Magnolia Petroleum Co. v. Galloway

1938 OK 481, 83 P.2d 174, 183 Okla. 432, 1938 Okla. LEXIS 297
CourtSupreme Court of Oklahoma
DecidedOctober 4, 1938
DocketNo. 27622.
StatusPublished
Cited by7 cases

This text of 1938 OK 481 (Magnolia Petroleum Co. v. Galloway) 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
Magnolia Petroleum Co. v. Galloway, 1938 OK 481, 83 P.2d 174, 183 Okla. 432, 1938 Okla. LEXIS 297 (Okla. 1938).

Opinion

RILEY, J.

On August 29, 1935, J. L. Galloway, Arthur Galloway, and Rex Hawks, doing business as the White Swan Super Service Station, filed suit against the Magnolia Petroleum Company seeking damages for alleged loss of business and good will caused by adulterated gasoline furnished by the defendant. The case was tried to a jury, and verdict for plaintiff resulted, From an order overruling a motion for new trial, the defendant brings this appeal.

'The parties will be referred to as they ■appeared below.

The defendant filed its answer January 18,- Í936¡ and:thé plaintiffs filed their reply April 14, 1936. The case came on for trial May 14, 1936.

On the day of the trial, but before the parties announced ready, defendant filed a motion to dismiss the plaintiffs’ action for the reason that no certificate of partnership had been filed in the office of the district court clerk as required by sections 11662 and 11664, O. S. 1931. After the jurors had been placed under oath for their venire examination, but before the jury was impaneled and sworn, the defendant offered testimony of the court clerk showing that no certificate had been filed. The action of the court in overruling the motion to dismiss is defendant’s first assignment of error.

Sections 11662 and 11664, O. S. 1931, were designed to protect persons dealing with fictitious partnerships, by compelling the disclosure of the various partners’ names.

In Slaten v. No. 8 Thresher Co., et al., 136 Okla. 298, 277 P. 658, in discussing defendant’s failure to raise the objection that plaintiffs, a partnership, had not filed the certificate required by the above sections of the statute, this court said:

“* * * Nowhere in defendant’s answer is the jurisdiction of the court to try the action attacked on that ground, and under the holding of this court, in the case of Fitch v. Braddock, 93 Okla. 78, 219 P. 703, this is a defensive matter which must be affirmatively pleaded by the defendant before he can avail himself of it.”

Defendant contends that under a liberal construction of the term “pleading”, its motion to dismiss is a proper method of raising this defense.

Section 197, O. S. 1931, 12 Okla. St. Ann. sec. 263, provides:

“The only pleadings allowed are:
“First. The petition by the plaintiff.
■ “Second. The answer or demurrer of the defendant.
“Third. The demurrer or reply by the plaintiff.
“Fourth. The demurrer by the defendant to the reply of the plaintiff.”

Defendant attempted to raise an issue of fact. Section 348, O. S. 1931, 12 Okla. St. Ann. sec. 554, provides:

“An issue of fact arises: First, upon a material allegation in the petition, controverted by the answer; or, second, upon new matter in the answer, .controverted by the reply; .or third, upon new matter in the reply, which shall ,be considered as controvertéd by. the defendant without further' pleading.”

*434 Under the provisions of sections 197 and 348, supra, and the holding in Slaten v. No. 8 Thresher Co. et al., supra, the proper pleading to raise an affirmative defense, such as is under consideration here, is the answer or some amendment thereto. Admittedly defendant did not raise it in the answer.

In reaching the above conclusion we are not unmindful of the holding in Farquharson v. Wadkins, 54 Okla. 450, 153 P. 1160, wherein the question here involved was raised by a motion to dismiss. The method employed seems not to have been questioned, and apparently sections 197 and 348, O. S. 1931, were not called to the attention of the court. Both Slaten v. No. 8 Thresher Co. and Fitch v. Braddock, supra, were written subsequent to the Farquharson Case and harmonize with the provisions of the sections of the statutes last cited above. Farquharson v. Wadkins is in conflict therewith and is hereby overruled.

Defendant next contends that the motion to dismiss should he treated as an amendment to the answer. This is likewise untenable. Assuming that the motion to dismiss is an amendment to the answer, the action of the trial judge in overruling the motion should be construed as a denial of the right to amend the answer.

It is within the sound discretion of the trial court to grant or refuse amendments to pleadings, and in the absence of an abuse of this discretion the rulings of the trial court will not be disturbed. This rule has been so frequently pronounced by this court that the citation of authority is unnecessary. It cannot be said from the record that the rights of the defendant were prejudiced by the action of the trial court. It should be noted that the petition was filed over four months before the answer was filed, over seven and a half months before the reply was filed, and over eight and a half months before the trial. Throughout this entire time the records of the court clerk’s office were available for inspection by the defendant. Defendant’s delay in raising this affirmative defense until the day of trial strongly suggests a deliberate plan to force a delay in the trial by raising a new and different defense. While the policy of the courts in Oklahoma is to permit liberal amendments of the pleadings, it is also their policy to prevent delay of the trial by belated amendment whereby the cause of áction or its defense is materially' changed.. Particularly is this true 'where, as. in the instant case, the', party' seeking the amendment has had ample opportunity prior to - the date of the trial to seek the fruits of the amendment.

To delay the trial under the facts of this case by permitting such an amendment would but add substance to the not unfounded belief of many laymen that court procedure is encumbered with unnecessary delay.

Plaintiffs alleged that defendant contracted to furnish gasoline and oil of standard grade; that plaintiffs enjoyed an average business of $991.75 per month during November and December, 1934, and January, 1935; that about the first of February, 1935, the defendant, with intent to damage the plaintiffs, furnished adulterated gasoline; that plaintiffs sold the same to their customers and by reason thereof suffered a loss of business during the months of March to July, 1935, inclusive, in the total amount of $1,623.10; that because of the sale of such adulterated gasoline to their patrons they had suffered a loss of reputation, loss of anticipated profits, and damage to good will in the amount of $1,000.

Defendant denied furnishing adulterated gasoline to plaintiffs; alleged that if plaintiffs purchased adulterated gasoline, it was purchased from some other person and was adulterated by some other person; that the damages alleged were speculative, uncertain, and too remote to be ascertained.

The ease was tried to a jury, and verdict returned in the amount of $596.

The evidence discloses that the plaintiffs began operating the White Swan Service Station about November 7, 1934, at which time they sold Cities Service products. On November 15, 1934, they began selling products of the defendant. During the remainder of November,' December, and January, a good business attended the venture.

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1938 OK 481, 83 P.2d 174, 183 Okla. 432, 1938 Okla. LEXIS 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magnolia-petroleum-co-v-galloway-okla-1938.