ZEPHYR SWD, LLC v. McCLARY TRUCKING, INC.

2015 OK CIV APP 96
CourtCourt of Civil Appeals of Oklahoma
DecidedOctober 22, 2015
StatusPublished

This text of 2015 OK CIV APP 96 (ZEPHYR SWD, LLC v. McCLARY TRUCKING, INC.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ZEPHYR SWD, LLC v. McCLARY TRUCKING, INC., 2015 OK CIV APP 96 (Okla. Ct. App. 2015).

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OSCN Found Document:ZEPHYR SWD, LLC v. McCLARY TRUCKING, INC.
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ZEPHYR SWD, LLC v. McCLARY TRUCKING, INC.
2015 OK CIV APP 96
Case Number: 112514
Decided: 10/22/2015
Mandate Issued: 11/16/2015
DIVISION III
THE COURT OF CIVIL APPEALS OF THE STATE OF OKLAHOMA, DIVISION III


Cite as: 2015 OK CIV APP 96, __ P.3d __

ZEPHYR SWD, LLC, an Oklahoma Limited Liability Company, Plaintiff/Appellee,
v.
McCLARY TRUCKING, INC., Defendant/Appellant.

APPEAL FROM THE DISTRICT COURT OF
OKLAHOMA COUNTY, OKLAHOMA

HONORABLE BARBARA G. SWINTON, TRIAL JUDGE

AFFIRMED

Billy M. Croll, Hartzog, Conger, Cason & Neville, Oklahoma City, Oklahoma, for Plaintiff/Appellee,
Desmond Sides, Poteau, Oklahoma, for Defendant/Appellant.

Wm. C. Hetherington, Jr., Chief Judge:

¶1 Defendant McClary Trucking, Inc. (McClary) appeals the judgment in favor of Plaintiff Zephyr SWD, LLC (Zephyr) entered after a bench trial in Zephyr's action for breach of contract or quantum meruit, seeking payment of $59,201.50 in unpaid invoices for salt water disposal in Zephyr's wells in Dewey County, Oklahoma. The trial court found McClary indebted to Zephyr for $59,201.50, which McClary argues was released by written agreement. The judgment is AFFIRMED.

FACTS

¶2 Zephyr SWD is an Oklahoma limited liability company that operates two salt water disposal (SWD) wells under permits from the Oklahoma Corporation Commission in Dewey County, Oklahoma - the "Litsch SWD" and the "Scheffler SWD" (the Wells). McClary is an Oklahoma trucking corporation hired by oil and gas companies to haul saltwater from oil and gas wells for delivery to Zephyr, who then injects the saltwater into the Wells.

¶3 Zephyr's petition against McClary filed in January 2013 alleges the parties executed an agreement in Oklahoma County, Oklahoma regarding saltwater disposal and that McClary has failed to pay $59,201.50 to Zephyr. The petition's Exhibit A included a copy of 1) Zephyr's Statement of Account listing invoices dated between July 25, 2012 - November 14, 2012 and six payments McClary made during the same period, and 2) multi-page disposal logs for each SWD well. McClary timely filed its Answer, denying the material allegations in the petition and raising several affirmative defenses.

¶4 In June of 2013, Zephyr moved for summary judgment, alleging it was undisputed that "for approximately one year prior to June 2012," McClary had delivered quantities of produced saltwater to the Wells in Dewey County for disposal by injection, for which McClary paid Zephyr the established rated of "50 cents per BBL (barrel)." Zephyr also alleged it and McClary had executed a letter agreement on June 27, 2012, providing that McClary "will have the right to continue to deliver saltwater to Zephyr on a first come basis and payment will be expected within 30 days for said disposal." To support the alleged unpaid balance for SWD fees of $59,201.50, Zephyr attached copies of the petition with attached statement of account and documentation, the June 27, 2012 letter agreement, and an affidavit from David Johnson as "the managing member of Zephyr SWD, LLC."

¶5 McClary filed its response to Zephyr's motion in July 2013, admitting "the parties have a disagreement resulting in the buy out of the company by the Plaintiff for $475,000." As pertinent facts, McClary contended that "Zephyr Operating Co. LLC agreed to purchase the interest of [McClary]" for that price, "on the same date as the Buy Out Agreement ... the parties executed a Letter Agreement which contradicts the Buy Out Agreement," and that it paid the alleged unpaid invoices. McClary argued there were issues of material facts regarding whether a contract exists between the parties, who is the proper party of the alleged agreement, and whether it owes Zephyr SWD "anything under the Statement of Account." The attached evidentiary materials included two separate letter agreements dated June 27, 2012, a modified Statement of Account on which McClary had written "the check number evidencing the payment of these invoices," copies of cancelled checks, and an affidavit of Tina McClary attesting by her examination of business records, etc., the statement of account attached to the petition is not a true representation of the payments McClary made.

¶6 In October 2013, Zephyr moved for the trial court to reconsider its motion for summary judgment and "to consider, for the first time, additional evidence that McClary owes Zephyr SWD $59,201.50." Zephyr attached another affidavit from David Johnson and eight invoices he claimed McClary never paid, i.e., 6/20/12 (2), 6/21/12 (2), 7/1/12, 7/11/12 (2), 10/19/12. Johnson attested in his affidavit that "none of the invoices or loads in Exhibit 4 to this Motion to Reconsider are noted on the checks from McClary. By their own admission they did not pay for these invoices on these loads with any of these checks."

¶7 The next month, McClary filed a response to Zephyr's reconsideration motion, pointing out the invoices attached to its last motion were not attached to either Zephyr's petition or motion for summary judgment and predate the Statement of Account attached to the petition. After arguing Zephyr's motion to reconsider should be denied as untimely,1 McClary argued it owes no money to Zephyr SWD, and the new invoices create several questions of fact regarding the accuracy of the amount alleged to be owed by McClary.

¶8 On December 31, 2013, the trial court filed an "Order of Judgment," stating a hearing was held December 16, 2013, finding, in pertinent part, that McClary is indebted to and ordered to pay Zephyr SWD the principal sum of $59,201.50, and granting judgment in favor of Zephyr SWD against McClary in the same amount. McClary appeals this judgment.2

STANDARD OF REVIEW

¶9 A trial court's findings of fact in an action at law "have the same force and effect as the verdict of a jury and those findings will not be disturbed on appeal where there is any evidence reasonably tending to support the findings." Million v. Million, 2012 OK 106, ¶ 8, 292 P.3d 21, 23. We are also mindful that "the credibility of witnesses and the effect and weight to be given to their testimony are questions of fact, not questions of law for the appellate court." Id.

ANALYSIS

¶10 McClary's three propositions all challenge the trial court's interpretation of the June 27, 2012 letter agreements.

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Bluebook (online)
2015 OK CIV APP 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zephyr-swd-llc-v-mcclary-trucking-inc-oklacivapp-2015.