Sanford v. Arjay Oil Co.

686 P.2d 566, 83 Oil & Gas Rep. 410, 1984 Wyo. LEXIS 306
CourtWyoming Supreme Court
DecidedJuly 17, 1984
Docket83-235, 83-236
StatusPublished
Cited by24 cases

This text of 686 P.2d 566 (Sanford v. Arjay Oil Co.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sanford v. Arjay Oil Co., 686 P.2d 566, 83 Oil & Gas Rep. 410, 1984 Wyo. LEXIS 306 (Wyo. 1984).

Opinion

ROSE, Justice.

This case concerns the correlative rights of the mineral lessee and the surface lessee to a particular tract of land. Norman Lee Sanford, as operator and manager of TTT Ranch, holds the right to graze livestock on 1,283.38 acres of land in Johnson and Na-trona Counties. Arjay Oil Company (Ar-jay) leases and operates a number of oil-well sites on this acreage. In August, 1980, 75 head of Sanford’s cattle ingested oil from various pits located on the leasehold. Sanford brought this action against Arjay to recover the value of the contaminated cattle, alleging that the loss resulted from Arjay’s negligent maintenance of well sites and storage pits. The district court entered a default judgment against Arjay for failure to plead responsively. This judgment was subsequently set aside, and, following a trial without a jury, the court attributed liability to Arjay for the loss of 10 heifers. Damages were awarded to Sanford in the sum of $7,000. Sanford appeals the order of the court setting aside the default judgment and also challenges the court’s refusal to award damages for 75 head of cattle. Arjay questions the sufficiency of the evidence to support a finding of liability for more than four heifers. We will affirm.

FACTS

On the evening of August 22, 1980, Sanford drove 300 head of cattle onto the property which is subject to the parties’ grazing and oil leases. The next morning approximately 75 head were discovered with oil on their faces and hides. Most of these animals had encountered oil in the unfenced depression or “yard pit” which Arjay used as a garbage dump for scrap metal, paper and other refuse. A small number of heifers were found in and around three settling ponds or pits located in the tank battery area and used by Arjay to gravitationally separate oil from water.

The source of the oil in the yard pit remained a mystery at trial. Arjay used the pit, located on an elevated portion of the property, exclusively as a refuse dump. Arjay president, Ronald Hollberg, testified that prior to the injury to the cattle, he had observed a mobile tank containing oil in the vicinity of the yard pit. He had directed John Gravalis, a pumper under contract with Arjay, to locate the owner of the tank for the purpose of removing it from the leased property. Gravalis never succeeded in discovering the owner, although the tank had disappeared by the time that Sanford’s cattle ingested oil from the yard pit. Gra-valis speculated at trial that the unknown owner had drained the oil from the tank into the yard pit to facilitate the tank’s removal from the property.

The settling or separation ponds, unlike the yard pit, were designed for the storage of oil and were enclosed by a poorly maintained fence. On the morning of August 23rd, Sanford found three to four heifers within the fence surrounding the settling ponds and another 10 head in the vicinity of the ponds but outside the fence.

Sanford initiated this action against Ar-jay to recover $52,500, the asserted loss in market value of 75 contaminated cattle. Steven D. Luster, an attorney licensed to practice law in Utah but not in Wyoming, timely filed an answer and third-party complaint on behalf of Arjay.' Both parties engaged in extensive discovery. The day before the scheduled pretrial conference, Sanford filed a motion for summary judgment, supported by affidavits affirming that Luster had no authority to practice law in Wyoming. When neither Luster nor any other representative of Arjay appeared at the pretrial conference, Sanford moved for the entry of a default judgment. The district court granted this motion on the ground that Arjay had failed to answer, since the pleadings filed in its behalf by Luster were void and of no effect in Wyoming courts.

*569 After Sanford instituted garnishment proceedings, Arjay retained Wyoming counsel and moved the court to set aside the default judgment, as provided under the Wyoming Rules of Civil Procedure. 1 Counsel for both sides submitted memoran-da on the motion and Arjay filed supporting affidavits from its president and from Steven Luster. Following a hearing, the district court granted Arjay’s motion and entered an order vacating the default judgment. The order provides:

“ * * * The motion having been argued and submitted and the Court having considered the record and the briefs of counsel and being advised in the premises, the Court finds:
“2. That a Default Judgment generally in favor of Plaintiff and against Defendant, was entered in this action as a matter of course, and due to Defendant’s protest against said Judgment through its Motion to Vacate the same, the Default Judgment entered on September 3, 1981, should be vacated.”

Following trial, the court awarded Sanford $7,000 for the loss of 10 heifers discovered in the vicinity of the settling ponds. The court held that Arjay had breached its duty to properly maintain the fence enclosing these ponds and, therefore, was liable for the resulting injuries to the heifers. No damages were awarded for the loss of the cattle discovered in the unfenced yard pit. The court ruled that Sanford had failed to prove that Arjay’s conduct either constituted a breach of duty or proximately caused the harm to these animals. Additional facts which are pertinent to this appeal will be developed during our discussion of the issues presented by the parties.

ISSUES

Sanford presents the following issues for our consideration:

“1. Did the District Court exceed its statutory authority under Rule 60(b) W.R.C.P. when it vacated the September 2, 1981 Default Judgment in favor of Appellant in the amount of its pleaded damages, Fifty-Two Thousand Five Hundred Dollars ($52,500.00), plus costs and interest.
“2. With the recognition that Appellee, Arjay Oil Company, and Appellant, rancher Sanford, each had a right to use of the lands for their respective purposes, did the Appellee have a duty to fence its oil pits used by or upon the leased property to protect Appellant’s livestock from ingesting crude oil in the pits.”
Arjay raises these issues in its brief:
1. “Did Arjay have a duty to maintain fences around the settling ponds at the tank battery?”
2. “Does the record support a finding by the Court that ten head of Sanford’s cattle were injured in the settling ponds at the tank battery?”

During oral arguments, counsel for Arjay withdrew the first issue from our consideration. We will, therefore, respect Arjay’s admission of liability and rule on the question of damages.

VACATION OF DEFAULT JUDGMENT

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Chevron U.S.A., Inc. v. Department of Revenue
2007 WY 62 (Wyoming Supreme Court, 2007)
Bailey v. Algonquin Gas Transmission Co.
788 A.2d 478 (Supreme Court of Rhode Island, 2002)
Orosco v. Schabron
9 P.3d 264 (Wyoming Supreme Court, 2000)
Vanasse v. Ramsay
847 P.2d 993 (Wyoming Supreme Court, 1993)
Oden v. Morgan County Board of Education
617 So. 2d 1020 (Supreme Court of Alabama, 1992)
Ex Parte Oden
617 So. 2d 1020 (Supreme Court of Alabama, 1992)
Carlson v. Carlson
836 P.2d 297 (Wyoming Supreme Court, 1992)
Storseth v. Brown, Raymond & Rissler
805 P.2d 284 (Wyoming Supreme Court, 1991)
Holmes Herefords, Inc. v. United States
753 F. Supp. 901 (D. Wyoming, 1990)
Mingo Oil Producers v. Kamp Cattle Co.
776 P.2d 736 (Wyoming Supreme Court, 1989)
Melehes v. Wilson
774 P.2d 573 (Wyoming Supreme Court, 1989)
Heikkila v. Carver
416 N.W.2d 593 (South Dakota Supreme Court, 1987)
Lee v. Tolleson
502 So. 2d 354 (Supreme Court of Alabama, 1987)
WYMO Fuels, Inc. v. Edwards
723 P.2d 1230 (Wyoming Supreme Court, 1986)
Apollo Drilling v. Seevers
720 P.2d 899 (Wyoming Supreme Court, 1986)
Matter of Injury to Seevers
720 P.2d 899 (Wyoming Supreme Court, 1986)
Hochhalter v. Great Western Enterprises, Inc.
708 P.2d 666 (Wyoming Supreme Court, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
686 P.2d 566, 83 Oil & Gas Rep. 410, 1984 Wyo. LEXIS 306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanford-v-arjay-oil-co-wyo-1984.