Billingsley v. Parmenter

1937 OK 674, 73 P.2d 869, 181 Okla. 315, 1937 Okla. LEXIS 144
CourtSupreme Court of Oklahoma
DecidedNovember 23, 1937
DocketNo. 27486.
StatusPublished
Cited by7 cases

This text of 1937 OK 674 (Billingsley v. Parmenter) 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
Billingsley v. Parmenter, 1937 OK 674, 73 P.2d 869, 181 Okla. 315, 1937 Okla. LEXIS 144 (Okla. 1937).

Opinion

GIBSON, J.

This action • involves the foreclosure of laborers’ liens upon an oil and gas mining lease, and particularly the question of the propriety of personal judgment against the owner of an undivided interest therein.

The plaintiff in error, C. L. Billingsley, the owner of an undivided one-third inter *316 est in said lease, commenced the action in the district court of Hughes county against the defendants in error B. A. Holland, B. W. Parmenter, and E. O. Freeman for the appointment of a receiver to take charge of the operations on said lease. Holland filed his answer and cross-petition seeking foreclosure of a laborer’s lien for work performed in the drilling of a well on the premises under the terms of an oral agreement with Parmenter and Freeman, partners, and then full owners of the lease, -and allegedly joined in and assented to by Billings-ley at the time, or after, he acquired his interest from said copartners.

The defendants in error J. L. James and D. A. Streater, by separate petitions in intervention, seek foreclosure of liens for labor performed in the drilling of said well.

After trial of the issues joined on the lien foreclosure proceedings, judgment was rendered against Billingsley, Parmenter, and Freeman in favor of cross-petitioner and the interveners for the amount of their lien claims, interest, and attorney fees, and decreed foreclosure of said liens upon the oil and gas lease. Billingsley alone has appealed.

It is admitted that the cross-petitioner and the interveners were entitled to foreclosure of their liens upon the particular leasehold here involved; but it is asserted that under the evidence they were not entitled to personal judgment against Billings-ley for the amount of their respective claims.

The lien claimants contend that Bil-lingsley was either a general partner or a mining partner of Parmenter and Freeman at the time the indebtedness was created, and therefore personally liable for said claims. That is the paramount question for our determination on this appeal, and the solution thereof depends entirely upon the evidence.

Although the present cause is one properly triable to a jury under the provisions of section 350, O. S. 1931, as an action for the recovery of money, it is one of equitable cognizance. Adwon v. Ketcham, 169 Okla. 428, 37 P. (2d) 432. A jury was called, but no general verdict as required by section 21, art. 7, Constitution, and section 370, O. S. 1931, was returned and none requested, and no objection taken to the failure of the court to so submit the cause. The issues were submitted upon special interrogatories alone-, and the answers thereto were unfavorable to Billingsley on the question of partnership.

Under the foregoing circumstances, the conclusion is inevitable that the parties waived their right to a general verdict, and that the court called the jury to sit in a mere advisory capacity as to the facts in issue, and not for the purpose of returning a general verdict in the case. This w'as clearly within the powers of the trial court; and in such case the court may adopt or reject the conclusions of the jury. Gamel v. Hynds, 69 Okla. 204, 171 P. 920. The jury’s findings in such case are merely advisory (Vose v. U. S. Cities Corp., 152 Okla. 295, 7 P. (2d) 132; Harris v. V. S. Cook Lbr. Co., 152 Okla. 7, 3 P. (2d) 694) ; and this applies as well in cases of equitable cognizance where the parties are entitled to a jury as a matter of right under section 350, supra, but waive the same. See Clark v. Ellison, 180 Okla. 630, 71 P. (2d) 609. In such ease the answers of the jury are not binding upon the trial court nor are they binding upon this court on 'appeal. Id.

In such case our review of the evidence is governed by the equity rule and not by the rule applied in jury, or law, cases. Upon proper assignment questioning the sufficiency of the evidence, this court will examine and weigh the same, but will not disturb the judgment of the lower court unless it appears that ¿aid judgment is against the clear weight of the evidence. Adwon v. Ketcham, supra.

In the year 1934 the aforesaid Parmenter and Freeman owned a block of oil and gas le'ases in Hughes county. They employed the cross-petitioner Holland to drill a well for oil and gas upon the particular lease here involved. By letter to Parmenter and Freeman under date of September 24, 1934, Billingsley agreed to purchase from them a certain offset 40-acre lease for the sum of $500, to be paid upon completion of the well to a depth of 650 feet, or upon completion at a lesser depth in event oil or gas in paying quantities should be discovered.' This letter was turned over to Holland by Parmenter and Freeman apparently as mere evidence of available funds for the payment of Holland’s work to be performed on the well.

On J'anuary 14, 1935, when the well had reached a depth of 585 feet, all parties apparently believed that a producing sand *317 liad been encountered. On that date Par-menter and Freeman were unable to pay Holland the sum then due under his contract, and, according to Holland’s testimony, Parmenter, in compans1 with Holland, proceeded to Billingsley for financial aid, or to collect the money mentioned in Billingsley’s letter above mentioned.

At that meeting, which took place at the bank in which Billingsley was an officer, Billingsley, according to the testimony of Holland, declined to pay the sum requested, assigning as his re'ason the inability of Par-menter and Freeman to deliver good title to the offset 40-acre lease. Thereupon Par-menter offered to substitute for said 40-acre lease an undivided one-third interest in the lease upon which the well was located and here involved. In response to this offer Billingsley remarked: “I would rather have it.” Parmenter was then instructed by Billingsley to give Holland a check for his work in full to date and that the check would be honored at the bank. The check was accordingly issued on that date, and honored, and charged to Parmenter’s account.

Both Billingsley 'and Parmenter testified that the above-mentioned meeting did not occur. They testified that Billingsley paid Parmenter for the offset lease and that Holland was not present at the time of such payment. They further testified that no agreement was made to substitute a one-third interest in the lease 'and well for the offset 40 acres until January 26, 1086. at which time a written contract to that effect was entered into.

Aside from tire foregoing testimony of Holland, there is no evidence in the record to indicate that Billingsley ever had an interest in the well other than his indirect interest as the owner, or potential owner, of the offset 'acreage; and there is no other evidence sufficient to lead Holland to believe that he owned an interest in the well or that he expected to pay out money other than for the purpose mentioned in t.he letter concerning the 40-acre lease. Holland did testify that Billingsley told him that he was paying out $650 on the well, hut it is not shown when Billingsley made this statement. It is, however, clearly indicated that Holland in this testimony was referring to his first conversation with Bil-lingsley when Holland was told that Billings-ley expected to pay to Parmenter and Freeman only the sum mentioned in his letter.

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Bluebook (online)
1937 OK 674, 73 P.2d 869, 181 Okla. 315, 1937 Okla. LEXIS 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/billingsley-v-parmenter-okla-1937.