Baker & Strawn v. Butler Bros. & Lively

1929 OK 268, 283 P. 556, 141 Okla. 9, 1929 Okla. LEXIS 2
CourtSupreme Court of Oklahoma
DecidedJuly 2, 1929
Docket18517
StatusPublished
Cited by3 cases

This text of 1929 OK 268 (Baker & Strawn v. Butler Bros. & Lively) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker & Strawn v. Butler Bros. & Lively, 1929 OK 268, 283 P. 556, 141 Okla. 9, 1929 Okla. LEXIS 2 (Okla. 1929).

Opinion

CULLISON, J.

This case comes to this court on appeal from the district court of Carter county, Okla., wherein defendants in error, plaintiffs below, Butler Bros. & Lively, tened plaintiffs in error, defendants below, Ba'ker & Strawn, to recover the sum of $13,-442.75, claimed to be due and owing by defendants to plaintiffs for the drilling of an oil well on defendants’ property in Carter county, Okla., in what is known as the Hewitt oil field, and on what is known as the Baker & Strawn-Dillard farm, and asking that they, plaintiffs, be declared to have a valid and subsisting lien upon defendants’ property, hereinafter referred to, aiid that said lien be foreclosed and the properly be ordered sold and the proceeds distributed according to law and to satisfy the claim of plaintiffs.

The parties to this appeal will be hereinafter referred to ns they appeared in the court below.

The provisions of the contract for the drilling of said well, upon which this suit is predicated, and which are pertinent to the issues raised on the trial of the case in the lower court and on this appeal, will be set out in the statement of facts which follows :

The plaintiffs in their petition state two causes of action, to wit:

First, that plaintiffs, through their agent, P. H. Lively, hereinafter called Lively, entered into a contract, with defendants, through their agent, AY. L. Larkin, hereafter called Larkin, to drill an oil and gas well, known as the 6-B well, of defendants on the C. Dillard farm in Carter county, Okla. Defendants owned a gas lease on said farm, the same being:

“The east half of the northwest quarter o-f the northwest quarter and the west half of the northeast quarter of the northwest quarter, sec. 22, twp. 4 south, range 2 east, Carter county, Okla.”

A copy of the contract sued on is attached to the plaintiffs’ petition, and among other things provides;

*10 “The said well, unless sooner abandoned by direction of the party of the second part, is to be drilled to the lime which is from 2,694 to 2,785 feet, unless oil should be found in paying quantities between 2,350 and the above named lime. The consideration for which shall be $4.25 per foot. Should second party order any core drilling, 1he consideration for which shall be $6.25 per hour.”

Plaintiffs allege that, in pursuance of said contract, plaintiffs moved upon said premises, commenced the drilling of an oil and gas well thereon, and drilled the same to the lime, which instead of being encountered below 2,094 feet, was, as a matter of fact, encountered at the depth of 2,563 feet, for which work, under the terms of said contract, plaintiffs were to receive $4.25 per foot, and that for the drilling of said well from the surface to the depth of the lime encountered at a depth of 2,563 feet they became entitled to the sum of $10,892.75.

Plaintiffs further allege that demand was made upon defendants for payment of the above sum and payment thereof refused, and that by reason of such indebtedness due plaintiffs and a statement of lien properly filed with the court clerk of said county, plaintiffs became entitled to judgment against; defendants in the sum of $10,892.75, and for a lien upon the oil and gas lease on the land above described.

For their second cause of action, plaintiffs allege that at the instance of defendants they did special drilling, after the completion of the contract as set out in the first cause of action, upon the 6-b well of defendants on the above-described land; that they operated a rotary rig for 120 hours, and that the reasonable and customary price for such work in the Hewitt field, the field in which the drilling was done, was $6.25 'per hour, or $750; that plaintiffs furnished tools and labor for a period »of 72 hours in running a packer in said well, circulating the mud and water therein, and that the reasonable and customary price for snch work is $6.25 per hour, or $450; that from November 29, 1925, to December 16, 1925, plaintiffs were awaiting orders from defendants 18 days, and that the reasonable rental value of their tools during such time was $75 per day, or $1,350.

Plaintiffs then pray for judgment on their first and second causes of action in the sum of $13,442.75 and attorney’s fees and costs of the suit.

The defendants filed their answer, admitting the execution of the contract, the filing of plaintiffs’ mechanic’s liens with the court clerk, but deny that the contract has been completed by plaintiffs or that they had complied with it in full as alleged; allege that when plaintiffs reached a depth of 886 feet and had begun to run the 12%-ineli easing in said well, plaintiffs negligently dropped said casing, causing it to collapse and making it necessary to use a smaller size casing, and that plaintiffs agreed to pay $1,200 on the smaller casing, which amount was to be deducted from the contract price.

The plaintiffs admit that there was an agreement to credit defendants with the $1,-200 above referred to, and the jury found that such agreement was in fact made.

The contract in question contains the following provision:

“When the said well approaches the oil .or gas bearing sand, the party of the first part shall notify the party of the second part, or its agents in charge of the farm or lease, and thereupon any further drilling and casing into or through the sand to be as requested by the party of the second part (defendants) or its agents in charge of the farm or lease, but the work in connection therewith shall be done by and under the direction and at the risk of the pai ty <".f the first part.”

Defendants in their answer further allege that plaintiffs encountered oil sand at 2,607 feet and continued in said sand to 2,611 feet and failed to give defendants notice as required by the above clause of the contract, and drilled through said sand, and that in order to save the sand for a test a packer, attached to the 8%-ineh easing, was run into the well, and through the negligence of plaintiffs the casing became frozen; that plaintiffs refused to release the frozen casing and abandoned the well; that thereafter defendants took charge of the drilling, expended $5,362,53 in loosing said casing. Defendants then ask judgment against plaintiffs for $6,562.53, including the $1,200 for the casing ruined at 886 feet, above referred to, and $1,000 attorney’s fees.

In answer to plaintiffs’ second cause of action defendants deny that plaintiffs did any special work, and allege that if there was any delay it was occasioned by plaintiffs’ negligence for drilling through the oil sand. And by cross-petition, defendants ask judgment against plaintiffs in the sum of $6,426.53 and $1,000 attorney’s fees.

Plainliffs in their reply to defendants’ answer and cross-petition plead a general denial of the averments therein contained. Thereafter plaintiffs filed their supplemental *11

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Bluebook (online)
1929 OK 268, 283 P. 556, 141 Okla. 9, 1929 Okla. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-strawn-v-butler-bros-lively-okla-1929.