Redwine Resources, Inc. v. Predator Technologies, L.L.C.

2007 OK CIV APP 109, 171 P.3d 330, 2007 Okla. Civ. App. LEXIS 82, 2007 WL 3407454
CourtCourt of Civil Appeals of Oklahoma
DecidedOctober 12, 2007
Docket104,218
StatusPublished
Cited by2 cases

This text of 2007 OK CIV APP 109 (Redwine Resources, Inc. v. Predator Technologies, L.L.C.) 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
Redwine Resources, Inc. v. Predator Technologies, L.L.C., 2007 OK CIV APP 109, 171 P.3d 330, 2007 Okla. Civ. App. LEXIS 82, 2007 WL 3407454 (Okla. Ct. App. 2007).

Opinion

OPINION

ADAMS, Judge.

T1 Plaintiff Redwine Resources, Inc. appeals separate trial court orders in its breach of contract action against Predator Technologies, L.L.C,. In the first order, the trial court denied Redwine's motion for a temporary injunction to enjoin Predator from pursuing arbitration in Texas concerning their dispute about drilling services on a well in Haskell County, Oklahoma. The second order granted Predator's motion for an order to compel arbitration and to stay proceedings and overruled Redwine's second motion for a temporary *332 injunction. 1 We conclude the first order is moot because the question of arbitration, which was the object of the requested injunc-tive relief, was subsequently decided on the merits. Based on the undisputed facts in this case, we reverse the second order.

Standard of Review

T2 An application for a temporary injunction is addressed to the trial court's discretion and its ruling will not be disturbed on appeal absent a clear showing of error, either legal or factual, or an abuse of discretion. On appeal we are bound neither by the reasoning of the trial court nor by its findings, but we may examine, consider and weigh all the evidence. Sharp v. 251st Street Landfill, Inc., 1991 OK 41, 810 P.2d 1270, overruled on other grounds, DuLaney v. Oklahoma State Department of Health, 1993 OK 113, 868 P.2d 676.

13 Under the proceedings governing applications to compel arbitration, the existence of an agreement to arbitrate is a question of law. Questions of law are reviewed de novo and without deference to the lower court. Bruner v. Timberlane Manor Ltd. Partnership, 2006 OK 90, 155 P.3d 16; Rogers v. Dell Computer Corporation, 2005 OK 51, 138 P.3d 826. It is under these standards we review the decisions of the trial court.

Facts

14 The following facts are undisputed. Redwine is a corporation located in Dallas, Texas, with offices operating and doing business in Haskell County, Oklahoma. Predator is a Louisiana limited Hability corporation domiciled in Houston, Texas. After Redwine filed for a joint drilling permit for several wells in Haskell County, its engineer, John Burke, was contacted by Predator's representative in April of 2006 to inquire if he would accept a proposal from Predator for directional drilling on a well. Mr. Burke gave his approval. Prior to the end of that same month, Predator's representative presented its Proposal for Directional Drilling for the Fowler 3-H-7 (the Well) to Mr. Burke. During that five minute meeting, Burke informed Predator's representative that "they weren't going to do the work" because Redwine "had contracted with Scientific Drilling out of Oklahoma City to do the work, and that [he] would keep his name and number for future reference."

15 Three months later, during the last week of July, Redwine had just begun moving the drilling rig into location for the Well, when Mr. Burke received a call from Scientific Drilling that it could not start drilling as planned because of some problems with other wells and equipment and personnel shortages. He explained the dilemma to Gary Redwine, Redwine's President, who decided that instead of putting the rig on standby time at a cost of $20,000 per day, Mr. Burke should try to get another company to do the work. That same day, he called Predator and spoke to its representative, Jim Over-kircher, "to see if they could do the work on short notice." Mr. Overkircher agreed he could, and after discussing a similar, yet different well plan in full detail, he explained to Mr. Burke that "the costs would be a little bit more than was in ... that original proposal." Their discussion ended, and Predator began the work on the Well two days later.

T6 Redwine filed this breach of contract action against Predator in September of 2006, alleging that due to Predator's "faulty drilling practices," i.e., "drilling in the wrong direction to establish the proper curve to reach the intended reserve," the drilling equipment could not be removed from the Well and was lost, as was the intended operation of the directional well. It further claimed that as a result of Predator's "negligent and improper directional drilling ... [Redwine] has suffered damages through the *333 cost of the improper drilling performed by [Predator], the loss of income of [the Well], as well as the possible loss of the reserve."

T7 A month later, Redwine moved for a temporary restraining order and injunction seeking to enjoin Predator from pursuing arbitration in Texas. The trial court granted the restraining order until November 9, 2006, the date set for a show cause hearing for the temporary injunction. Predator filed its response opposing Redwine's temporary injunction request concurrently with its Answer and Counterclaim, seeking payment for its services and equipment and alleging that the parties had a binding and enforceable written contract with an arbitration clause 2 and that Redwine had refused its written demand to arbitrate.

T8 At the hearing held on November 9, 2006, each party had one witness testify, and after argument by counsel, the trial court announced it was denying Redwine's temporary injunction based on the existence of a contract with an arbitration provision. On December 7, 2006, Predator filed a motion to settle journal entry and a motion to compel arbitration and stay proceedings, and the trial court set a hearing for both on December 20, 2006. On that date, after Redwine's president testified, the trial court filed its order denying Redwine's application for temporary injunction (the first order), and continued Predator's motion to compel arbitration to January 10, 2007.

19 On that date, Redwine filed separate motions to stay the enforcement of the December 20, 2006 Order and to obtain a temporary injunction. Two days later, the trial court filed separate orders, explaining the parties' stipulation to submit their pending motions based on the transcripts from the previous hearings and any documentary evidence properly submitted to the Court, allowing the filing of additional briefs and responses, setting a hearing for January 31, 2007, and requesting that the parties' briefs address certain issues, 4.e., choice of law and signature requirements for arbitration contracts. After the parties filed the requested briefs and responses, Redwine filed an appeal from the December 20, 2006 Order, identifying it as an interlocutory order ap-pealable by right under 12 0.8.2001 § 993. 3

€10 At the scheduled hearing, no witnesses testified and the parties' counsel declined the trial court's offer for additional argument on the issues. Thereafter, the trial court announced its decision that "venue and jurisdiction are proper" and that there is no choice of law issue because there is no material difference between Texas and Oklahoma law. Based on the evidence presented, the trial court found that the parties had an agreement to arbitrate under the April Proposal, 4 granted Predator's motion for an order for arbitration and to stay the pending proceedings, and overruled Redwine's second motion for temporary injunction. The trial court's order to that effect was filed January 31, 2007.

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2007 OK CIV APP 109, 171 P.3d 330, 2007 Okla. Civ. App. LEXIS 82, 2007 WL 3407454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redwine-resources-inc-v-predator-technologies-llc-oklacivapp-2007.