Osage Energy Resources, LLC v. Pemco, LLC

2016 OK CIV APP 70, 394 P.3d 265, 2016 WL 6662778, 2016 Okla. Civ. App. LEXIS 37
CourtCourt of Civil Appeals of Oklahoma
DecidedSeptember 9, 2016
DocketCase No. 111,561
StatusPublished

This text of 2016 OK CIV APP 70 (Osage Energy Resources, LLC v. Pemco, LLC) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Osage Energy Resources, LLC v. Pemco, LLC, 2016 OK CIV APP 70, 394 P.3d 265, 2016 WL 6662778, 2016 Okla. Civ. App. LEXIS 37 (Okla. Ct. App. 2016).

Opinion

OPINION BY

JANE P. WISEMAN, PRESIDING JUDGE;

¶ 1 Defendants Pemco, LLC, and Richard Coody appeal from the trial court’s orders (1) granting judgment in favor of Plaintiff Osage Energy Resources, LLC, (2) denying Defendants’ motion for new trial, and (3) granting Plaintiffs application for attorney fees, costs and interest. After review of the record and applicable law, we affirm.1

FACTS AND PROCEDURAL BACKGROUND

¶ 2 Plaintiff purchased an oil and gas operation in Osage County from David Roark on July 26, 2007. According to the petition, Defendant Coody, “acting as chief operating officer of [Plaintiff], negotiated the purchase of oil leases and a pump yard, including a shop, 10 oil pumping units, 14 down-hole pumps, and various other personal property from David and Annabelle Roark.” The petition states, “The real property containing the pump yard is legally described in the General Warranty Deed.” The petition further states, “The agreed purchase price for the oil leases, pump yard, and personal property was $1,400,000.” Plaintiff and Roark had no written agreement governing the sale between them. -

¶ 3 It is undisputed that before the sale, Coody and “non-party Gerold Allen, as representatives of Defendant, Pemco, LLC, had been marketing the leases for several years on behalf of [Roark].” Two days before the sale, Coody drove Leon Emanuel and his father (the potential buyers) from Wichita Falls to Oklahoma City, assisted them at the Secretary of State’s office in forming Osage Energy Resources, LLC, and accepted employment with the new company. A few days after the sale, Roark paid Coody a $200,000 commission for the sale to Plaintiff. Coody did not inform Plaintiff about this commission.

¶ 4 On August 20, 2007, Roark deeded the pump yard to Defendant Pemco, a company owned by Coody. Defendants claim Roark deeded Pemco the pump yard “in appreciation for locating a buyer for his leases.” Plaintiff responds that Roark testified “he deeded the pump yard to Pemco in reliance upon [Goody’s] representation to him that [Plaintiff] owed [Coody] money and therefore wanted the pump yard deeded to Pemco.” Roark was paid no consideration for the conveyance. Plaintiff had no knowledge of the commission or the pump yard conveyance until a dinner in May or June 2008 when it learned from “Roark that Defendant Pemco had received a commission from [Roark] from the sale of the leases and that [Roark] had deeded the pump yard to Defendant, Pemco.”

¶ 5 When Plaintiff confronted Coody at the end of June 2008 about the commission and the pump yard, Coody denied receiving the $200,000 and said the pump yard was a completely different transaction from the Roark sale. After further investigation, Plaintiff concluded that Coody had been paid the commission contrary to their employment [268]*268agreement and that Roark had sold Plaintiff everything associated with his oil and gas operation, including the pump yard, to which Coody had no claim. Goody’s employment with Plaintiff as chief operating officer (COO) was terminated in late June or early July 2008.

¶ 6 On November 3, 2010, Plaintiff filed the present action against Defendants alleging fraud, breach of fiduciary duty, imposition of a constructive trust and imposition of a vend-ee’s lien. In the pretrial order, Plaintiff lists the following theories of recovery: fraud, deceit, breach of fiduciary duty, constructive trust, and vendee’s lien. Defendants denied Plaintiffs claims and asserted the statute of limitations as a theory of defense.

¶7 In October and November 2011, the parties tried the case to the court in a bench trial. The trial court issued two orders on October 24, 2012 — one identified as “Findings of Fact and Conclusions of Law” and the other as a “Journal Entry of Judgment,” Finding in favor of Plaintiff, the trial court in its journal entry of judgment held in part:

IT IS THEREFORE ORDERED, ADJUDGED AND DECREED by the Court that the Plaintiff ... is hereby awarded judgment in its favor and against the Defendants jointly and severally in the principal amount of $200,000.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED by the Court that the Plaintiff ... is hereby awarded judgment in its favor and against the Defendants and each of them, imposing a constructive trust upon the $200,000 received as a commission, Pump Yard, Equipment, and any funds resulting from the sale of same. Defendants are ordered to deliver possession of said cash and personal property to Plaintiff and deliver a deed and bill of sale conveying unencumbered title to the Pump Yard and Equipment to Plaintiff.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED by the Court that Plaintiff ... is hereby awarded judgment in its favor and against the Defendant, PEMCO, LLC, imposing a vendee[’]s lien in the amount of $100,000 upon 'the Pump Yard. An order of sale in execution will be issued by [the] Court upon application of Plaintiff.

On November 5, 2012, Defendants filed a motion for new trial which the trial court denied.

¶ 8 On November 21, 2012, Plaintiff filed an application for attorney fees, costs, and prejudgment interest. The trial court granted Plaintiff attorney fees in the amount of $5,441,25 and costs in the amount of $856.50. The trial court further granted Plaintiff “prejudgment interest at the rate of 6% per annum ... as to all items requested by Plaintiff except for the asset designated by both sides as the ‘pipe yard’ or ‘pump yard’. The court specifically finds the commission of $200,000 was a sum certain which is subject to prejudgment interest.” (Emphasis omitted.)

¶ 9 Defendants appeal from these orders.

STANDARD OF REVIEW

¶10 “The credibility of the various witnesses and weight and value to be given to their testimony is for the jury or for the trial court on waiver of a jury, and conclusions there reached will not be disturbed on appeal, unless appearing clearly to be based upon caprice or to be without foundation.” Hinds v. Johnston, 2009 OK CIV APP 54, ¶ 5, 211 P.3d 236 (quoting Livingston v. Bonham, 1957 OK 52, ¶ 13, 308 P.2d 657).

¶ 11 “Limitations issues, as mixed questions of fact and law, are reviewable by this Court as questions of law.” Taylor v. City of Oklahoma City, 1989 OK 129, ¶ 7, 782 P.2d 1363. Questions of law are subject to our de novo review in which we exercise “plenary, independent, and non-deferential authority to reexamine a trial court’s legal rulings.” K & H Well Serv., Inc. v. Tcina, Inc., 2002 OK 62, ¶ 9, 51 P.3d 1219.

¶ 12 “We review a trial court’s order denying a motion for new trial for error of a pure question of law or for an abuse of discretion which is arbitrary, clearly against the evidence, and manifestly unreasonable.” Garnett v. Government Emps. Ins. Co., 2008 OK 43, ¶ 29, 186 P.3d 935.

[269]*269-¶ 13 The question of a party’s entitlement to attorney fees pursuant to a statute is a question of law, which we review de novo. Calyx Energy, LLC v. Hall, 2015 OK CIV APP 1, ¶ 3, 342 P.3d 1007; see also Finnell v. Jebco Seismic, 2003 OK 35, ¶ 7, 67 P.3d 339. “The amount to be awarded as a fee for the services of a legal practitioner is a matter left to the discretion of the trial court and will not be disturbed absent an abuse of discretion.” Finnell, 2003 OK 35, ¶ 8, 67 P.3d 339.

ANALYSIS

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Bluebook (online)
2016 OK CIV APP 70, 394 P.3d 265, 2016 WL 6662778, 2016 Okla. Civ. App. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/osage-energy-resources-llc-v-pemco-llc-oklacivapp-2016.