Tulsa Fuel & Mfg. Co. v. Gilchrist Drilling Co.

1920 OK 212, 190 P. 399, 79 Okla. 82, 1920 Okla. LEXIS 27
CourtSupreme Court of Oklahoma
DecidedMay 18, 1920
Docket9709
StatusPublished
Cited by5 cases

This text of 1920 OK 212 (Tulsa Fuel & Mfg. Co. v. Gilchrist Drilling Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tulsa Fuel & Mfg. Co. v. Gilchrist Drilling Co., 1920 OK 212, 190 P. 399, 79 Okla. 82, 1920 Okla. LEXIS 27 (Okla. 1920).

Opinion

PITOHFORD, J.

The plaintiff in error was defendant below, and the defendant in error was plaintiff below. Hereafter the parties will be referred to, respectively, as they appeared in the trial court.

The Lynna Oil Company was the owner of an oil lease, and the defendant was the owner of a gas lease on the west half of the southwest quarter of section thirty (30), township twenty-three (23) north, range fourteen (14) east. These leases had been purchased from the original owners, O. B. Goldrick, Ray Collins, and Donald P. Oak. The defendant’s purchase was prior to that of the oil lease by the Lynna Oil Company.

There seems to have been some agreement or. understanding between the defendant and the original owners of the oil lease that either parity had the right to drill wells upon the leasehold estate, and in case the owners of the oil rights drilled a well producing gas the owners of the gas rights might take it over, and if the owners of the gas rights drilled a well producing oil the owners of the’ oil rights might ¡take the same over, the party so taking the well to pay the expenses of drilling.

The Lynna Oil Company purchased the oil lease December 15,1915. There is no positive evidence showing that the defendant knew of the change in ownership of the oil lease. The Gilchrist Drilling Company, the plaintiff, was' composed of W. O. Goldrick and F. N. Gilchrist. W. O. Goldrick was the father of O. B. Goldrick; one of ¡the original owners of the lease and had been acting as superintendent for his son, O. B. Goldrick, Collins, and Oak.

On or about January 1, 1916, the plaintiff commenced and prosecuted to completion to the depth of 1,275 feet, a test well for gas and oil. The well proved to be dry, and was accordingly plugged. The plaintiff, after completion of ¡the well, sent a bill for the work to the Lynna Oil Company and also to the defendant. The former paid one-half of the bill and refused to pay the balance, claiming that the defendant was liable therefor. The defendant refused to acknowledge its liability, and the plaintiff commenced this action in the district court for Tulsa county against the 'defendant, demanding judgment for the sum of $541.87. Judgment was returned in favor of the plaintiff for $440.50.

The grounds relied on for reversal of the judgment of the trial court were, first, the verdict of .the jury was contrary to the evidence introduced in said cause and wholly unsupported thereby; second, that the verdict of ithe jury and judgment of the court thereon were contrary to law.

The jury at the time the cause was submitted to them answered certain interrogatories as follows : First: “Was there an express or implied contract between the plaintiff and the defendant, the Tulsa Fuel & Manufacturing Company?” to which the jury unanimously answered, “Yes.” Second: “Did the Tulsa Fuel & Manufacturing Company know that the plaintiff was drilling a well for it, or did it have knowledge of facts or circumstances sufficient to apprise it of that fact?” to which question the jury unanimously answered, “Yes.”

The facts and circumstances connected with and surrounding -the drilling of the well are practically as follows: Sometime prior to January 1, 1916, W. O. Goldrick, one of the plaintiffs, had a conversation with M. D. Arbuckle, field superintendent for the defendant company, in which he told Mr. Ar-bueklc thait something ought to be done with *83 the lease; that the rights thereunder would soon expire. He say's that Mr. Arbuckle replied by telling him: “Our contractors are busy. We can’t get to it. Have you got a string of tools you can put on them?” The witness says that he told him he 'could. After this conversation over the ’phone, the witness had a conversation with Mr. Ar-buckle in the office of the plaintiff company. They there discussed the best place to locate the well. Mr. Arbuckle stated that he wanted the well in the southeast corner to test the lease south of it. The witness further testified that he reported ito the Tulsa Fuel & Manufacturing Company as to the progress being made in drilling the well; that he called up the office of Mr. Arbuckle and made reports at different times, and Mr. Ar-buckle was asked for gas and his reply was, “They didn’t have any line up there.” The witness further stated thait after -they got the well to a point where they considered it dry, he called Mr. Arbuckle over the telephone and wanted to know what should be done, whether they -ought to go any deeper or not. He says that Mr. Arbuckle answered, “As far as we are concerned, we are through with it.” The witness further testified that he sent a bill to the defendant and they refused to pay it. He spoke to Mr. Arbuckle about it, and Mr. Arbuckle replied: “We won’t pay 85c a foot; we only pay 75c to our contractors.”

There was also evidence to the effect that Mr. Arbuckle was frequently in the neighborhood where the well was being drilled, and was present at the well on one occasion, at least. It appears that the Lynna Oil Company furnished the casing for the well and also the gas to run the machinery.

The question presented for our consideration is as to whether 'or not .there was evidence sufficient to sustain the verdict of the jury. The province of the jury is to weigh the evidence, consider the conduct and manner of those testifying, and to reconcile conflicts in the proof, and if the verdict is found to be reasonably sustained -by any competent evidence, the same should not be disturbed.

There is nothing in the evidence showing an express contract between the parties, consequently the plaintiff must rely for recovery upon what is known as an “implied contract.” The intention of the parties in an implied contract is to be gathered from their acts, in connection with the surrounding circumstances, and what was said -between the parties at the time, the nature of the work done, and as to how the interest of the parties sought to be charged is ■ affected thereby.

An implied contract is defined in 13 O. .1., sec. 8, p. 241, as follows:

“A contract implied in fact, or an implied contract in the proper sense, arises wnere the intention of the parties is not expressed, but an -agreement in fact, creating an obligation, is implied or presumed from their acts, or, as it has been -otherwise stated, where there are circumstances which, according to the ordinary course of dealing and the common understanding -of men, show a mutual intent to contract. It follows, that the only distinction between this species of contract -and express contracts rests in the mode of proof; the nature of the understanding is .the same, and both express contracts and contracts implied in fact are founded on 'the mutual agreement of -the parties. The one c’ass is proved by direct, the other by indirect evidence ; in other words, the one must be proved by an actual agreement, while in the case of the other it will be implied that the party did make such an agreement as, under the circumstances disclosed, he ought in fairness to have made. The implication, of course, must be a reasonable deduction from all the circumstances and relations of the parties, although -it need not be evidenced by any precise words, and may result from random statements and uncertain language.”

In Rains et al. v. Weiler et al. (Kan.) 166 Pac. 235, it was said:

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Bluebook (online)
1920 OK 212, 190 P. 399, 79 Okla. 82, 1920 Okla. LEXIS 27, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tulsa-fuel-mfg-co-v-gilchrist-drilling-co-okla-1920.