Valentine v. Ormsbee Exploration Corp.

665 P.2d 452, 1983 Wyo. LEXIS 330
CourtWyoming Supreme Court
DecidedJune 8, 1983
Docket5834, 5835
StatusPublished
Cited by50 cases

This text of 665 P.2d 452 (Valentine v. Ormsbee Exploration Corp.) 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
Valentine v. Ormsbee Exploration Corp., 665 P.2d 452, 1983 Wyo. LEXIS 330 (Wyo. 1983).

Opinion

GUTHRIE, Justice, Retired.

This case arose when Ormsbee Exploration Corporation, plaintiff below and appel-lee here, filed a suit seeking recovery for furnishing a drilling rig and for the loss of tools incurred in the drilling of a well for oil in Johnson County, Wyoming. This claim was asserted against Dale Valentine, d/b/a Valentine Construction Co., defendant below and appellant here, who, by way of answer, admitted the agreement, that the work had been done, and that the tools and equipment had been lost, but asserted several affirmative defenses. Dale Valentine further filed a third-party complaint against George Brown Supply Co. making it a third-party defendant and George Brown Supply Co. also appears as an appellant herein based upon the judgment. The third-party complaint rests upon the claim that George Brown Supply Co. had sold a bail to Ormsbee Exploration Corporation and that the bail’s failure caused the loss of the string of tools which was unrecoverable, forcing the abandonment of the well. It was claimed that the bail was defective and unmerchantable and that breach of its warranty of fitness was the proximate cause of the mishap. Third-party plaintiff sought recovery of any sums which might be awarded against him in Ormsbee’s suit and certain other damages resultant from the mishap.

The court below entered judgment for Ormsbee against Valentine in the sum of $90,439.06, plus interest and costs, and in favor of Valentine upon the third-party complaint against George Brown Supply Co. in the sum of $111,856.59, plus costs. Valentine brings this appeal seeking to set aside the judgment against him and in favor of Ormsbee Exploration Corporation. George Brown Supply Co. seeks reversal of the judgment obtained by Valentine against it on the third-party proceedings.

We will affirm.

The original action and the action on the claim asserted by way of third-party complaint were consolidated for trial but were tried separately as a matter of convenience. For clarity and convenience, we shall follow the same format in making our disposal.

After an earlier telephone conversation between Pat Ormsbee and Dale Valentine which explored the possibilities of the Ormsbee Exploration Corporation supplying a rig, equipment, tools and services to Dale Valentine for the drilling of a well for oil in Johnson County, Wyoming, Pat Ormsbee, as president of said corporation, sent a letter, setting out its proposal to Valentine on April 10, 1980. Valentine made an oral, acceptance of this proposal sometime prior to July 7,1980, and in pursuit of this agree* ment, the rig and equipment were moved upon the location of the well on July 7, 1980, and drilling began there on July 8, 1980. The plaintiff (appellee here) continued the operation until August 7, 1980, when a bail broke causing a string of 1,100 feet of drill pipe, 100 feet of drill collars, a drill bit, three subs and a part of the bail to fall into the hole. Ormsbee spent some time using fishing tools in trying to recover these and remove them from the well. When it was unable to recover the string of pipe or other equipment, further drilling of the well was made impossible.

It was for the use of the rig and the lost pipe and equipment that Ormsbee makes its claim and by virtue of which the trial court entered its judgment against Dale Valentine. The issues which appellant raises in his appeal are as follows:

“I. Did the trial court err in holding that the risk of loss as to Plaintiff Orms-bee’s equipment lost in the hole, and thei consequent loss of the hole entirely prior1 *455 to reaching the objective depth, should be borne by Defendant Valentine?
“II. Did the trial court err in awarding Plaintiff Ormsbee damages on the theory of quantum meruit?
“HI. Did the trial court err in disregarding the corporate entity of D and V Investments, Inc[.]?”

Although the judgment entered herein contains only a general finding, the statement of the issues is derived from the opinion letter delivered by the trial judge in announcing his disposal of this matter. The applicable portions of that letter, insofar as they are necessary to understand the appellant’s position, are as follows:

“As to the contention that the agreement was made by Dale Valentine in behalf of D & V Investments, the Court will disregard the corporate entity D & V Investments. All negotiations were conducted between Ormsbee and Dale Valentine, the D & V Investments is a closely held corporation consisting of Dale L. Valentine and his wife, Verna. The corporation has minimal assets.
* * * *
“The contract between the parties was silent as to who would assume the risk of loss. Mr. Ormsbee testified that the contract was a day work contract, which commonly provides that the operator assumes the risk of loss such as occurred in this case. The contract obviously could not be considered an hourly contract nor a turn-key contract. Mr. Valentine, the operator, or his agent Mr. Ohman maintained supervision over the drilling of the well and authorized the fishing operation and the cessation of the fishing operation. The parties operated under this contract as though it were a day rate contract, and the Court finds that the contractor, Ormsbee, is entitled to recover for the agreed compensation under the written proposal and for the loss of the equipment and material occasioned by the failure of the bail.
“Under the theory of quantum meruit the Plaintiff furnished the labor and material to the defendant; the defendant accepted the services; and the defendant did receive the benefit of the work accomplished up to the time of the abandonment of the fishing operation.”

The letter containing the accepted proposal is as follows:

“Regarding your well to be drilled west of Kaycee in Johnson [Cjounty, we would like to make the following proposel [sic]: “We would provide one 1978 15-W model Gardner-Denver rig powered by a 350 HP Cummings diesel engine. The rig is equiped [sic] with a 5½ X 8 Gardner-Denver mud pump as described in the enclosed brochure. Our rigs have stretched derricks designed to rack two 20' lengths of pipe, and can stand back 2500' of 2⅞" X 20' pipe. Additionally the rig is equiped [sic] with a WEJ air compressor, 7½" retracting rotary table, sufficient pipe coders, [sic] 10' X 2⅛" Christensen cor barrel with split inner tub as described, fuel, lubricants, and an experienced crew.
“Our rates for this equipment would be $135.00/hr. This would apply to rigging up, rigging down, drilling and setting surface casing, cementing, drilling and reaming, running pipe, completion work, plus any standby at your request. Additionally we would bill you at our cost for all bits, mud, lost circulation material, chemicals, third party services, and rental tools. There would be a $3.00 per mile move in and move out cost, plus per diem expense of $30.00 per day for each man on the 3 man crews. This hourly rate would apply to a drilling unit consisting of a rig, a 3000 gallon water truck, and a 4X4 radio equiped [sic] pickup. We would provide a 580 model Case backhoe for digging and cleaning pits at $25.00 per hour when in use only.
“Rocky Mountain Rental Tool has quoted a double gated B.O.P.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rohde v. Smiths Medical
2007 WY 134 (Wyoming Supreme Court, 2007)
Ruby Drilling Co., Inc. v. Duncan Oil Co.
2002 WY 85 (Wyoming Supreme Court, 2002)
I'On, L.L.C. v. Town of Mt. Pleasant
526 S.E.2d 716 (Supreme Court of South Carolina, 2000)
McLaughlin v. Michelin Tire Corp.
778 P.2d 59 (Wyoming Supreme Court, 1989)
Smithco Engineering, Inc. v. International Fabricators, Inc.
775 P.2d 1011 (Wyoming Supreme Court, 1989)
Century Ready-Mix Co. v. Lower & Co.
770 P.2d 692 (Wyoming Supreme Court, 1989)
Sims v. General Motors Corp.
751 P.2d 357 (Wyoming Supreme Court, 1988)
Condict v. Whitehead, Zunker, Gage, Davidson & Shotwell, P.C.
743 P.2d 880 (Wyoming Supreme Court, 1987)
Stillwell Welding Co. v. Colt Trucking
741 P.2d 598 (Wyoming Supreme Court, 1987)
Deroche v. R.L. Manning Co.
737 P.2d 332 (Wyoming Supreme Court, 1987)
Wheeler v. Woods
723 P.2d 1224 (Wyoming Supreme Court, 1986)
Grindle v. State Ex Rel. Wyoming Worker's Compensation Division
722 P.2d 166 (Wyoming Supreme Court, 1986)
Ogle v. Caterpillar Tractor Co.
716 P.2d 334 (Wyoming Supreme Court, 1986)
Macy v. Macy
714 P.2d 774 (Wyoming Supreme Court, 1986)
Hunteman v. Ward Transport, Inc.
706 P.2d 1126 (Wyoming Supreme Court, 1985)
Blanton v. Federal Deposit Insurance Corp.
706 P.2d 1111 (Wyoming Supreme Court, 1985)
Ely v. Kirk
707 P.2d 706 (Wyoming Supreme Court, 1985)
Dehnert v. Arrow Sprinklers, Inc.
705 P.2d 846 (Wyoming Supreme Court, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
665 P.2d 452, 1983 Wyo. LEXIS 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valentine-v-ormsbee-exploration-corp-wyo-1983.