Temeron, Inc. v. Ferraro Energy Corp.

861 P.2d 319, 1993 WL 394766
CourtCourt of Civil Appeals of Oklahoma
DecidedMay 11, 1993
Docket79431
StatusPublished
Cited by3 cases

This text of 861 P.2d 319 (Temeron, Inc. v. Ferraro Energy Corp.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Temeron, Inc. v. Ferraro Energy Corp., 861 P.2d 319, 1993 WL 394766 (Okla. Ct. App. 1993).

Opinion

861 P.2d 319 (1993)

TEMERON, INC., Appellant,
v.
FERRARO ENERGY CORPORATION and Northern Natural Gas Company, a division of Enron Corporation, Appellees.

No. 79431.

Court of Appeals of Oklahoma, Division No. 3.

May 11, 1993.
Rehearings Denied June 29, 1993.
Certiorari Denied September 22, 1993.

William E. Hughes, Tulsa, for appellant.

Joseph P. Titterington, Oklahoma City, for appellee Northern Natural Gas Co.

R. Lyle Clemens, Oklahoma City, for appellee Ferraro Energy Corp.

Released For Publication by Order of the Court of Appeals of Oklahoma, Division No. 3.

*321 MEMORANDUM OPINION

HANSEN, Chief Judge:

Appellant, Temeron, Inc., (Temeron), seeks review of the trial court's order which sustained Appellee Ferraro Energy Corporation's, (FEC), motion for summary judgment. The order similarly sustained Appellee, Northern Natural Gas Company's, (Northern), motion to dismiss. Temeron brought this action against Appellees, alleging breach of contract against FEC and against Northern for its intentional interference with Temeron's contract. The facts presented to the trial court are these.

On or about August 1, 1986, Temeron and FEC entered into a consulting service agreement wherein Temeron agreed to review FEC's gas purchase contracts to determine whether FEC was receiving all monies to which it might be entitled under the contracts. The agreement provides in part:

1. Services to be provided:
A. Consultant [Temeron] will schedule and conduct a preliminary review of Producers [FEC] contracts to determine if it appears that a full review may disclose underpayments to Producer. There will be no charge to producer for such service. All work papers, notes, etc. created during such review shall remain the sole property of Consultant.
*322 B. If Producer determines that it would benefit from a full review, Consultant will schedule such examination upon notification from Producer and the execution of this Agreement.
2. Assignment of Claim(s):
A. Producer hereby grants Consultant the option to take an assignment of any and all claim(s) identified by Consultant. If Consultant elects to take assignment of a claim on its own account it will pay Producer fifty percent (50%) of any amount it receives from any settlement and/or litigation. Such amounts are due to Producer within thirty (30) days of the receipt thereof by Consultant. Consultant will have full and total authority to accept the terms of any settlement that it deems appropriate. Consultant may require Producer to enter a separate assignment to document Consultant's ownership of the claim(s). Producer further agrees to cooperate with Consultant in executing any documents reasonably required by Consultant to commence, continue or finalize any settlement and/or litigation. Additionally, Producer will furnish any and all witnesses and documents required by Consultant without subpoena as deemed necessary by Consultant in pursuing any claim assigned pursuant to this Agreement. Consultant will assume all costs associated with such negotiations and/or litigation and hold Producer harmless therefrom. Any payment to Producer shall be reduced pro rata by all unrecovered expenses and attorney's fees incurred in pursuing and collecting the claim.
* * * * * *
8. Term:
This Agreement shall become effective from the date set forth above, and shall continue in effect for a period of four(4) years and on a month-to-month basis thereafter until the parties hereto have accomplished the purpose for entering into this Agreement.

Pursuant to this agreement, Temeron examined FEC's records and determined Northern owed FEC several million dollars under their gas purchase contract, a fact unknown to FEC until Temeron examined the records. With FEC's approval, Temeron instituted legal action against Northern in FEC's name, Cause No. 87-01248 (hereinafter "Ferraro v. Enron"), to recover monies due FEC under its gas purchase contract with Northern. FEC and Northern began settlement negotiations without involving Temeron. Temeron maintains the evidence shows Northern would not settle with FEC unless Temeron was excluded from the settlement. FEC thereafter terminated Temeron's services under the consulting agreement. After FEC terminated Temeron's services, Temeron attempted to intervene in Ferraro v. Enron. FEC, but not Northern, opposed Temeron's intervention and the trial court denied the motion. FEC appealed the denial of intervention but subsequently dismissed the appeal after FEC and Northern settled the action for two million dollars. Temeron has received no compensation for its work under the consulting agreement.

FEC's motion for summary judgement was predicated on two grounds: first, that Temeron is precluded from litigating this action because it is barred by the doctrines of res judicata and collateral estoppel by virtue of the denial of intervention in Ferraro v. Enron and second, because Temeron may not recover damages on quasi-contract for services it rendered in the hopes of gaining a business advantage. We will address the issues raised in the motion for summary judgment and then address the issues raised in Northern's motion to dismiss.

Because Temeron dismissed its appeal of the denial of the motion to intervene and such denial has become final, Temeron may not now attack the propriety of that order. All that is in issue here is whether Temeron is precluded from maintaining this action against FEC based on the denial of intervention. Appellant sought intervention pursuant to 12 O.S. 1991, § 2024. It is unclear from a review of the pleadings on the motions to intervene *323 whether Temeron sought permissive intervention or intervention as of right. Both FEC and Temeron agreed the trial court's first order denying intervention was based on Temeron's failure to present evidence that Temeron had received an assignment from FEC of FEC's claims against Northern. In its denial of Temeron's renewed motion to intervene, the trial court stated simply "There is no evidence of a written agreement."

The doctrine of res judicata, or claim preclusion, operates to bar relitigation by the parties or their privies of issues which were or could have been litigated in an action which resulted in a final judgment on the merits. Erwin v. Frazier, 786 P.2d 61, 64 (Okla. 1989). A judgment on the merits is one that disposes of the real or substantial grounds of action or defense as distinguished from matters of practice, procedure or form. Points v. Oklahoma Publishing Company, 672 P.2d 1146, 1147, note 3 (Okla. 1983). When collateral estoppel (issue preclusion) is invoked, the point upon which the plea of estoppel is based must be in issue in the present action and must have been in issue and decided in the former action. Boy Scouts of America, Inc., v. Thompson, 380 P.2d 705 (Okla. 1963); Flick v. Crouch, 434 P.2d 256 (Okla. 1967).

Orders denying intervention are final, appealable orders. Rule 1.10(a)(14)(5); Gettler v. Cities Service Company, 739 P.2d 515 (Okla. 1987). All issues raised in a petitioning intervenor's motion to intervene may be afforded preclusive effect if such were fully litigated and result in an adjudication on the merits. Castro Convertible Corporation v. Castro,

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1996 OK CIV APP 116 (Court of Civil Appeals of Oklahoma, 1996)

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861 P.2d 319, 1993 WL 394766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/temeron-inc-v-ferraro-energy-corp-oklacivapp-1993.