Fisher v. Superior Oil Co. of California

1964 OK 60, 390 P.2d 521, 20 Oil & Gas Rep. 186, 1964 Okla. LEXIS 289
CourtSupreme Court of Oklahoma
DecidedMarch 17, 1964
Docket39676
StatusPublished
Cited by3 cases

This text of 1964 OK 60 (Fisher v. Superior Oil Co. of California) 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
Fisher v. Superior Oil Co. of California, 1964 OK 60, 390 P.2d 521, 20 Oil & Gas Rep. 186, 1964 Okla. LEXIS 289 (Okla. 1964).

Opinion

JACKSON, Justice.

An attorney, Ted R. Fisher, as plaintiff, brought this action against numerous defendants who own leases and mineral interest in the Ringwood Oil Field in Major County, Oklahoma. The action was brought upon the equitable principle that a court of equity will order an allowance of attorney fees to an attorney who at his own expense has maintained a successful action and created a fund in which others may share with his clients. The ultimate question for our decision is whether the trial court erred in refusing to direct the payment of attorney fees to the plaintiff in this case.

The rule, or equitable principle, upon which plaintiff seeks recovery is stated in 14 Am.Jur., Costs, § 74, as follows:

“A court of equity or a court in the exercise of equitable jurisdiction will, as a general rule, in its discretion, order an allowance of counsel fees or, as it is sometimes said, allow costs as between solicitor and client to a complainant (and sometimes directly to the attorney) who at his own expense has maintained a second successful suit for the preservation, protection, or increase of a common fund or of common property or who has created at his own expense, or brought into court, a fund in which others may share with him. The rule rests upon the ground that where one litigant has borne the burden and expense of the litigation that has inured to the benefit of others as well as to himself, those who have shared in the benefits should contribute to the expense.” * * *

The rule, as well as the legal principles supporting the rule together with the limitations upon the rule, is considered at length in annotations appearing in 49 A.L.R. 1149, and 107 A.L.R. 749.

In Tulare County v. City of Dinuba, 205 Cal. 111, 270 P. 201, it was said:

“The underlying principle in all the cases, where one has been allowed compensation out of a common fund belonging to others for expenses incurred in services rendered on behalf of the common interest, is the principle of representation or agency. There must be a contract of employment expressly made or superimposed by the law upon the facts. Hand v. [Savannah & C.] Railway Co., 21 S.C. 162. This has been done where the moving party has sought to preserve a fund from waste and destruction arising from the neglect and misconduct of trustees. Trustees v. Greenough, 105 U.S. 527, 26 L.Ed. 1157. The fact that one may be benefited by an action brought by another is not of itself sufficient to justify a court in assessing costs against the one who also profits by said action. Some contractual relation or some equitable reason sufficient to support an allowance of costs must be shown to exist to justify a court of equity in making such assessment.”

The agency principle was recognized on rehearing in Colley v. Sapp, 44 Okl. 16, 142 P. 989, 1193.

In Kellough v. Taylor, 189 Okl. 675, 119 P.2d 556, we said the rule that a court of equity may allow counsel fees to an attorney who has created a fund does not apply where there has been neither a creation, addition, nor protection of a “common fund”; and does not apply where the benefit is merely incidental.

*524 The fact that other members of the class were represented by their own counsel has in some cases been treated as a strong or fatal objection to the allowance of counsel fees out of a common fund. 14 Am. Jur., Costs, § 75. Some courts have cautioned that the allowance of counsel fees from a fund is capable of great abuse and should be exercised with the most jealous caution in regard to the rights of litigants, lest thereby the administration of justice is brought into reproach. 14 Am.Jur., Costs, § 74, supra. Other factors having a bearing upon the right of recovery are considered in the annotations above mentioned.

The Ringwood Field in Major county was discovered about 1946, and was originally classified as an oil field. Subsequent production disclosed that it was really a gas field. The Oklahoma Corporation Commission took note of the waste of gas in the field in 1950 or 1951, and producers in the field began to look for a market for their gas. An agreement was worked out by some of the producers and Oklahoma Natural Gas Company whereby liquid hydrocarbons would be paid for, but there was no. agreement to pay for the gas as such. Extensive litigation followed in State and Federal Courts, and before the Corporation Commission, in an effort to cancel or invalidate the contracts with Oklahoma Natural Gas Co. These efforts were unsuccessful.

Ted Fisher, plaintiff in this case, appeared as counsel in much of this litigation and acquired substantial technical and legal information concerning the field and the legal problems involved. Through this extensive litigation the theory began to evolve that the gas purchase contracts with Oklahoma Natural was actually causing waste in the field. Fisher, with others, presented the theory to the Conservation and Legal Department of the Corporation Commission ' and applications were filed before the Com- ’ mission for appropriate relief.

Livingston Oil Co. was actively interested in this litigation and employed Paul Brown, of Oklahoma City, to assist' in preparing for trial and in conducting the trial.

Extensive preparations were made for the trial, and Livingston Oil Company through its attorney, Paul Brown, assured Conservation Attorneys that Livingston would pay all expense of procuring necessary studies, exhibits, and expert testimony. In order to obtain all available information concerning the field a meeting of the operators in the field was held in Tulsa, Oklahoma, on or about December 10, 1958. Several Ringwood Field operators were present, together with petroleum engineers and consultants. Plaintiff, Fisher, was presented and was under written contract to represent about 43 royalty owners in the field on a contingent basis. Paul Brown was present and representing Livingston.

Paul Brown testified in the trial court, in the instant action, in part as follows:

“A. * * * the purpose of that meeting was to get the operators together, —it actually had a two-fold purpose; it was an effort to explain to the other operators in the field what we were attempting to do, and it was also an effort to assure them that so far as we were concerned that there would be no effort to collect any fees or costs or charges off of them, and the third purpose was the fact that we needed very vital information that only they could furnish. It was necessary to have that in order for the engineer to appropriately work.
⅜ * * * * *
“A. There were several (representatives of working interest owners) there, I don’t know, somewhere between fifteen and twenty-five there.
⅜ ⅜ ⅝ ⅜ ⅜ sfc
“A. * * * I was on my feet a good • deal in this meeting, — was talking a good deal, maybe more than I should have been. But I knew it was incumbent to show these people that we were not there to ask for a give- *525

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1964 OK 60, 390 P.2d 521, 20 Oil & Gas Rep. 186, 1964 Okla. LEXIS 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fisher-v-superior-oil-co-of-california-okla-1964.