, supra, is not applicable.

American Surety Co. of New York vy. Fitzgerald,
36 S. W. (2) 1104;

Neblett v. Valentino, 92 S. W. (2) 4382;

Wilkinson v. Owens, et al., 72 S. W. (2) 330;

Kelsey v. Trisler, et al., 74 S. W. 64;

Jones et al v. Sun Oil Company, et al., 153 S. W. (2)
571;

Gulf Production Co. v. Oldham et al., 274 S. W. 238;

Pure Oil Co. v. Clark, 56 S. W. (2) 852;

Texas & N. O. Ry. Co. v. Jones, 103 S. W. (2) 1043.

8. The decision of the trial court is erroneous in
holding that under the fact situation here an express
was created. If the court had correctly defined the pur-
ported trust as a resulting or constructive trust, then
Magnolia could not have been an innocent purchaser un-
der the decisions of the Texas state courts and Federal

7 Chapter 138, Title 69, Articles 4285 ss, Texas Statutes, permit duly
appointed foreign guardians to qualify in Texas. If the foreign guardian
does not choose to take advantage of Article 4285, such foreign guardian,
or others interested may procure appointment of an ancillary guardian
of the Texas estate of the ward, perforce of Article 4132.

“ee

25

courts, and the Circuit Court’s opinion should have re-
versed the trial court. The following Texas cases have
applied Section 7425a, supra, to fact situations involving
resulting or constructive trusts:

McWhorter v. Oliver, supra;
Woodall v. Adams, supra;
Cage v. Eastburn & Company, supra;

Grand Court of Order of Calanthe of Texas v. Ebel-
ing, supra;
Rodriguez v. Vellejo, supra.

The following cases lay down the rule that one who
purchases trust property with actual or constructive no-
tice of the trust is held to the same liability as the ori-
ginal trustee and as the statutes of limitation will not run
in favor of a trustee they will not run in favor of a pur-
chaser :

Houston Oil Company v. Hayden, et al., 135 S. W.
1142;

Worst v. Sgitcovich, 42 S. W. 72;
Briggs v. McBride, 190 8S. W. 1123;
Lewis v. Castleman, 2 Tex. 422;

Humble Oil & Refining Co. v. Campbell, 69 Fed. (2)
667;

Baker v. Schofield, 243 U. S. 114, 61 L. Ed. 626.

26

9. The trial court found that Amey Thlocco by her
acts ratified the oil and gas lease in question. The Cir-
cuit Court merely stated that it was not necessary for
that appellate court to discuss or consider this question
for “we think it plain that whether this contention be
sound or unsound, it is quite clear that the judgment
must be affirmed on the showing and findings made of
record and limitation title in plaintiff’. The trial court’s
decision as affirmed by the Circuit Court was erroneous
because an incompetent full blood Indian could not have
ratified the oil and gas lease on the lands in question
whether the lands were restricted or unrestricted, and
no personal acts of hers would have worked an estoppel.

19 Am. Jur. 637;
Vol 4, Words and Phrases, Second Series, p. 127;

Ewert v. Bluejacket, (8 Cir.) 259 U. S. 128, 66
L. Ed. 858;

Kendall v. Ewert, (8 Cir.) 259 U. S. 137, 66 L.
Ed. 862;

Whitchurch v. Crawford, (10 Cir.) 92 Fed. (2)
249;

Wilkinson v. Owen, et al., 72 S. W. (2) 330.

The trial court in its findings and the Circuit Court
in its affirming opinion refer to suits brought by Amey
Thlocco in the Federal court in Oklahoma for the pur-

‘i sibeety> 1 : s Pie I Ay MRL RENE ED LAE PRAIRIE DE TOE A BEE He TAIN

27

pose of making Mainard account to her as trustee, resign

as guardian, and to make transfers to her on the Texas

lands. In one of these suits other defendants than Main-
ard (but not Magnolia) were named. These cases were
designed to unhorse Mainard who proved to be faithless
to his trust as guardian and as trustee. Compromise set-
tlements were entered into in these cases in the Oklahoma
Federal court (R. 171, 180). The stipulation of settle-
ment (R. 180) contained a clause* protecting Amey in
any other suit that might arise. Likewise the Federal

district court in Oklahoma entered a savings clause” to

protect Amey (R. 209), which saving clauses were wholly
jgnored by the trial court and the Circuit Court.

*“That neither the approval and acceptance of this offer of compro-
mise, nor the accounting to be had as herein provided, shall in anywise
prevent, prejudice or estop the said Amey Thlocco, by guardian or next
friend, or the Government of the United States in her behalf, from in-
stituting or maintaing any action, suit or proceeding to recover any
property, funds or interest therein lawfully belonging to her other than
the above described 65-acre mineral intrest conveyed to J. B. Terry
as aforesaid and the decree to be entered herein shall expressly so pro-
vide.” (R. 180)

°“Tt is Further Ordered that the judgment of this Court shall in no
respect affect the rights of the said Amey Thlocco, an incompetent, her
present guardian, and guardian ad litem, or the United States of
America from maintaining or instituting any other suit, or suits, affect-
ing the estate or properties of the said Amey Thlocco, an incompetent,
regardless of where said estate or properties may be situated; and that
the judgment of this Court shall in no respect be construed as res
adjudicata.” (R. 209)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA34806415_2372%3A1. Public record. Not legal advice.
