Peter Salpeter Energy Co., Inc. v. Crystal Oil Co.

524 S.W.2d 383, 52 Oil & Gas Rep. 557, 1975 Tex. App. LEXIS 2747
CourtCourt of Appeals of Texas
DecidedMay 22, 1975
Docket948
StatusPublished
Cited by15 cases

This text of 524 S.W.2d 383 (Peter Salpeter Energy Co., Inc. v. Crystal Oil Co.) 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
Peter Salpeter Energy Co., Inc. v. Crystal Oil Co., 524 S.W.2d 383, 52 Oil & Gas Rep. 557, 1975 Tex. App. LEXIS 2747 (Tex. Ct. App. 1975).

Opinion

OPINION

NYE, Chief Justice.

This is a conversion case with the amount of damages being the only question before us. Crystal Oil Company instituted suit against Peter Salpeter Energy Company, Inc. to enjoin them from removing or disposing of Crystal’s oil well equipment located on a non-productive lease, and for the recovery of the reasonable market value of said equipment. A trial was had on the merits before the court without the aid of a jury. The trial court found that Crystal Oil Company had not abandoned its oil well equipment and that Crystal should recover against Salpeter the sum of $39,176.00 for the conversion of the equipment. Peter Salpeter Energy Company has perfected its appeal to this Court.

Mr. B. W. Cox owned a certain tract of land near Mathis, San Patricio County, Texas, which he leased to J. W. Corman on June 17, 1946. Later, by various assignments, Crystal became the owner of the lease in question which it held until September, 1973, when production stopped. Crystal left 11 wells on the Cox lease unplugged, together with the equipment, including all the casing and tubing, on the lease. The lease was terminated in accordance with the terms of the lease.

On April 30, 1974, Cox executed a new oil and gas lease in favor of the appellant Peter Salpeter Energy Company, Inc. on the subject property. Cox assigned to the appellant his interest, “if any”, in all the equipment located in the wells and on the surface. The appellant began using the equipment and during the course of its operations removed approximately 1,200 feet of casing and 3,000 feet of tubing from two of the wells.

Crystal then filed suit against appellant and B. W. Cox, seeking to enjoin them from further removing, disposing of or using the oil well equipment belonging to Crystal and for damages covering the reasonable market value of the part of said oil and gas well equipment already converted and disposed of. Crystal obtained judgment against the appellant in which the trial court made specific findings: that Crystal was in fact the owner of certain personal property, including fixtures and equipment located on said lease (San Patricio County); that Crystal had not abandoned or in any way relinquished its right and title to and ownership of said equipment; that the appellant had wrongfully and without right pulled and removed part of the casing and tubing and sold the same; that the appellant had converted all of said equipment belonging to Crystal to its own use and benefit; that some items and equipment which have not been removed by the appellant cannot now *385 be removed from said wells without destruction of the well bores and without possible waste of the natural resources; that the fair market value of said equipment, including the casing and tubing removed, in the Alice, Texas area (Jim Wells County) is the sum of $59,176.00; and that the reasonable cost of drawing and removing the casing and tubing in said wells and transporting said equipment to or near Alice, Texas, is the sum of $20,000.00, resulting in finding that the fair market value of said equipment in place is the sum of $39,176.00, which sum Crystal is entitled to have and recover from the appellant.

Under ordinary circumstances, compensatory damages for a conversion are represented by the reasonable market value of the property at the place and time of conversion. (In this case, the place was San Patricio County, Texas). Reef v. Hamblen, 47 S.W.2d 875 (Tex.Civ.App.—Dallas 1932, writ ref’d); DeShazo v. Wool Growers Central Storage Co., 139 Tex. 143, 162 S.W.2d 401 (1942); 17 Tex.Jur.2d, Damages §§ 234-236; 14 Tex.Jur.2d, Conversion § 26 (1960). There are, however, some exceptions to the above rule. One exception is that, where there is no market for the goods at the place of conversion, the measure of damages is the value of the property at the time of conversion at the nearest and most available place at which there is a market value, less the necessary costs of transportation thereto. Graves v. Trevino, 386 S.W.2d 831 (Tex.Civ.App.—Houston 1965, writ ref’d n.r.e.); O’Donell v. Preston, 301 S.W.2d 288 (Tex.Civ.App.—Fort Worth 1957, writ ref’d n.r.e.); Myatt v. Elliott, 143 S.W.2d 205 (Tex.Civ.App.—Galveston 1940, writ dism’d judgm. cor.); 14 Tex.Jur.2d, Conversion § 26, p. 30. If such exception does exist, Crystal had the burden of proving the value of the goods at the nearest place where such goods could be bought and sold on the market and by proving and subtracting the cost of transportation to such point. See Graves v. Trevino, supra.

Appellant in perfecting its appeal to this Court raises only one question (in two points of error) that is as to the amount and proof of damages which have been awarded to Crystal by the judgment entered by the trial court. There is no complaint of the trial court’s general or specific findings of fact.

Appellant’s first point of error is that judgment should not have been entered for money damages since Crystal failed to prove the value of the oil field equipment in San Patricio County, Texas. This general contention is based on the alleged failure of plaintiff to sustain its burden of proving the fair market value of the equipment converted by appellant in San Patricio County and the action of the trial court in entering judgment for plaintiff. Such an attack necessarily constitutes in effect a “no evidence” point of error as opposed to a factually “insufficient evidence” point. See Chemical Cleaning, Inc. v. Chemical Cleaning & Equipment Service, Inc., 456 S.W.2d 724 (Tex.Civ.App.—Beaumont 1970, writ ref’d n.r.e., 462 S.W.2d 276, Tex.Sup.1970). Under a “no evidence” point, it is our duty to view the evidence and the reasonable inferences therefrom most favorably in support of the trial court’s judgment and its findings in support of the judgment, disregarding all evidence and inferences to the contrary. Biggers v. Continental Bus System, 303 S.W.2d 359 (Tex.Sup.1957); Garza v. Alviar, 395 S.W.2d 821 (Tex.Sup.1965).

Viewing the evidence in light of the rule herein set out, we find that the equipment in question was all located on the subject lease near Mathis, Texas, in San Patricio County. This was the county in which Crystal had the burden of proving market value unless some exception to that measure existed. Crystal’s principal witness was Fred T. Richards, employed as Production Superintendent for Crystal. The evidence showed that Richards was experienced in buying and selling used oil well drilling *386 equipment in the South Texas area and was qualified as an expert and capable of giving his opinion as to the market value.

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Bluebook (online)
524 S.W.2d 383, 52 Oil & Gas Rep. 557, 1975 Tex. App. LEXIS 2747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peter-salpeter-energy-co-inc-v-crystal-oil-co-texapp-1975.