Western Pipe & Supply, Inc. v. Heart Mountain Oil Co.

140 N.W.2d 813, 179 Neb. 858, 1966 Neb. LEXIS 727
CourtNebraska Supreme Court
DecidedMarch 11, 1966
Docket36118
StatusPublished
Cited by8 cases

This text of 140 N.W.2d 813 (Western Pipe & Supply, Inc. v. Heart Mountain Oil Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Pipe & Supply, Inc. v. Heart Mountain Oil Co., 140 N.W.2d 813, 179 Neb. 858, 1966 Neb. LEXIS 727 (Neb. 1966).

Opinion

Spencer, J.

This is an action brought by Western Pipe and Supply, *860 Inc., a corporation, hereinafter referred to as plaintiff, against Heart Mountain Oil Company, Inc., Fletcher G. Edwards, doing business as Heart Mountain Oil Company, and others, to foreclose an oil and gas lien filed against Heart Mountain Oil Company.

Four cross-petitioners, Robert L. Poundstone, who is also the president and sole stockholder of plaintiff and who will hereinafter be referred to as Poundstone, H. R. Neusbaum, hereinafter referred to as Neusbaum, Well Stimulation Service, Inc., and Bess Trucking Service, filed cross-petitions to foreclose their oil and gas liens against the same property. All of the liens are for labor performed and materials and supplies furnished pursuant to alleged oral contracts.

The trial court, in a pretrial order, defined the issues to be tried as follows: “Defendant Heart Mountain Oil Company denies that there was a specific contract for the supplying of material and labor, but concede that the plaintiff and the cross-petitioning defendants did some work upon the drill site and conferred some benefits, leaving the principal issues for trial, as to whether the work done by said plaintiff and cross-petitioners was necessary for the benefit of the drilling site and whether the items of charges were reasonable. The defendant, Heart Mountain Oil Company further contends that the cross-petitioner Poundstone failed to account for all of the oil produced from said well during the time that he was in charge of its operation. Defendant Heart Mountain further concedes that the particular items claimed by the plaintiff and the cross-petitioning defendants, both for material and time, were in fact supplied as pleaded. Parties further agree to check whether or not any items placed upon the drilling site were later returned for credit, and the amount of credit, if any, which should be allowed.”

Based on those issues, the trial court found: (1) That Poundstone was an agent of and was appointed by Heart Mountain Oil Company, Inc., to order such work, serv *861 ices, and materials as might be necessary; (2) that Heart Mountain Oil Company, Inc., through its president, had knowledge of the performance of said service and work immediately at or shortly after the time that said service, work, and materials were performed! and supplied; that thereafter said corporation accepted all said work, service, and material, and affirmed and ratified the actions of Poundstone; and (3) that the plaintiff and each of the cross-petitioners were entitled to recover, but in three instances less was- due than was claimed in the liens or the pleadings because of returns or credits.

The trial court entered judgment on October 27, 1964, in each instance for a principal amount found due plus interest thereon from a date 6 months from the date of the last item of the lien, as one total on which the court ordered interest to run thereafter.

Defendants have perfected an appeal to this court, and set out 16 specific assignments of error which will not be enumerated herein. The assignments of error considered pertinent will be referred to as they are discussed.

This appeal is perfected on behalf of defendants by counsel who took no part in the trial of the case. Defendants’ brief raises some issues which may not be pertinent under the issues as defined by the pretrial limitation set out above. In Long v. Magnolia Petroleum Co., 166 Neb. 410, 89 N. W. 2d 245, this court held: “The purpose of a pretrial conference is to simplify the issues; amend the pleadings, when necessary; and avoid unnecessary proof of facts at the trial.

“The participants in a pretrial conference must adhere to the spirit of that procedure and are held to have waived questions not there presented.

“Modification of a pretrial order may be had at the trial to* prevent manifest injustice, but the modification should be by direction and not by indirection. That is, modification must be attended by a degree of directness and formality such as is appropriate to a court order of *862 such magnitude that from the time of its entry it controls the subsequent course of the action.

“The subsequent course of an action is controlled by the agreements made at pretrial conference so long as they remain unmodified and that would be true on appeal.”

As we interpret the pretrial order, there were three principal issues to be determined: (1) Whether the work done was necessary and for the benefit of the drilling site; (2) whether the items of charges were reasonable; and (3) did the cross-petitioner Poundstone account for all of the oil produced?

After trial, the court found Poundstone to be the agent of Heart Mountain Oil Company, Inc., and that said corporation accepted all of the work and affirmed and ratified Poundstone’s actions; that all of the charges, were reasonable; and that an accounting was made for all oil produced under Poundstone’s direction. We will consider defendants’ assignments of error within the ambit of these findings.

While the pretrial order does not make agency an issue, the case appears to have been tried upon that theory, and the trial court makes a specific finding on agency. There is no dispute Poundstone, a consulting engineer and geologist, was hired by Fletcher G. Edwards, president and general manager of Heart Mountain Oil Company, Inc., and a general partner in Heart Mountain Oil Company, to finish an oil well. In the words of Edwards, it was to bring “it up to the point of initial production.” The well, which is referred to in the record as the Muhr well, had previously been abandoned and was to be reworked. It was to be developed by using second-hand equipment acquired by the well owners but still in place on a well in another location, referred to as the Huffman well. Edwards testified that Poundstone was employed to put the well on a permanent pumping basis.

The services covered in this action involve the dis *863 mantling of the equipment at the Huffman well and moving it to and installing it in the Muhr well. After Pound-stone was hired, he went with Edwards to the office of Neusbaum and in Edwards’ presence requested a bid on the work to be done. A bid was presented by Neusbaum to Poundstone the same day. Neusbaum was thereafter hired by Poundstone to do certain portions of the work, involving the dismantling of the equipment at the Huffman well site and installing it at the Muhr site. Poundstone testified that he also contacted other contracting companies, seeking bids, and that the Neusbaum bid was the lowest.

Lee Gustin, a partner in Bess Trucking Service, which actually moved the equipment, testified to a conversation with both Edwards and Poundstone, in which Edwards verbally contracted for his services. Gustin and Pound-stone both testified that Edwards assured them that the tanks to be moved had been cleaned and were ready to be moved.

The dealings with cross-petitioner, Well Stimulation Service, were all conducted by Poundstone, and resulted because the tanks had not been cleaned and oil was congealed therein which had to be removed before the tanks could be moved.

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Bluebook (online)
140 N.W.2d 813, 179 Neb. 858, 1966 Neb. LEXIS 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-pipe-supply-inc-v-heart-mountain-oil-co-neb-1966.