Dahl v. Petroleum Geophysical Co.

632 P.2d 1136, 194 Mont. 294, 72 Oil & Gas Rep. 301, 1981 Mont. LEXIS 813
CourtMontana Supreme Court
DecidedSeptember 3, 1981
Docket80-477
StatusPublished
Cited by6 cases

This text of 632 P.2d 1136 (Dahl v. Petroleum Geophysical Co.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dahl v. Petroleum Geophysical Co., 632 P.2d 1136, 194 Mont. 294, 72 Oil & Gas Rep. 301, 1981 Mont. LEXIS 813 (Mo. 1981).

Opinion

JUSTICE SHEEHY

delivered the Opinion of the Court.

Appeal by Petroleum Geophysical Company from a judgment awarding punitive damages in favor of Merle and Marie Dahl, based on a jury verdict rendered in the Fifteenth Judicial District, Sheridan County.

Merle and Marie Dahl (Dahl) sued Petroleum Geophysical Company (PGC) for damages claimed to have occurred to their farmlands when a seismograph hole drilled and “shot” by PGC brought a continuous water flow to the farm surface, which flow PGC failed to plug.

*296 The Dahl complaint was in two counts for actual and punitive damages. The jury, on the submitted issue of comparative (called “contributory” in the instructions) negligence, found PGC 90 percent negligent, the Dahls 10 percent negligent and fixed actual damages at $16,500 and punitive damages at $8,500. Judgment was entered on October 30, 1980, against PGC for $14,850 actual damages and the punitive damages, figure of $8,500.

PGC has appealed only from the punitive damages award. It has paid the judgment against it for actual damages, and satisfaction of judgment to that extent has been entered.

The six issues in appellant’s brief can be stated as two:

1. Is this a contract case for which no punitive damages are allowable?

2. Is the evidence sufficient to justify submission of punitive damages as an issue to the jury and to support the award?

We resolve these issues in favor of Dahl and affirm the judgment of the District Court.

This case presents a novel appellate situation. Some of the fact issues upon which PGC relies were necessarily decided by the jury in arriving at its verdict for actual damages. Ordinarily on appeal, we review the evidence in the light most favorable to the prevailing party in the District Comb. Holenstein v. Andrews (1975), 166 Mont. 60, 64, 530 P.2d 476, 478. In the Supreme Court, we do not retry factual determinations made at trial. Noll v. City of Bozeman (1977), 172 Mont. 447, 452, 564 P.2d 1296, 1299.

In this case, by satisfying the judgment for actual damages, PGC has acceded to the correctness of the judgment and accepted its benefits, particularly including the 10 percent reduction of the actual damages found by the jury. When a judgment is paid, it passes beyond our review. Gallatin Trust and Savings Bank v. Henke (1969), 154 Mont. 170, 177, 461 P.2d 448, 452. All questions of fact decided or impliedly decided by the jury underpinning the satisfied judgment become moot. This Court does not pass upon moot questions. State ex rel. Miller v. Murray (1979), [183 Mont. 499,] 600 P.2d 1174, 1176, 36 St.Rep. 1713, 1715.

Even though here, the PGC has preserved its right to review the punitive damage portion of the judgment by filing a notice of appeal on that part of the judgment, we cannot review disputes which form the basis for the satisfied judgment. To rule otherwise might place *297 this Court at odds with the underlying grounds of the satisfied judgment, which the appellant has obviously accepted.

The question of whether a contract existed between Dahl and PGC for the drilling of seismographic holes on Dahl’s property was submitted to the jury as an issue of fact. The jury was instructed that every person is bound, without contract, to abstain from injuring the property of another (instruction No. 6); that Merle Dahl was the agent for his wife Marie Dahl if a contract existed with PGC (instruction No. 12); that by virtue of a contract, if one existed, the negligence of Merle Dahl was imputed to Marie Dahl (instruction No. 13); that a business visitor on the premises of another is an invitee (instruction No. 16); the essentials of a contract (instruction No. 17); the essentials of an implied contract (instruction No. 18); the necessity of consent to a contract (instruction No. 19); what constitutes acceptance (instruction No. 20); the object of a contract (instruction No. 21); the legality of oral contracts (instruction no: 22); and that if a contract existed between Dahl and PGC, the jury could not award punitive damages, (instruction No. 27).

Instructions from the court to the jury became the law of the case. Under the instructions, the jury awarded punitive damages, which impliedly necessitates the conclusion that no contract existed between Dahl and PGC. By awarding a reduction in damages because of contributory (comparative) negligence, the jury impliedly found that a tort was involved and not a contract. In paying the judgment based on the jury verdict, PGC acceded to what the jury impliedly found to reach that verdict. Under the instructions, the jury found there was no contract. Therefore, it is beyond our power as an appellate court to determine now the first issue here, whether a contract existed between Dahl and PGC for seismographic drilling. Obviously, if we were to reverse the punitive damages award on the ground that a contract existed here, we would be reversing the jury verdict, and negating the basis for the judgment, which has already been satisfied. We hold, therefore, that PGC may not prevail on the first issue.

We look now to the second issue, whether the District Court should have submitted to the jury the issue of punitive damages.

Punitive damages (referred to in our statutes as “exemplary damages”) are awardable in an action for the breach of an obligation not arising out of contract where the defendant has been guilty of oppression, fraud, or malice, actual or presumed. Section 27-1-221, MCA.

*298 The facts, in the light most favorable to the prevailing party, are that sometime prior to the drilling, a representative of PGC called Merle Dahl and offered him $25 per hole for a series of four or five holes to be drilled on Dahl’s farm property. Dahl said that he belonged to an association which had set the going price for such drilling at $50 per hole. The representative said he would call back, which he later did. In the second conversation, the representative said that PGC would pay $50 per seismographic hole. Nothing further was said, and Dahl denied in the trial, that he ever gave specific permission to PGC or any of its representatives to go upon his lands for the purpose of drilling.

Subsequently, a seismographic crew arrived at Dahl’s gate with several vehicles. They asked instructions from Dahl as to how to get across his land to another gate. With respect to drilling, Dahl testified “I absolutely told them not to drill down in my meadow, get the hell out of the meadow, to stay the hell out of there.” Notwithstanding this instruction, the seismograph crew drilled a hole in the low meadow. At a depth of 120 feet, a union broke on the rotary drill, and at this point the PGC employee noticed that water was flowing from the well. He thereafter continued drilling until the depth of 200 feet was reached. Twenty-five pounds of dynamite was inserted into the hole.

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Bluebook (online)
632 P.2d 1136, 194 Mont. 294, 72 Oil & Gas Rep. 301, 1981 Mont. LEXIS 813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dahl-v-petroleum-geophysical-co-mont-1981.