Cal. Well Drilling Co. v. Cal. Midway Oil Co.

177 P. 849, 178 Cal. 337, 1918 Cal. LEXIS 478
CourtCalifornia Supreme Court
DecidedMay 28, 1918
DocketL. A. No. 4395. In Bank.
StatusPublished
Cited by14 cases

This text of 177 P. 849 (Cal. Well Drilling Co. v. Cal. Midway Oil Co.) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cal. Well Drilling Co. v. Cal. Midway Oil Co., 177 P. 849, 178 Cal. 337, 1918 Cal. LEXIS 478 (Cal. 1918).

Opinion

WILBUR, J.

This is an appeal from a judgment after verdict for $44,452.19, the contract price for drilling two oil wells by plaintiff for defendant, and from the order denying defendant’s motion for a new trial. Well No. 7 was drilled under contract dated February 7, 1912. Well No. 6 was drilled under a contract dated December 31,1912. Both wells were to be paid for by the foot. It is admitted that well No. 6 conformed to the contract, and that plaintiff is entitled to be paid the contract price therefor. All the difficulties in the case grow out of the contract for the drilling of well No. 7 and its relation to the second contract. The question is whether or not the plaintiff completed the well as required by the contract for the drilling of well No. 7, and, if not, whether said well was accepted by the defendant as completed in August, 1912, at which time plaintiff claims that it had' sunk well No. 7 to a depth of 3,215 feet, and “into the oil sand,” and had placed therein at the request of the defendant a perforated four-inch pipe; that the well was thereupon accepted as completed, but that five days thereafter, defendant having discovered that the well was crooked, returned it to the pos *340 session of the plaintiff to be straightened; that thereafter, for a year, the plaintiff was actively engaged in attempting to straighten the well, and in July, 1913, having straightened the well and sunk it to a depth of 3,241 feet—26 feet farther than it was at the time it was accepted by the defendant—they had thus fully performed their contract. The case thus presented .two main questions, that of acceptance and of completion. Plaintiff contends that the jury having found a general verdict in its favor, it must be considered to have found an acceptance, even though the special interrogatory requiring a finding thereon was unanswered, and this may well be true. (Benson v. Southern Pac. Co., 177 Cal. 777, [171 Pac. 948].) Defendant claims that the evidence was insufficient to justify such a finding. On this subject, at the request of the plaintiff, the jury was instructed as follows: “ ... if you find from the evidence that the defendant accepted well No. 7 at 3,215 feet, and that the said defendant thereafter requested the plaintiff to straighten the hole and the casing in said well, and that the plaintiff thereupon proceeded so to do and actually did straighten the casing in said well in the manner as testified, in a workmanlike manner as provided for in said contract, and that the defendant refused to accept said well as straightened, you will then find that the plaintiff is entitled to judgment under the terms of the contract.” The contract for drilling well No. 7 recited that it was the purpose of the parties to “drill a well for oil,” and therein the plaintiff “agrees to drill a well on said land at the location indicated . . . into the oil sand or to a depth of 3,500 feet if required by said first party, ’’ etc. It provided that certain payments were to be made “60 days after the perforated casing is carried into the oil sand, or to 3,500 feet.” This instruction completely ignores the question of actual drilling “into the oil sand or to a depth of 3,500 feet if required by said first party,” and is based wholly upon plaintiff’s theory of the case that well No. 7 was accepted as complete in August, 1912. But plaintiff’s theory was not tenable. It is undisputed that five days after such alleged completion and acceptance the well was returned to plaintiff for further work thereon, which work continued for nearly a year. During the progress thereof the contract of December 31, 1912, for drilling well No. 6, was entered into by the parties, in which it is, in effect, expressly agreed that said well No. 7 was uncompleted and *341 unaccepted, by the following provision therein contained: “It is further understood and agreed by the parties hereto, that the fifty per cent monthly payments herein provided for shall be suspended until the completion of that certain well on the property of the party of the first part known as well No. 7, on which the party of the second part is now drilling under an agreement dated February 7, 1912; but all payments so suspended shall become due and payable as agreed upon completion of said well No. 7. In the event well No. 7 cannot for any reason be completed according to its contract, then the said well herein provided for to be drilled shall be understood by the parties hereto to replace said well No. 7 and to be so accepted by the party of the first part as the well provided to be drilled in said contract of February 7, 1912.” (Italics ours.) There was not only no sufficient evidence to justify a finding of acceptance in August, 1912, but in view of the contract of December 31,1912, the jury might have been properly instructed that there was no acceptance and no completion of well No. 7 prior to December 31, 1912, and as no acceptance at any time after August, 1912, was claimed by plaintiff, the instruction complained of should not have been given. The case was tried and the jury instructed upon the theory that it was to construe the contracts involved, and to this end a number of rules of construction were given to the jury, and the refusal to give others is assigned as error. But the terms of the contracts being ascertained, the court should have construed the same and instructed the jury as to the meaning and effect thereof. (Luckhart v. Ogden, 30 Cal. 547, 556; Swain v. Grangers' Union etc. Co., 69 Cal. 186, [10 Pac. 404]; Holloway v. McNear, 81 Cal. 154, 157, [22 Pac. 514].) It would serve no useful purpose to set out at length the various provisions of the contract for drilling wells Nos. 6 and 7. Suffice it to say that the contract for drilling well No. 7 provided that, in the event of the failure to drill that well to a sufficient depth, a well should be drilled in lieu thereof, and made certain stipulations in regard to the expenditures in drilling such well. The later contract of December 31, 1912, for the drilling of well No. 6, referred to the contract for drilling well No. 7, stating, in effect, as above quoted, that if No. 7 was not completed, No. 6 should be regarded as having been drilled in lieu thereof. The parties herein differ upon the question as to whether or not under a proper construction *342 of these two contracts the defendant was entitled to credit upon the contract price for drilling the second well (No. 6) of the amount expended by it for materials, etc., furnished to the plaintiff while drilling said well, in the event that No. 7 was not completed, stipulated to be $17,077.78. The construction of these two contracts was a question of law for the court, and the jury should have been instructed that in the event. it found that well No. 7 was not completed, the verdict should have been for the contract price for drilling well No. 6, less the stipulated credit of $17,077.78. Instruction No. 15, given at plaintiff’s request, based upon the theory that such credit could not be allowed unless a mutual mistake in the execution of 'the contract of December 31, 1912, was proved by a preponderance of the evidence, was erroneous; as it was also to leave the jury to determine whether the contract of December 31, 1912, as executed, provided for such credit. In determining whether or not the plaintiff had completed its contract for well No.

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

Related

Rosales v. Thermex-Thermatron, Inc.
78 Cal. Rptr. 2d 861 (California Court of Appeal, 1998)
Estate of Jones v. Jones
360 P.2d 70 (California Supreme Court, 1961)
Bernson v. Bowman
182 Cal. App. 2d 697 (California Court of Appeal, 1960)
Clark v. Lesher
299 P.2d 865 (California Supreme Court, 1956)
Marr v. Putnam
246 P.2d 509 (Oregon Supreme Court, 1952)
Estate of Rule
152 P.2d 1003 (California Supreme Court, 1944)
McCluskey v. Ware
152 P.2d 1003 (California Supreme Court, 1944)
Morrison v. J. D. Willhoit
145 P.2d 707 (California Court of Appeal, 1944)
Weaver v. Grunbaum
87 P.2d 406 (California Court of Appeal, 1939)
Coats v. General Motors Corp.
39 P.2d 838 (California Court of Appeal, 1934)
Taylor v. Stanley
4 F.2d 279 (W.D. Louisiana, 1925)
O'Connor v. West Sacramento Co.
207 P. 527 (California Supreme Court, 1922)
Western Industries Co. v. Mason Malt Whiskey Distilling Co.
205 P. 466 (California Court of Appeal, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
177 P. 849, 178 Cal. 337, 1918 Cal. LEXIS 478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cal-well-drilling-co-v-cal-midway-oil-co-cal-1918.