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Kay v. Venezuelan Sun Oil Co.
806 P.2d 648
Okla.
1991
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*1 (1976); Co. Construction Sooner (1975). Okl.,

Brown, Virginia KAY and William H. Kay, Appellees, no evidence was held and No trial stipulation and medical re than the other judge. The presented to the trial

port was COMPANY, SUN OIL VENEZUELAN evenly remotely related to only evidence Company, Mary Parish Oil St. limitations was a statement the statute of Company, Limit- Land Anderman Oils Easley’s physician. report in the medical ed, Partnership, KRM a Limited Petro- Therein, reported: the doctor Wyco Royalty, Corporation, Phil- leum has never been told that “He states he Company, corpora- lips Petroleum employ- problems are related to his his tion, Bigheart Pipe Corporation, Line he any way or that could seek Company, a division of Sun Production low back compensation chronic Company, corporation, Rex Sun Oil employment at problems related to his Company, Rex Petro- Petroleum a/k/a B.F. Goodrich.” Corporation, Republic leum &Gas may reveal the state of Company, Appellant. a statement Such Oil Easley at the time of his examina- mind of No. 69521. However, physician. it does not tion person in whether a reasonable indicate Supreme Court of Oklahoma. Easley’s with his educational situation Feb. un- background would have been “aware” requirements Coy. der Pursuant does

Munsingwear Coy, this evidence reasonably support finding

not that Eas- by the

ley’s claim was not barred statute trial court should have

limitations. The on the issue of whether

heard evidence

Easley was “aware” as that term is used

Coy.

Therefore, opinion we VACATE the Appeals, the deci-

the Court of REVERSE panel the en banc and the trial

sions of

court, further and REMAND the cause for

proceedings not inconsistent with this hold-

ing.

OPALA, C.J., HODGES, V.C.J.,

LAVENDER, DOOLIN

HARGRAVE, JJ., concur. WILSON, J.,

ALMA dissents.

KAUGER, Justice, dissenting: view, my improvidently certiorari was

granted.

SUMMERS, J., dissents, joins

KAUGER, J. *2 Klenda, O’Connor, M. Newton &

Thomas Tulsa, appellees. Strecker, Colopy,

David E. Katie Con- J. Tulsa, Winters, Woodyard, Wayne L. ner & Pawhuska, appellant. WILSON,

ALMA Justice: presented is whether the action issue is to recover for labor or servic- below one by 12 contemplated es as hold 936 does not authorize at- We that § torney in the action and that the below provisions of “labor and services” par- prevailing authorize fees to recovery money in ties actions for the performed, due for and services appli- reaffirm our established rule of strict provi- cation of the “labor services” sions Kay (Kay), Appellee, H. William

agreed leases and act to evaluate mineral production in prospects as consultant on Company Osage County for Golden Oil services, (Golden), For Appellant. these $1,000.00 pay per agreed Kay to Golden plus assign Kay to expenses month to percent overriding royalty one interest acquired by for which all leases Kay consulting services. had rendered Kay performed agreed in 1973 the agreed paid Kay the and 1974. Golden Kay monthly assigned amounts. Golden herein, wife, appellee percent his a one Osage overriding royalty interest in the 25, 1975, County February Dated leases. Kays an assignment granted the overriding royalty interest in all oil which marketed may produced, be saved and Kay received from the described leases. assign- pursuant royalty proceeds oil Kay ment. became aware leas- casinghead gas on these production of per- the one es and endeavored collect casinghead royalty on cent gas production. percent Kay was refused a one

When filed gas proceeds, suit was interest in the from seeking accounting proceeds of all gas produced casinghead specific the sale of from the absence of a statute or a leases, production money judgment specific the oil par- contract therefor between gas proceeds for the amount of the due Exceptions ties. to the American Rule are overriding royalty under narrowly Similarly, defined.4 the mandato- quiet percent title in and to one ry provisions prevailing 9365 that the *3 casinghead gas on said leases. Golden party in an action to recover for labor and summary judgment, asserting moved for services shall be allowed a reasonable at- specific unambiguous that under the torney strictly applied.6 fee are assignment, terms of the was enti- Golden judgment tled to as a matter of law.1 The v. Flanagan, Russell In “for summary judg- trial court provisions labor and services” of 936 § ment.2 strictly brought were limited to actions party, prevailing As Golden moved for an recover for labor and services rendered. attorney expenses award of fees and other specifically rejected interpretation We O.S.1981, under 12 The trial 936. court § of 936 which would authorize the courts § concluding denied the motion “... this is attorney prevailing award fees to the - not ‘a civil action to recover on party alleging in an injury action that was contract for labor or services’.” The Court merely related to a for contract labor and Appeals of reversed and remanded with in Russell v. controversy services. The previously granted instructions. We cer- Flanagan alleged arose from an breach of tiorari. warranty on the sewer line services ren Thus, dered. the nature of the action was firmly The American Rule is estab for breach of warranty and not for jurisdiction.3 is, recov lished this That each ery money judgment of a litigant on a debt for legal rep bears cost of his/her resentation and our labor and courts are without au services rendered as contem thority attorney to assess and plated by award fees 936.7 § Appellant designated Paulk, 1. the entire Company trial court 4. Tower Oil & Gas v. appeal. petition (Okla.1989); record on The City amended 1279 Winters v. Oklahoma of petition allege filed in the trial court that the City, (Okla.1987); 740 P.2d 724 Estate Kats of parties assignment intended the of the chor, and, over- (Okla.1982); P.2d 637 855 In re Parr’s riding royalty produc- interest would include all Estate, (Okla.1955). 287 P.2d 906 allegation tion of minerals. This does not refer consulting agreement. to the wise, services Other- O.S.1981, 5. 12 936 § reads: petition alleges relating neither facts to the any open In civil action to recover on an consulting agreement. Appellant’s service an- account, account, a statement of account stat- cross-petition allege any swers and do not facts ed, note, bill, instrument, negotiable or con- relating agreement. to the relating purchase goods, tract wares, merchandise, to the or sale of summary judgment pleadings assert materi- or for labor or servic- relating only interpretation al facts of the es, provided by unless otherwise law or the assignment overriding royalty interest. action, subject contract which is to the summary judgment sought Golden’s motion prevailing party be allowed a reasonable shall declaration that the written ambiguous was un- court, attorney by fee to be set to be taxed specific and that its terms limited and collected as produced, the interest costs. to the oil saved and mar- keted. Inc., cases, Coating Company, 6. ABC and Holbert Summary judgment 2. appeal was affirmed on 3.; supra, Company note Burrows Construction 68,589, by opinion, Case No. memorandum not Independent v. Stephens School District No. 2 of publication, Appeals, for Court of Oklahoma (Okla.1985); County, 704 P.2d 1136 Ferrell Con- 10, City May Divisions filed 1988. Petition for Co., Co., struction Inc. v. Russell Creek Coal 645 1, certiorari was denied November 1988. (Okla.1982); Flanagan, P.2d 1005 and Russell v. (Okla.1975). P.2d 544 510 Wells, Company 3. B & P Construction (Okla.1988); Coating P.2d 208 Company, ABC Russell, 512, Limited, supra, 544 P.2d at Inc. v. J. Harris & note 6. Sons 747 P.2d 271 (Okla.1987); Echeverria, Legislature provided prevailing Holbert v. and, (Okla.1987); attorney City party National fees in Bank and actions for breach of Trust Owens, 168, 1, Company City warranty, Oklahoma Okla.Sess.Laws ch. co- (Okla.1977). dified as 12 § 939. Co., Inc. v. Rus- Coating fees and we Com- In Ferrell Construction reversed. ABC again rejected pany damages allegedly sued for caused Co. we liberal sell Coal agreements In that case the for the use of a interpretation of breach a contract subject manufacturing process. matter of the action was secret saidWe mining services which had been strip may only that be if awarded The relief unilaterally terminated. type the action involves the of contract damages anticipated prof- for loss of 936; was enumerated in that none of the in- denial reinstating the trial court’s its. quasi-contracts directly volved arose from fees, said the action we services; and, the rendition of labor clearly recovery profits for the that services rendered was performed.8 not for labor and services quasi-contracts.10 collateral Echeverria, affirming the *4 In Holbert v. previous opinions The revisit of our con- denial of Echeverria’s 936 at trial court § application firms the rule of strict of the motion, is torney fees we said that 936 § provisions “labor and services” of 936. § damages if the action is one for inapposite And, plain reading of in 936 view of the § agreement arising from the breach of an amendatory history appli- commands strict relating performance the of and to labor originally cation of the statute.11 As enact- services; gravamen that the of the action ed, attorney 936 authorized the award of § convey of the contract is breach to account, open fees for collection on an and and, applica improved realty; that 936 is § subsequently was amended to include sev- sought recovery if the action for ble labor specific categories evidencing en additional services, in as the case of failure to contractual indebtedness re- to be pay.9 application pre- covered.12 Our strict rule Coating Company, legislative ABC Inc. Finally, serves the obvious intent to au- Limited, v. Harris & J. Sons attorney pre- the trial thorize awards of fees to the request attorney vailing parties court Harris’ money judg- actions for 1011, Ferrell, note, supra, by promissory negotiable 8. 645 P.2d at note 6. denced in- strument, tangi- an account whether for sale of 9. Holbert, 966, supra, 744 P.2d at note 3. property ble or labor and services and a bill or a goods contract for sold and delivered. 10. ABC 273, Coating, supra, P.2d at 747 note 3. 11. Legislative prevailing party intent to mandate 12.Application of to § 936 actions for the collec attorney brought fees in actions enforce exec- monetary promised tion of consideration as utory promises pay monetary consideration payment receipt property, for the of labor or receipt property for readily of or labor or services is jurisprudence is consistent with our amendatory history discernible from the defining terms utilized in the statute: Office of 936, original of version of § § 936. 1961 Department Develop Industrial of Governor — Okla.Sess.Laws, 64, 1, p. mandated allowance § Dalton, 971, (Okla.1977), ment v. 560 P.2d 972 attorney open of fees in an action ac- on account; defining open Drilling Webster v.Co. count: Oklahoma, Inc., Sterling Oil 376 P.2d 236 of any open In civil action to recover on an (Okla.1962), stated; defining Epperson account prevailing party account the shall be allowed Halliburton, (Okla.1967), v. distin attorney by a reasonable fee to be set contract, guishing open express account from court, to be taxed and collected as costs. written; Engines, oral or and United Inc. v. 1967, In was amended § 936 to add: state- Construction, Inc., McConnell accounts, stated, bills, ment of accounts and' (Okla.1980), And, defining account for services. relating purchase written contracts to the or sale application Appendix this is consistent with the wares, merchandise, goods, of unless other- O.S.Supp.1990, of forms in 12 2027 and with § provided by wise the contract which is the sub- statute, similarly O.S.Supp. worded Okla.Sess.Laws, 135, venue 12 ject of the action. 1967 ch. 1990, 142, fixing venue of actions for collec 1.§ account, 1970, open deleting amended tion of "... an a statement of 936 was "writ- account, stated, relating purchase ten” as to contracts to the account written or oral contract note, instrument, goods, adding: negotiable relating purchase goods, wares or Okla.Sess.Laws, merchandise, services, services. 1970 labor or or for the collec 282, ch. 1.§ tion of note or other instrument of indebt legislative These amendments indicate intent provided by general edness ...” as venue mandate, allowed", attorney "shall be fees in statutes or where the debt was contracted. money promised, actions to collect whether evi- 652 by the contracts for debts created

ments Accord: in the statute. Hicks enumerated SNYDER, a/k/a, Eugene Robert Agency, LLoyd’s Insurance v. General Eugene Snyder Robert 85, (Okla.1988), Inc., 86 wherein Appellant, purposes 936 prevailing party for determined the offer settle- 1101, provisions of 12 ex- Oklahoma, Appellee. STATE applicable money to actions for pressly No. F-86-684. and, only; Doyle Kelly, judgments 717, (Okla.1990), P.2d wherein § Appeals Court of Criminal of Oklahoma. were affirmed in an action on commissions and bonus a contract to collect 4, Dec. 1989. services rendered. commissions earned for Rehearing April Granted fees, support of the claimed Rehearing On Feb. that the Golden contends royalty given in interest was payment services rendered for collection for

and the action is one *5 Clearly, gravamen

services rendered. interpretation is the action below language in the

and effect of the executed

assignment royalty inter- Summary judgment

est. assertion that the lan- on Golden’s

guage assignment judg- in the entitled it to Indeed,

ment as a matter of law. neither Kay

Golden nor listed the amount to be

paid owing or due and fact,

services rendered as a material dis-

puted undisputed, summary judg- in the proceeding. An

overriding royalty interest is not one of the

contracts enumerated in 936. The action only collaterally

below is related to

agreement for labor and services. The dis- authority

trict court to assess was without fees under award denying

this action and its order the motion fees is therefore affirmed.

OPALA, C.J., LAVENDER, SIMMS, HARGRAVE, JJ.,

DOOLIN and concur. V.C.J., SUMMERS, J.,

HODGES,

concur reason of stare decisis: Russell (Okla.1975). Flanagan,

KAUGER, J., dissents.

KAUGER, Justice, dissenting:

I Flanagan, would overrule Russell v. (Okla.1975) progeny. and its

Case Details

Case Name: Kay v. Venezuelan Sun Oil Co.
Court Name: Supreme Court of Oklahoma
Date Published: Feb 26, 1991
Citation: 806 P.2d 648
Docket Number: 69521
Court Abbreviation: Okla.
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