Daisy-Belle Petroleum Co. v. Thomas

1931 OK 334, 1 P.2d 700, 151 Okla. 94, 1931 Okla. LEXIS 548
CourtSupreme Court of Oklahoma
DecidedJune 16, 1931
Docket19662
StatusPublished

This text of 1931 OK 334 (Daisy-Belle Petroleum Co. v. Thomas) 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
Daisy-Belle Petroleum Co. v. Thomas, 1931 OK 334, 1 P.2d 700, 151 Okla. 94, 1931 Okla. LEXIS 548 (Okla. 1931).

Opinion

KORNEGAY, J.

This is a proceeding in error from the district court of Tulsa county, Honorable Luther James being the judge. Case-made, as filed here, shows that the action was begun on the 20th of December, 1920, and that it started in the name of A. R. Thomas and the Trojan Drilling Company, the latter being a corporation, and the Daisy-Belle Petroleum Company, and E. J. Stroman, and Y. I. Pucini were defendants.

The briefs that have been filed in the case by the respective p'arties aire very lengthy, embracing in all 390 pages. The record is voluminous, embracing 556 pages, with assignments of error covering several pages of typewritten matter.

The main contention of the plaintiffs in error is that the evidence in the case was not sufficient to support the recovery. The recovery, according to the verdict, is based *95 on a finding that two strings of tools were converted, and their value was $40,000, and there was deducted the amount that was due on the tools to the Wolverine Oil Company. The verdict is as follows, omitting caption:

“We, the jury impaneled and sworn in the above entitled cause, do, upon bur oaths, find the issues for the .plaintiffs and fix the amount of their recovery at $40,000. Less amount of draft sum of $4,778.96, balance being $35,221.04.
“J. W. Ross, Foreman.’’

At the time of the negotiations, it was necessary to develop the property, as other wells were being drilled. All parties seem to have worked to a common end of getting a well to the sand as quickly as possible. All parties were engaged in a common enterprise, as part of the pay for the drilling was to be in stock in the Daisy-Belle Petroleum Company. The defendant in error A. R. Thomas was a contract driller and had three sets of drilling tools, and he moved two sets of them on to the oil lease of the defendant Daisy-Belle Petroleum Company, and started to drill two wells there, his business being carried on in the name of the Trojan Drilling Company.

The contract, as originally made, does not call for any payments until the completion of the well, and $6 a foot was the price to be paid. There was a clause inserted in the contract, which was in the form of a letter, for the protection apparently of the owner of the lease, as follows:

“For your protection all bills in connection with this drilling are to come to your office Room 213, Simpson building, Ardmore, Okla.; and you agree to pay all labor and teaming-hills when presented, properly approved by our authorized agent, or any other bills you desire to pay when properly approved as above stated.”

Both sides claim that this was eliminated, there being some contention as to the circumstances.

Sometime after the parties started on this drilling, in both places, there was a fishing-job, in neither of which were they able to get the obstructing tools out, and it resulted in skidding the rigs and putting down another hole at each location.

The hriefs in the case diverge somewhat as to what the evidence was, and very strongly do they diverge as to the effect of the evidence.

The health of Mr. Thomas broke down, and he left the field, where he had very closely followed the work, and went to Tulsa, where he lived and from which point he did business. When he left, about May 15th, the superintendent of the Daisy-Belle Petroleum Company was on the ground, and all parties appeared to have been more than anxious to get the work along, and under those conditions this superintendent had been watching the work and trying to urge it along and aiding by friendly suggestions. After the contractor left for Tulsa, and was not able to be on the ground, he sent a driller named McCoy to take charge as foreman. Up to that time the parties were the closest of friends, and from time to time Thomas, the manager and practical owner of the Trojan Drilling Company, from Tulsa, corresponded with the agent of the Daisy-Belle Petroleum Company about the work, and made suggestions as to how to recover the tools, the efforts all parties were making. The Daisy-Belle Petroleum Company was very anxious to get the drilling done, and so was everybody else, according to the testimony.

It appears from the record that there were some bills outstanding, due the Wolverine Oil Company, that had been incurred by Mr. Thomas and the Trojan Drilling Company, while the rigs were on the lease of the Wolverine Oil Company, and that, before the rigs could be moved, it was necessary to pay the Wolverine Oil Company the sum of $4,778.96. This money was paid to the Wolverine people by Mr. Pucini, one of the defendants, and a bill of sale was made to him, reciting a consideration of $4,200, and conveying certain parts of the tools, but not all, that were on the Wolverine property.

There is a dispute between the parties at this time, though apparently none until the litigation arose, as to the purpose of this bill of sale. It is claimed by the defendants in error in the briefs and pleadings that this bill of sale was given for the purpose of enabling Y. I. Pucini, one of the defendants and one of the managers of the Daisy-Belle Petroleum Company, to borrow $10,000 in order to pay the bills that were necessary to be paid for labor and supplies, that the Trojan Drilling Company and A. R. Thomas incurred while engaged in the drilling they did for the Daisy-Belle Petroleum Company. The bill of sale was signed in the presence of W. S. Forrest, but does not appear to have been acknowledged.

The preponderance of the evidence indicates that this bill of sale was but a chattel mortgage to secure the amount paid that was due the Wolverine Oil Company, though it is still contended in the briefs of the defendants in error that it was not for the latter purpose, but was given in order *96 for Pucini to borrow $10,006. However, in the first reply to the answer claiming this to be a chattel mortgage, made to secure the advance to cover the Wolverine bill, there is the following:

“Plaintiffs admit that they gave the defendant Y. I. Pucini a bill of sale in the nature of a chattel mortgage, but deny all the other material allegations of paragraph 7.”

It is found in the record, at page 33, in the reply to the answer which was filed on the 18th of December, 1925, but apparently was displaced by amended reply that was filed on the 5th of January, 1926, making a general denial.

The testimony appears to be in conflict, as introduced on the trial, as to the purpose of the bill of sale, but this admission, it seems to us, is such that, for the purpose of this case, we must take it as established that the bill of sale was a security for the money adva'nced, which is dated the 14th of February, 1920, and filed for record May 24, 1920. Besides this, the amount of articles conveyed is scarcely large enough to cover two rigs or to make a showing on which to borrow $10,000.

The contract found on pages 64 and 65 of the case-made, written on a paper dated at 209-10-11 Simpson Building, Ardmore, Okla., shows the office of the Daisy-Belle Petroleum Company to be No. 213 of the same building.

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Bluebook (online)
1931 OK 334, 1 P.2d 700, 151 Okla. 94, 1931 Okla. LEXIS 548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daisy-belle-petroleum-co-v-thomas-okla-1931.