Western States Oil & Land Co. v. Helms

1930 OK 70, 288 P. 964, 143 Okla. 206, 72 A.L.R. 357, 1930 Okla. LEXIS 604
CourtSupreme Court of Oklahoma
DecidedFebruary 4, 1930
Docket17750
StatusPublished
Cited by21 cases

This text of 1930 OK 70 (Western States Oil & Land Co. v. Helms) 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
Western States Oil & Land Co. v. Helms, 1930 OK 70, 288 P. 964, 143 Okla. 206, 72 A.L.R. 357, 1930 Okla. LEXIS 604 (Okla. 1930).

Opinion

ANDREWS, J.

This action was commenced in the district court of Oklahomá county by the defendants in error (hereinafter referred to as plaintiffs) on February 7, 1924, for the recovery of a judgment against the plaintiffs in error, the Western States Oil & Land Company (hereinafter referred to as the oil company) and Len S. Swaggert and Pauline Swaggert (hereinafter referred to as the landowners).

On the trial of the action judgment was rendered in favor of t'he plaintiffs against the oil company and the landowners, and each of them, from which an appeal was taken by them to this court.

An examination of the record shows the following facts:

The 'landowner® owned a tract of land in Grant county, Olda. On October 26, 1920, the oil company obtained an oil and gas mining lease on the land and entered into possession thereof under that lease. A well was drilled to the approximate depth of 3,000 feet and wa® completed in May, 1921, producing at the outset approximately 450 barrels of oil a day and decreasing in amount until January, 1922. The oil company and the landowners contend that at that time “* * * it produced approximately twelve and one half barrels of oil,” and plaintiffs contend that

“The oil company continued to produce oil from the well until some time in January, 1922, when its production ceased, and, according to the statement of the superintendent of the oil company," the sand was ‘bone dry’.”

*208 There was no other development of the property at that time and no effort had been made to further develop the property. The lease was for a term of one year and contained the following provision, to wit:

“It is agreed that this lease shall remain in force for a term of one year from this date and as long thereafter as oil or gas, or either of them, is produced from said land by the lessee.”

In January, 1922, the landowners employed the plaintiffs as attorneys, who advised them that the term of the lease had expired unless oil or gas was being produced from the land, and if the well was then dry and no oil or gas was being produced therefrom, the landowners had a legal right to declare the lease at an end. Thereupon plaintiffs prepared and on or about the 10th day of February, 1922, had a notice served upon the oil company by the sheriff of Grant county, notifying the oil company that it had failed to comply with the terms and conditions of the lease, that it had not developed the premises in a reasonable manner, that it was) not producing oil or gas from the premises and that the lease had terminated, and commanding and instructing the oil company to remain off the premises and forbidding it to trespass upon the premises in any manner. On the 30th day of January, 1922, the oil company went into the well, pulled the tubing and started rigging up to deepen it. The notice of the landowners to the oil company was ignored. The landowners then entered into a written contract with plaintiffs on a contingent basis and authorized them to institute suit for the protection of their rights. On April 25, 1923, suit was> filed for the landowners against the oil company by plaintiffs in the district court of Grant county for the purpose of having the lease declared terminated. Indorsed on the petition was an attorney’s lien claim with the signature of the plaintiffs, and thereafter1 plaintiffs had a written notice of their attorney’s lien served upon the attorneys for the oil company, to which notice was attached a copy of their contract. On motion of the oil company the cause was removed to the United States District Court for the Western District of Oklahoma. At the time the suit was filed the oil company was drilling at a depth of approximately 3,350 feet, and it continued drilling to a depth of 4,000 feet, where a gas sand was encountered and the same was turned into a gas well on or aibout March 23, 1923. The oil company filed its answer in the form of a general denial and admitted the execution of the lease, ahd on the 28th day of April, 1923, it filed another answer, in which it alleged that the well was then producing gas in commercial quantities which was being marketed in accordance with, the lease and

“This defendant avers that plaintiffs herein rescinded the protest referred to in paragraph 5 of the first cause of action of plaintiffs’ bill and allowed and requested this defendant to continue the operation and production from said oil and gas well.”

Upon the filing of the amended answer the plaintiffs, on May 4, 1923, wrote the landowners calling their attention to the .filing of the amended answer, and that if the allegations thereof were true the same might constitute a complete defense to the suit, and asked the landowners to advise them by return mail the facts in connection therewith. On about the 9th or 10th day of May, the plaintiffs received a letter from the landowners in which they said: “We are writing Judge Cotteral to dismiss the case.” On May 7, 1923, a letter was mailed by the landowners to Judge Cotteral at Guthrie asking him to dismiss the suit. The case was set for trial on May 12, 1923, and on that date the plaintiffs were present in court with their witnesses ready for trial and Judge Cotteral announced the request from the landowners that the ease be dismissed. Judge Cotteral dismissed the case, and thereupon the plaintiffs instituted this suit against the landowners and the oil company.

The basis of this suit is an alleged settlement between the landowners and the oil company without the consent of the plaintiffs to the damage of the rights of the plaintiffs under their contract with the landowners.

The landowners appeared specially and objected to the service upon them for the reason that it was made in Grant county, and alleged that the oil company was fraudulently joined for the purpose of getting service on the landowners in Oklahoma county.

The oil company entered its appearance for the purpose of removing the cause to the federal court. The petition therefor was denied. The oil company saved its exception on the ground of misjoinder of parties defendant, and the exception was overruled.

The first proposition presented is that the district court of Oklahoma county was without jurisdiction, and it is contended that:

“The basis of this action being to recover against this defendant for having settled a lawsuit involving an oil and gas lease on a tract of land situated in Grant county, Okla., no part of which was within the confines of Oklahoma county, Okla., the district court *209 of Oklahoma county was without jurisdiction to hear, try and determine this cause, and the demurrer of this defendant to plaintiffs’ petition on that ground should hare been sustained.”

And in support thereof there is cited Nelson v. Deming Investment Co., 21 Okla. 610, 96 Pac. 742, which was an action to quiet the title by removing a cloud caused by the recording in the office of the register of deeds of a certain instrument affecting the title of the real estate, and Nicoll v. Midland Savings Co., 21 Okla. 591, 96 Pac. 744, which was an action to quiet title to real estate. Neither of those cases is in point.

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Bluebook (online)
1930 OK 70, 288 P. 964, 143 Okla. 206, 72 A.L.R. 357, 1930 Okla. LEXIS 604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-states-oil-land-co-v-helms-okla-1930.