Nelson v. Continental Asphalt & Petroleum Co.

123 So. 474, 11 La. App. 450, 1929 La. App. LEXIS 232
CourtLouisiana Court of Appeal
DecidedJuly 1, 1929
DocketNo. 3297
StatusPublished
Cited by1 cases

This text of 123 So. 474 (Nelson v. Continental Asphalt & Petroleum Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson v. Continental Asphalt & Petroleum Co., 123 So. 474, 11 La. App. 450, 1929 La. App. LEXIS 232 (La. Ct. App. 1929).

Opinions

ODOM, J.

In July, 1919, plaintiffs executed an oil and gas lease on certain lands in Red River parish to one Ramsey, who subsequently transferred the lease to the defendant Continental Asphalt & Petroleum Company, which company drilled for oil and was successful.

Under stipulations contained in the lease, the lessors were to receive as royalties one-eighth of the oil saved from wells which produced 200 barrels or less per day, and one-sixth of the oil from wells which produced more than 200 barrels per day; and, in addition to the above royalties, the lessee obligated itself “to pay an additional sum equal to $50.00 per acre out of one-fourth of the first oil saved from that produced.”

The land leased was “estimated” in the contract to contain 75 acres. It is admitted that there was produced and saved from the wells on the land oil amounting in value to $80,000, but the additional sum equal to $50 per acre was never paid.

The present suit was brought by the lessors to collect $3,750, or $50 per acre, for 75 acres.

Subsequent to the date on which the lease was entered into, the lessors and the lessee entered into an agreement to the effect that the lessee should execute bond to secure payment due under the last-named clause, and the Fidelity & Casualty Company of New York became surety on the bond, which surety company was joined in this suit as co-defendant with the principal. The suit was filed on June 20, 1921, and on October 5th, following, the casualty company, surety on the bond, filed an exception to the jurisdiction of the court ratione personae, which exception was submitted on April 3, 1922, and on May 3d was overruled by the court. Three days later, on May 6th, the casualty company moved for a new trial of its exception to the jurisdiction, setting up that this exception was not based upon the ground that the principal and surety can not be joined as defendants in the same suit, “but, on the ground that the surety cannot be brought into court where the court has no legal jurisdiction over the principal and that in the case at bar plaintiff has not alleged facts giving this court jurisdiction herein, and that appearer, alleged to be a surety on the bond sued on, has a legal right to raise in its own behalf the question of the jurisdiction as the same might apply to the principal.” ■

On October 21st following, the motion for a rehearing on exception to the jurisdiction was denied.

The principal defendant, Continental Asphalt & Petroleum Company, did not except to the jurisdiction of the court. The case as to it was defaulted on April 5th. Three days later, on April 8th, it moved to set the default aside on the ground “that no valid service of the petition and citation has been made on exceptor herein. That at the time said preliminary default was entered, a plea to the jurisdiction of this Honorable Court had been filed herein by the Fidelity & Casualty Company of New York, its co-defendant herein, and that as said ,plea tendered the whole issue of jurisdiction herein, no valid default could be entered in this case pending said plea.” On November 10th following, the exception to the citation and the [452]*452motion to set the default aside were overruled.

On November 4, 1922, the Fidelity & Casualty Company, surety on the bond, with reservations of all its exceptions and prior pleas, filed answer, and on November 29th, the principal defendant also filed answer, and on the same day filed a supplemental answer. On trial of the case, there was judgment for plaintiffs as prayed for against both defendants in solido for the sum of $3,750, and both defendants appealed.

OPINION

Both defendants were represented all through by the same attorneys, and, while they do not say so in argument or in brief, we infer that the appeal, insofar as the principal defendant, Continental Asphalt & Petroleum Company, is concerned, is practically abandoned. Counsel for appellee state in brief that no appeal was taken by it, but the record discloses that it did appeal devolutively and perfected its appeal by giving bond. But whether its appeal has been abandoned or not is unimportant, and we shall pass upon its case along with that of its co-defendant, the casualty company.

The serious contention made by counsel for appellants is that the district court of Caddo parish was without jurisdiction. But, as already stated, the principal defendant, Continental Asphalt & Petroleum Company, did not except to the jurisdiction but permitted the case to be defaulted as to it, and counsel concede that, having permitted issue to be joined tacitly by default, it could not thereafter raise the question of jurisdiction. It did, however, move to .set aside the default on the grounds, first, that the citation was illegal; and, second, because at the time the default against it was entered, there was pending an exception to the jurisdiction filed by the casualty company, sued in solido with it.

As to the citation, we have no means of knowing whether it was legal or not. The citation itself is not in the record, and there is nothing to show upon whom or how service was made. The motion to set the default aside on the ground that the citation was not legal was heard by the district judge, and presumably there was introduced testimony on the point, but the testimony is not in the record. We must assume that there was sufficient testimony introduced to warrant the district judge in holding that the citation was legal. This court will not reverse the judgment of a trial judge without evidence disclosing error, but will presume that he had before him sufficient facts to warrant his ruling. And, in this connection, we state that neither the exception to the citation nor the record otherwise disclose the grounds on which counsel contended that the citation was illegal. Plaintiff alleged in the petition that the defendant “Continental Asphalt & Petroleum Company is a corporation organized under the laws of - state, and doing business in Caddo Parish.” From the argument of counsel on both sides, we gather that the petroleum company is a foreign corporation. Even so, it was suable in Caddo parish even though it was drilling for oil in the parish of Red River, if it had its domicile in Caddo parish, or if it had located in that parish a main office which had supervision of all its affairs in the state. Subsection (f), sec. 6, Act No. 179 of 1918; Abadie et al. vs. National Petroleum Corporation, 150 La. 1076, 91 So. 516.

Counsel for appellants concede that, but, in supplemental brief, say that it was [453]*453neither alleged or proved that the petroleum company had an office in Caddo parish having supervision of the transaction out of which this cause of action arose, or that it was domiciled in that parish. It was not alleged that it had its domicile in the parish of Caddo, but it was alleged that it was “doing business in Caddo parish.” That allegation is broad enough to admit proof that it had its main office in that parish, and it must be assumed that the district judge heard evidence on this point, and that the testimony convinced him that the defendant was properly before his court, and, as stated, we will not disturb his ruling in the absence of testimony disclosing error.

The Continental Asphalt & Petroleum Company, being suable in Caddo parish, it follows that the casualty company, surety on the bond, was suable there also, because section 8, Act No.

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

Related

Rester v. Moody & Stewart
130 So. 254 (Louisiana Court of Appeal, 1930)

Cite This Page — Counsel Stack

Bluebook (online)
123 So. 474, 11 La. App. 450, 1929 La. App. LEXIS 232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-continental-asphalt-petroleum-co-lactapp-1929.