55 So. 8 | La. | 1911
Plaintiff sued the Lillie Oil Company, M. A. Currie, Miss L. B. Young,
The Lillie Oil Company, after pleading the general issue, admitted the execution of the alleged written contract, and averred that the well had never been completed in accordance with the terms of the contract, but was abandoned long before it was completed, and that respondent had tried to complete the same at a large cost, but had been unable t'o do so. No answer was filed by the other defendants, but as to them issue was joined by default.
The case was tried, and there was judgment in favor of the plaintiff against the Lillie Oil Company for the full amount claimed, and against the three other defendants, jointly, for the sum of $1,000, with interest. After the judgment was rendered, the Lillie Oil Company was placed in the hands of a receiver, and he and his codefendants have appealed.
Under the contract the plaintiff bound itself to drill a well to a depth of 2,300 feet, unless oil in paying quantities was found at a less depth.
The fifth clause of the contract provides:
“Upon the completion of the said well to the satisfaction of the party of the second part, the party of the second part is to pay the party of the first part the sum of seventy-five hundred dollars.”
On the back of the contract was indorsed the following:
“We guarantee the terms of this contract.
“M. A. Currie.
“L. B. Young.
“S. S. Hunter.”
All three were directors of the Lillie Oil Company. Currie was also vice president, and Miss L. B. Young was also secretary and treasurer. It appears that S. S. Hunter represented the company in its dealings with the plaintiff.
A well was drilled by the plaintiff on the land of the Lillie Oil Company to the depth of some 2,260 feet, when oil was struck. Representativos of the oil company were notified of the completion of the well, and were present when it “was to come in.” Mr. Savage, one of the directors, testified that he could not tell the condition of the well, but, “It threw out a spout of oil, but did not continue long, as they dropped the bailer in.”
TÍie bailer remained in the- well for three or four weeks, before it was removed. Then there was a small flow of oil, which was piped into the tanks of the oil company. Plaintiff’s representatives turned over the well, to the oil company. Later, at the in
Mr. Hunter testified that for more than a year he tried to make the well produce; that it' produced spasmodically, some days 20 barrels, some days 85 barrels, and then would fill with mud and sand, and that the well was not satisfactory, because it “was not a producing well.” Mr. -Hunter testified that he never called upon the plaintiff to do anything else to the well after he took charge of the same.
Mr. Currie testified that Mr. Hunter was manager, as his business called him to the field for another company; that the driller of the well told him that there was no easing for 140 feet next to the bottom, but that Subsequently he was told by one of plaintiff’s representatives that “a liner was put in there.”
Two representatives of the plaintiff testified that the well was drilled and completed in the usual manner; that when it was turned over to the defendant company it was flowing oil at the rate of about 70 barrels per day; that’ the well was connected with the tanks of defendant company, and more than 1,200 barrels of oil were piped into them; that, on the well ceasing to flow, they suggested that Mr. Hunter use a pump, and at' his request furnished a complete pumping plant; that no complaints were made as to the noncompletion of the well, and $6,500 was paid on account of the drilling contract, and that no objections were made to the statements of account rendered from time to time to Mr. Hunter as the manager of the oil company.
We note the absence from the transcript of the statement rendered to the defendant company, and checks and receipts showing amounts and dates of partial payments made t'o the plaintiff company. These documents, were offered in evidence by the defendants and appellants.
Judgment affirmed.