Weva Oil Corp. v. Belco Petroleum Corp.

68 F.R.D. 663, 21 Fed. R. Serv. 2d 104, 1975 U.S. Dist. LEXIS 15831
CourtDistrict Court, N.D. West Virginia
DecidedOctober 8, 1975
DocketCiv. A. Nos. 69-5-P, 70-6-P
StatusPublished
Cited by37 cases

This text of 68 F.R.D. 663 (Weva Oil Corp. v. Belco Petroleum Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weva Oil Corp. v. Belco Petroleum Corp., 68 F.R.D. 663, 21 Fed. R. Serv. 2d 104, 1975 U.S. Dist. LEXIS 15831 (N.D.W. Va. 1975).

Opinion

MEMORANDUM

MAXWELL, Chief Judge.

Belco Petroleum Corporation (Belco), Weva Oil Corporation (Weva), and Jet Oil Company (Jet), entered into an operating agreement to explore and develop a lease for oil and gas. The pleadings and [665]*665exhibits of record and the statement of uncontroverted facts contained in the pre-trial order prepared by counsel for the parties and filed herein disclose that the three joint venturers were to share equally the cost of developing the lease as well as the profits, if any. Weva was designated as the operating agent of the parties and, as such, contracted with The Burtner-Morgan-Stephens Company (BMS) to drill the well.

BMS commenced drilling operations and reached a depth of approximately 6,550 feet when a “blowout” occurred.

Shortly thereafter Belco retained the services of an expert in the field of well control and sent him, along with Belco’s Chief Engineer and one of its attorneys, to the well site.

Among the issues presented in this litigation is Beleo’s involvement in the effort to control the “blowout” and its claim for reimbursement for the expense thereof. Weva contends that Belco placed one Paul “Red” Adair in charge of operations to control the “blowout” and incurred expenses without the authorization of Weva, the designated operator, in violation of the agreement entered into by the three joint venturers.

Weva brought action against Belco alleging damages in the amount of $130,-000 in consequence of Belco’s handling of the blowout control operation and seeking, as further relief, judgment that Weva not be indebted to Belco for any sums expended by Belco in its handling of the well, allegedly contrary to the provisions contained in the operating agreement.

Belco filed, with its answer, a counterclaim alleging negligence on the part of Weva for failure to conduct drilling operations in a workmanlike manner and seeking, among other claims for relief, reimbursement from Weva for its proportionate share of the expense incurred in bringing the well under control after the “blowout”. Jet has fully reimbursed Belco in an amount equal to its proportionate share of the cost of controlling the “blowout”.

The action against Belco by Weva and Arthur Bobrick, Charlotte Bobrick, and Raymond H. Faxon, 69-5-P, is consolidated for trial with an action by BMS and Federal Insurance Company against Belco, Weva and Jet, 70-6-P, arising out of the drilling contract.

Issues of fact and law presented in this litigation have been fully developed by counsel for the parties through extensive discovery, motion practice, and in the preparation of a thorough and lengthy pre-trial order.

Belco served on Weva a Request for Admission of Facts on May 28, 1975, pursuant to Rule 36(a), Federal Rules of Civil Procedure. Weva did not respond to the requests for admission within thirty (30) days after service thereof and Belco, on July 11, 1975, filed a Motion for Summary Judgment, Rule 56, Federal Rules of Civil Procedure, relying on matters set forth in its requests for admission as being admitted in consequence of Weva’s failure to make a timely response thereto. Filed with Belco’s Motion for Summary Judgment is the affidavit of its attorney, Fred L. Davis.

Weva, on July 29, 1975, filed an Objection to Motion for Summary Judgment and a Motion for the entry of an order permitting Weva to respond to Belco’s request for admission “to and through August 15, 1975, for the reason of inadvertence upon the part of counsel for the aforesaid litigants and failing to receive the requests for admission promptly.” On July 30, 1975, Weva served Beleo’s attorney with a written response to Request for Admission of Facts.

Belco’s requests for admission relate to its counterclaim #1, in Civil Action 69-5-P and are comprised of nine separate matters pertaining to the necessity [666]*666and reasonableness of action taken and of funds expended by Belco to control the “blowout”.

At the threshold of the immediate issue presented, the Court must consider Weva’s motion to permit its tardy response to Belco’s requests for admission.

In its Objection to Motion for Summary Judgment, Weva offers, as excusable neglect and inadvertence for the untimely response to requests for admission, the fact that its attorney failed to receive the requests and was unaware of their filing until July 7, 1975. Numbered paragraph 2 of the motion states “The [attorney’s] failure to receive the request for admissions was caused by clerical error in that the requests were, inadvertently placed in a file to be held for further filing and this mail was neither received nor read and its existence was unknown until revealed [to the attorney] by Fred L. Davis in discussion of deposition arrangments.” The motion states that responses to the requests for admission “are prepared and being filed by the parties and a portion of them are forwarded as of this date.”

In oral argument on Belco’s Motion for Summary Judgment, counsel for Weva offered as the reason for misfiling Bel-co’s requests for admission secretarial changes in his office and asserted the absence of any intent to delay responding to the requests.

Rule 36(a) permits one party to serve upon another a written request for the admission of the truth of any matters within the scope of Rule 26(b), Federal Rules of Civil Procedure, and provides that “The matter is admitted unless, within 30 days after service of the request, . . . the party to whom the request is directed serves upon the party requesting the admission a written answer or objection . . . . ”

It is well established that failure to respond to requests for admission is deemed to be an admission of the matters set forth. 8 Wright & Miller, Federal Practice and Procedure § 2259 (1970). Shapiro, Bernstein & Company, Inc. v. “Log Cabin Club Ass’n.”, 365 F.Supp. 325 (N.D.W.Va.1973); Luick v. Graybar Electric Company, Inc., 473 F.2d 1360 (8th Cir. 1973); U.S. ex rel. Seals v. Wiman, 304 F.2d 53, 61 (5th Cir. 1962), cert. den. 372 U.S. 915, 83 S.Ct. 717, 9 L.Ed.2d 722 and 372 U.S. 924, 83 S.Ct. 741, 9 L.Ed.2d 729; John Mohr & Sons v. Apex Terminal Warehouses, Inc., 422 F.2d 638 (7th Cir. 1970); O’Campo v. Hardisty, 262 F.2d 621 (9th Cir. 1958). Weva neither denies the fact of its late response nor questions the principle that failure to respond to requests for admission is deemed to be an admission of the truth of the matters contained therein. Instead, it invokes as grounds for relief, the provisions of Rule 60(b), Federal Rules of Civil Procedure

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68 F.R.D. 663, 21 Fed. R. Serv. 2d 104, 1975 U.S. Dist. LEXIS 15831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weva-oil-corp-v-belco-petroleum-corp-wvnd-1975.