Haynes Drilling Co. v. Indian Territory Illuminating Oil Co.

1939 OK 198, 90 P.2d 639, 185 Okla. 122, 1939 Okla. LEXIS 266
CourtSupreme Court of Oklahoma
DecidedApril 11, 1939
DocketNo. 28685.
StatusPublished

This text of 1939 OK 198 (Haynes Drilling Co. v. Indian Territory Illuminating Oil Co.) 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
Haynes Drilling Co. v. Indian Territory Illuminating Oil Co., 1939 OK 198, 90 P.2d 639, 185 Okla. 122, 1939 Okla. LEXIS 266 (Okla. 1939).

Opinion

DAVISON, J.

This ease is presented on a second successive appeal from the district court of Oklahoma county. The decision in connection with the former appeal did not entirely dispose of the cause. Tt was remanded to the district court, with directions to determine certain stated questions of fact upon which the ultimate rights of the parties, as therein ascertained, depended. Indian Territory Illuminating Oil Co. v. Haynes Drilling Co., 180 Okla. 419, 69 P.2d 624.

Pursuant to the directions of this court, additional proceedings were had in the court below and judgment rendered. The Haynes Drilling Company appeals, appearing herein as plaintiff in error.

The plaintiff in error not only assails the judgment rendered in connection with the supplementary opinion, but presents a voluminous and able brief in which asserted errors in our former decision are presented and the withdrawal or modification thereof is urged.

It is established law in this jurisdiction that the decision of questions of law hy this court on a former appeal establishes the law of the case and is controlling in the subsequent proceedings in the trial court, and in this court on a subsequent appeal unless gross and manifest injustice would result from adherence to the former decision. Metropolitan Ry. Co. v. Fonville, 36 Okla. 76, 125 P. 1125; Oklahoma City Electric Gas & Power Co. et al. v. Baumhoff, 21 Okla. 503, 96 P. 758; Chickasha Cotton Oil Co. v. Lamb et al., 58 Okla. 22, 158 P. 579; Markle v. Stekoll, 138 Okla. 171, *123 280 P. 842; Stuckwish, Adm’x, v. St. Louis-S. E. Ry. Co., 177 Okla. 361, 59 P.2d 285.

This cause was accorded a most thorough consideration on the former appeal. The views expressed in the former opinion represented the ha'aneed judgment of a majority of the members of this tribunal. That other opinions existed and were championed is evidenced by dissents noted in connection with the reported decision. We have in connection with this appeal reconsidered our former decision, and are unable to perceive that any gross or manifest injustice will result from adherence to the views therein expressed. It will therefore he followed as the law of this case in disposing of this appeal.

This ease involves a dispute over the alleged failure of the Indian Territory Illuminating Oil Company, as lessee of an oil lease on, as well as adjacent to, producing property, to protect the leased property against drainage. In the first trial of this cause, before the trial court, the lease was canceled in part on the theory that the lessee was derelict in its obligation to protect against drainage. This court in the former appeal reversed the decree awarding cancellation and made provision for the allowance of damages in lieu thereof. However, the judgment of the trial court had not been superseded and the Haynes Drilling Company had entered upon that portion of the leased premises which, according to the trial court’s 'decision, was no longer under lease, and had drilled a producing, well. Our decision reinstating the lease necessarily terminated the right of the Haynes 'Company to occupy the premises for the purpose of producing oil thereon. Additional details with reference to the fact situation are set forth in our former opinion and will not be reiterated herein.

Our former decision provided for the adjustment of the rights of the respective parties on a monetary basis. We determined from the record then before us that $100,000 should be paid the Haynes Drilling Company for having drilled and equipped the well above referred to, and that the producing well should become the property of the Indian Territory Illuminating Oil Company. We directed that the Haynes Drilling Company should account to the Indian Territory Illuminating Oil Company for the oil produced from the well, less reasonable operation expenses, and directed a determination of facts on the questions involved by the trial tribunal. We also authorized a determination of and compensation for loss from drainage which the Haynes Drilling Company may have sustained by reason of the failure of the Indian Territory Illuminating Oil Company to protect a small fractional portion of the leased premises as set forth in the opinion.

When the subsequent proceedings were had in the court below, the Haynes Drilling Company did not press any claim for damages for drainage upon the basis specified in our former opinion. The dispute is thus narrowed to an adjustment of the rights of the parties m connection with the oil well mentioned, supra.

The trial court determined an aggregate amount of $154,286.01 to be due to the Haynes Drilling Company from the Indian Territory Illuminating Oil Company. The sum thus -computed was made up of items set forth in the journal entry of judgment, from which we quote in part:

“(a) $100,000 for drilling and equipping the well, as directed by the opinion of the Supreme Court.
“(b) $42’.548.97 for lease operating expenses incurred by plaintiff in the operation of the well involved for the period of time from August 1, 1933, to July 21, 1937.
“fc) $11,287.04 for the cost of additional lease equipment placed upon saw! lease in 193-t and 1935 ro care for and handle the oil and gas production from said well.
“(d) $1,200 for the administrative or general overhead expenses allowed plaintiff for the four year period above specified at the rate of $25 per month, making a sum total of $155,036.01, from which should be deducted $750, the amount stipulated and agreed by counsel to be the fair reasonable market value of said separator at the time it was removed from the premises by plaintiff, which leaves a balance of $154,286.01, the full amount to which plaintiff is entitled to judgment herein against defendant, with interest thereon from the date this judgment becomes final, all of which is adjudged and decreed accordingly.”

The Haynes Drilling Company complains of the foregoing determination of the trial court in two respects. It asserts that error was committed by the trial court in connection with:

“(a) Tanks, of the value of $2,010 and a separator of the (stipulated) value of $750, by the trial court held to be well equipment, and by the Haynes Company claimed to be lease equipment;”
—and:
“(b) Overhead and administrative costs claimed by the Haynes Company in the *124 amount of $48,530.14, and by the trial court allowed in the sum of $1,200 only.”

The items alluded to were more specifically treated in the findings of the trial court incorporated in the journal entry of judgment preceding the judgment proper. We quote:

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Related

Metropolitan Ry. Co. v. Fonville
1912 OK 389 (Supreme Court of Oklahoma, 1912)
Stuckwish v. St. Louis-S. F. Ry. Co.
1936 OK 466 (Supreme Court of Oklahoma, 1936)
Oklahoma City Electric, Gas & Power Co. v. Baumhoff
1908 OK 134 (Supreme Court of Oklahoma, 1908)
Johnston v. American Finance Corporation
1938 OK 195 (Supreme Court of Oklahoma, 1938)
Indian Territory Illuminating Oil Co. v. Haynes Drilling Co.
1937 OK 253 (Supreme Court of Oklahoma, 1937)
Markle v. Stekoll
1929 OK 20 (Supreme Court of Oklahoma, 1929)
Brown v. Investors Service Co. of McAlester
1938 OK 174 (Supreme Court of Oklahoma, 1938)
Chickasha Cotton Oil Co. v. Lamb
1916 OK 615 (Supreme Court of Oklahoma, 1916)

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Bluebook (online)
1939 OK 198, 90 P.2d 639, 185 Okla. 122, 1939 Okla. LEXIS 266, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haynes-drilling-co-v-indian-territory-illuminating-oil-co-okla-1939.