Halliburton Co. v. Claypoole

868 P.2d 252, 1994 Wyo. LEXIS 15, 1994 WL 27340
CourtWyoming Supreme Court
DecidedFebruary 3, 1994
Docket93-17, 93-18
StatusPublished
Cited by5 cases

This text of 868 P.2d 252 (Halliburton Co. v. Claypoole) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Halliburton Co. v. Claypoole, 868 P.2d 252, 1994 Wyo. LEXIS 15, 1994 WL 27340 (Wyo. 1994).

Opinion

*253 McEWAN, District Judge (Retired).

The Halliburton Company appeals from a judgment entered upon a jury’s verdict. It contends the district court erred in denying its post-trial motions and that, in essence, the judgment is not supported by sufficient evidence, particularly with regard to the jury’s finding that Halliburton defrauded Patti Claypoole. In her cross-appeal, Claypoole asserts the jury’s verdict was sound in all respects and that the district court erred in reducing the jury’s general damage award, as well as the punitive damage award.

We affirm in part, but reverse the district court insofar as it reduced the general and punitive damage awards.

As appellant in Case No. 93-17, Halliburton raises these issues:

1. Whether the court erred in denying Halliburton’s motions for a directed verdict or subsequent motion for judgment notwithstanding the verdict?
2. Whether the trial court erred in denying Halliburton’s motions for a new trial either because a) the verdict was contrary to law, b) the verdict was not sustained by sufficient evidence, or c) there was an error of law at trial?
3. Whether a new trial should be granted based upon prejudicial testimony of Clay-poole’s counsel during voir dire of the jury panel?

Claypoole provides this summary of the issues in response:

1. Was there an absence of evidence to support the verdict entered?
2. Whether the denial of a motion for a directed verdict is an appealable order.
3. Was it an abuse of discretion by the trial court in denying the motion for new trial?
4. Whether Appellant properly preserved its objections.

As appellant in Case No. 93-18, Claypoole contends:

1.Whether, in view of W.S. § 38-1-101, the District Court should have directed a verdict for Appellant.
2. Whether the District Court should have instructed the jury concerning the duties of Appellee under W.S. § 38-1-101.
3. Whether the District Court should have instructed the jury concerning the duty of Appellee to exercise good faith, ordinary care and diligence in obtaining and administering Appellant’s guaranty.
4. Whether the District Court should have instructed the jury on the enforceability of a contract based on “moral consideration”.
5. Whether the District Court erred in reducing the jury’s verdict.

Halliburton summarizes its response to those arguments as follows:

1. Whether Wyoming Statute § 38-1-101 required Halliburton to proceed against Denton before filing suit against Clay-poole?
2. Whether the District Court erred in not-instructing the jury on defendant/coun-terclaimant’s theory of negligence?
3. Whether the District Court was correct in not instructing on defendant/coun-terclaimant’s theory of moral consideration?
4. Whether the District Court properly exercised discretion in reducing the jury’s verdict?
5. Whether this court’s standard of review, giving to the evidence of the successful party every favorable inference which may reasonably and fairly be drawn from it, gives allowance to unsubstantiated inferences?

The facts of this case are somewhat complicated. Patti Claypoole’s father, Deto Lawson, invested in several oil wells with Ranee Denton’s father, usually as a working interest owner. Denton’s father died in 1972, and, thereafter, Lawson continued to invest in wells with Denton. Eventually, Denton sold all of his interest in those developments to Lawson, although Denton continued to help with some of the work. Several years later, Denton formed his own oil companies. By agreement dated August 8, 1988, Lawson and Denton entered into an arrangement as co-venturers to develop an oil well in Adams County, Colorado. In early 1989, Lawson *254 also put up collateral for several bonds on wells Denton intended to develop. Denton sought to have some work done for him by Halliburton on wells he was developing and, because of his poor credit rating,- Halliburton insisted upon having a guarantor for payment of those services.

In their arrangements with Halliburton, Denton and Lawson dealt with Jerry Stroud who was Halliburton’s credit manager. Stroud was aware that Denton had been in bankruptcy and that he owed the Internal Revenue Service a considerable amount of money. Moreover, Stroud never expected that Denton would make any payments, indeed, Denton owed Halliburton for services which had never been paid for, going back as far as 1982. Denton also asserted that Lawson understood that he would be paying for the services as the primary debtor, but that the guaranty arrangement would allow them six months of free credit. By “Letter of Guaranty” signed on January 13, 1989, Lawson agreed to pay to Halliburton the indebtedness of Idagas Oil Company (one of Den-ton’s companies) up to a limit of $50,000.00 for work done after January 10, 1989. In a letter dated January 10,1989, and addressed to Stroud, Lawson stated:

Enclosed is a copy of my financial statement as of December 31, 1988. I have agreed to guarantee for Ranee Denton and his company up to $50,000.00 on a note or whatever you and Ranee have agreed on. My understanding this work will be done on his wells in Adams County, Colorado. Ranee has assured me you would keep my financial statement confidential and only discuss it with him or I. I have an interest in Ranee’s project that he will be drilling and completing in Adams County, Colorado and think it will be a success. My only requirement would be if agreeable to you, Halliburton will give me sixty (60) days notice in the event Ranee and his company should default on this agreement.

By a handwritten “deal” dated and signed on February 23, 1989, Lawson and Denton agreed:

This agreement made this 23rd day of February 1989 by and between Deto Lawson and Ranee Denton. Deto Lawson has made an agreement with Halliburton Services of Denver in which Deto Lawson will pay for services provided by Halliburton in wells that Ranee Denton and his company has put together to drill. Ranee Denton agrees that all assignment will be made to Deto Lawson or Patti Claypoole for the working interest earn[ed] in each well if the wells are productive.
Ranee Denton has several notes with Deto Lawson on interest of past and current wells. Deto Lawson agrees that all notes and mon[e]y had been paid in full by Ranee Denton to Deto Lawson.
Ranee Denton agrees that Deto Lawson will earn his pro rata share of all cost that Halliburton provide for Deto Lawson share of the AFE or actual costs on each well. This will also pertain to any equipment that Deto Lawson will furnish.

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Cite This Page — Counsel Stack

Bluebook (online)
868 P.2d 252, 1994 Wyo. LEXIS 15, 1994 WL 27340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halliburton-co-v-claypoole-wyo-1994.