Todd v. Meserve

269 P. 710, 93 Cal. App. 370, 1928 Cal. App. LEXIS 690
CourtCalifornia Court of Appeal
DecidedJuly 31, 1928
DocketDocket No. 6290.
StatusPublished
Cited by6 cases

This text of 269 P. 710 (Todd v. Meserve) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Todd v. Meserve, 269 P. 710, 93 Cal. App. 370, 1928 Cal. App. LEXIS 690 (Cal. Ct. App. 1928).

Opinion

CAMPBELL, J., pro tem.

In this action plaintiff prays judgment against defendants in the sum of $20,302.28, and defendants Shirley E. Meserve, Robert B. Moran, and T. Howard Knight, individually and as trustees of an express trust, by way of cross-complaint pray judgment against plaintiff in the sum of $100,000.

About July 27, 1923, plaintiff, W. O. Todd, and defendants, Shirley E. Meserve, T. Howard Knight, and Robert B. Moran, as trustees of an express trust, entered into a written contract by the terms of which W. O. Todd agreed to drill an oil-well by the rotary method to be known as " Meserve-Knight-Moran No. 1” upon property in the so-called Signal Hill oil-field. This contract provided, among other things, that the trustees should furnish at the location of the well a complete derrick, boilers (to be set up and connected and steam line carried to the derrick *373 floor), water, fuel, lights sufficient for the boilers and for drilling, and for lighting of the derrick, and all casing; that Todd should furnish all the necessary and proper rotary machinery, drill-pipe, tool joints, drilling engines, pumps, and other necessary rotary equipment and tools, and all labor necessary to drill the well to a depth of approximately 3,500 feet. By the terms of this contract Todd also agreed to drill the well and land casing in such size and dimensions as should be directed by the trustees and to set approximately 3,500 feet of 8¼-inch casing. By the terms of this contract Todd was to be entitled to no compensation unless he landed this 8¼-inch casing at or approximately at the 3,500-foot level. The contract further provided that the trustees should pay Todd for the drilling of the well and the landing of this easing at or approximately at the 3,500-foot level $22,500, and that Todd should in addition to this sum, upon landing of the water string at or approximately at the 3,500-foot level, be entitled to receive from the trustees an assignment of twelve and one-half per cent interest of the net proceeds of all oil or gas produced from the well over and above the cost of maintenance and deduction on account of taxes and royalties. The contract further provided that upon Todd’s landing the water string at or approximately at the 3500-foot level he should turn over and deliver the hole to the trustees with casing properly set and open to the full diameter for the full length.

For the completion of the well below the approximate depth of 3,500 feet the contract provided that Todd “furnish all of his equipment, tools and appliances to the trustees, until said well is completed, for the rental of twenty-five ($25.00) dollars per day and shall perform the necessary labor for drilling said well, and said trustees agree to pay for all of contractor’s (Todd’s) labor and drilling crews, until such well is completed, at the rate of $.... per day, together with the necessary supplies and the cost of the proper and necessary insurance, compensation or otherwise, after the drilling in of said well after the landing of the water string.”

The contract further provided that the depths mentioned therein were approximate only, and that drilling was to be stopped or continued as directed by the trustees, and *374 casing landed at points designated by the trustees as changes in formation might make advisable. By written indorsement at the end of the contract defendants T. Howard Knight, Robert B. Moran, Lawrence N. Wagner, Shirley E. Meserve, L. J. Fleming Bremner, and Edwin A. Meserve guaranteed the performance of all of the terms and conditions thereof to be performed on the part of the trustees and the payment of all moneys that might become due to Todd in accordance with the terms of the contract.

The work of rigging up the well was started on July 15 or 16, 1923, and the well was spudded in and drilling operations commenced on July 31, 1923. On September 11, 1923, a depth of 3,456 feet had been reached and the 8¼-inch water string was landed and cemented at that depth on September 13, 1923. This completed the first stage of the work under the contract. There is no contention that the landing of the water string at the depth of 3,456 feet instead of at the depth of 3,500 feet as provided in the contract was not a satisfactory performance by Todd of his obligations under the contract with respect to the landing of this string, or that Todd was upon the landing of the water string at that depth not entitled to the consideration which it was provided in the contract he should be entitled to receive upon the landing of the water string. The complaint alleges—and it is not denied in the answer— that Todd landed the water string at approximately 3,456 feet, “which was the depth then and there designated by the first parties to said drilling contract.”

Upon the landing of the water string the drilling of the well proceeded and a 6¼-inch casing was landed at a depth of 4,165 feet. On February 17, 1924, the well had been drilled to a depth of 4,761 feet and on that day an attempt was made to run a 4%-inch oil string into the hole. This oil string stuck at a depth of 230 feet from the bottom of the hole. The following day and while an effort was being made to work this oil string loose the oil string parted, leaving approximately 194 feet of the oil string in the bottom of the hole. This necessitated the drilling of a new hole past the portion of the oil string lost in the bottom of the first. hole. This work of side *375 tracking was immediately undertaken and a new hole drilled to a depth of 4,705 feet. Into this hole another oil string was run and cemented, and about April 23, 1924, the well was placed on production at approximately 1,200 barrels per day. Todd was paid the consideration which by the terms of the contract it was agreed should be paid him upon the landing; of the 8¼-inch water string, i. e., $22,500 in cash and an assignment of a twelve and one-half per cent interest in the net proceeds of oil or gas produced from the well. Concerning this, there was no dispute.

For the drilling of the well below the depth of 3,456 feet plaintiff claims the following amounts: (1) amounts paid by him for labor and drilling crews $31,644.11; (2) rental of his equipment, tools and appliances at the contract rate of $25 per day for 223 days, $5,575; (3) amounts paid by him for necessary supplies, $447.92; (4) amounts paid by. him for workmen’s compensation insurance, $1,469.82; making a total of $39,136.85.

Appellants urge that respondent under the contract was required to furnish equipment; that the salary of J. P. Evans (foreman or “tool pusher”) is not included in the contract as part of the labor appellants had agreed to pay; respondent was negligent in landing the oil string; appellants were wrongfully charged for labor while men were playing cards; refusal of instructions; the evidence is insufficient to sustain the verdict, and errors in admission of evidence.

The first two assignments may be considered together.

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Bluebook (online)
269 P. 710, 93 Cal. App. 370, 1928 Cal. App. LEXIS 690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/todd-v-meserve-calctapp-1928.