White v. A. C. Houston Lbr. Co.

1937 OK 58, 64 P.2d 908, 179 Okla. 89, 1937 Okla. LEXIS 695
CourtSupreme Court of Oklahoma
DecidedJanuary 26, 1937
DocketNo. 25666.
StatusPublished
Cited by22 cases

This text of 1937 OK 58 (White v. A. C. Houston Lbr. Co.) 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
White v. A. C. Houston Lbr. Co., 1937 OK 58, 64 P.2d 908, 179 Okla. 89, 1937 Okla. LEXIS 695 (Okla. 1937).

Opinion

PER CURIAM.

This appeal arises from a judgment of the district court of Ellis county, Okla., in favor of laborers and ma-terialmen claiming liens as a result of an unsuccessful attempt to drill an oil well. During the year 1931, W. D. Gladwell gath-’ ered leases upon about 16,000 acres of land in Ellis county and made a deal with one L. C. Hiviek to get a test well drilled somewhere on the block to 6,500 feet. The leases were then placed in escrow with the Shat-tuck National Bank at Shattuck; Okla., together with an incomplete drilling contract signed by Hiviek, and an escrow agreement directing that Hivick’s name should be inserted as lessee in all of the leases when the provisions of the drilling contract were fulfilled.

Hiviek and certain associates then entered into • a contract with Charles Davidson, who did business under the fictitious name of the Charles Davidson Petroleum Company, whereby in consideration of 7,-000 acres of leases out of the block, Davidson agreed to drill the test well and pay Hiviek $2,000 in addition before the well reached a depth of 4,000 feet.

Pour days thereafter, on June 25, 1932, Charles Davidson entered into a contract with W. R. White, plaintiff in error, whereby White leased to Davidson a complete rotary rig belonging to him for the purpose of drilling the test well. The term of the lease was not to exceed 100 days, and as consideration White was to receive $1,500 in cash, payable $500 on the date of spud-ding, $500 when the well reached 500 feet, and $500 when the well should reach 1,000 feet, with the further agreement that Davidson should assign to White, within a reasonable time, certain leases out of Davidson’s 7,000-aere tract, described in the contract and covering 290 acres. It was also agreed as further consideration that Davidson would employ White as superintendent for the drilling of the well and pay him a monthly salary of $300 in addition, for this service.

The plaintiff below and various inter-veners and defendants were employed by Hiviek and Davidson to perform labor and furnish materials in an attempt to drill this well, but all operations ceased about September 1, 1932, and suit was brought to establish their liens against certain leases, and also against the rotary rig owned by White which was used upon the well. When the ease first came to trial on September 27, 1983, it appeared that three of the lien claimants sought not only liens, but also personal judgment against White. However, as no order had been made permitting the filing of their petition in intervention, and no notice of the filing of summons served upon White, the case was continued for service as to these three claimants. The parties having waived a jury, the court proceeded to hear the testimony regarding the liens of the others and took under advisement its judgment until November 22, 1933. At that time, service' having been obtained upon White, the court called up the petition in intervention seeking personal judgment and White’s attorney asked for trial by jury as to the issues concerning the personal judgment. The court refused to grant a jury trial on the ground that White had waived a jury at the hearing on September 27th. Exception was saved to this order, and the court proceeded without a jury and then rendered judgment concerning both hearings at the same time. The decree granted liens in favor of all claimants to attach to the rotary rig owned by White and rendered personal judgment against White in favor of Homer Doup, Troy Deering, and Poss Deering as a result of the hearing on November 22, 1933. This appeal is taken only by White seeking to be relieved of this personal liability and to tree his rotary rig from the liens of all the claimants.

The contention of defendants in error is *91 that Gladwell, Hivick, and his associates, Davidson and plaintiff in error, White, cooperated together in the development of the lease upon which the work was done and liens sought to be established so as to constitute them mining partners or joint adventurers. The first objection of plaintiff in error is that this issue was raised only by reply of claimant Mahlandt, and therefore constitutes a departure. However, considering the allegations of the petition, answers and cross-petitions, the evidence in support of the theory of mining partnership or joint' adventure in no way contradicts the facts originally alleged by any of the parties, and consequently the court did not err in allowing such testimony. But our examination of the record discloses that the facts herein do not constitute a mining partnership or joint adventure between the parties named, and the judgment of the trial court based'upon this theory is clearly against the weight of the evidence.

Each case of mining partnership or joint adventure must necessarily be determined by its own facts. However, by examination of cases heretofore decided by this court, we can devise a test consisting of three requirements which must always be present in order to form the relationship: (1) There must be joint interest in the property by the parties sought to be held as partners; (2) there must be agreements, express or implied, to share in the profits and losses of the venture; and (3) there must be actions and conduct showing cooperation in the project. None of these elements alone is sufficient. Gillespie v. Shufflin, 91 Okla. 72, 216 P. 132; Anderson v. Keystone Supply Co., 93 Okla. 224, 220 P. 605; Wammack v. Jones, 103 Okla. 1, 229 P. 159; Robinson Pet. Co. v. Black, Sivalls & Bryson, 138 Okla. 128, 280 P. 593; Brown v. Wasoff, 126 Okla. 164, 259 P. 246; Carson v. Waller, 127 Okla. 186, 260 P. 72; Prince & Prince v. Sullivan, 124 Okla. 298, 256 P. 23; Jones v. Sinclair Crude Oil Purchasing Co., 130 Okla. 182, 266 P. 439; Ash v. Mickleson, 118 Okla. 163, 247 P. 680; Irelan v. Smoot, 132 Okla. 270, 270 P. 29; Tidal Oil Co. v. Fullerton-Stuart Lumber Co., 137 Okla. 58, 278 P. 330; Garber & Pulse v. Gloyd, 168 Okla. 88, 31 P. (2d 947; McAnally v. Cochran (February 12, 1935) 170 Okla. 368, 46 P. (2d) 955.

In the case at bar there is no joint interest in the lease upon which the well is being drilled. The contract with White calls for the conveyance of adjoining leases, and not for a share in the profit or losses of the venture. White was to receive a certain sum for drilling the well whether it was a producer or not, and was to receive a specified amount for acting as superintendent under direction of Davidson. Thus is this case distinguished from Schraeder v. Gormley, 127 Okla. 66, 256 P. 869, and others cited by defendants in error. Whatever may be the interests of Gladwell, Hivick, and Davidson, we do not find the necessary joint interest and agreement to share in profits and losses as to plaintiff in error, White.

This court in holding a mining partnership to exist in the ease of National Union Oil & Gas Co. v. Richard, 164 Okla. 13, 22 P. (2d) 88, stated the rule in keeping with the test above deduced. After .stating the syllabus in Jones v. Sinclair Crude Oil Purchasing Co., supra, to the effect that the employment of a person to drill a well for an interest will not alone create a mining partnership, it said (p. 18, 164 Okla., 93, 22 P. (2d) :

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Bluebook (online)
1937 OK 58, 64 P.2d 908, 179 Okla. 89, 1937 Okla. LEXIS 695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-a-c-houston-lbr-co-okla-1937.