Ortiz Oil Co. v. Luttes

141 S.W.2d 1050, 1940 Tex. App. LEXIS 526
CourtCourt of Appeals of Texas
DecidedJune 5, 1940
DocketNo. 5543
StatusPublished
Cited by11 cases

This text of 141 S.W.2d 1050 (Ortiz Oil Co. v. Luttes) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ortiz Oil Co. v. Luttes, 141 S.W.2d 1050, 1940 Tex. App. LEXIS 526 (Tex. Ct. App. 1940).

Opinion

JOHNSON, Chief Justice.

In their fourth amended original petition on which the case was tried, J. W. Luttes and others, owners of the ⅛ royalty interest in' certain oil-producing land in Rusk County known as the Shiloh Church lot, sued the Ortiz Oil Company, owner and operator of the ⅞ oil and gas leasehold interest covering the land, to recover damages for the alleged wrongful, unlawful and fraudulent conversion, by use of hidden and secret pipes, valves, devices and schemes, and the appropriation to the defendant’s own use and benefit with intent to deprive plaintiffs of the value thereof of plaintiffs’ ¾⅛ interest in more than 300,000 barrels of oil produced on the land in excess of that accounted for by defendant. Defendant filed general and special exceptions, general denial, and attached to its answer a verified statement purporting to be a complete monthly accounting of the amount and price of all the oil which it claims to have produced from the lease for each and every month from the month of May, 1932, when the well was' completed, to the month of June, 1937. Defendant further pleaded that certain of the plaintiffs, namely, the Trustees of said Shiloh Church and F. D. Quinn, had accepted defendant’s checks in full and final settlement for any and all oil due them, and were thereby estopped to make further claims. The cause was submitted upon special issues, in answer to which the jury found: (1) That the defendant, Ortiz Oil Company, had produced oil from said church lot land, in excess of that ■ accounted for in its answer; (2) that the amount produced in excess of that accounted for was 275,000 barrels; (3) that the oil had been produced by the defendant in such manner as to' deceive the plaintiffs as' to the amount being produced; (4) that the defendant produced the oil, in excess of that accounted for, with the intent to deprive plaintiffs of their interest in same; ' (4-a) that the defendant caused the oil produced from the Shiloh Church lot well and oil produced by defendant from the Carlisle School lot well (owned by defendant and in which plaintiffs have no interest) to be intermingled; (5) that the defendant , caused the oil being produced from said church lot well and from said school lot well to be intermingled in such manner that it could not be determined how much oil was produced from the church lot 'well; (6) that the defendant so intermingled the oil being produced from said two. wells from the date that defendant connected them to flow through one separator, until a second separator was installed (which it is agreed was from May 1, 1932, until July 1,. 1934); (7) that defendant’s draft for $318.36 dated March 20, 1935, payable to E. E. Fischer, attorney for the Trustees of the Shiloh Church, was not accepted by him in full and final settlement for any and all royalty oil then due and unpaid from said well; (8) that defendant’s draft for $159.-18 dated March 20, 1935, payable to N. E. Hendrickson, attorney for F. D. Quinn, was not accepted l/’him in full and final settlement for any and all royalty oil then due and unpaid from said well. Judgment was entered in favor of plaintiffs for their ⅜ interest in the 275,000 barrels of oil found by the jury to have been produced and converted by defendant from the church lot well in excess of that accounted for by defendant, at the [1052]*1052value of $1 per barrel, in the total sum of $34,375. In a separate decree the judgment further assesses damages for plaintiffs, in the sum of $813.28, being the value of ⅛ of 6,506.26 barrels of oil which the court found was shown by the un-contradicted evidence to have been produced from the Carlisle School lot well and intermingled by the defendant with the oil in which plaintiffs had an interest produced from the church lot well. From an order overruling its motion for new trial defendant excepted and gave notice of appeal and by writ of error has presented the case to this court for review.

Under its first proposition appellant contends: (1) That the jury’s answer to special issue No. 5, to the effect that the defendant had caused the oil being produced from the church lot well (in which plaintiffs owned ⅜ interest) and the oil being produced from the school lot well (owned by defendant) to be intermingled in such manner that it could not be determined how much oil had been produced and converted by defendant from the church lot well, is supported by the evidence; and, since the precise amount converted is thus rendered uncertain, plaintiffs could not recover for any amount; and (2) that the jury’s answer to special issue No. 2, that the defendant had produced from the church lot well 275,000 barrels of oil in excess of that accounted for, is not supported in the evidence, and for that reason judgment should have been rendered for defendant; (3) that the jury’s answers to questions No. 2 and No. 5 are in irreconcilable conflict, and for that reason the trial court should have declared a mistrial. The contentions are not sustained. Briefly summarized, the evidence in support of the findings of the jury show that from May, 1932, to July, 1934, defendant intermingled the oil produced from the church lot well with oil owned by defendant being produced by the school lot well by connecting and producing both wells through one separator, a method which would prevent separately gauging or ascertaining the exact amount of oil produced from the well in which plaintiffs were interested; that they were flowing wells and required only about one hour per day to produce the “allowable”; that in April, 1934, plaintiffs discovered that defendant had installed and equipped the lease with secret flow pipes leading from the church lot well to and under a small house built by the defendant on the premises; that the floor of said house was covered with linoleum, concealing a trap door under which was hidden valves to open and close the well, which 'valves were in addition to the regular valves at the well; that the defendant was found producing the well at night, without flares burning, the vents-not lighted, at which times oil would be flowing into the tanks and pumped int.o-the pipe lines without being gauged; that the oil produced from the well did not require treating before being turned into-the pipe lines; that defendant constructed and operated a’ treating plant on the premises; and in gefieral the leasehold was mechanically equipped in the usual manner for running “hot oil”; that on two-occasions it had been shut down by the State and Federal authorities; that seals-used by pipe line companies in sealing tanks of oil purchased by them were-found on the premises, which seals were those of pipe line companies to which defendant had not reported any sales of oil. The witness V. M. Ramsey testified that he operated a lease for.

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Bluebook (online)
141 S.W.2d 1050, 1940 Tex. App. LEXIS 526, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortiz-oil-co-v-luttes-texapp-1940.