Early Bird Oil Co. v. Daley

1925 OK 983, 241 P. 781, 115 Okla. 176, 1925 Okla. LEXIS 298
CourtSupreme Court of Oklahoma
DecidedDecember 8, 1925
Docket11653
StatusPublished
Cited by1 cases

This text of 1925 OK 983 (Early Bird Oil Co. v. Daley) 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
Early Bird Oil Co. v. Daley, 1925 OK 983, 241 P. 781, 115 Okla. 176, 1925 Okla. LEXIS 298 (Okla. 1925).

Opinion

Opinion by

STEPHENSON, C.

T. E. Daley commenced his action against the Early Bird Oil Company for damages, on account of the loss of drilling tools by the plaintiff in the course of drilling an oil and gas well for the defendant. The plaintiff alleged in substance; (1) That an oral contract was entered into between the parties to this action whereby the plaintiff became bound to drill an oil and gas well for the defendant, to a certain depth, at a given sum per lineal foot, unless oil or gas should be found in paying quantity before reaching the given depth. (2) It was further agreed between the parties that the plaintiff should shoot the well under the direction of the defendant, and Clean out the same at the rate of $35 per day, fo,r daylight work.

The plaintiff alleged that it was the usage and custom in contracting between lease owners and drilling contractors, that the owner of the well should be liable for the loss of 'tools while shooting and cleaning the well. The plaintiff alleged further that after shooting the well and while cleaning it, a fire destroyed the tools of the plaintiff on account ■of the derrick being burned. A jury was waived and the cause was tried to the court. Mr. Chapman, attorney for the plaintiff, dictated the following stipulation into the record at the commencement of the trial:

“It is stipulated and agreed in open court by and between the parties hereto, that the only dispute and question of fact in this case is the question of what the custom and practice in the oil fields is with reference to the loss of tools, as applied to the facts in this case and the allegations in the petition”.

In the course of the trial of the cause .upon the question of the admissibility of certain testimony, Mr. Daugherty, attorney for the defendant, made the following statement to the court, in relation to the issue before the court for trial:

“If your honor please, the . question of whether or not -they assumed control has been left out of this ease, by stipulation. The stipulation provides that we are to be liable in case there is a custom and usage in the oil fields that after the well is shot, the owner is then liable for loss of tools.”

Mr. Daugherty, for the defendant, clearly stated that the issue for trial before the court was the existence of the usage or custom pleaded by the plaintiff as a basis for his recovery. The entire trial was directed to the question of the existence, or nonexistence, of the custom pleaded by the plaintiff. It appears from the evidence of the plaintiff that Mr. Adams, an associate of the plaintiff, and the defendant prepared a written instrument to cover the drilling of the well. The plaintiff testified that the written instrument was sent to him for his approval; that he declined to approve the contract for the reason that the writing provided that the defendant should not be liable for the loss of tools during the performance of the proposed contract. The written instrument covered the work to be performed by the plaintiff in shooting and cleaning out the well at the rate of $35 per day for daylight work.

The plaintiff further testified that he advised an officer of the defendant company that he would not enter into the written agreement for the drilling of the well, on account of the expressed provision to the effect that the driller should be liable for the loss of tools while shooting and cleaning the well. The plaintiff testified that he advised the officer of the company that he would drill the well under the usual contract relating to such work, which, according to usage and custom, provided that the owner of the well was liable for the loss of tools while cleaning the well. The plaintiff testified that the rate of $35 per day just about covered the actual expense involved in a day’s work in cleaning the well after it was shot; that for this reason it had become the custom and practice among drilling contractors and the owners of wells for the latter to bear the expense of the loss of tools while cleaning the well. Two witnesses testified for the plaintiff to the effect that it was the general and established custom for the owners of the wells to be liable for the loss of tools while cleaning the well.

Mr. Wise, who testified for the plaintiff, was asked the following question on cross-examination :

“Q. Do you know, Mr. Wise, how far this custom extends? Does it extend to all losses of tools?”

The witness gave the following answer:

“A. It • extends everywhere. It is a universa 1 custom. Universal all ovey the country, if you lose the tools in a well or anything like that, it is the company’s loss”.

*178 The plaintiff was asked the following question on cross-examination by the defendant :

“Q. Have you ever found this custom extended to loss of tools by fire when not in the hole? A. Well, not directly. No, I have heard people speak of getting paid for tools that were burned up.”

The rig which was being used by the plaintiff to drill the well was furnished by the defendant. A fire occurred during the the night, while the plaintiff was cleaning the well, which burned the rig and destroyed the tools used in drilling and cleaning the well.

The plaintiff testified that he discussed his objections to the written instrument with Mr. McMillan, president of the defendant company; that the parol contract for drilling the well was entered into with Mr. McMillan. Mr. Evans, an officer of the defendant company, testified for the defendant in the trial of this cause, and in no way contradicted the evidence of the plaintiff in relation to the latter’s refusal to enter into the proposed written contract, and does not contradict the plaintiff’s testimony in relation to entering into the parol contract. The witness did not deny the existence of the custom pleaded and proved by the plaintiff ; the defendant did not offer any testimony denying the existence of the custom pleaded and proved 'by the plaintiff.

It was agreed and stipulated between the parties that the value of the tools destroyed by fire was $1,100. The trial court found that the custom pleaded by the plaintiff existed, and entered judgment for the plaintiff for the value of the tools destroyed by- fire in the sum of $1,100. The defendant nas appealed the cause here and assigns the following error for reversal: (1) That there is not sufficient evidence to support the finding of the court that the custom existed as pleaded by the plaintiff.

The existence of a usage or custom is a question of fact for the determination of the jury or the court. The court can only know of the existence or absence of a custom from the proof introduced in the course of a trial of a cause. It is well settled that usages and customs, followed by men in relation to certain business, become a part of contracts in relation to such matters, unless the customs are excluded by the contract by the parties. Marine Natl. Bank v. Natl. City Bank (N. Y.) 17 Am. Rep. 305; Rochester German Ins. Co. v. Peaslee-Gaulbert Co., 120 Ky. 752, 87 S. W. 1115, 89 S. W. 3; 9 Am. Cas. 324, 1 L. R. A. (N. S.) 364; Allegre v. Maryland Ins. Co., 20 Am. Dec. 424. The defendant did not offer any evidence to deny the application of the custom to this case, as pleaded and proved by the plaintiff.

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Cite This Page — Counsel Stack

Bluebook (online)
1925 OK 983, 241 P. 781, 115 Okla. 176, 1925 Okla. LEXIS 298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/early-bird-oil-co-v-daley-okla-1925.