Conard v. Neosho Drilling

CourtCourt of Appeals of Kansas
DecidedFebruary 14, 2025
Docket126667
StatusUnpublished

This text of Conard v. Neosho Drilling (Conard v. Neosho Drilling) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Conard v. Neosho Drilling, (kanctapp 2025).

Opinion

NOT DESIGNATED FOR PUBLICATION

No. 126,667

IN THE COURT OF APPEALS OF THE STATE OF KANSAS

AARON CONARD and NICHOLE CONARD, Appellees,

v.

NEOSHO DRILLING and NORMAN HOUSTON, Appellants.

MEMORANDUM OPINION

Appeal from Cherokee District Court; MARADETH FREDERICK, judge. Submitted without oral argument. Opinion filed February 14, 2025. Affirmed in part, reversed in part, and remanded with directions.

Lyndon W. Vix, of Fleeson, Gooing, Coulson & Kitch, L.L.C., of Wichita, for appellants.

Robert E. Johnson, II, of Johnson Schowengerdt, P.A., of Iola, for appellees.

Before ARNOLD-BURGER, C.J., GARDNER and COBLE, JJ.

PER CURIAM: This appeal arises from a dispute between homeowners Aaron and Nichole Conard and Norman Houston. The Conards hired Houston to drill two water wells. After he was unable to complete the work, the Conards prevailed in a lawsuit they filed against Houston asserting claims for quiet title, breach of contract, negligence, and fraudulent misrepresentation. Houston was unsuccessful on his counterclaims for conversion, unjust enrichment, and breach of contract.

1 After reviewing the issues presented, we reverse the district court's ruling on the Conards' quiet title claim and reverse and remand the court's ruling on Houston's conversion counterclaim but affirm all other rulings.

FACTUAL AND PROCEDURAL HISTORY

In January 2019, the Conards hired Houston—through his company Neosho Drilling—to dig water wells on their property. At their initial meeting, Houston came to the Conards' residence to review the locations for the wells and discuss the drilling. After Houston assured Aaron that he was an insured driller, Aaron paid Houston $4,560 for the materials to drill the wells.

Houston arrived at the Conards' residence in April 2019 with his drilling rig—a 60-to-70-foot mast and trailer attached to a 1996 Ford truck—to perform the work. Houston completed the first well the next day, then began working on the second well a week later. Before the work was completed, Aaron paid Houston in advance for the completion of both wells in the amount of $10,160.

Unfortunately, Houston was unable to finish the second well because in the early morning hours on May 7, 2019, the drilling rig fell over during a storm, damaging a carport at the Conards' residence. Aaron immediately contacted Houston, who arrived several hours later and explained upon arrival that he learned his insurance on the truck and drilling rig had lapsed two months prior. The parties discussed how to stand up Houston's truck and drilling rig but could not come to an agreement. After further disagreements, Aaron advised Houston in June 2019—on the advice of law enforcement and his home insurance provider—not to attempt removing the drilling rig from the property and that any further attempts to do so without proof of insurance would be considered trespassing. Although Houston sent a text message to Aaron in July 2019

2 stating that he could obtain insurance, he did not provide proof of insurance at any point thereafter.

In September 2019, the Conards filed this lawsuit, raising five claims: quiet title, negligence, breach of contract, trespass, and fraudulent misrepresentation. The primary form of relief requested by the Conards was an order quieting title to the truck and drilling rig in their name to compensate for Houston's alleged acts, including failure to complete the work or remove his personal property from their residence, failure to properly secure the drilling rig, and misrepresenting that he had insurance.

After Houston filed a pro se answer in November 2019 denying any wrongdoing, the Conards filed a notice of hearing on a motion for default judgment to occur in February 2020. When Houston did not appear at that hearing, District Judge Oliver Kent Lynch entered a default judgment in the Conards' favor, finding they were "entitled to judgment and relief sought in their Petition and therefore the Court hereby Quiets title to the 1996 Ford VIN 1FDZY82E0TVA26107 and the same shall be the sole property of the Plaintiffs named herein." The court also ordered "judgment for trespass, which includes damages and for the Plaintiff's attorney fees in the amount of $4,500.00."

About four months later, the Conards hired Letts & Demery, another drilling company, to complete the work that Houston had been unable to complete. As compensation, the Conards traded Houston's truck and drilling rig to Letts & Demery.

In September 2020, an attorney entered their appearance for Houston and moved to set aside the default judgment. In short, the motion alleged the Conards failed to comply with statutory and Kansas Supreme Court rules requiring proper service of a motion for default judgment. Houston also contended the default judgment should be set aside due to excusable neglect and because he had meritorious defenses to the claims

3 alleged in the petition. After the parties filed additional responses, District Judge Lynch agreed with Houston and entered an order in January 2021 vacating the default judgment.

Houston then filed an amended answer, also raising counterclaims for conversion, unjust enrichment, and breach of contract. Houston asserted in these counterclaims that the truck and drilling rig constituted separate and distinct items of personal property, along with various smaller items contained within the truck. Thus, because the court's default judgment pertained only to the truck itself, Houston argued the Conards had improperly taken ownership of his other personal property and sold it.

District Judge Lynch held the bench trial over Zoom as scheduled, at which the Conards were represented by counsel and Houston appeared pro se.

Through their testimony, the Conards and Houston agreed about many aspects of the facts. Houston admitted that he had an agreement with the Conards to dig the two wells and was paid in advance, but that he was unable to complete the job because his drilling rig fell over. Houston also acknowledged that he told Aaron at their initial meeting in January 2019 that he had insurance coverage but claimed that he only became aware that the coverage had lapsed about "an hour or two" after the drilling rig fell over. Houston also did not dispute that the Conards' carport sustained damage when the drilling rig fell, that the Conards ended up paying a $1,000 deductible to repair the damage to the carport, or that the parties could not come to an agreement about how to extricate the truck and drilling rig from the Conards' property.

That said, the parties disputed some of the material facts. Aaron testified to his belief that Houston had not properly secured the rig, stating his experience working "in a facility where we follow OSHA regulations very closely" gave him the impression that Houston was not meeting those regulations. According to Aaron, Houston's duties as the "controlling entity" were "to lower the mast when inclement weather is coming" and

4 "inspect the rigging, the outriggers and the security of the rig every day," which had not been done for more than 30 days. Houston disagreed, stating that the rig had tipped over because of "an unforeseen condition . . . under the ground" and that he had secured the rig by putting "blocks underneath the outriggers. "

In addition, while it was undisputed that the parties could not agree how best to extricate the truck and drilling rig from the Conards' property, they provided differing accounts of how that conversation progressed. Aaron stated he provided Houston immediately with the phone number for Taylor Crane & Rigging, which Houston declined because their quote to stand up and remove the equipment was too expensive.

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Conard v. Neosho Drilling, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conard-v-neosho-drilling-kanctapp-2025.