Derby Oil Co. v. City of Oxford

4 P.2d 435, 134 Kan. 59, 1931 Kan. LEXIS 185
CourtSupreme Court of Kansas
DecidedNovember 7, 1931
DocketNo. 29,987
StatusPublished
Cited by12 cases

This text of 4 P.2d 435 (Derby Oil Co. v. City of Oxford) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Derby Oil Co. v. City of Oxford, 4 P.2d 435, 134 Kan. 59, 1931 Kan. LEXIS 185 (kan 1931).

Opinions

The opinion of the court was delivered by

Smith, J.:

This is an action to enjoin the city of Oxford from further prosecuting certain cases which had been appealed from the police court of that city to the district court of Sumner county. Judgment was for defendant. Plaintiff appeals.

Oil was discovered under the townsite of Oxford. The city passed an ordinance under which it undertook to regulate the drilling of oil wells within the city limits. Several oil companies had leases on different parcels of land in Oxford. Two of these decided to test the validity of this ordinance in court. One brought an action in the federal court to enjoin the enforcement of the ordinance. The other sought the same relief in the state courts. In the meantime both of these companies went ahead and drilled under the protection [60]*60of an order enjoining the' city officials from molesting them. When the ordinance was finally held valid the court provided in the order that these companies should not be prosecuted for the drilling that had béen done while the ordinance was being tested.

Appellants did not bring any action to test the validity of the ordinance. It is claimed and the court found that when the time came, and this company wanted to drill, a representative of the company talked to the mayor of the city about bringing an injunction suit. It is claimed that the mayor told the company that it would not be necessary for it to get an injunction; that this would require the city to go to the expense and trouble of hiring a lawyer to look after it, and that the company should go ahead and drill and it would not be prosecuted for drilling while the validity of the ordinance was being tested. This conversation with the mayor occurred in November, 1927. There is a sharp dispute on this point, but the court found that the mayor did make statements and promises as claimed.

The company did go ahead and drill. Three different wells were put down on the lease in question. The operations extended over a period of two years. After the ordinance was finally held valid and a writ of certiorari was denied by the supreme court of the United States, appellant ceased its drilling operations. Soon thereafter a prosecution was begun against it in three separate complaints charging violation of the ordinance. There were about 2,000 counts charged. At the trial before the police judge the compány pleaded not guilty. The facts were agreed to. The police judge found the company guilty and assessed a fine of $100 on each count, or approximately $200,000. The company appealed to the district court and while the appeals were pending brought this suit to enjoin the city from further prosecuting these cases. Facts were alleged about as detailed here. The court found that the statements alleged in the petition to have been made by the mayor had been made by him. It further found that the company had not been guilty of laches and that the application for temporary injunction should be denied. From this ruling the company is prosecuting this appeal.

Appellant seeks to bring this case under the rule announced in Ex Parte Young, 209 U. S. 123, 146, 52 L. Ed. 714, where it was said, quoting from Cotting v. K. C. Stock Yards Co., 183 U. S. 79, 100:

[61]*61“ ‘But wben the legislature, in an effort to prevent any inquiry of the validity of a particular statute, so burdens any challenge thereof in the courts that the party affected is necessarily constrained to submit rather than take the chances of the penalties imposed, then it becomes a serious question whether the party is not deprived of the equal protection of the laws.’ ”
“To penalize good-faith resistance to the enforcement of a law by judicial interference is unreasonable and indefensible from any point of view. It denies the equal protection of the laws; it violates the constitutional guaranty to every person of a certain remedy in the law for all injuries to persons and property, and violates every principle of civil liberty.” (Bonnett v. Vallier, 136 Wis. 193, syl. ¶ 16; 12 C. J. 1289.)

If this company had brought a suit to test the validity of the ordinance and had then gone ahead and drilled, it could have availed itself of the rule announced in City of Marysville v. Cities Service Co., 133 Kan. 692, 3 P. 2d 1060. There it was held that an injunction restraining the enforcement of a city ordinance, which is regulatory in its nature and the validity of which depends upon the existence of certain facts which can only be established through judicial inquiry, and such injunction suit is prosecuted promptly and in good faith, is a complete defense to a prosecution for the violation of the ordinance during the life of the injunction. In deciding that case this court followed many decisions of courts of last resort in the several states and the federal courts.

However, this was not done. The two questions then that must be answered are: Did the company have a right to rely on the promise of the mayor? and Can this suit be maintained while a prosecution for the offense is pending?

Appellant relied on the promise made by the mayor. It will be seen that all the officials of the city stood by and watched appellant violate the ordinance for two years without taking any steps toward a prosecution. The work on the wells being drilled by appellant was carried on in open view of all the officials and must have' been known about by them. It has been held that conduct such as has been described here was sufficient to estop the city from enforcing the ordinance. (3 McQuillin on Municipal Corporations, 1185.) There it is said:

“The doctrine of estoppel in pais is applied to municipal, as well as to private, corporations and citizens, but the public will only be estopped when justice and right may so require.”

In the case of Martel v. City of East St. Louis, 94 Ill. 67, it was held:

“The doctrine of estoppel in pais applies to municipal corporations, but [62]*62the public win only be estopped, or not, as justice and right may require. Any positive acts by municipal officers which may have induced the action of the adverse party, and where it would be inequitable to permit the corporation to stultify itself by retracting what its officers have done, will work an estoppel.”

The same theory and reasoning were followed in Mayor, etc., of Athens v. The Georgia Railroad, 72 Ga. 800. There is a strong analogy between that case and the case at bar. There the city had passed an ordinance forbidding the storage of guano within the city limits. The city officials then stood by and watched the railroad expend a large sum of money in building a warehouse for the storage of guano. The court held that on account of the city officials standing by, the city was estopped from prosecuting the railroad company for a violation of the ordinance. In this case it is well known that it costs a great deal of money to drill an oil well. The members of the city council knew this, yet they stood by and watched this money being expended without taking any steps to prosecute for a violation of the ordinance. This prosecution could have been instituted when appellant had drilled for one day on the first well, but such action was not taken. The cases of Rose v.

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Bluebook (online)
4 P.2d 435, 134 Kan. 59, 1931 Kan. LEXIS 185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/derby-oil-co-v-city-of-oxford-kan-1931.