State v. District Court Sixth Judicial District

13 P.2d 568, 44 Wyo. 437, 1932 Wyo. LEXIS 34
CourtWyoming Supreme Court
DecidedJuly 26, 1932
Docket1776
StatusPublished
Cited by5 cases

This text of 13 P.2d 568 (State v. District Court Sixth Judicial District) 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
State v. District Court Sixth Judicial District, 13 P.2d 568, 44 Wyo. 437, 1932 Wyo. LEXIS 34 (Wyo. 1932).

Opinion

*441 Brume, Justice.

This is an action for a writ of prohibition. The facts, briefly stated, in so far as material herein, are as follows:

On May 14, 1929, a petition was filed in the District Court of Converse County by Merrieo Royalties Company, a Wyoming corporation, as plaintiff, against the Merritt Oil Corporation, a Maine corporation, as defendant. It was alleged in the petition that plaintiff and defendant entered into a written contract on July 27, 1917; that under the implied covenants contained therein, the defendant, the Merritt Oil Corporation, agreed to properly protect certain oil lands, described in the petition, against drainage and to prosecute and perform exploration and development work thereon for the benefit of both parties; that the defendant violated these implied covenants in five particulars, mentioned in five different causes of action, and judgment for damages was asked in the sum of $775,000. The contract of July 27, 1917, relied on in the petition, and attached thereto, is, in brief, as follows: It recites that Ed. J. Wells and eleven others were the owners of six and two-thirds per cent of the royalties of oil and gas in the lands described in the petition, and that the Merrieo Royalties Company had succeeded thereto; that the Merritt Oil Corporation was in possession of and de *442 veloping these and other lands; that the parties desired to have the latter conduct the operations thereon as a unit, and it was, accordingly, agreed that it, the Merritt Oil Corporation, should pay to the Merrico Royalties Company its proportion of the royalties in cash during each month.

On application of the Merritt Oil Corporation, the cause was removed to the Federal District Court. On August 12, 1929, that corporation filed its demurrer to plaintiff’s petition, alleging that it failed to state facts sufficient to constitute a cause of action. After argument thereon, and without awaiting a ruling of the court, the plaintiff, on January 22, 1930, filed its amended petition alleging, leaving out some matters immaterial herein, that on November 12, 1914, PI. C. Young and thirteen others entered on 3840 acres.of oil and gas land; that on May 1, 1915, they entered into a lease with one Chas. A. Mau, under which ten per cent royalty was reserved to the original locators, and under which Mau agreed to properly protect the lands against drainage, and to prosecute and perform proper exploration and development work thereon; that defendant Merritt Oil Corporation succeeded to the rights and obligations under the Mau lease, and that plaintiff succeeded to certain royalty interest reserved thereunder, being the same as that alleged in the original petition; that plaintiff and defendant entered into the contract of July 27, 1917, being the same as mentioned in the original petition; that the defendant, the Merritt Oil Corporation had violated the express covenants contained in the Mau lease, and the implied covenants in the contract of July 27, 1917 in five particulars, mentioned in five different causes of action and being substantially the same as those set up in the original petition, and judgment was asked for damages in the sum of $775,000. The amended petition further disclosed that there were other parties interested *443 in the rights claimed by the plaintiff, the details of which are immaterial for the purposes of this case.

The Merritt Oil Corporation thereupon filed its objection to the amended petition, as constituting a departure from the causes of action sued on.in the original petition. It also filed its demurrer on the ground that there was a defect of parties. This demurrer was sustained by the court on June 10, 1930. Thereupon the plaintiff, the Merrico Royalties Company, in October 1930, filed its second amended petition. That also is in five different causes of action, resting upon substantially the same alleged facts as those alleged in the first amended petition, modified only in so far as necessary to meet the objections raised by the demurrer. Accordingly, a number of parties were added, and their respective interests, and the bases thereof, set out. The Consolidated Oil Royalty Company, a Wyoming corporation, and' certain individuals were joined as plaintiffs, and damages were claimed in the sum of $1,085,000. The Minnesota Oil Company, a Wyoming corporation, the Humphreys Foundation, a Colorado corporation, C. F. Clay, Alice B. Humphreys, and two others were joined as defendants, and it was alleged that these additional defendants, here named, refused to join as plaintiffs and were accordingly named as defendants. Thereupon the Merritt Oil Corporation filed its demurrer to the second amended petition on the ground of both defect and misjoinder of parties. It also filed its plea in abatement, duly verified, alleging that C. F. Clay, Alice B. Humphreys, The Humphreys Foundation, were residents of the State of Colorado, part owners of the same royalty interests of which the Merrieo Royalties Company and the Consolidated Royalty Oil Company were part owners; that each of such added defendants were indispensable parties to the action, without the jurisdiction of the court, who had not appeared in the case and could not be served with process.

*444 Thereupon the demurrer came on for hearing, and according to the judge’s memorandum, the facts alleged in the plea of abatement were considered as true. The court held that the added defendants upon whom process had not, and could not be served, were indispensable parties, and made an order remanding the cause to the District Court of the state from which it had been removed. After the case had been sent back to the state court, and the Merritt Oil Corporation had therein filed a demurrer to the second amended petition, there adopted by the court, which was overruled, and after said corporation had filed its objection to the jurisdiction of the court, which was overruled, it filed in this court its petition for a writ of prohibition already above mentioned, claiming that the state court is without jurisdiction to proceed in the cause.

The arguments upon which the relator seeks to sustain its petition in this court are substantially these: The cause originally commenced in the District Court of the state was properly removable, and this point is not questioned; that while the Federal District Court has power to remand a cause removed to it from the State court, it has no power to remand one that was instituted in the Federal court, but that it attempted to do so in this case, for the reason that the causes of action set forth in the amended and second amended petitions filed in this case in the Federal court are based upon an entirely different contract from that on which the causes of action in the original petition were based, hence introduced new and different causes of action in the case, which is equivalent to instituting a new action in the Federal court. It is admitted that the State court has jurisdiction over the class of cases, of which the case at bar is one, and that, if the Federal court had jurisdiction to make the order of remand here complained of, then the State court has jurisdiction. Hence -the main inquiry herein will be directed to the question of the jurisdiction of the Federal court *445 herein. The power of the Federal court to remand a case is given by Title 28, U. S. C.

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Bluebook (online)
13 P.2d 568, 44 Wyo. 437, 1932 Wyo. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-district-court-sixth-judicial-district-wyo-1932.