Eason Oil Co. v. Whiteside

1935 OK 978, 52 P.2d 35, 175 Okla. 254, 1935 Okla. LEXIS 1471
CourtSupreme Court of Oklahoma
DecidedOctober 15, 1935
DocketNo. 25601.
StatusPublished
Cited by12 cases

This text of 1935 OK 978 (Eason Oil Co. v. Whiteside) 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
Eason Oil Co. v. Whiteside, 1935 OK 978, 52 P.2d 35, 175 Okla. 254, 1935 Okla. LEXIS 1471 (Okla. 1935).

Opinion

PER CURIAM.

The defendant in error, hereinafter styled plaintiff, commenced this action against the plaintiffs in error, hereinafter styled defendants, seeking to recover damages for breach of contract, plaintiff alleging that on the 4th day of April, 1929, and prior thereto, he was the owner of real property in the city of ALtus, Okla.; that said property was located in the same locality, and that some months prior to the date above mentioned, plaintiff conceived the idea of building a business center on several of his lots. In pursuance of this plan, plaintiff erected a business building. The main business, or “key business,” as plaintiff expresses it, was 'a filling station, wbicb plaintiff alleges he installed and operated until the date above mentioned; that said filling station was fully stocked, equipped with all of the latest filling station equipment, and operated in a high class and efficient manner. Other rooms in plaintiff’s building were rented to various tenants, one of which was a grocery man, one a barber, and the other a machinist.

Plaintiff further alleges in his petition that his intention was to operate the filling sta* tion ir, such an efficient manner that it'would attract trade; that if trade was attracted to his corner by the filling station service, the customers would trade with the other lines of business occupying space in his building, and that by reason thereof his building would be increased in value as well as his surrounding- property.

Plaintiff alleged that shortly before the date above mentioned, one Jim Montgomery, representing the Eason Oil Company, approached him with the idea of leasing said filling station for his company; that on the 4th day of April, 1929, plaintiff did lease .said filling station; that at the solicitation *255 of Jim Montgomery the lease was made in favor of the Bolene Refining Company, Instead of the Eason Oil Company; plaintiff being informed by Jim Montgomery at that time that the Bolene Refining Company was the operating company of the Eason Oil Company, or that it was a subsidiary of the Eason Oil Company. Plaintiff also contends that he should have judgment against both companies, in view of the fact that the Bo-lene Refining Company is merely a sister or subsidiary of the Eason Oil Company, with the same personnel and management, and for the further reason that the Eason Oil Company, soon after this transaction, absorbed the Bolene Refining Company, and the lease above mentioned was assigned to the Eason Oil Company.

Plaintiff further alleged that the defendants breached the lease made with him in that the defendants failed to operate the filling station in a superserviee manner and failed to maintain tire service and other up-to-date filling station service as defendants had agreed to do in their lease; that from the time of the mating of the lease up to the time of the filing of the suit, the defendants sublet the station to operators who wf'e incompetent, failed to render proper service to the public, failed to maintain a full stock of accessories, and allowed their equipment to become worn and out of repair: that by reason thereof the .public failed to patronize this filling station, and that the other tenants of plaintiff lost the business that they would otherwise have had from that part cf the public who would have traded with the filling station, and, as a result of said conduct of defendants, plaintiff’s tenants could not pay the rentals they had agreed to pay plaintiff; that plaintiff was forced to reduce their rent and suffered loss thereby; that he suffered loss by reason of the depreciation in the value of his building and his adjoining property, by reason of the conduct of defendants; that he was to receive as rent on said lease from the defendants two cents (2^) on each gallon of gasoline sold, and that he suffered a monetary loss by reasori of the reduced income he received from defendants; plaintiff alleging liis entire loss to be $31,595. In due course the case wms tried to 'a jury and resulted in a verdict for the plaintiff against both defendants in the sum of $1,934, the jury specifying that this amount was for loss of rentals.

As this case must be reversed for a new trial, we do not deem it necessary to decide all points raised by defendant on fh'is appeal. Defendants contend that their demurrer to plaintiff’s evidence should have been sustained, and complaint of the error of the trial court in not directing a verdict for them at the close of all the evidence. 'They base their rights to this relief on the proposition that the elements of damage asked for by plaintiff, to wit, loss of rentals and depreciation in the value cf his property, were remote, conjectural, speculative, not capable of ascertainment with any degree of certainty, not within the contemplation of the parties at the time of the making of the contract, and not the probable result of any breach of said contract.

IVe are of the opinion that the trial court erred in allowing- the jury to consider the element of damage for depreciation of the value of plaintiff’s real estate and in 'allowing the jury to consider the element of loss of rents from the property of plaintiff, with the exception of the filling station.

The evidence bearing on the knowledge of the defendants as to the purpose of plaintiff in requiring them to run his filling station in a superservice manner, came mainly from the plaintiff himself; plaintiff testifying that shortly before the lease contract was entered into between the parties, he had a conversation with Jim Montgomery, in the city of Altus, in which the plaintiff told Jim Montgomery that the manner in which the station was operated represented his entire investment on that street; that during the course of the conversation he walked out to the fnont of the filling station with Jim Montgomery and showed him the property which he owned; that Montgomery stated to him that he felt that his company was more capable of operating the station in a superserv-ice manner, more satisfactorily, than plaintiff ; that plaintiff stated to Montgomery that they might be, but that on account of his interest he might want to operate the station 'at a loss even, before he would want to cut down on expense, in view of the investment that he had.

Plaintiff further testified that he stressed particularly, both during said conversation and at the time the lease was drawn at Enid, that his investment around the filling station was dependent upon the proper operation of the station. Plaintiff also testified that he called to Mr. Montgomery’s attention the component lines of business, or rather the businesses carried on in the adjacent rooms as an aid to and part of his business venture at that place. Jim Montgomery testified on behalf of the defendants and denied *256 that plaintiff told him of the matters that plaintiff testified to, but says that plaintiff did tell him that he owned adjoining property.

Nothing was said in the lease regarding these adjacent businesses, and plaintiff, in his petition, seeks to reform the contract so as.to have it read that the parties did have in mind the adjacent property at the time they entered into the lease, and that plaintiff entered into the lease on the representation of defendants’ agent that defendants would operate the station in such a manner that plaintiff’s income and 'investment would be upheld.

The trial court made no specific ruling on plaintiff’s request to reform the contract.

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Bluebook (online)
1935 OK 978, 52 P.2d 35, 175 Okla. 254, 1935 Okla. LEXIS 1471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eason-oil-co-v-whiteside-okla-1935.