Wooldridge Production Co. v. Goldstream Corp.

827 So. 2d 1211, 2002 La. App. LEXIS 2777, 2002 WL 31097493
CourtLouisiana Court of Appeal
DecidedSeptember 20, 2002
DocketNo. 36,373-CA
StatusPublished
Cited by2 cases

This text of 827 So. 2d 1211 (Wooldridge Production Co. v. Goldstream Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wooldridge Production Co. v. Goldstream Corp., 827 So. 2d 1211, 2002 La. App. LEXIS 2777, 2002 WL 31097493 (La. Ct. App. 2002).

Opinion

h GASKINS, J.

The defendants, Goldstream Corporation, Jerry L. Whitton, Gerald D. Whitton, and Bobby G. Whitton, appeal a trial court judgment ordering them to pay $43,548.30 to the plaintiff, Wooldridge Production Company, Ltd., and rejecting the defendants’ claims against the plaintiff.1 For [1213]*1213the following reasons, we amend, and as amended, affirm the trial court judgment.

FACTS

Goldstream Corporation (Goldstream) is operated by Jerry L. Whitton, Gerald D. “Doug” Whitton, and Bobby G. Whitton. Wooldridge Production Company, Ltd. (Wooldridge) is operated almost exclusively by Mark Wooldridge, although his brother, Maury Wooldridge, previously worked in the business. This case is a suit on open account by Wooldridge and involves a dispute over the terms of an agreement between the parties.

In 1996, Goldstream had oilfield equipment that was not being used in south Louisiana, including a Bowen power swivel, triplex pump, Cameron QRC blow-out preventer, Wheatley plunger pump, two small tanks, two pipe threaders, two pumping units, a power tong, air slips, Martin Decker weights, a Ford engine, and a big rig tank. Also, at some point, Goldstream owned a 1977 Wilson 42 B rig. Goldstream enlisted the aid of Wooldridge in going to south Louisiana, bringing the equipment back to Wooldridge’s facility in Caddo Parish, and refurbishing it.

1 ?The parties agreed that the plaintiff would refurbish the equipment, would use or rent it, and would retain the revenue until the cost of repairs was recovered. Then Wooldridge would receive half the income from the equipment and Gold-stream would be entitled to the remainder. At this point, the agreement was not reduced to writing. Wooldridge claimed that invoices for the repair work were periodically furnished to Goldstream. The defendants asserted that they did not receive invoices regarding the cost of repairs.

The power swivel and triplex pump were refurbished and were used to some extent by Wooldridge. Other items were not repaired. Two small tanks were not salvageable and were cut up for scrap. As the work progressed, the dispute over the terms of the agreement surfaced. At one point, Goldstream submitted a letter to Wooldridge, purporting to set forth the terms of the agreement. This letter was not signed by the plaintiff.

In January 1997, Goldstream presented Wooldridge with another letter, providing for Wooldridge’s recovery of out-of-pocket costs for the repair of the equipment by the use of it in the plaintiffs well servicing business. According to the letter, any repairs of the equipment after reconditioning would be the responsibility of Wooldridge. Wooldridge was given the right of first refusal on purchasing the equipment. Wooldridge would be required to provide Goldstream with a total cost for the initial repair and reconditioning and to provide payout status on a monthly basis. Wool-dridge would be obligated to carry insurance on the rig and related equipment. According to Goldstream, after making some modifications, |aMark Wooldridge signed the agreement, but failed to furnish a signed copy to Goldstream. Mr. Wool-dridge claimed that he did not agree to pay for repairs to the equipment after the initial refurbishing and did not agree to maintain insurance on it. Mr. Wooldridge denied signing the letter and stated that he could not find a copy of it in his files.

In October 1997, Goldstream wrote Wooldridge that it did not have a signed agreement or payout status and informed Wooldridge that it had five days from the date of the letter to exercise the right of first refusal to purchase the equipment. The parties were able to come to an agreement whereby Wooldridge purchased the 1977 Wilson 42-B rig for “$45,000, less liens of $13,042.13.”

On January 22, 1998, a demand letter was sent by Wooldridge to the defendants requesting payment for the expenses of retrieving and refurbishing the equipment. [1214]*1214The defendants responded, denying the amount owed and claiming entitlement to additional credits. The defendants also offered to sell the equipment to Wool-dridge, but the plaintiff declined.

On February 6, 1998, Jerry Whitton and Gerald Whitton sent demand letters to the plaintiff for payment of compressor and pump rentals and for engineering and supervision services. The invoices supporting these charges were later shown to have been fabricated by the defendants.

The present lawsuit was filed by Wool-dridge on February 12, 1998 for a money judgment, to recognize a privilege and for a writ of sequestration. Wooldridge alleged that beginning in November 1996, it provided goods and services to the defendants to repair equipment. | ¿Wooldridge claimed that Goldstream owed $88,000.46 on open account and sought to have its repairman’s lien recognized under La. R.S. 9:4502. It asked for a writ of sequestration on the equipment without the necessity of furnishing security. The writ of sequestration was granted on February 17, 1998.

Goldstream answered, denying that it owed anything to Wooldridge, and claiming that the charges were wrongfully incurred. In its reconventional demand, Goldstream sought credit for use of the equipment by the plaintiff. Goldstream asserted that on October 25, 1997, Wool-dridge agreed to buy Goldstream’s 1977 Wilson 42 B rig and the agreement provided for a credit to the defendants of $13,042.13. Goldstream sought recognition of that credit.

Goldstream attached the fabricated invoices for use of equipment and services, claiming that Wooldridge owed the defendants significant sums of money. Gold-stream had filed petitions in Caddo and Claiborne Parishes to enforce material-man’s liens against Wooldridge, to recover for services, materials, and supplies allegedly provided by Goldstream to Wool-dridge pursuant to these invoices. These petitions were filed by the defendants without the assistance of counsel. In its pleadings in the present suit, Goldstream sought recognition of its liens against some of the plaintiffs leases to secure payment of these alleged debts. Goldstream further claimed that Wooldridge’s writ of sequestration was wrongfully granted.

Wooldridge then amended its petition to add Jerry L. Whitton, Gerald D. Whitton, and Bobby G. Whitton as defendants, in solido, with IsGoldstream. Wooldridge claimed that the invoices for compressor and pump rental and for supervision and engineering expenses were fictitious and were manufactured by the defendants in retaliation for the filing of this lawsuit by the plaintiff. Wooldridge sought to have the defendants’ liens dissolved. A new writ of sequestration was granted to the plaintiff on April 22, 1998, with a bond of $27,666.66.

Trial on the matter was held on June 21, 2001 and August 21, 2001. On October 25, 2001, the trial court issued a written ruling. The court found that there was an enforceable agreement between the parties for Wooldridge to retrieve and refurbish the defendants’ equipment from south Louisiana. The court concluded that the defendants owed Wooldridge $43,548.30.2 The court ruled that there was no credible evidence to support the defendants’ claim that it was entitled to any additional credit for Wooldridge’s use of the equipment. The court rejected the testimony of several [1215]*1215witnesses presented by the defendants as biased, finding that the witnesses were impeached.

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827 So. 2d 1211, 2002 La. App. LEXIS 2777, 2002 WL 31097493, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wooldridge-production-co-v-goldstream-corp-lactapp-2002.