Stanton Transportation Company v. Davis

341 P.2d 207, 9 Utah 2d 184, 11 Oil & Gas Rep. 580, 1959 Utah LEXIS 219
CourtUtah Supreme Court
DecidedJuly 6, 1959
Docket8950, 8951
StatusPublished
Cited by18 cases

This text of 341 P.2d 207 (Stanton Transportation Company v. Davis) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stanton Transportation Company v. Davis, 341 P.2d 207, 9 Utah 2d 184, 11 Oil & Gas Rep. 580, 1959 Utah LEXIS 219 (Utah 1959).

Opinion

*186 CROCKETT, Chief Justice.

This appeal raises questions as to whether certain services and materials are proper subjects to create liens on defendants’ oil well after the prime contractor failed to pay for them.-

Stanton Transportation Company sued to foreclose a lien for $12,229.14: $10,984.64 for transporting a drilling rig to the well site, and $1,244.50 for labor in erecting the rig thereon. The trial court held the lien to be valid as to the latter sum, but rejected it as to the claim for transportation.

Continental-Emsco Company, claims $6,-778.74: $4,158.64 for rental of rock-drilling bits, and $2,620.10 for tools and equipment furnished the driller. The trial court allowed Emsco a lien for the value of the bits used, but disallowed it as to the other materials. The appeals and cross-appeals raise the issue as to whether the items above recited are lienable.

Walker-Wilson Drilling Company entered into a contract December 19, 1956, to drill an oil well for defendants Davis upon Davis’ lease in a remote section of San Juan County in southeastern Utah for a flat fee of.$8.25 per foot. Marvin Davis, who negotiated for the defendants, testified that it was contemplated that the driller would arrange for the transportation of an oil rig to the well site, and the cost was to be included in the $8.25 per foot, but that no specific rig was designated and that he didn’t know where - the rig was to come from. Walker-Wilson hired Stanton to bring its rig from near Hayden, Colorado, a total distance of 492 miles, some of which was over rough and unimproved roads, and it was necessary to employ 30 men and 23' trucks in connection with the operation.

In drilling the well Walker-Wilson obtained from Emsco on credit many supplies, which fall into two general classes: rock-drilling bits; and various other tools and equipment.

Before the drilling was completed Walker-Wilson defaulted on its contract and failed to pay the plaintiffs, who filed their liens. Defendants and others hired by them-completed the job and the well began producing on February 27, 1958.

The statute under which plaintiffs claim' these liens is unique, and we are not aware-of any precedent to look to for guidance in-the problem here presented. We set forth 1 the statute, inserting the numbers in brackets for convenience in analyzing it:

“38-1-3. Those entitled to lien— What May Be Attached — Lien on Ores-Mined. — [1] Contractors, subcontractors and all persons performing -labor upon, or furnishing materials to be used in, the construction or alteration-of, or addition to, or repair of, any building, structure or improvement upon land; [2] all foundry men and! boiler makers; [3] all persons per *187 forming labor or furnishing materials for the construction, repairing or carrying on of any mill, manufactory or hoisting works; [4] all persons who shall do work or furnish materials for the prospecting, development, preservation or working of any mining claim, mine, quarry, oil or gas well, or deposit [5] and licensed architects and engineers and artisans who have furnished designs, plats, plans, maps, specifications, drawings, estimates of cost, surveys or superintendence, or who have rendered other like professional service, or bestowed labor, shall have a lien upon the property upon or concerning which they have rendered service, performed labor or furnished materials, for the value of the service rendered, labor performed or materials furnished by each respectively, whether at the instance of the owner or of any other person acting by his authority as agent, contractor or otherwise. * * * ”

In contending that the statute grants a lien for the value of transporting the drilling rig, Stanton picks out this language: ■“All persons who shall do work * * * for the * * * development * * * of •any * * * oil or gas well * * *" and combines it with the later clause, “shall have a lien upon the property upon Or concerning which they have * * * performed labor * * It is to be conceded that a cursory reading of that language makes Stanton’s position seem quite plausible. However, it requires but little reflection to realize that if the statute were given such a broad interpretation, the door would be open to the inclusion of any service pertaining to the planning, exploration, solicitation of finances, advertising, or even such things as office rentals or legal services, which may be regarded as bearing upon the development of an oil well. This would distort the statute beyond its design and make it impractical in its operation.

When uncertainty exists as to the interpretation and application of a statute, it is appropriate to look to its purpose in the light of its background and history, and also to the effect it will have in practical application.

The purpose of the lien statutes is to protect those who have added directly to the value of property by performing labor or furnishing materials upon it. 1 Prior to the compilation of our statutes in 1933, these liens were provided for in four separate sections. 2 The Code Commission in consolidating the statutes for that compilation fused all of those sections into one. The section relating to mining activities was formerly Section 3731 C.L.U.1917, to which “prospecting” and “oil and gas wells” were added. The difficulty we here encoun *188 ter stems from the fact that another section relating to an entirely different class of services was also consolidated with the other lien sections. It provided in part:

“Architects, engineers, and artisans who have furnished designs, plats, plans, maps, specifications, drawings, estimates of'cost, surveys, or superintendence, or who have rendered other like professional service or bestowed labor in whole or part, describing, illustrating, or superintending such structure of zvork done or to be done, or in any part connected therewith, shall have a lien upon the property upon which they have rendered service, or performed labor, or furnished materials, for the value of such service rendered, labor done, or materials furnished, * * *.” 3 (Emphasis added.)

Under the above statute the emphasized language related to those who “bestowed labor,” and was purposely broad in order to give a lien for the drawing of plats, plans, maps or specifications which is not done directly upon the property. In the consolidation with other sections the cumbersome emphasized language was deleted and the more general term “or concerning” was inserted as a shorter substitute. A difficulty with Stanton’s argument that the latter phrase should be given such a broad application to the entire statute is that doing so would be at variance with the tenor of these statutes and particularly the words creating a lien for labor and materials.

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Bluebook (online)
341 P.2d 207, 9 Utah 2d 184, 11 Oil & Gas Rep. 580, 1959 Utah LEXIS 219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stanton-transportation-company-v-davis-utah-1959.