Nichols Ex Rel. Kauk v. Mid-Continent Pipe Line Co.

1996 OK 118, 933 P.2d 272, 67 O.B.A.J. 3136, 1996 Okla. LEXIS 132, 1996 WL 589119
CourtSupreme Court of Oklahoma
DecidedOctober 15, 1996
Docket84130
StatusPublished
Cited by35 cases

This text of 1996 OK 118 (Nichols Ex Rel. Kauk v. Mid-Continent Pipe Line Co.) 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
Nichols Ex Rel. Kauk v. Mid-Continent Pipe Line Co., 1996 OK 118, 933 P.2d 272, 67 O.B.A.J. 3136, 1996 Okla. LEXIS 132, 1996 WL 589119 (Okla. 1996).

Opinion

OP ALA, Justice.

The issues presented on certiorari are: (1) Are the plaintiffs within the class of claim *275 ants who may maintain a common-law action to recover on a nuisance theory? (2) Was it an abuse of discretion for the trial court to admit evidence about the plaintiffs medical condition? (3) Was it reversible error to admit, during the punitive-damages stage of the trial, evidence of the financial condition of a defendant’s (Mid-Continent Pipeline Company’s [Mid-Continent]) parent corporation? (4) Was the trial court’s refusal to declare a mistrial for intemperate remarks by plaintiffs’ counsel reversible error? (5) Did the trial court correctly apply the Barrett settlement proceeds by reducing the jury’s punitive-damages award? We answer the first question in the affirmative and the remaining queries in the negative.

I

THE ANATOMY OF LITIGATION

In late 1990 Terry Nichols, one of the plaintiffs, agreed with Jerry Myers to sublease the Barnes ranch — a 1800-acre tract of land in Dewey County — and took possession of it. 1 He and members of his family [collectively the plaintiffs ] then moved their cattle onto this property. Soon after that, the plaintiffs’ stock began experiencing various physical anomalies. 2 One of the veterinarians who was consulted suggested that the cattle’s problems might be causally related to ingestion of hydrocarbons.

In January 1992 Nichols discovered that earlier buried substances from an Exxon Corporation [Exxon] reserve pit [used in drilling activities conducted on the Barnes ranch] had risen to the surface and that the plaintiffs’ cattle were ingesting them. In February 1992 Nichols also discovered a leak in Barrett Pipeline Company’s [Barrett] oil pipeline in an area where the plaintiffs’ cattle had been grazing. Mid-Continent had sold to Barrett (in July 1991) the oil gathering system, which included the leaking pipeline in issue.

In early 1993 the plaintiffs brought an action (based on negligence and nuisance) for damages to their cattle and also for harm ( by the defendants’ pollution) to their pos-sessory interest in the Barnes ranch. 3 Barrett, who settled with the plaintiffs for $100,-000 4 , was dismissed from the action before trial, but its fault as a third party (nonparty) on the negligence-related claim was nonetheless tendered for the jury’s assessment. Barrett’s liability on the nuisance claim was not submitted for the trier’s consideration.

After a bifurcated trial — the first phase to settle liability, the other to assess punitive damages — the jury (1) assessed comparative fault for the negligent injury to plaintiffs’ cattle by allocating 10% of the $100,000 awarded in damages to the plaintiffs, 35% (or $35,000 in damages) to Exxon and 55% (or $55,000 in damages) to Mid-Continent; (2) completely exonerated Barrett of liability for harm to the cattle; (3) determined that Mid-Continent was solely hable on the nuisance claim in the amount of $150,000; and (4) assessed a $250,000 punitive-damages award against Mid-Continent alone.

At the conclusion of phase I, the court credited Exxon and Mid-Continent each with $50,000 of the Barrett settlement proceeds and reduced accordingly their respective proportionate liability (on the jury awards). When phase II came to be concluded, the trial court reduced the punitive-damages award against Mid-Continent from $250,000 to $155,000, 5 the amount of the diminished recovery for actual damages. The plaintiffs sought corrective relief from the manner in which the trial judge applied the Barrett settlement proceeds, and Mid-Continent and *276 Exxon appealed from the adverse judgment. Exxon settled with the plaintiffs before the cause was reached on appeal. Although sustaining the judgment, the Court of Appeals reversed the trial court’s use of the Barrett settlement proceeds to reduce punitive-damages award, holding that the plaintiffs were entitled to the full amount ($250,-000) awarded by the jury.

Mid-Continent alone sought certiorari.

II

PLAINTIFFS’ NUISANCE CLAIM LIES FOR THE HARM OCCASIONED TO THEIR POSSESSORY INTEREST IN THE BARNES RANCH

The statutory definition of nuisance — in 50 O.S.1991 §§ 1 et seq. 6 — encompasses the common law’s private and public nuisance concepts. 7 It abrogates neither action. 8 Common-law nuisance — a field of tort-like liability which allows recovery of damages for wrongful interference with the use or enjoyment of rights or interests in land 9 — affords the means of recovery for damage incidental to the land possessor’s person or chattel 10

Mid-Continent, which characterizes the plaintiffs as trespassers on the Barnes Ranch, denies that they possess any rights (or interests) in the land. While there might be a legal question about the validity of the plaintiffs’ sublease [an issue we need not reach today], 11 the record amply demonstrates the plaintiffs were in actual posses *277 sion 12 of this acreage. A stranger to both the privity of estate and of contract — one other than the lessor— is barred from interposing as a defense a lessee’s breach of a provision that restricts lessee’s right to sublet without lessor’s approval. 13

Mid-Continent’s status is that of a tortfeasor. The trustees of the Barnes Ranch, the lessors, never sought re-entry (or otherwise attempted to interfere with the plaintiffs’ possession of the leased premises) at any time before the acts in this litigation had occurred. The trial court’s ruling that the plaintiffs — as possessors of the land 14 fall within the class of claimants who may bring an action for private nuisance is hence legally correct.

We adopt today the national common-law norms found in the Restatement (Second) op ToRts § 821D 15 as harmonious with this State’s extant jurisprudence. 16 Both clearly allow a private nuisance claimant to recover for personal harm,

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Bluebook (online)
1996 OK 118, 933 P.2d 272, 67 O.B.A.J. 3136, 1996 Okla. LEXIS 132, 1996 WL 589119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nichols-ex-rel-kauk-v-mid-continent-pipe-line-co-okla-1996.