Selby v. Swindler

1926 OK 771, 254 P. 4, 124 Okla. 131, 1926 Okla. LEXIS 595
CourtSupreme Court of Oklahoma
DecidedSeptember 28, 1926
Docket16849
StatusPublished
Cited by2 cases

This text of 1926 OK 771 (Selby v. Swindler) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Selby v. Swindler, 1926 OK 771, 254 P. 4, 124 Okla. 131, 1926 Okla. LEXIS 595 (Okla. 1926).

Opinion

Opinion by

RUTH, O.

The parties hereto will be referred to herein as they appeared in the, trial court.

Plaintiff alleges defendant was the owner of a certain contract for the development for oil and gas purposes on the N. W. % of the S. E. %, S. 21 T. 15, R. 14 E., and on June 14, 1921, defendant conveyed one-half of his interest in the contract for development to plaintiff for the sum of $6,000, and that it was further agreed that plaintiff and defendant should each bear one-half of the expense of drilling and exploring the land lor oil or gas. That defendant, who was an experienced oil producer and operator, did deepen one well and drill another well on the land, and plaintiff paid his share of the expense, amounting to $801.36, and thereafter defendant refused to expend his money, time, and skill in further attempting to develop the property for oil and gas, and plaintiff prays judgment against defendant in the sum of $6,801.36.

A “memorandum of agreement” between plaintiff and defendant is attached to the plaintiff’s amended petition. To this amended petition defendant filed his answer, consisting of a general denial. The cause was tried to a jury, and a verdict returned for defendant, and after motion for a new trial filed and overruled, this cause was regularly appealed to this court for review on petition in error and case-made.

The assignments of error set forth in plaintiff’s brief are leveled against instructions numbered 2, 3, and 4, as given by the court, and to the introduction of certain evidence introduced by defendant over the objections of plaintiff.

Defendant was an experienced oil man, and had known plaintiff about 12 years. In 1920 plaintiff “went in” with defendant on a lease, and lost $4,000, but this did not deter him from continuing in the oil game, and he wanted in on something else. Defendant told him he was a good loser, and would be a good oil man, and a good partner, and offered plaintiff one-half his interest in “production” he had on 36-15-14, at a price which was afterwards reduced to $15,000. Plaintiff thought this price too much for the production, and wanted to know if defendant had anything else he would put in, and defendant said he had an interest in a dry hole on 26-15-14 and a drilling contract with Rainey and Dinebaugh on 21-15-14, that might produce oil if they -got a clear title. Plaintiff said 'T will take it.” Defendant assigned one-half his interest in the leases and contracts to plaintiff, and plaintiff gave defendant his check for $15,000. According to plaintiff’s testimony this transaction constituted three separate deals, including $8,-000 for -the interest in 36-15-14, $1,000 for 26-15-14, and $6,000 for 21-15-14. The defendant testified it was all one deal for $15,-000, which the plaintiff paid with one check at the time of the delivery of the three assignments. This was a question of fact for the jury, and they found in favor of the defendant.

The evidence further disclosed defendant promised plaintiff that he wou'ld let him in on any “good stuff”1 he got on a 50-50 basis, and it is not controverted that defendant did let plaintiff in on all deals he made alter the one in question. One of these deals included the purchase by warranty deed of the S. % of S. E. sec. 21, from Annie & Irene Osborne. Defendant made this purchase, giving his personal check for $10,-000, but immediately told plaintiff of the deal, and offered him a one-half interest for $5,000, which plaintiff accepted, and it was further testified that plaintiff’s interest in the Osborne deal at the time of the trial was worth’ $250,000, and plaintiff had already drawn more than $30,000 from the working interest and more than $10,000 from the royalty interest on this deal alone.

At the time of the execution of the contract between th,e parties hereto, and the delivery of the assignments and the $15,000 check, defendant, as second party, was in possession of a drilling eontráct with Rainey, McKinnon & Dinebaugh of the first part, in which it was disclosed the Papoose Oil Company had a lease on this land, which the first parties agreed to remove by court proceedings. The second party agreed to drill a well in the southwest corner of 21-15-14, to the Wilcox sand, first parties to receive 7/16ths of the oil, and if the well produced more than 300 barrels per day first parties to receive $5,000 in cash.

Second party agreed to drill a second and third well, within a specified time, the cost of drilling and equipping to be borne by both parties, as in the agreement set forth, and it further provides:

“Successive locations shall be made and drilled in the time and manner and under the terms and conditions as herein provided for the drilling of the second and third wells until all locations have been drilled.”

One-half of defendant’s interest in this drilling contract was assigned to plaintiff, *133 who thereby acquired a one-fourth interest therein, and plaintiff—

“agrees to join the party of the first part (this defendant) in the completion of the drilling contract aforesaid, and in the fulfillment of the other provisions of the terms and conditions of said lease.”

The record further discloses that these con • tracts.and agreements were made in June, 1921, at which time the Papoose Oil Company had a lease upon 21-14-14, and this lease was not released and a clear title made until December, 1923, and during this 2%-year period, defendant was never in possession of 21-14-14, until the Papoose Oil Company had drilled into the Glenn sand and got a dry hole. There was another dry hole to the Wilcox sand, and another dry hole, or, as plaintiff expressed it, a “water well,” hut certainly it produced no gas or oil. Itainey, McKinnon & Linebaugh were to bear no part of the expense of drilling dry 'lio'les, and it is in evidence that eight “locations” is a fair average for 40 adres!" and this would have necessitated plaintiff and defendant drilling five more wells with little or no prospect of oil, and the drilling expenses would have had to he borne entirely by plaintiff and defendant, and this defendant, as an experienced oil developer, wanted to release the drilling contract, • but the plaintiff, being inexperienced in oil development, wanted to continue drilling. notwithstanding he testified he relied entirely upon defendant’s knowledge of oil development in all the deals he had gone into. Defendant offered to give plaintiff his interest in 21-15-14 if he wanted to attempt its development, but plaintiff entered into a “modified” contract with Rainey, McXiin-non & Linebaugh, wherein it recited that this plaintiff and defendant should drill two more wells within a certain period or forfeit certain sums for a period of 80 days, after their refusal, as liquidated damages, which sum would amount to $3,000, and at which time the drilling contract would be considered canceled. This modified contract was signed by Rainey, McKinnon & Line-baugh on the one. part, and this plaintiff on the other part, but defendant refused to execute it. Plaintiff contends he was induced to execute the contract by defendant, but this the defendant denies, and testifies the modified contract was signed by plaintiff before defendant ever saw it. However that may ho, all the foregoing were facts for the jury, and were decided in favor of defend-¿nt.

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Cite This Page — Counsel Stack

Bluebook (online)
1926 OK 771, 254 P. 4, 124 Okla. 131, 1926 Okla. LEXIS 595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/selby-v-swindler-okla-1926.