Lieuallen v. Young

1925 OK 911, 241 P. 342, 115 Okla. 153, 1925 Okla. LEXIS 291
CourtSupreme Court of Oklahoma
DecidedNovember 10, 1925
Docket15938
StatusPublished
Cited by9 cases

This text of 1925 OK 911 (Lieuallen v. Young) 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
Lieuallen v. Young, 1925 OK 911, 241 P. 342, 115 Okla. 153, 1925 Okla. LEXIS 291 (Okla. 1925).

Opinion

Opinion by

THREADGILL, C.

The facts in this case, upon which the action was based, were substantially as follows: J. M. Young and John S. Sankey were partners in drilling oil and gas wells witn an equfi interest in the drilling activity. On April 30, 1921, they entered into a written agreement for the termination and settlement of the partnership affairs. Said contract was as follows:

“This agreement made and entered into on this 30th day of April, 1921, by and between J. M. Young, hereinafter called party qf the first part, and John S. Sankey, hereinafter called party of the second part, Witnesseth:' That for and in consideration of the sum of $1,528.82 in hand paid by the said John S. Sankey, to J. M. Young, the receipt of which is -hereby acknowledge, the -said J- M. Young hereby grants, bargains, sells, conveys, transfers, and sets over all his right, title and interest in and to one certain- oil well drilling outfit, including boiler, steam engines, drilling stem, ropes, drilling bits, wire lines, one Ford car, at Okmulgee, Okla., and otb'W drilling equipment, which are now on board cars at Boynton, Okla. The first party further warrants that there is no lien or incumbrances against said property other than is shown, on the books of the J. M. Young drilling contractor accounts, as kept by Mark Babcock at Tulsa, Okla. It is further understood and agreed that first party shall have the right and privilege to satisfy himself as to the accuracy and correctness of the accounts as kept by Mark Babcock on the J. M. Young drilling contractor books, said right to be exercised within 90 days after this transaction, and if after such audit there is found to be a sum in excess of $964.82 coming to the said J. M. Young, as his interest as a partner in one-half of the said tools, then and in that event said John S. Sankey agrees to pay said sum in excess of $964.82, as may be found by such audit. This agreement is binding upon the heirs, successors and assigns of the parties hereto.”

The plain terms of this agreement were that J. S. Sankey was to pay J. M. Young' $1,528.82 for his one-half interest in the drilling outfit; and any amount in excess of $964.82 shown by an audit of the books in Young’s favor, Sankey was to pay, and Young was to have 90 days in which to audit the books to determine whether or not there was any such excess. It is not clear from the contract whether or not the $964.-82, as shown by the books kept by Mark Babcock, the regular bookkeeper, had been paid Young, but it is clear that it was agreed that if there was any excess of this amount coming to him as determined by an audit of the books, Sankey should pay the same. After this contract was made and within the 90 days, J. M. Young had the books audited by J. A. Arnold & Company, accountants and auditors, and the amount found to be due him was the sum of $16,898.86, which he demanded that John S. Sankey pay according to the contract, and Sankey refused to pay it, and thereafter, on October 8, 1921, this action was brought to enforce the claim. Defendant Sankey was a resident of the state *155 of Texas, and the drilling outfit of the partnership was in this state, some of it being in Muskogee county and some in Okmulgee county, and an attachment was obtained against the ;property in both counties. Defendant John S. Sankey answered to the petition and admitted that they made the contract claimed by plaintiff, but denied that he owed the plaintiff the amount stated in the petition or any other amount. He stated that all the matters, transactions, and business dealings between them had long since been fairly, honestly and justly settled. That the settlement was based on an audit of the books and if said audit was not satisfactory to plaintiff, defendant was willing for the books to be audited by order of the court subject to objections of both parties. Soon after defendant filed his answer, he died, and one P. P. Lieuallen was appointed executor of his estate in Texas, and plaintiff had the cause of action revived in the name of the executor and the heirs at law, and thereafter on April 22, 1924, the cause was called for trial and said P. P. Lieuallen, as executor of the estate of John S. Sankey, deceased, appeared, and the plaintiff and executor stipulated as follows:

“It is stipulated and agreed by and between plaintiff and his counsel of record and P. P. Lieuallen as executor of the last will and testament of John S. Sankey, deceased, and his counsel of record, that the court) appoint an accountant and referee, the parties herein having agreed and suggested Wilson J. Henry, to take the original record and book showing the transaction between the deceased and the plaintiff, the audit made by plaintiff through John A. Arnold, and an audit made by defendant through W. S. Speár, and from these records an audit to ascertain the exact items of dispute existing between plaintiff and defendant and report to the court these items of dispute alone and upon the filing of such report it is agreed that the plaintiff may amend his petition so as to seek a recovery of the disputed items alone and upon filing of such a petition the defendant may answer and the issues to be tried and determined, and it is especially agreed that the rights of neither party is to be waived nor affected by reason of this stipulation ®o fa,r as consenting to the trial of those issues are concerned; in other words it being intended to stipulate that this agreement shall not be treated or considered by either party as the institution of any new action, but the continuation of the former action and to simplify the transactions involved.
“It is not understood that the right of amendment is precluded the inclusion in the petition of undisputed items to which the plaintiff might be entitled.”

Pursuant to this stipulation the court made the order appointing the auditor, and the audit was made, which set forth two general subjects and which included a number of items that iwiere left in dispute; one was the matter of underreaming a certain well drilled by the plaintiff and charged against the defendant, amounting to $1,500, and the other “shutdown time” on same well, amounting, to $2,181.42. The plaintiff and executor waived the jury and submitted the evidence as to these items, as well as the l>aw contended for by both parties, to the court, and the court, after hearing all the evidence, found, in substance, that the burden of proof was upon the plaintiff and that he had failed to discharge this burden “as to all of the items set forth in the Henry report as controverted^ and in the amended petition of the plaintiff, with the exception of the items enumerated in item 2 at the bottom of page 3 of the Henry report,” being the report of the auditor appointed by the court, and the items being stated as: “Underreaming 8% hole on Hefner No. 1, as per contract, $1,500.00; shutdown on Hefner No. 1, $2,181.43; total, $3,681.43. The court finds that as between the copartnership and John S. Sankey, the said John S. Sankey is, and was, indebted to said copartnership in the aforesaid sum.” The court further found that since Young and Sankey were partners, the plaintiff, Young, was entitled to recover only % of the sum as above stated, being $1,840.73, and the court concluded as a matter of law that the plaintiff was entitled to recover this amount from the defendant, and rendered judgment accordingly. Prom this judgment defendant has appealed by petition in error and case-made alleging many assignments of error, and argues them under six propositions.

1.

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Cite This Page — Counsel Stack

Bluebook (online)
1925 OK 911, 241 P. 342, 115 Okla. 153, 1925 Okla. LEXIS 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lieuallen-v-young-okla-1925.