Luthi v. Evans

223 Kan. 622, 576 P.2d 1064 (1978)

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Nature of the Case

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Facts

Owens assigned interests in seven gas and oil leases to International Tours, Inc. (D). The assignment described some of the interests specifically and others by a 'Mother Hubbard' clause generally; 'all interest of whatsoever nature in all working interests in all oil and gas leases in Coffey County, Kansas.' The assignment was recorded fifteen days later on February 16, 1971. Besides the seven leases described in the agreement, Owens was also the owner of a working interest in an oil and gas lease known as the Kufahl lease, which was also located in Coffey County. The Kufahl lease was not described in the assignment. Four years later, Owens assigned a working interest in the Kufahl lease to Burris (P) on January 30, 1975. P personally checked the records in the office of the register of deeds and following the assignment P also secured an abstract of title to the real estate in question. Neither P’s personal inspection nor the abstract of title reflected the prior assignment to Tours. A dispute developed over the ownership of the Kufahl lease. Tours contends that the 1971 assignment conveyed from Owens to Tours and that the recording of that assignment gave constructive notice of the conveyance to subsequent purchasers including P. P concedes that the language of the second paragraph is sufficient to transfer the interests in the lease but as recorded, it failed to state with specificity the names of the lessor, the date of the lease, any legal description, and the recording data and as such was not sufficient to give constructive notice to a subsequent innocent purchaser for value without actual notice or the prior assignment. Because of these omissions, P argues that it was impossible for the register of deeds of Coffey County to identify the real estate involved. The district court found the recording of the first assignment to be insufficient notice. The court of appeals reversed. P appealed.