Hough v. Leonard

867 P.2d 438, 1993 WL 365833
CourtSupreme Court of Oklahoma
DecidedSeptember 29, 1993
Docket75755
StatusPublished
Cited by140 cases

This text of 867 P.2d 438 (Hough v. Leonard) 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
Hough v. Leonard, 867 P.2d 438, 1993 WL 365833 (Okla. 1993).

Opinions

KAUGER, Justice:

The only issue addressed1 is whether the trial court properly exercised jurisdiction over the three Texas residents who entered into a contract in Oklahoma with an Oklahoma resident to perform services in Kansas. We find that it did. However, we also find that we must address a question of appellate procedure to ensure that all litigants are treated equitably and that all issues properly preserved, raised and briefed on appeal are addressed. Johnson v. Wade, 642 P.2d 255, 257 (Okla.1982), is hereby overruled to the extent that it provides that any party, whether “winner” or “loser” in the Court of Appeals, must petition for certiorari to ensure review of issues raised and briefed on appeal. Rules 3.14 and 3.15,12 O.S.1991, Ch. 15, App. 3, Rules on Practice and Procedure in the Court of Appeals and on Certiorari to that Court, are hereby revised to include language providing that issues not presented in the petition for certiorari will not be considered by the Supreme Court. Provided, however, if the Court of Appeals did not decide [441]*441all of the properly preserved and briefed issues, the Supreme Court may — should it vacate the opinion of the Court of Appeals— address such undecided matters or it may remand the cause to the Court of Appeals for that Court to address such issues. These rules shall apply to this cause and prospectively to all petitions for certiorari filed thirty (BO) days after final publication in the Oklahoma Bar Journal.2

FACTS

The appellants, David Leonard, Harold Burke, and David McMillan (Leonard/Burke/McMillan/the non-residents) are engaged in the oil and gas business. The appellee, David Hough (Hough/the Oklahoma resident) owns and operates an oil field service company in Oklahoma. The oil well involved in this dispute is located in Kansas just across the Oklahoma-Kansas border. Leonard is the operator of the well, and Burke and McMillan are investors. McMillan also has recorded leasehold interests in certain property in Lincoln County, Oklahoma.3

While preparing the well for production in 1988, a temporary packer became lodged in the pipe above the production formation, making production impossible. After many unsuccessful attempts by Kansas firms to remove the packer, the non-residents hired an Oklahoma company to attempt removal. Hough was employed through the Oklahoma company as a subcontractor. This effort to unplug the well was unsuccessful. In the last week of May, 1989, McMillan, acting as an agent for the non-residents4 telephoned Hough from Texas, asking for a quotation of Hough’s rates to provide further services.5 The Oklahoma resident faxed his quotations to Texas. A few days later McMillan again telephoned Hough, in Oklahoma; and the parties entered into a contract for Hough to attempt removal of the packer from the Kansas well.

On the fourth day of operation, a dispute arose between the parties as to whether Hough was employed based on a daily rate or a fixed fee agreement.6 As a result of this dispute, Hough left the job without retrieving the packer. The Oklahoma resident contends that he was prohibited from completing the job because McMillan threatened not to pay him and ordered him to leave. Subsequently, McMillan refused to pay for the services performed by Hough. The non-residents then contacted at least two other Oklahoma firms to ask about further services on the Kansas well.

Hough brought suit in Oklahoma against the non-residents to recover for payment of his services. The non-residents objected alleging that they were not subject to personal jurisdiction by the Oklahoma courts. A writ of prohibition was sought in this Court, and it was denied. After a jury trial, a verdict was returned in favor of the Oklahoma resident.7 Temporary Panel XLVII of the Court of Appeals reversed, holding that Oklahoma lacked sufficient contacts to maintain personal jurisdiction over the non-residents. We granted certiorari on April 26,1993, to deter[442]*442mine whether the trial court properly exercised jurisdiction over the non-residents.

I.

BECAUSE OF THE TOTALITY OF CONTACTS WITH OKLAHOMA, PERSONAL JURISDICTION WAS EXERCISED PROPERLY OYER THE NON-OKLAHOMA RESIDENTS.

The Oklahoma resident argues that Oklahoma can assert personal jurisdiction over a non-resident defendant absent physical presence of the person in Oklahoma. The non-residents insist that prior decisions of this Court which support Hough’s position are distinguishable on their facts and, therefore, inapplicable.

The current Oklahoma long-arm statute 12 O.S.1991 § 2004(F) provides that “A court of this state may exercise jurisdiction on any basis consistent with the Constitution of this state and the Constitution of the United States.” It is a codification of our holding in Fields v. Volkswagen of America, Inc., 555 P.2d 48, 52 (Okla.1976), that the intent of the Oklahoma long-arm statute, is to extend the jurisdiction of Oklahoma courts over non-residents to the outer limits permitted by the Oklahoma Constitution8 and by the due process clause9 of the United States Constitution.10 When a non-resident deliberately engages in significant activities in a forum state or creates continuing obligations between the non-resident and the residents of the forum, the non-resident submits to the jurisdiction of the state.11 Jurisdiction may not be avoided merely because the non-resident did not physically enter the forum state. Jurisdiction under the long-arm statute is predicated on foreign state activity which results in forum state harm.12 A non-resident who has purposefully directed activities at forum residents must present a compelling ease that jurisdiction would be unreasonable,13 or that the contacts were so insignificant that the exercise of in personam juris[443]*443diction would offend the traditional notions of substantial justice and fair play.14

The Oklahoma resident contends that our Oklahoma precedents as enunciated in Gregory v. Grove, 547 P.2d 381, 382 (Okla.1976); Yankee Metal Prod. Co. v. District Court, 528 P.2d 311, 313 (Okla.1974); and B.K. Sweeney Co. v. Colorado Interstate Gas Co., 429 P.2d 759, 763 (Okla.1967), are controlling. In Gregory, we held that a totality of contacts between non-resident defendants and Oklahoma are to be considered in determining the sufficiency to exercise jurisdiction under long-arm service — this may include telephone communications and letters. In B.K Sweeney Co., we recognized: that the absence of multiple acts within the state are not necessarily fatal to the exercise of state power over a defendant; that a non-resident who engages in a single act or consummates a single transaction in a foreign state could be amenable to suit for damages arising out of that transaction; and that there exists no constitutional barrier to holding a non-resident subject to personal jurisdiction, irrespective of whether additional contacts in the state exist.

The Oklahoma resident also relies on Yankee Metal Prod. Co. for the proposition that when a non-resident actively participates in negotiations and initiates contact with the forum state, minimum contacts are satisfied. The Yankee

Free access — add to your briefcase to read the full text and ask questions with AI

Related

IN THE MATTER OF E.J.T.
2024 OK 14 (Supreme Court of Oklahoma, 2024)
SCOTT v. FOSTER
2023 OK 112 (Supreme Court of Oklahoma, 2023)
LAUBACH v. LAUBACH
2022 OK 78 (Supreme Court of Oklahoma, 2022)
BEYRER v. THE MULE
2021 OK 45 (Supreme Court of Oklahoma, 2021)
PAYNE v. KERNS
2020 OK 31 (Supreme Court of Oklahoma, 2020)
METCALF v. METCALF
2020 OK 20 (Supreme Court of Oklahoma, 2020)
MONTGOMERY v. AIRBUS HELICOPTERS
2018 OK 17 (Supreme Court of Oklahoma, 2018)
Montgomery v. Airbus Helicopters, Inc.
414 P.3d 824 (Supreme Court of Oklahoma, 2018)
BEACH v. OKLAHOMA DEPARTMENT OF PUBLIC SAFETY
2017 OK 40 (Supreme Court of Oklahoma, 2017)
OKLAHOMA ASSOC. OF BROADCASTERS, INC. v. CITY OF NORMAN
2016 OK 119 (Supreme Court of Oklahoma, 2016)
BAGGS v. BAGGS
2016 OK 117 (Supreme Court of Oklahoma, 2016)
Marriage of Baggs v. Baggs
2016 OK 117 (Supreme Court of Oklahoma, 2016)
GUFFEY v. OSTONAKULOV
2014 OK 6 (Supreme Court of Oklahoma, 2014)
Ledbetter v. Howard
2012 OK 39 (Supreme Court of Oklahoma, 2012)
Bank of Oklahoma, N.A. v. Red Arrow Marina Sales & Service, Inc.
2009 OK 77 (Supreme Court of Oklahoma, 2009)
Willbros USA, Inc. v. Certain Underwriters at Lloyds of London
2009 OK CIV APP 90 (Court of Civil Appeals of Oklahoma, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
867 P.2d 438, 1993 WL 365833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hough-v-leonard-okla-1993.