Blaustein v. Standard Oil Co.

70 A.2d 716, 45 Del. 198, 6 Terry 198, 1949 Del. Super. LEXIS 76
CourtSuperior Court of Delaware
DecidedDecember 20, 1949
Docket136, 137 & 138
StatusPublished
Cited by5 cases

This text of 70 A.2d 716 (Blaustein v. Standard Oil Co.) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blaustein v. Standard Oil Co., 70 A.2d 716, 45 Del. 198, 6 Terry 198, 1949 Del. Super. LEXIS 76 (Del. Ct. App. 1949).

Opinion

Pearson, Judge.

Plaintijj’s Proposed Amendments. The actions were begun by writs of foreign attachment in May 1915. Declarations were filed by plaintiffs in August of that year. Defendant raised jurisdictional and constitutional questions which were litigated during the next three years, and in May 1949, defendant filed answers to the declarations. In July 1949, plaintiffs asked leave to amend their declarations. This application is opposed by defendant. The original declarations each consisted of two counts, in common law form. The proposed amendments are in one count and are in a form which purports to comply with that prescribed by new Rules of the Superior Court, effective January 1, 1948. A brief statement of the contents of the declarations may be found in the opinion of the *202 Supreme Court, Blaustein v. Standard Oil Co., 4 Terry 449, 454-456, 49 A. 2d 726, 728, 729. Defendant describes the original deer larations and the differences between them and the proposed amendments to which it objects, as follows:

“Disregarding many immaterial allegations, the gist of the original declarations was that plaintiffs and defendant entered into an agreement under seal dated March 28, 1933; that the agreement contained several convenants, the principal one of which, in the first count, was that defendant had ‘convenanted, agreed and obligated itself * * * to cause [italics supplied] Pan Am (“Pan Am” is an abbreviation used in the declarations to refer to Pan American Petroleum & Transport Company, the majority of the stock of which was and is owned by defendant, and a large minority of the stock of which was and is owned by the plaintiffs) immediately upon its reorganization * * * actively to proceed to secure its own sufficient crude oil production * * *: that defendant breached this covenant in that it ‘failed, neglected and refused to cause Pan Am actively to proceed to secure its own sufficient crude oil production * * *.’
“In the second count plaintiffs relied principally upon the allegation that the agreement required defendant 'to cause a refinery having a refining capacity * * for a thruput of 40,000 barrels of crude oil per calendar day * * * to be constructed * * .’ The alleged breach was declared as follows: ‘defendant failed and refused to cause a refinery having a capacity for a thruput of 40,-000 barrels of crude oil per calendar day * * * to be constructed * * * >
“The damages claimed were calculated in each declaration down to the last penny. They were arrived at as follows: It was claimed in the first count that Pan Am had sustained damages of $255,-259,800.62 and in the second count that it had sustained damages of $6,848,823.47. Plaintiffs’ own damages were based upon an *203 aliquot share of the damages alleged to have been sustained by Pan. Am, that aliquot share bearing the same relation to the two sums above mentioned as plaintiffs’ holdings of stock in Pan Am bore • to its entire outstanding stock. Thus, in action No. 136, plaintiffs’ damages were alleged to have been $7,748,529.42; in action No: 137, $7,237,449.80; and in action No.- 138, $35,218,306.24.
“The proposed amendments are not mere formalities for the purpose of correcting inadvertent defects. On the contrary, the amendments seek to alter the gravamen of plaintiffs’ alleged claims in two substantial respects:
“(1) The obligations alleged in the original declarations, i. e., that the defendant agreed to ‘cause’ Pan Am to construct a refinery and acquire crude oil producing properties, are entirely: eliminated. Instead, the amended declarations allege an entirely different convenant (although based on the same written instru- • ment which is set forth in the original declarations), namely, that ‘Defendant obligated itself by said Agreement of March 28, 1933, not, by any acts or ommissions on its part, to defeat the rights of' the Blausteins, including the Plaintiff, under said Agreement.’ The breaches now claimed are based upon several acts by defendant which plaintiffs claim were done ‘with the intent and purpose of defeating the expressly declared purpose of Defendant’s convenants and agreement * * *.’
“(2) The allegations of the damages alleged to have been ■ sustained by Pan Am have been eliminated. In place of the carefully calculated and specific damages alleged in the original declarations, the amended declarations simply aver in round numbers the damages which plaintiffs claim they suffered without reference to Pan Am.
“The motions should be denied for the following reasons:
“(1) Since plaintiffs urged the validity of their writs of at *204 tachment [when defendant raised the jurisdictional questions] on the ground that the damages alleged were liquidated or capable of ascertainment and asserted that the)' were measured by an aliquot share of Pan Am’s damages, they should not, after the defendant has appeared generally, be permitted to amend so as to claim only unascertained and unliquidated damages;
“(2) Plaintiffs have failed to show good cause for the allowance of the proposed amendments; and
“(3) The allowance of the proposed amendments would unduly prejudice defendant.”

Aside from the general instead of detailed allegation of damages, the important differences, for present purposes, between the declarations and the amendments are contained in paragraphs 15 and 17 of the amendments, which read as follows:

"(15) In and by said Agreement of March 28, 1933, it was provided, inter alia, that Pan Am would actively proceed to secure its own sufficient crude oil production as a reserve for the requirements of Pan Am and for such purpose immediately to allocate an initial sum of $3,000,000.00 to be expended under the supervision of the Board of Directors for the acquisition of crude oil producing properties, and that the Defendant would use its best efforts, resources and personnel to propose, establish and carry out a program for the establishment and maintenance of a backlog of crude oil properties sufficient for the operations of Pan Am, and also, inter alla, that Pan Am would provide a refinery having a refining capacity (including necessary cracking units) for a thruput of 40,000 barrels of crude oil per calendar day, making a maximum efficient yield of gasoline, said refinery to be constructed and fully completed and in commercial operation on or before February 10, 1934, provided such date of completion was reasonably possible, and that the Defendant would direct the construction of such a *205 refinery after competitive bidding and allotting of contracts, and the Defendant obligated itself by said Agreement of March 28, 193.3, not, by any acts or omissions on its part, to defeat the rights of the Blausteins, including the Plaintiff, under said Agreement.”

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Cite This Page — Counsel Stack

Bluebook (online)
70 A.2d 716, 45 Del. 198, 6 Terry 198, 1949 Del. Super. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blaustein-v-standard-oil-co-delsuperct-1949.