McAnally v. Cochran

1935 OK 81, 46 P.2d 955, 170 Okla. 368, 1935 Okla. LEXIS 689
CourtSupreme Court of Oklahoma
DecidedJanuary 29, 1935
Docket23314
StatusPublished
Cited by17 cases

This text of 1935 OK 81 (McAnally v. Cochran) 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
McAnally v. Cochran, 1935 OK 81, 46 P.2d 955, 170 Okla. 368, 1935 Okla. LEXIS 689 (Okla. 1935).

Opinion

BUSBY, J.

This is an appeal from a judgment of the district court of Creek county. The controversy arose when certain claimants for labor and material used in drilling and equipping an oil well were refused payment.

The record shows that J. E. Root was the owner of a certain oil and gas lease on premises situated in Creek county, Okla., and that he made arrangements with J. S. Hoxie for the use of a string of tools and commenced to drill a well about April 6, 1930. Eor the use of the tools, Root agreed to ass'gn a one-eighth interest in the lease to Hoxie, who was in charge of the actual drilling of the well.

Prior to the commencement of the well, Root had assigned certain interests in the lease to B. Green, M. W. Hampton, F. L. Miller, and Margaret Maben, and had promised to assign an interest to John Ball for labor to be performed on the well.

After the well was commenced and prior to the date of reaching the Skinner sand, Root made assignments of interest in the lease to Lena E. McAnally, A. H. Elder, Arthur Sory, and E. W. Branigar. The interest agreed to be given to F. S. Hoxie for the use of the tools was later executed to his wife, Elsie M. Hoxie. The interest conveyed to A. H. Elder was for labor performed in drilling the well.

Various claims for labor and material used in drilling and equipping the well were filed against the leasehold. Suit was thereafter filed by E. J. Cochran, one of the lien claimants, to foreclose his lien, and the other lien claimants were either made defendants or intervened. J. F. Root, F. S. Hoxie, and the various assignees of interest were made defendants in the su't, which was numbered 19070 and filed July 24, 1930.

On November 13, 1930, J. F. Root filed suit against his assignees and cotenants, asking for an accounting in cause No. 19319. The two causes were consolidated and tried under consolidated No. 19319, and judgment was rendered in' favor of the original plaintiffs, cross-petitioners, and interveners, for the foreclosure of their liens and for personal judgment aga’nst the vari *369 ous assignees and parties of interest in the leasehold estate for any balance due. Lena E. McAnally and Arthur 8ory have appealed directly from the judgment of the ■court, and M. W. Hampton and F. W. Branigar have appealed by cross-petition in error.

All of the plaintiffs in error have assigned as error the holding of the court that they were members of a mining partnership, whereby the court rendered personal judgment against them. This assignment of error will he first considered.

The question of whether or not a mining-partnership grew out of the relations of the parties of interest has frequently been before this court for determination. If a min'ng partnership exists in the instant case, it must have arisen by reason of an agreement, either express or implied, or arisen from the relation and conduct of the part'es. Whether or not a mining partnership exists in any case is largely a question of fact to be determined from the facts and circumstances surrounding- each case. There is no element of estoppel as to third parties involved here. Neither does any presumption of partnership arise from cotenancy in the ownership of the leasehold estate, nor from the mere operation of a mining lease by such cotenants.

As to what parties must do in order to create the relationship of a mining partnership, this court in the case of Gillespie v. Shufflin et al., 91 Okla. 72, 216 P. 132, held:

“In order to constitute a mining partnership, the parties must co-operate in developing a lease for oil and gas, each agreeing to pay his part of the expenses and to share in the profits or losses.
“Inter sese, there must be an intention of the partners to do so in order to create a partnership, and such intention cannot be inferred alone from a joint venture in drilling a well.”

That rule was followed in Jones v. Sinclair Crude Oil Purchasing Co., 130 Okla. 182, 266 P. 439; Barrett v. Buchanan, 95 Okla. 262, 213 P. 734; Wammack et al. v. Jones, 103 Okla. 1, 229 P. 159; Ellis v. Lewis, 119 Okla. 201, 249 P. 295, and Robinson Petroleum Co. et al. v. Black, Sivalls & Bryson, Inc., 138 Okla. 128. 280 P. 593.

In Ash et al. v. Mickleson, 118 Okla. 163, 247 P. 680, this court held:

“A mining partnership or joint adventure cannot exist unless there is a co-operation among the parties in the development of a lease for o.'l and gas, each agreeing to pay his part of the expenses and to share in the profits and losses.
“Where it is the intention of the parties that a partnership is to become effective upon the happening of a certain contingency, or is to take effect at a future day, the relation of partners does not exist.”

That holding has been followed by this court in Brown v. Wasaff, 126 Okla. 164, 259 P. 246; Carson et al. v. Waller et al., 127 Okla. 186, 260 P. 72; Irelan v. Smoot, 132 Okla. 270, 270 P. 29, and Tidal Oil Co. et al. v. Fullerton-Stuart Lumber Co., 137 Okla. 58, 278 P. 330; National Union Oil & Gas Co. et al. v. Richard et al., 164 Okla. 13, 22 P. (2d) 88; Murray Tool & Supply Co. et al. v. Bridgeport Mach. Co., 164 Okla. 136, 23 P. (2d) 365; Garber & Pulse, Inc., et al. v. Gloyd et al., 168 Okla. 88, 31 P. (2d) 947.

The mere holding of an interest in an oil and gas lease and leasehold estate with other cotenants and having- knowledge that a well was being drilled thereon by one or more of the cotenants does not constitute “co-operation” as contemplated by the authorities herein cited. In Anderson v. Keystone Supply Co., 93 Okla. 224, 220 P. 605, this court defined what is meant by the term “co-operation” among the parties of interest in the development of an oil and gas lease. In that case Dillen and Anderson were cotenants in a leasehold. Dillen proposed to drill a well on the premises and to do the work himself if Anderson would pay him 81,150. Anderson accepted the proposition. Dillen reported to Anderson from time to time as to the progress made in the drilling of the well. The well was dry and the bills were not paid. Dillen told Anderson that all of the bills were paid. The claimants did not know of the agreement between Dillen and Anderson when the material was furnished. Anderson never had any dealings with any of the claimants, nor authorized Dillen to make any contract with the claimants. The drilling and all material furnished was at the instance of Dillen. This court held:

“A. and D. were cotenants of an oil and gas lease. The agreed statement of facts shows that D. contracted certain debts in the drilling of an oil well thereon; that the creditors had no knowledge of the agreement whereby A. and D. became cotenants; that A. had no dealings with such creditors personally, and did not expressly authorize D. to contract such indebtedness, but that *370 D. reported to A. the progress of the drilling from time to time; and that said debts were contracted by D. Held, no presumption arises from such cotenancy that A. and L>. were mining partners, and, under said facts, they were not m’ning partners, and A. was not personally liable for such debts”

—and said:

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Bluebook (online)
1935 OK 81, 46 P.2d 955, 170 Okla. 368, 1935 Okla. LEXIS 689, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcanally-v-cochran-okla-1935.