Duncan v. Gill

227 So. 2d 376, 35 Oil & Gas Rep. 17, 1969 La. App. LEXIS 5911
Louisiana Court of Appeal·Decided October 9, 1969·No. No. 3623·Published·Cited by 14 cases

Opinions

GARDINER, Judge.

G. Wray Gill has appealed the judgment of the trial court in No. 3623 against him and in favor of plaintiff for $12,951.22 plus interest and costs. He has also appealed the dismissal of his reconventional demands for the rental value of vehicles loaned to Duncan for his use and for alleged losses on the lease due to Duncan’s negligence. Defendants Quartararo, Lip-man, Fisher, Guidroz, and Mrs. Josie De-laune, widow and testamentary executrix for the Succession of Dr. Nicholas J. Chetta, have appealed from the judgment in favor of Duncan finding them each liable for a % share of the judgment. In the consolidated suit No. 3624, Gill has appealed the judgment against him in favor of plaintiff for $5,630.82 plus interest and costs on a promissory note executed July 7, 1959.

[377] Proceeding No. 3623, “Edwin B. Duncan, d/b/a E. B. Duncan Drilling Contractor v. G. Wray Gill, Dr. Nicholas J. Chetta, Dr. Fernando Carlomagno, Alice Guilbeau Guidroz, Charles Quartararo, Theresa J. L. Lipman, Dr. William Fisher and Frank Dane” was a suit for money advanced and for services, materials, labor and supplies furnished by Duncan for the account of Gill and his working interest partners for their drilling operations in Madison County, Mississippi, during the calendar year of 1959. These working interests had been purchased between April 7th and June 8th, 1959. The amount sought by plaintiff was $12,951.22 plus legal interest from date of judicial demand and all costs. This action was filed on December 7, 1959.

Proceeding No. 3624, “E. B. Duncan Drilling & Well Servicing Co., Inc. v. G. Wray Gill,” La.App., 227 So.2d 386 was a suit on a promissory note signed by Gill on July 7, 1959, in the principal sum of $5,630.82 plus 6% interest from date of issuance until paid and all costs. This action was filed April 12, 1962.

These actions arose out of a written agreement between Duncan and “G. Wray Gill, Trustee,” dated April 17, 1959, wherein Gill retained the services of Duncan and his Cabot drilling rig to drill a well to a depth of not more than 4,000 feet in Madison County, Mississippi, on the Crawford lease then owned by Gill. Duncan was to provide: his Cabot drilling rig; his personal supervision; two trucks, including the one upon which the drilling rig was mounted; 3,000 feet of drill pipe and 150 feet of 4j4 inch drill collars; and the necessary repairs and repainting of the rig to put it in first-class condition before drilling commenced. Gill was to furnish: $5,000 upon the signing of the contract; $2,500 after surface pipe was set as an advance to meet payroll, insurance, taxes, etc., and was to be responsible for all expenses ; a truck for Duncan’s use from contract date until the drilling rig was returned to Louisiana; all pipe and collars that would be needed over and above those owned by Duncan and available for this operation; $25.00 per day for Duncan’s supervision, all of his expenses, plus 8^ per mile for use of Duncan’s automobile; replacement for any loss of equipment furnished by Duncan other than ordinary wear and tear; and all expenses of moving the equipment to and from its location at Shreveport, La. This contract was agreed upon by phone between Duncan and Gill based upon the arrangements between Duncan and a man named Ray Baker who had sought out Duncan on behalf of Gill. The contract was entered into by Gill as “Trustee” but there was no disclosure made of the terms or principals of the trust.

Duncan moved his rig and equipment to Madison County, Miss., and, after making the repairs agreed to in the contract, commenced drilling operations on approximately May 1, 1959. Drilling progressed normally until May 21, 1959, when the depth of 3,708 feet was reached and an electric log was run on the well to determine its oil bearing potential. At this depth drilling operations ceased and the subsequent operations performed on this well after May 21st were the laying of pipe and other steps of completion necessary to make the well produce oil.

On approximately June 1, the rig was moved and set up to drill another well, not provided for in the written contract between Duncan and Gill. The well was drilled, casing was placed in the well and, on approximately June 11th, the rig was moved to the site of an older well that had been plugged, but which was on the same lease property. The plug was drilled and the well reworked in preparation for its use as a salt water disposal well for the other producing wells.

Work was then resumed on the first well drilled, the one originally covered by written contract, and forms were made, foundations laid, and pumps, lines and tanks were installed. This operation continued from mid-June through mid-September, at which time Duncan moved his rig back to Shreve[378] port. During the period from mid-June through mid-September there were delays caused by a lack of equipment and equipment breaking down but during this whole period of time Duncan was engaged in activities directed toward making the first well produce oil. Some oil was produced and disposed of, this oil forming a partial basis for Gill’s reconventional demand. No one questions the fact that Duncan performed valuable work on the lease property; the defense denies liability for payment because of lack of authorization to perform the work.

Duncan claimed that all work done after May 21 was authorized and requested by Gill personally. He was in almost daily telephonic communication with Gill and Gill was aware of all of the developments and problems connected with the drilling and all decisions were made by Gill. Gill was also informed that work was being done by periodic billings. There were also three or four occasions after May 21 when Duncan and Gill got together and discussed the lease, the drilling operations, the production, etc. When Duncan became convinced that he was not going to be paid by Gill, he moved his rig back to Louisiana and a few months later instituted this suit. Duncan stated that the note dated July 7th was given to settle Gill’s account with him. According to Duncan’s records as of July 7, Gill owed $9,130.82 for which he gave Duncan a check for $3,500 and the note in question for $5,630.82.

Gill claimed that when the drilling of the first well was completed at the depth of 3,708 feet his contract with Duncan was terminated and everything that Duncan did after May 21 was without his knowledge or authorization and he, therefore, had no liability to Duncan for this work or that done on the other two wells. He denied Duncan’s claim that he and Baker were partners and that Baker was his representative authorized to deal with Duncan.

Gill filed a reconventional demand in Duncan’s action for the services and money advances, wherein he claimed that Duncan was indebted to him for the rental value of an automobile and truck used by Duncan during the'time of the drilling of the wells and which Duncan did not voluntarily return at the termination of drilling. Gill also alleged damages for Duncan’s negligence in setting up and operating the pumping equipment, resulting in a loss of income to Gill and the subsequent loss of the lease.

After filing his original petition for payment based on the written contract, Duncan amended his pleadings to also seek recovery based on quantum meruit for the work performed, material secured and monies advanced.

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Duncan v. Gill, 227 So. 2d 376, 35 Oil & Gas Rep. 17, 1969 La. App. LEXIS 5911 (La. Ct. App. 1969).

227 So. 2d 376 (Duncan v. Gill) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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