Beasley Oil Co. v. Nance

1990 OK CIV APP 99, 801 P.2d 745, 61 O.B.A.J. 3215, 111 Oil & Gas Rep. 103, 1990 Okla. Civ. App. LEXIS 82, 1990 WL 191530
CourtCourt of Civil Appeals of Oklahoma
DecidedOctober 30, 1990
Docket73338
StatusPublished
Cited by2 cases

This text of 1990 OK CIV APP 99 (Beasley Oil Co. v. Nance) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beasley Oil Co. v. Nance, 1990 OK CIV APP 99, 801 P.2d 745, 61 O.B.A.J. 3215, 111 Oil & Gas Rep. 103, 1990 Okla. Civ. App. LEXIS 82, 1990 WL 191530 (Okla. Ct. App. 1990).

Opinion

MEMORANDUM OPINION

PATRICIA DOUGHERTY MacGUIGAN, Judge:

This appeal involves the trial court’s award of attorney’s fees in an action *746 brought under the Oil and Gas Drilling Surface Damages Act, 52 O.S.Supp.1987 § 318.2 et seq. (Surface Damage Act). Appellant, as the operator of an oil and gas well, through his representative had contacted Appellees, the surface owners, in October of 1985. On December 4, 1985, Appellant filed a petition to appoint appraisers to make recommendations to the parties and to the court concerning the appropriate amount of surface damages. On December 17, 1985, Appellees were personally served with Appellant’s notice of intent to drill. The notice stated the operator intended to commence operations to drill the well prior to December 31, 1985. The preparation did not actually commence on the drilling site until January 21, 1986 or twenty-one (21) days after the December 31, 1985 date listed in the notice.

Appellees selected an appraiser in December of 1985. The appraiser’s report was filed on August 26, 1988 and they determined that Appellees were entitled to $18,000.00 for surface damages. Appellant paid the appraiser’s award of $18,000.00 to Appellees and dismissed the case by filing a dismissal without prejudice on November 30, 1988. On February 17, 1989, Appellees filed a motion to confirm the appraiser’s report and a motion to assess against plaintiff treble damages, interest, attorney’s fees and costs. The trial court confirmed the appraiser’s award of $18,000.00 and overruled the Appellees’ motion for treble damages, interest, expenses and miscellaneous charges. However, the trial court sustained the Appellees’ motion for attorney’s fees under the “prevailing party” theory and found that reasonable attorney’s fees were $4,200.00.

Appellant contends that the attorney fee of $4,200.00 to Appellees under the principle of prevailing party is neither supported by statute nor common law and should be reversed. Appellees contend that they are entitled to $8,079.75 in attorney’s fees; they are entitled to treble damages pursuant to 52 O.S.Supp.1982 § 318.9; and Ap-pellees are further entitled to interest.

I.

Pursuant to 52 O.S.Supp.1982 § 318.5(F) a party is only entitled to attorney’s fees if it makes a demand for a jury trial. Tower Oil and Gas Company, Inc. v. Paulk, 776 P.2d 1279 (Okl.1989); Tower Oil and Gas Company, Inc. v. Keeler, 776 P.2d 1277 (Okl.1989); Andress v. Bowlby, 773 P.2d 1265 (Okl.1989). As the Supreme Court stated in Paulk, 776 P.2d at 1281:

We find that a proper reading of the provision is that the filing of the demand for jury trial is the activating event ...

52 O.S.Supp.1982 § 318.5(F) provides:

If the party demanding jury trial does not recover a verdict more favorable to him than the assessment award of the appraisers, all court costs, including reasonable attorney’s fees, shall be assessed against him.

In the present case there was neither a jury verdict nor a jury trial. Appellees assert that Appellant engaged in dilatory conduct by not pursuing the appraisal process to completion until a court order was obtained by Appellees in July of 1988 directing that the appraisal process be completed by August 31, 1988. Appellees assert that Appellant thwarted the purposes of the Surface Damages Act by delaying payment until December 1, 1988, almost three (3) years after entering onto Appel-lees’ property in January of 1986. Such dilatory conduct, Appellees assert, subjects Appellant to the operation of 52 O.S.Supp. 1987 § 318.5(F) and the resulting potential of liability for court costs and attorney’s fees.

The Surface Damages Act, however, does not place the burden of initiating the appraisal process on the operator. 52 O.S. Supp.1982 § 318.5(C) simply states that the operator shall select an appraiser, the surface owner should select an appraiser and the two shall select the third appraiser. “If either of the parties fails to appoint an appraiser ... the appraiser shall be selected by the district court upon application by either party.” Such delay does not descend to the level of vexatious, oppressive or bad faith conduct of litigation on the part of *747 Appellant. Tower Oil and Gas Company, Inc. v. Paulk, 776 P.2d at 1281, 1282.

We also find unpersuasive Appel-lees’ argument that 12 O.S.1981 § 940(A) allows attorney’s fees in the present action. Section 940(A) allows attorney’s fees to the prevailing party in a civil action to recover damages for negligent or willful injury to property. The present action is an action under the Surface Damages Act; the issue of negligent or willful injury to property was not an issue raised by the surface owners to the trial court, and such issue will not be considered for the first time on appeal. Arkansas Louisiana Gas Company v. Cable, 585 P.2d 1113 (Okl.1978). We also do not find that Appellees are entitled to attorney’s fees pursuant to 12 O.S.1981 § 936, the statute dealing with actions on accounts, bills and contracts.

The Appellees’ reliance on Wieland v. Danner Auto Supply, Inc., 695 P.2d 1332 (Okl.1984), for the proposition that Appel-lees were the prevailing party is inappropriate because Wieland was an action for the breach of express implied warranty wherein a confession of judgment was made. By payment of the appraiser’s report Appellant did not “confess judgment”, and the Wieland ease is not relevant to the case at bar. In the Surface Damages Act the statutory procedure is followed to determine the surface damages, and there is no party which prevails on the merits.

Appellees argue that they are entitled to attorney’s fees based upon estoppel because Appellant prayed for such relief. This is an action under the Oklahoma Surface Damages Act, and Appellees’ reliance on Messler v. Simmons Gun Specialties, Inc., 687 P.2d 121 (Okl.1984), is inappropriate as said case was a products’ liability action where one of the parties attempted to change their theory of causation.

Lastly, Appellees assert that Appellant engaged in “oppression and/or malicious conduct”, and therefore Appellees are entitled to attorney’s fees based upon an equitable theory under the law discussed in City National Bank and Trust Company v. Owens, 565 P.2d 4 (Okl.1977). In Tower Oil and Gas Company, Inc. v. Paulk, the Supreme Court states:

Appellant’s second argument on this point is that Tower’s actions in this case were undertaken in bad faith so as to provide an independent basis for award of costs and attorney’s fees under the rule stated in City National Bank and Trust Company v. Owens. The Court of Appeals reviewed appellant’s allegations and found that while the actions could not be condoned by the court, they did not descend to the level of the vexatious, oppressive or bad faith conduct of the litigation dealt in Owens. Upon review of the record we agree with the Court of Appeals’ conclusion on this point.

776 P.2d at 1281, 1282 (footnotes omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bays Exploration, Inc. v. Jones
2007 OK CIV APP 111 (Court of Civil Appeals of Oklahoma, 2007)
Samson Resources Co. v. Cloud
1991 OK CIV APP 55 (Court of Civil Appeals of Oklahoma, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
1990 OK CIV APP 99, 801 P.2d 745, 61 O.B.A.J. 3215, 111 Oil & Gas Rep. 103, 1990 Okla. Civ. App. LEXIS 82, 1990 WL 191530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beasley-oil-co-v-nance-oklacivapp-1990.