Briggs v. Waggoner

1962 OK 108, 375 P.2d 896, 17 Oil & Gas Rep. 158, 1962 Okla. LEXIS 454
CourtSupreme Court of Oklahoma
DecidedMay 8, 1962
Docket39546
StatusPublished
Cited by8 cases

This text of 1962 OK 108 (Briggs v. Waggoner) 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
Briggs v. Waggoner, 1962 OK 108, 375 P.2d 896, 17 Oil & Gas Rep. 158, 1962 Okla. LEXIS 454 (Okla. 1962).

Opinion

BERRY, Justice.

On November 30, 1955, R. L. Briggs, hereafter referred to as “intervenor”, granted to George Rahal, hereafter referred to as “Rahal”, oil and gas leases covering the SE/4 of SE/4 and SW/4 of SE/4, Sec. 35, T. 19N, R. 8E, Creek 'County, Oklahoma. Rahal promptly drilled 6 test wells for oil and gas on the land which were completed as producing wells. Rahal operated the wells (leases) for approximately 4 years. It appears that he concluded that none of the wells would produce oil or gas in paying quantities and that the casing and other personal property on the wells should therefore be salvaged and the wells plugged.

On April 14, 1959, Rahal sold the casing and other personal property used in producing the wells upon the leases to H. Wag-goner and John Warden, defendants in error, who are hereafter referred to as “plaintiffs” or by name. The sale was evidenced by a bill of sale which named H. Waggoner as the sole vendee. It was stated in the bill of sale that the vendee would plug all wells in “strict accordance with applicable laws”. It is agreed that plaintiffs intended to promptly salvage the personal property on the leases and plug all wells.

After giving notice of intention to plug the wells, plaintiffs attempted to go upon the leases for the purpose of salvaging the personal property thereon. Plaintiffs in error, Charlie Briggs (the same person as C. W. Briggs) and Lee Briggs, hereafter referred to as “defendants” or by name, threatened bodily harm to those who proposed to begin the salvage operations. Defendants are the sons of intervenor.

*898 Plaintiffs thereafter instituted this action and sought to enjoin defendants from interfering with their proposed salvage operations.

After permission to intervene had been granted, intervenor filed an answer to plaintiffs’ petition and a cross-petition in which he sought judgment against plaintiffs for $20,000.00 as damages sustained because of plaintiffs’ alleged failure to properly operate and produce the wells on the leases, and the further sum of $500.00 as a reasonable fee for his attorneys. The defendants filed an answer wherein, so far as material to the issues here presented, they denied plaintiffs’ right to salvage the personal property on the leases. In appropriate pleadings plaintiffs denied intervenor’s asserted right to damages and an attorney’s fee.

After the case was at issue, C. W. Briggs, as agent for intervenor, entered into negotiations with plaintiffs covering the purchase of the leases. In an effort to effect a sale of the leases, plaintiffs obtained an assignment of the leases from Rahal and other persons who owned an interest therein. The assignment was dated April 22, 1959. Thereafter and on August 15, 1959, C. W. Briggs, as agent, and H. Waggoner entered into a contract denominated “Contract of Option” covering purchase of the leases for $35,000.00. This instrument was approved by John L. Warden on the mentioned date. It was contemplated that upon the provisions of the contract being complied with, all persons seeking affirmative relief herein would dismiss their respective actions. The trial court found that the Briggs failed to comply with the provisions of the contract, which finding is sustained by competent evidence.

Following purchase of the personal property on the leases, plaintiffs operated and produced the leases.

In each of the leases it was provided that the leases should remain in force for a stated period “and so long thereafter as oil or gas, or either of them, is produced from said land by lessee in commercial and paying quantities to the lessor”; that “Lessee shall have the right at any time to remove all machinery and fixtures on said premises, including the right to draw and remove casing”; that the right to assign their respective interests was reserved by each party to the lease.

Intervenor (lessor) caused the lease to be drafted and it was at his instance that the above italicized language was typed therein. The remainder of the language above quoted was a part of the printed form upon which the lease was drafted.

Following trial of case to the court, judgment was entered enjoining defendants and intervenor from interfering with the removal of the casing and other personal property from the lease, and intervenor’s claim for damages and attorney fees were disallowed. From order of the trial court denying defendants’ and intervenor’s motion for new trial which was directed to the judgment, they perfected this appeal.

The issues or questions presented by the pleadings and evidence on the merits can be summarized thusly: (1) Does the provision of the leases to the effect that same must be produced so long as the lessor realizes a profit prevail and must the leases therefore be produced at a loss to those owning the working interest? (2) If the answer to the posed question is “yes”, will equity grant relief from the provision? (3) Does the mentioned provision conflict with the provisions of the lease to the effect that lessee may at any time remove the casing and other personal property from the leases, and if it so does this, create an ambiguity that should be resolved in accordance with testimony showing the intent of the parties to the lease?

We are of the opinion that for reasons hereafter stated the question first posed must be answered in the negative and the last question in the affirmative.

Plaintiffs urge that where part of a contract is typed and part is printed, and the written and printed parts are inconsistent, the typed portion controls. This is a well-established rule. See 12 Atn.Jur. *899 “Contracts”, Sec. 253, p. 797. But another equally well-settled rule is that in construing a contract, all portions thereof will he considered, which rule applies where typed portions of a contract cannot be reconciled with printed portions thereof. At p. 798, Sec. 253, “Contracts”, 12 Am.Jur., this is said:

“ * * * The construction is to be made on a consideration of the whole instrument, and not on one or more clauses detached from the others; and the principle applies as well to instruments partly printed and partly written, as to those wholly printed or wholly written. * * * ”

See also Belt Seed Co. v. Mitchelhill Seed Co., 236 Mo.App. 142, 153 S.W.2d 106, 110, and Ohio & Michigan Coal Co. v. Clarkson Coal & Dock Co. (6th Cir.), 266 F. 189, 192.

The above mentioned rule, in our opinion, is particularly applicable where giving effect to the typed portion of a contract over a conflicting printed portion thereof would tend to bring about a harsh and oppressive condition. It is apparent that the matter of requiring a lessee to produce a lease at a substantial loss is both harsh and oppressive and may eventually lead to a result not intended by the parties. By force of statute, a contract must be so interpreted as to give effect to the mutual intention of the parties as it existed at the time of contracting, so far as the same is ascertainable and lawful. See 15 O.S.1961 § 152.

Defendant urges that lessor caused the lease to be prepared and for said reason any uncertainty in the lease should be construed against lessor. See 15 O.S.1961 § 170. Such is the law.

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Bluebook (online)
1962 OK 108, 375 P.2d 896, 17 Oil & Gas Rep. 158, 1962 Okla. LEXIS 454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/briggs-v-waggoner-okla-1962.