Consolidated Pipe Line Co. v. British American Oil Co.

1933 OK 221, 21 P.2d 762, 163 Okla. 171, 1933 Okla. LEXIS 673
Supreme Court of Oklahoma·Decided April 11, 1933·No. 20999·Published·Cited by 19 cases

Opinion

BUSBY, J.

This is an appeal from a judgment of the district court of Tulsa county, Okla. The action was commenced in the trial court by the defendant in error, British American Oil Company, Ltd., as plaintiff therein. The action was based on an alleged breach of contract for the sale of crude oil when the plaintiff sought to recover general and special damages for breach of contract for failure to deliver such oil in accordance with the contract. The cause was tried to the court and the judgment rendered in favor of the plaintiff and against the defendant for the sum of $13,770/28, together with costs. The parties will be referred to as they appeared in the trial court.

An examination of the record discloses that the plaintiff, British American Oil Com. pany, Limited, is a foreign corporation existing under the laws of the Dominion of Canada, and that its principal place of business is in the city of Toronto, Canada; that the plaintiff has not qualified to do business within the state of Oklahoma as a foreign corporation and has not complied with the laws of this state with reference to domestication. The defendant, Consolidated Pipe Line Company, is also a foreign corporation, but has qualified to do business in the state of Oklahoma, maintaining its office at Tulsa, Okla.

On the 10th day of December, 1923, one J. O. Millar, acting as agent for the plaintiff, placed a verbal order with the defendant, Consolidated Pipe Line Company, which was represented in the transaction by its *173 president and agent, R. P. Kistler, for the purchase of 15,000 barrels of crude oil from the Okmulgee district, said crude oil to be of approximately 38 gravity and to be paid for on the basis of $1.25 per barrel, loaded into the cars of the plaintiff at Sapulpa, Okla. This order was accepted by the defendant, and thereafter, on the 11th day of December, 1923, ■ a written memorandum of such order was executed in behalf of the respective corporations by their respective agents. This memorandum was in the form of a letter, and read as follows:

“December 11, 1923,
“Consolidated Pipe Line Company,
“Tulsa, Oklahoma.
“Attention Mr. Kistler:
“ Gentlemen:
“This will confirm verbal order placed with you yesterday for 15,000 barrels, approximately 38 gravity, Okmulgee district crude to be shipped in our cars as fast as possible on a basis of $1,525 per barrel loaded.
“I have received advice from our office that sufficient cars are en route and should arrive Sapulpa between the 18th and 21st.
“It is agreed that all cars necessary for shipment will be at Sapulpa before January 18th, and for such quantity as cars have not been received at Sapulpa by January 18th, this quantity is to be considered canceled.
“Yours very truly,
“British American Oil Company,
“Signed by J. O. Millar.”
“Accepted;
“Consolidated Pipe Line Company,
“Signed by R. P. Kistler.”

It appears that at the time this memorandum of agreement was made, the defendant had made arrangements to procure the oil to fill t£e order from the Gladys Belle Oil Company. The Gladys Belle Oil Company had its oil in storage with the Sapulpa Refining Company. Subsequent to the execution of the memorandum agreement above set forth, the Sapulpa Refining Company exercised an option to take the oil from the Gladys Belle Oil Company, and the Gladys Belle Oil Company in turn refused to supply the oil to the defendant. ¡On December 21, 1923, the defendant advised the plaintiff by telegram of their inability to obtain the oil to fill the contract, that telegram reading as follows:

“Tulsa, Oklahoma.
“December 21, 1923,
“British American Oil Company,
“Toronto, Ontario, Canada.
“Receivers for Sapulpa Refining Company against our protest on nineteenth took our crude under option written in their storage agreement. Have not yet located crude elsewhere. Are making every effort.
“Consolidated Pipe Line Company”
“Str. message Cbg.”

In response to this telegram, the plaintiff replied by telegram as follows:

“Canadian National Telegram
“Toronto, December 21st, 1923.
“Mr. R. P. Kistler,
“Consolidated Pipe Line Co.,
“Tulsa, Okla.
“Your telegram received. You have sold us fifteen thousand barrels Okmulgee crude certain specifications and we have either at Sapulpa or in immediate vicinity entire equipment for moving of this crude and demand immediately delivery of same. In view of your telegram will charge you with car rental from date of arrival of cars until loaded and cars must be loaded prior to January first.
“J. O. Millar, charge account of the British American Oil Co., Limited.”

On the following date the defendant advised the plaintiff by telegram that it would not fill their order, the telegram reading as follows:

“Canadian National Telegram
“OB Tulsa Okla 1249 P M 22
“B Amn Oil Co
“Toronto
“No delivery of any part of fifteen thousand barrels of oil will be made under letter of December eleventh, nineteen hundred twenty three.
“Consolidated Pipe Line Co.”

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Consolidated Pipe Line Co. v. British American Oil Co., 1933 OK 221, 21 P.2d 762, 163 Okla. 171, 1933 Okla. LEXIS 673 (Okla. 1933).

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