Triangle Ranch, Inc. v. Union Oil Co.

287 P.2d 537, 135 Cal. App. 2d 428, 4 Oil & Gas Rep. 1889, 1955 Cal. App. LEXIS 1377
CourtCalifornia Court of Appeal
DecidedSeptember 13, 1955
DocketCiv. 20966
StatusPublished
Cited by17 cases

This text of 287 P.2d 537 (Triangle Ranch, Inc. v. Union Oil Co.) 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
Triangle Ranch, Inc. v. Union Oil Co., 287 P.2d 537, 135 Cal. App. 2d 428, 4 Oil & Gas Rep. 1889, 1955 Cal. App. LEXIS 1377 (Cal. Ct. App. 1955).

Opinion

WHITE, P. J.

This is an appeal by plaintiff from a judgment of dismissal entered following an order of the court sustaining defendants’ demurrer to all three causes of action set forth in plaintiff’s second amended complaint, without leave to amend the first cause of action and with leave to amend the second and third causes of action. Subsequent to said order, counsel for plaintiff wrote to defendants’ attorneys in part as follows:

“In the above matter it has been decided not to further amend the complaint.
“Accordingly, we request that a judgment of dismissal be entered so that the matter may be reviewed by an appeal.” Thereafter, counsel for defendants filed their affidavit setting *431 forth among other averments the foregoing declination of plaintiff to amend its complaint and requesting a dismissal thereof. Judgment was accordingly entered.
From an examination of the record herein we are satisfied that the factual background surrounding this litigation, the allegations of plaintiff’s second amended complaint and the issues thereby raised are fairly and correctly epitomized in the memorandum opinion of the trial judge which has been brought up on this appeal. We therefore adopt as part of this opinion said summary with additional allegations obtained by us from the second amended complaint.
“Plaintiff, having sold and conveyed a portion of its land to defendant Union Oil Company, ‘excepting therefrom all petroleum, coal, ’ etc., by grant deed dated December 30, 1949, subsequently entered into a written contract with its grantee on January 25,1950, whereby among other things it consented and approved of Union Oil Company’s ‘exercise of its rights and privileges under (a certain grant to the oil company) to drill for, produce, take, store, handle, process, remove and ship oil, gas and other hydrocarbon substances’ from the land conveyed and did thereby ‘agree to join with, approve and endorse the action of First Party (Union Oil Co.) in any and all applications or petitions that First Party may file from time to time with the Regional Planning Commission of Los Angeles County or other governmental body for zoning exceptions and/or permission to conduct any such drilling and producing operations as First Party may deem necessary or convenient, upon said controlling drilling site. ’
“Plaintiff alleges that during the negotiations for the property plaintiff knew of the exclusive residential character of plaintiff’s property adjacent to the property sold to Union Oil Co., and that ‘in order to preserve such exclusive residential character of said district,’ ‘a contemporaneous oral agreement was made’ between plaintiff and said defendant in December, 1949, ‘ collateral to the aforesaid sale of said land and execution and delivery of said grant deed’ which according to its terms as alleged, substantially limited the use of the drilling site. It is very significant that this oral agreement of December, 1949, is alleged to be collateral to the deed executed that month but is not even mentioned in the deed, much less in the formal written agreement of January 25, 1950, relating to defendant’s right to drill for oil.
“In December, 1952, and February, 1953, the Regional Planning Commission held hearings on two applications by *432 Union Oil Co. for zoning exceptions which were later granted. Plaintiff appealed to the Board of Supervisors which allegedly-refused to hear the appeals; at least, it is alleged, the Board gave plaintiff no opportunity to present its case orally. The Board affirmed the two decisions in May, 1953.”

It was also alleged by plaintiff that the area in which its property is located including the portion sold to defendant Union Oil Company was at the time of such sale of great value for exclusive residential and subdivision purposes, and was classified under the zoning ordinance as R-A-l (residential-agricultural) by County Ordinance No. 5279, and in which zone oil wells were prohibited. However, section 526 of the ordinance provides that an exception may be granted permitting the drilling of an oil well if, (a) it appears probable that there is oil underneath the property under consideration or under adjacent property which oil cannot be otherwise extracted, and, (b) Such exception will not be materially detrimental to the public welfare nor to the property of other persons located in the vicinity thereof.

Quoting further from the trial judge's memorandum opinion, “Plaintiff contends in substance that the action of the Planning Commission and the Board were unwarranted, oppressive and unreasonable interference with its property rights, and an unconstitutional impairment of its property rights under its alleged collateral agreement with Union Oil Co.; that their action was not a legitimate exercise of the police power and was ‘inimical to due process of law’; and that there was ‘a total lack of evidence to sustain said two orders’ and that they are illegal and void.

“. . . The complaint alleges three causes of action. The prayer for relief reads: . . .

“(1) On -the first cause of action, for declaratory relief against all and each of the defendants herein, declaring (a) that the evidence proffered by plaintiff in support of the collateral agreement was competent and essential to a proper determination of plaintiff’s rights, and that the Regional Planning Commission erred in failing to receive and consider said testimony; (b) that the decisions and orders of the Regional Planning Commission and of the Board of Supervisors were unreasonable, oppressive, and same constituted an unwarranted interference with the property rights of the plaintiff and was tantamount to the taking of plaintiff’s property without due compensation; (c) that plaintiff was entitled to a hearing before the Board of Supervisors on its *433 two appeals, and the denial thereof deprived plaintiff of a fair hearing within the concept of due process of law; (d) that there was a total lack of substantial evidence to support the aforesaid decisions and orders of the Regional Planning Commission and of the Board of Supervisors : (e) that plaintiff is entitled to a writ of mandate commanding and directing the Regional Planning Commission to grant plaintiff a full and complete hearing, and that this Court should by its judgment and decree order the vacation of the aforesaid orders of the Regional Planning Commission : (f) that plaintiff is entitled to a mandatory judgment directing and commanding the defendant Union Oil to remove all the buildings constructed thereon and to comply with the collateral agreement; (g) that plaintiff is entitled to a prohibitory injunction restraining and enjoining the defendant Union Oil from breaching said collateral agreement.
“ (2) On the second cause of action, for a peremptory writ of mandate against the Regional Planning Commission and the Board of Supervisors as hereinabove stated.
“ (3) On the third cause of action, for a permanent mandatory and prohibitory injunction against the Union Oil Company as hereinabove stated.”

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Bluebook (online)
287 P.2d 537, 135 Cal. App. 2d 428, 4 Oil & Gas Rep. 1889, 1955 Cal. App. LEXIS 1377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/triangle-ranch-inc-v-union-oil-co-calctapp-1955.