Ortiz Oil Co. v. Railroad Commission

62 S.W.2d 376, 1933 Tex. App. LEXIS 981, 1933 WL 63397
CourtCourt of Appeals of Texas
DecidedJune 29, 1933
DocketNo. 4526
StatusPublished
Cited by20 cases

This text of 62 S.W.2d 376 (Ortiz Oil Co. v. Railroad Commission) 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. Railroad Commission, 62 S.W.2d 376, 1933 Tex. App. LEXIS 981, 1933 WL 63397 (Tex. Ct. App. 1933).

Opinions

LEVY, Justice

(after stating the case as above).

The principal question to be determined, as the ultimate end and object of the proceeding, is that of the appointment of a receiver on the application of the Railroad Commission of Texas, moving there[378]*378for, to take over and operate the oil well in order for the enforcement of the orders and regulations of the Railroad Commission. There is no feature of relief or remedy afforded by the courts of a higher value than that of acting directly upon the person or property of $he party who would deliberately violate his contracts or do an act wrongful in special circumstances. The appointment of a receiver is an important head of the preventive jurisdiction of courts of equity, being founded on the inadequacy of the remedy at law, although this remedy is now the subject of express statutory provision in certain class of cases. It becomes necessary to consider the nature and class of the present proceeding, and who may maintain it, in order to determine whether or not it be one of the class in which the statute provides a receiver may be appointed. Considering alone the allegations in the petition, taking the facts as true, the controversy is thus initiated: The Railroad Commission of Texas, through the Attorney General of the state, instituted the proceeding in the nature of a complaint against the appellant framed upon the definite theory that the appellant, a corporation, engaged in the production of oil, acting through its president and vice president, was deliberately and defiantly daily violating the regulations and orders of the Railroad Commission, promulgated and in force, providing for and fixing the method of gauging or measuring and of making and keeping a complete record of the daily production of oil, and providing for and prorating the permissible daily production of oil. By the prayer of the petition, relief at the hands of the court was asked, not against a particular person, but against the oil well and property, “to forthwith and immediately take over such property and operate the same in accordance with the laws of the State of Texas, and the orders, rules and regulations of the Railroad Commission of the State of Texas.” The prayer is deemed an essential part of the petition, and determines the character of the decree which the court acting within its jurisdiction over the subject-matter is called upon to render. Article 2003, R. S.; Jordan v. Massey (Tex. Civ. App.) 134 S. W. 804.

It is believed that the proceeding, according to nature and purpose, must be classed and be so considered as one of rights and remedy created and existing purely by statute, to enforce and to prevent the continuing violations of the orders and regulations of the Railroad Commission of Texas promulgated pursuant to the statute. The Railroad Commission is specially clothed by the statute with jurisdiction over oil wells and the corporations and persons drilling and operating the same. Article 6023, R. S. It is specially clothed with the authority to establish regulations and make orders, and enforce the same, in the operation of oil wells and production of oil. Article 6029, R. S. (as amended by Acts 1931, 1st Called Sess., c. 26, § 15 [Vernon’s Ann. Civ. St. art. 6029]). The statute expressly creates the right and duty in the Railroad Commission, distinctively as such, and in its name as the Railroad Commission to “institute suits * ⅜ * and sue out guci], writs and process as may be necessary for the enforcement of its orders, and punish for contempt or disobedience of its orders as the district court may do.” Article 6024, R. S. And proceedings in the courts by the Railroad Commission is by the wording of the statute restricted to and not enlarged beyond the “enforcement” of its orders and regulations, and the “violations” thereof. It is not clothed with authority otherwise to> institute and maintain proceedings in its name in respect to conservation of oil, or production thereof. The legal effect is clear that a proceeding for the enforcement and prevention of violation of its orders and regulations may be deemed as one, not in effect by the state of Texas, but purely by the Railroad Commission, distinctively as such, as a legal entity clothed with special statutory authority to maintain the same. Although an agency of the state, yet in virtue of the authority conferred by the statute, the Railroad Commission becomes a special legal entity, having an individuality separate from the state, with respect to the institution and maintenance of suits for the enforcement and prevention of violation of its orders and 'regulations. The present proceeding presents a different situation from, and is without the ordinary rule in the case of, State Highway Commission v. Utah Const. Co., 278 U. S. 194, 49 S. Ct. 104, 73 L. Ed. 262.

Although the petition is also framed in the view of a suit or cause of action for the items of penalty and the gross production tax, the Railroad Commission suing as such would not be authorized to institute and maintain a suit therefor. It has no inherent right and is not clothed with authority by statute to sue in its name, for itself or for the state, to recover the items mentioned. The “penalty” imposed for violation of the regulations and orders of the Railroad Commission by express terms of statute can only be recovered by suit “instituted and conducted in the name of the State of Texas, by the Attorney General of the State of Texas, or by the County or District Attorney of the county in which the violation occurs.” Article 6036, R. S. (as amended by Acts 1931, 1st Called Sess., c. 26, § 3 [Vernon’s Ann.' Civ. St. art. 6036]). This provision precludes the enforcement of the penalty by the Railroad Commission, suing distinctively as such. The gross production tax on oil is a tax directly and peculiarly, [379]*379as alleged, “due and owing the State of Texas,” derived entirely by terms of statute (Vernon’s Ann. Civ. St. art. 6032), and the Railroad Commission is likewise lacking the Tight of action therefor. Lewright Y. Love, 95 Tex. 157, 65 S. W. 1089. It is fundamental that no person can maintain an action respecting a subject-matter to which he has no interest or right or duty, either personal or fiduciary. The question of who may maintain an action is a matter of law, and not subject to be controlled by parties. If the lack of authority appears as a matter of law to maintain a suit on a particular subject-matter, a cause of action therefor is not stated. 'Consequently, the petition not being maintainable upon other grounds, the proceeding must be regarded as solely a proceeding for the appointment of a receiver.

Keeping in mind the nature and class of this proceeding, is it one in which the court was authorized to make the appointment of a receiver to take over the oil well? Creating and conferring, as the Legislature did, a new and original right upon the Railroad Commission to enforce by proceedings in court its orders and regulations, it was competent, as a well understood and recognized rule, to also provide the remedy by which it was to be enforced. The Legislature has quite certainly made provision for remedy in such proceeding by the Railroad Commission. The relief or remedy by writ of injunction is afforded. Section 4 of article 6049c, Vernon’s Ann. Civ.

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Cite This Page — Counsel Stack

Bluebook (online)
62 S.W.2d 376, 1933 Tex. App. LEXIS 981, 1933 WL 63397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortiz-oil-co-v-railroad-commission-texapp-1933.