L & I Exploration Corp. v. Chesapeake Orc, LLC

2008 OK CIV APP 34, 181 P.3d 746, 2008 Okla. Civ. App. LEXIS 11, 2008 WL 918410
CourtCourt of Civil Appeals of Oklahoma
DecidedFebruary 28, 2008
DocketNo. 104,740
StatusPublished

This text of 2008 OK CIV APP 34 (L & I Exploration Corp. v. Chesapeake Orc, LLC) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L & I Exploration Corp. v. Chesapeake Orc, LLC, 2008 OK CIV APP 34, 181 P.3d 746, 2008 Okla. Civ. App. LEXIS 11, 2008 WL 918410 (Okla. Ct. App. 2008).

Opinion

JANE P. WISEMAN, Judge.

{1 Defendant, Chesapeake ORC, LLC (Chesapeake) appeals from an order of the trial court granting summary judgment in favor of L & I Exploration Corporation (L & I). The question before us is whether the trial court erred in finding that L & I was entitled to judgment as a matter of law. We find that the trial court did not err and affirm its decision.

FACTS AND PROCEDURAL HISTORY

T2 L & I filed a petition on November 12, 2003, stating claims against Chesapeake for unjust enrichment and for monies had and received in the amount of $47,101.93 that it had previously paid to Chesapeake under protest.

13 L & I alleged that Chesapeake is the successor-in-interest to ONEOK Resources Company (ONEOK) which, at the time Chesapeake acquired ONEOK, was the defendant in a lawsuit in Cleveland County, Oklahoma. Based on its status as a non-operating working interest owner in the natural gas wells at issue in the case, L & I was a co-plaintiff with numerous other plaintiffs in that lawsuit. The plaintiffs in the previous action sought a declaratory judgment determining that ONEOK "had acted in violation of the parties' Joint Operating Agreements (the 'JOA") by recalculating certain Indirect Overhead Charges under the JOA in a manner that violated the JOA without first obtaining the consent of the Non-Operating Working Interest Owners." In a counterclaim, ONEOK asserted that it properly calculated the charges and sought money damages against all non-operator plaintiffs except L & T.

14 L & I alleged that a jury rendered a verdict in favor of L & I and the other non-operator plaintiffs on the declaratory judgment and the counterclaim. L & I asserted that, unlike the other plaintiffs in the lawsuit, it "had paid the higher, recalculated overhead rates under protest during the pen-dency of the case" and the total amount paid under protest was $47,191.98. L & I made written demand on Chesapeake for $47,191.93, but Chesapeake refused to return the requested amount.

I 5 In the present case, Chesapeake filed a motion to dismiss, or in the alternative, a motion for summary judgment in which it asserted that, after the jury returned its verdict in the previous case, L & I asked that language be added to the journal entry of judgment indicating that it was entitled to reimbursement for the amount it paid over and above the overhead charges. Chesapeake objected to the inclusion of the requested language. The trial court refused to grant money damages to L & I because L & I had not requested such relief. L & I did not appeal the trial court's denial of money damages in the previous case. Chesapeake asserts that L & I was attempting to split its claim into two lawsuits and that the current lawsuit is barred.

T6 The trial court denied Chesapeake's motion to dismiss. After Chesapeake filed its answer, L & I filed a motion for summary judgment, offering as undisputed the facts it had previously set out in its petition and adding documentation to support these assertions of fact. L & I further alleged that it retained all of its rights and interest in the previous lawsuit after it sold its interest in the wells at issue in the declaratory judgment action. It also claimed that the portion of exeess indirect overhead charges paid by L & I had been determined by the parties to be $39,877.28.

17 Chesapeake admitted most of L & I's statement of undisputed facts except it denied that (1) a counterclaim was ever asserted against L & I; (2) L & I paid the disputed amounts only during the lawsuit (Chesapeake claimed that the majority was paid before L & I was added as a party); (8) the jury rendered a verdict in favor of L & I on the counterclaim (Chesapeake denied any counterclaim against L & I1); (4) L & I made a written demand for return of overpayment after the jury verdict (Chesapeake claimed that L & I made a demand for overpayment [748]*748both prior to and after the entry of judgment in the previous lawsuit); and (5) L & I made payments under protest (Chesapeake claimed that L & I failed to support this claim with evidentiary material).

T8 The trial court found that no material facts were in dispute, that L & I's prior declaratory judgment against Chesapeake was proper, and that it was inequitable to allow Chesapeake to retain amounts paid by L & I in excess of the charges permissible under the JOA. The court concluded that (1) this action to recover the "overpayments is one for further relief in accordance with the results of the prior declaratory judgment action;" (2) L & I's "claim for money damages did not exist at the time of the prior declaratory judgment action and did not accrue until such time as the issue of proper or improper calculation of expenses and assessments was determined by a jury;" and (8) L & I's present action does not amount to a splitting of a cause of action and it can recover for "Monies Had and Received" and "Unjust Enrichment." The trial court granted summary judgment in favor of L & I and awarded it $89,877.28 plus interest. Chesapeake appeals.

STANDARD OF REVIEW

T9 Summary judgment is properly granted "when the pleadings, affidavits, depositions, admissions or other evidentiary materials establish that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Davis v. Leitner, 1989 OK 146, ¶9, 782 P.2d 924, 926. When reviewing the grant of summary judgment, we must view all inferences and conclusions to be drawn from the evidentiary materials in a light most favorable to the party opposing the motion. Id.

10 Although a trial court considers factual matters when deciding whether summary judgment is appropriate, its ultimate decision is purely legal: "whether one party is entitled to judgment as a matter of law because there are no material disputed factual questions." Carmichael v. Beller, 1996 OK 48, ¶2, 914 P.2d 1051, 1053. Our standard of review on appeal is therefore de novo. Id.

ANALYSIS

¶11 The material facts are not in dispute, and what remains for this Court to decide is an issue of law: whether L & I could pursue a separate lawsuit to recover damages after the previous declaratory judgment was entered in plaintiffs' favor. We find that the trial court did not err in concluding L & I was entitled to judgment as a matter of law. Oklahoma law does not prevent L & I from bringing a lawsuit to recover damages in this case.

112 Oklahoma's Declaratory Judgments Act provides, in part:

A determination of rights, status, or other legal relations may be obtained by means of a pleading seeking that relief alone or as incident to or part of a petition, counterclaim, or other pleading seeking other relief, and, when a party seeks other relief, a court may grant declaratory relief where appropriate.

12 0.§8.2001 $1652. Title 12 0.98.2001 § 1655 states:

Further relief based upon a determination of rights, status, or other legal relations may be gramted whenever such relief becomes necessary and proper after the determination has been made. Application may be made by petition to any court having jurisdiction for an order directed to any party or parties whose rights have been determined to show cause why the further relief should not be granted forth, with, upon reasonable notice prescribed by the court in its order.

(Emphasis added.)

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Related

Carmichael v. Beller
1996 OK 48 (Supreme Court of Oklahoma, 1996)
Davis v. Leitner
1989 OK 146 (Supreme Court of Oklahoma, 1989)
Principal Mutual Life Insurance v. Straus
863 P.2d 447 (New Mexico Supreme Court, 1993)
Oklahoma Alcoholic Beverage Control Board v. Central Liquor Co.
1966 OK 243 (Supreme Court of Oklahoma, 1966)

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Bluebook (online)
2008 OK CIV APP 34, 181 P.3d 746, 2008 Okla. Civ. App. LEXIS 11, 2008 WL 918410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-i-exploration-corp-v-chesapeake-orc-llc-oklacivapp-2008.