Spartan Petroleum Corp. v. Curt Brown Drilling Co.

1968 OK 101, 446 P.2d 808
CourtSupreme Court of Oklahoma
DecidedJuly 9, 1968
Docket42302
StatusPublished
Cited by7 cases

This text of 1968 OK 101 (Spartan Petroleum Corp. v. Curt Brown Drilling Co.) 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
Spartan Petroleum Corp. v. Curt Brown Drilling Co., 1968 OK 101, 446 P.2d 808 (Okla. 1968).

Opinion

BERRY, Justice.

This action was filed June 8, 1965, by plaintiff, Curt Brown Drilling Company, against Jo Chambers, Joe Barclay, Spartan Petroleum Corporation and Halliburton Company, a corporation. Plaintiff asked judgment and enforcement of a lien upon a leasehold, in connection with services rendered under a written contract for reworking and reconditioning abandoned oil wells for the purpose of secondary recovery.

Halliburton filed answer and cross-petition asking judgment and lien foreclosure for services rendered upon the request of the other defendants to be referred to as defendants or by name in connection with the development of the leasehold involved.

These defendants filed answer and cross-petition alleging a letter contract between Spartan and plaintiff was altered and changed without authority, and that Spartan was ready to pay an additional amount which was then, under their theory, all that was owed. Defendants further alleged the letter contract obligated plaintiff to pay for services rendered by Halliburton. Defendants’ cross-petition sought damages against plaintiff for wrongful filing of liens against the leasehold.

After further pleadings and proceedings plaintiff modified its petition April 11, 1966, to allege the contract relied upon was oral, and was negotiated by Oscar Chambers, husband of defendant Jo Chambers, under proper authority for and on behalf of all defendants. Plaintiff filed an application for the appointment of a receiver August 19, 1966.

*810 Defendant Jo Chambers filed amendment to her answer September 6, 1966, alleging Spartan was not her agent, but was acting on an independent contract for itself; and further that the liens were not filed within time as required by law.

Defendants Joe Barclay and Spartan filed amendment to their answer September 12, 1966, alleging no indebtedness on their part; Spartan was not the record owner of the leasehold; the liens were filed out of time and were void and unenforceable.

The trial court in rendering judgment found, among other things, defendants Jo Chambers and Joe Barclay were the record owners of the leasehold; defendant Spartan was acting as agent for Joe Barclay and Jo Chambers with full authority to enter into contracts relating to the improvement of the leasehold; Spartan and plaintiff, on December 6, 1964, had entered into an oral contract under which plaintiff agreed to perform certain work upon the leasehold; to wash down and recom-plete seven wells; plaintiff would pay expenses for 36 hours at a price of $1,750.00 per well; Spartan would pay $25.00 per hour, plus expenses after the initial 36 hours; plaintiff fully performed its contract with Spartan; defendants received and accepted the benefits of plaintiff’s services and materials furnished between December 28, 1964, and January 21, 1965, and were indebted to plaintiff, who filed lien statement on April 30, 1965, within time provided by law; upon defendants failure to satisfy the judgment, the leases be foreclosed and sold as provided by law; plaintiff’s attorney’s fee be paid by defendants and the costs of this action.

The court made similar findings entering judgment against other defendants in favor of cross-petitioning defendant Halliburton for services and materials rendered, and decreed Halliburton’s lien timely filed, and had equal priority with plaintiff’s lien; upon failure of defendants to satisfy judgment the leasehold be sold as provided by law; and for attorney’s fees and costs.

The court also found Jo Chambers had sold her interest to the Southwest Baptist Institute pendente lite, which sale was subject to the judgments and liens.

The court further found Oscar Chambers was and is the husband of Jo Chambers, who was acting for and under the control of Oscar, as an agent and employee of various corporations dominated and controlled by Oscar, who used Spartan Petroleum Corporation as a front and alter ego of his private interests; Oscar was a mining partner in the leasehold with Jo Chambers and Joe Barclay; the purported written contract between Jo Chambers and Spartan Petroleum Corporation was a sham and fraud to hinder creditors.

From the judgment and order overruling defendants’ motion for new trial this appeal has been perfected.

Defendants submit their argument and authorities under six propositions, which will be discussed without particular numerical reference. The first four propositions stress error in failure of the trial court to sustain defendants’ demurrer and motion for directed verdict. Defendants contend the lien claims were not timely filed as required by 42 O.S.1961, § 143.

Defendants’ theory for reversal appears to be bottomed on their analysis of the facts, which defendants construe as follows: Spartan Petroleum Corporation entered a written contract with Jo Chambers in which Spartan agreed to complete the leasehold as a secondary recovery project for a fixed sum. As a contractor Spartan then subcontracted to plaintiff and to Halliburton. Under defendants’ theory Spartan as a contractor was solely liable to plaintiff and Halliburton. As to Jo Chambers no agreement was made with her, or for her which would bind her for any liability for obligations to Spartan. Having paid Spartan under the contract obligation, her liability at that point ceased. Spartan contracted with and gave directions to the plaintiff and Halliburton for all services rendered. As to Joe Barclay, his interest was an override, and therefore was not *811 liable under the contract. The evidence was insufficient to show agency between Spartan (or its manager Oscar Chambers, Jo’s husband) and Jo Chambers or Joe Barclay. The burden of proof was on plaintiff and Halliburton to prove this agency. Jo Chambers and/or Joe Barclay were not mining partners either with Spartan or its manager Oscar Chambers and complainants’ evidence failed to prove this. Neither Jo Chambers nor Joe Barclay had notice of filing the liens, required by 42 O.S.1961, § 143, which thus were invalid. The evidence showed the liens were filed within 120 days, but not within 90 days as required by 42 O.S.1961, § 143, and therefore the liens were not timely filed.

The foreclosure of a lien is an equitable proceeding. Moral Insurance Co. v. Cooksey, Okl., 285 P.2d 223. Unless the trial court’s judgment is against the clear weight of the evidence it will not be disturbed by this Court on appeal. Equity, having obtained jurisdiction will award complete relief, though in doing so it is necessary to pass on matters ordinarily cognizable at law.

A review of the record discloses defendants’ original answer was based upon a letter contract which, in substance and under their interpretation, obligated defendants to pay a definite sum per well on a “turn key” basis.

The testimony shows Curt Brown with executive authority for plaintiff and C. M. Pearce, employee of Spartan and under direction of Oscar Chambers, at the request of Oscar Chambers went to Fort Smith, Arkansas, to negotiate a contract for secondary recovery development of the leasehold. Curt Brown’s testimony, wholly corroborated by C. M. Pearce, established that an oral contract was entered into between Curt Brown Drilling Company and Oscar Chambers for Spartan. This contract provided that Spartan would pay plaintiff an additional $25.00 per hour and expenses after 36 hours on each hole reworked.

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Bluebook (online)
1968 OK 101, 446 P.2d 808, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spartan-petroleum-corp-v-curt-brown-drilling-co-okla-1968.