Hanson v. HUNT OIL COMPANY, 20319
| Citation | 438 F.2d 690 |
| Decision Date | 26 February 1971 |
| Docket Number | No. 20319,20320.,20319 |
| Parties | Robert E. HANSON, Appellant, v. HUNT OIL COMPANY, Appellee. HUNT INDUSTRIES, Appellee, v. Robert E. HANSON, Appellant, |
| Court | United States Courts of Appeals. United States Court of Appeals (8th Circuit) |
Morris Chertkov, Washington, D. C., for appellant; Rowley & Scott, Washington, D. C., E. F. Engebretson, Pearce, Engebretson, Anderson, Schmidt & Thames, Bismarck, N. D., of counsel.
Thomas A. Mayer, Russell R. Mather, Bismarck, N. D., for appellee; Fleck, Mather, Strutz & Mayer, Bismarck, N. D., of counsel.
Before VAN OOSTERHOUT and HEANEY, Circuit Judges, and HANSON, District Judge.
VAN OOSTERHOUT, Circuit Judge.
Plaintiff Hanson has taken a timely appeal in case No. 20,319 from final judgment denying his petition seeking reformation or in the alternative the interpretation he urged of a letter agreement entered into between plaintiff and the Hunt Oil Company (Hunt) on August 24, 1961, and from judgment awarding $19,634.38 to Hunt on its counterclaim for Hanson's share of expenses incurred in the operation of the unitized oil field.
Hanson has also appealed from judgment entered in case No. 20,320 against him in favor of Hunt for $40,295.85 for Hanson's share of the cost of operation of a gasoline plant and for foreclosure of a lien upon Hanson's interest in that plant.
The parties stipulated that the evidence introduced in No. 20,319 be considered as evidence in No. 20,320. The cases are consolidated upon appeal. Common issues of law and fact are presented. Diversity jurisdiction in the trial court is established.
This litigation has previously been before us. Hanson v. Hunt Oil Co., 8 Cir., 398 F.2d 578. We there held that Hanson had pleaded reformation and that the court had erred in refusing him leave to amend his complaint to clarify his pleading of reformation and in excluding evidence in support of the reformation issue. We vacated the judgment and remanded for further proceedings consistent with our opinion. We expressed no view on the merits of Hanson's contentions.
Upon remand, the trial court permitted the reformation amendment. Defendant answered. The cases proceeded to trial on the merits. Oral evidence was received on the reformation issue and the intent of the parties.
The parties are in agreement that Hanson was short of funds; that Hunt needed Hanson's participation in the unitization of the oil field; that Hunt to induce such participation agreed to and did advance funds to defray Hanson's share of the cost of placing the unitized field in operation and the erection of the gasoline plant. The controversy arises over the provision for repayment of the advances contained in paragraph "4" of the letter agreement of August 24, 1961, which reads:
Hanson's contention on both the reformation and the interpretation issue is that upon his insistence Hunt agreed to pay him the full production allowables of 84 barrels a day on two wells and 54 barrels on the third well, and that recoupment of Hunt's advances was to be made out of the excess of Hanson's share of the oil production in the unitized field above the aforestated production allowables. He asserts that subparagraph "A", properly interpreted, so provides and that if it does not, the contract should be reformed to express the true intent of the parties. Hunt claims that subparagraph "A" unambiguously reflects the intention of the parties which was that Hanson was guaranteed the proceeds of the actual production of his three wells up to the stated production allowance and that the excess of Hanson's share of the income from the unitized field above the actual production of his three wells was to be applied in repayment of Hunt's advances.
With respect to subparagraph "B" relating to income from the gasoline plant, Hanson claims the word "income" should be interpreted as meaning net income after operating expenses have been deducted, while Hunt contends that the intended meaning was gross receipts or gross income.
The court found that Hanson had not established a right to reformation of the letter contract and that the contract should be interpreted as to both subparagraphs "A" and "B" in accordance with Hunt's contentions. Judgments were entered against Hanson for his share of the operating costs of the unitized operation in No. 20,319, and for Hanson's share of the cost of operating the gasoline plant in No. 20,320. There is no dispute as to the amount due if the trial court's decision on the reformation and interpretation issues is correct.
We hold that the court's factual determinations are supported by...
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Hanson v. Hunt Oil Co.
...the complaint and entered judgment for the defendant on its counterclaim. This judgment was affirmed on appeal. Hanson v. Hunt Oil Co., 438 F.2d 690 (8th Cir. 1971). The controlling issue in this current appeal, therefore, is whether the trial court properly applied the doctrine of res judi......
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Hanson v. Hunt Oil Company, 73-1669.
...Co., 398 F.2d 578 (8th Cir. 1968). On remand, judgment again was entered for Hunt Oil and the judgment was affirmed in Hanson v. Hunt Oil Co., 438 F.2d 690 (8th Cir. 1971). Hanson filed the instant action on October 20, 1971, alleging, inter alia, that Hunt Oil had operated the oil wells in......