Guerin v. Sunburst Oil & Gas Co.
Montana Supreme Court
218 P. 949 (1923)
Relevant factsFree
Thornton signed an unrecorded oil-exploration lease with Campbell, then gave Rock a recorded option to buy the land subject to that lease. Campbell's lease was later assigned to Stevenson and then to Sunburst Oil & Gas (defendant), with both assignments recorded. Thornton subsequently sold the land to Guerin (plaintiff), who sought an injunction to stop Sunburst from exploring for oil, arguing she had no notice of the underlying lease since it itself was never recorded; the trial court denied her injunction request.
IssueFree
Whether a buyer has notice of a lease on real property when the lease itself is unrecorded but is referenced in other recorded documents concerning the property.