West Edmond Hunton Lime Unit v. Young

325 P.2d 1047
CourtSupreme Court of Oklahoma
DecidedMay 12, 1958
Docket37753
StatusPublished
Cited by11 cases

This text of 325 P.2d 1047 (West Edmond Hunton Lime Unit v. Young) 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
West Edmond Hunton Lime Unit v. Young, 325 P.2d 1047 (Okla. 1958).

Opinion

JOHNSON, Justice.

This is the second appeal in this case. The first appeal, Young v. West Edmond Hunton Lime Unit, Okl., 275 P.2d 304, involved a suit by certain royalty owners (plaintiffs in error in the first appeal and defendants in error in this second appeal) for themselves and for others similarly situated against a unit organization (West Edmond Hunton Lime Unit, defendant in error in the first appeal and plaintiff in error herein) created pursuant to unitization statutes for operation of a producing oil field, for loss sustained from failure of the unit and operator to take or deliver unit production at the highest sale or market price available. The trial court entered judgment for the defendant (unit) and plaintiffs appealed. This Court in deciding the case on first appeal held that under 12 O.S.1951 § 233, plaintiffs were authorized to sue for themselves and all others similarly situated, and that the unit operator breached trust to numerous owners of royalty interests in separately owned tracts of the unit, who in a certain period of time had not received their share of the unit production in kind, or proceeds thereof measured by the highest available price, and reversed and remanded the cause (275 P.2d at pages 310-311) and in doing so said:

“The cause is remanded, and the trial court is directed to enter judgment for the plaintiffs and against the defendant for the sum of $1,203.30, and to enter judgment directing the defendant to account to and pay all persons owning royalty interests on oil produced from the unit tracts involved herein during the time period involved herein, from September 28th to December 17th, such sums, respectively, that each of said royalty owners shall have received in proceeds for their percentage of the oil produced in said period a sum equal to $3 per barrel for said oil.”

The present appeal is brought by the Unit (plaintiff in error) from the judgment entered by the District Court on the mandate issued by this Court in the former (first) appeal. It contends that the District Court judgment is not in accord with the terms of the mandate.

The question presented on this appeal is whether or not the District Court has properly carried out the mandate issued by this Court after reversing the District Court’s original judgment in favor of the Unit, and directing entry of judgment in favor of the Youngs and other royalty owners.

The Unit makes no attack upon the previous decision of this Court, 275 P.2d 304, which holding, as a matter of law, constitutes the law of the case, and the judgment in favor of the Youngs has been paid. The Unit asserts that this second appeal concerns only the identification of other royalty owners in situations similar to the Youngs, who are entitled to the benefit of the Court’s previous decision and the method of determining and paying the amounts owing to them respectively.

It is contended by the defendants in error that this second appeal presents the *1050 same questions, save the allowance of interest, as was decided by this Court on the first appeal (275 P.2d 304). The Unit (plaintiff in error) contends that this second appeal presents questions of procedure and evidence that were neither presented to nor considered by this Court on the former (first) appeal.

For the purposes of clarity the basic facts on which the original action and holding of this Court on the first appeal, Young v. West Edmond Hunton Lime Unit, supra, were based are briefly summarized as follows: The Unit was created by order of the Corporation Commission July 29, 1947, and became effective October 1, 1947, pursuant to an Act of the Legislature. See opinion in first appeal, supra.

Under the plan, the Unit Operator, under the direction of the Operating Committee, had exclusive power to “supervise, manage and conduct the further development and operation of the Unit Area for the production of oil and gas.” By the statute and the plan, one-eighth of all oil produced from the Unit was in all cases to be treated as royalty oil. It was unlawful for any lessee, or any owner of an undivided interest in any tract, to, in any manner, interfere with the management or operation of the unitized area.

On September 28, 1948, after unitization, Phillips posted price at $3 a barrel for Unit oil, which price continued until December 19, 1948. Other purchasers of oil in the Unit, including Sohio, the Unit Operator, paid only $2.65 per barrel. Under the Plan, the Unit was the agent and trustee of all royalty owners, and it was the Unit’s duty to sell all royalty oil for $3 per barrel, the highest market value, or posted price, during such period.

The Youngs, for themselves and the numerous royalty owners, filed suit to recover from the Unit 35 cents per barrel for their oil, which the Unit sold during the time the market price was $3 per barrel.

The Unit contended that the royalty owners, having before unitization executed division orders to purchasers of oil, were bound by such provisions after unitization, and that it was not required to secure further authority to sell their oil, and further, the defendant contended the case was not a proper class action, because many of the royalty owners might have different interests and that they would not be in the same class, and that each royalty owner should be required to file a separate suit for their interest. The trial court, in accord with these contentions, rendered judgment for the Unit resulting in plaintiffs’' appeal, and, as hereinbefore stated, this court in Young v. West Edmond Hunton Lime Unit, supra, held against the contentions of the Unit and reversed and remanded the cause to the trial court.

On July 22, 1955, the trial court in accordance with this Court’s mandate and opinion spread the mandate of record, rendered judgment for the Youngs, ordered' the defendant to file on or before the first day of September, 1955, its verified' report showing the amount of oil produced from the Unit from September 26, 1948, to December 17, 1948, which was sold for less than $3 per barrel, and to set forth the names and fractional interests of all owners of royalty in the Unit, whose oil, produced by the Unit, was purchased for less than $3 per barrel; the defendant was authorized to secure all information and data necessary from any persons or pipeline companies in order to comply with, the terms of such order. It was further-ordered that defendant perform all acts necessary to carry out and comply with the terms and provisions of the judgment; to-which order defendant filed a motion for new trial. No appeal was taken from that judgment.

Duces Tecum subpoenas were issued to-Sohio, Champlin and Continental Oil Companies. Thereafter motions to quash such-subpoenas were filed by said companiés.

The plaintiffs filed and secured an order of the District Court authorizing plaintiffs to file a petition for discovery against Continental, Champlin and Sohio Petroleum Companies, and on September 9, 1955, the petition for writ of discovery was filed, *1051

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Bluebook (online)
325 P.2d 1047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-edmond-hunton-lime-unit-v-young-okla-1958.