Hart v. BEN F. BRACK OIL COMPANY

• Decision Date: 24 January 1962
• Docket Number: Civ. A. No. 7212.
• Citation: 201 F. Supp. 465
• Parties: Edward HART, Eugene F. Hart, Philip E. Hart, Jack W. Field, and Drew Pearson, Plaintiffs, v. BEN F. BRACK OIL COMPANY, Inc., a corporation, Brack Oil Company of Colorado, Inc., a corporation, Brack Drilling Company, Inc., a corporation, Ben F. Brack, Henry B. Brack and Leland E. Brack, Defendants.
• Court: U.S. District Court — District of Colorado

201 F. Supp. 465

Edward HART, Eugene F. Hart, Philip E. Hart, Jack W. Field, and Drew Pearson, Plaintiffs, v. BEN F. BRACK OIL COMPANY, Inc., a corporation, Brack Oil Company of Colorado, Inc., a corporation, Brack Drilling Company, Inc., a corporation, Ben F. Brack, Henry B. Brack and Leland E. Brack, Defendants.

Civ. A. No. 7212.

United States District Court D. Colorado.

January 24, 1962.

Louis I. Hart, Jr., Denver, Colo., and James W. Heyer, Denver, Colo., for plaintiffs.

O. Rex Wells, Fort Collins, Colo., for defendants Brack Oil Co. of Colorado, Inc., Brack Drilling Co., Inc., Henry B. Brack and Leland E. Brack.

DOYLE, District Judge.

The complaint describes claims by citizens and residents of Washington, D. C., Virginia, Wisconsin, and New York, against individual defendants and certain corporate defendants which are alleged to be conducting business in Colorado. There is no allegation that two of these corporate defendants have their principal place of business in Colorado.

The various plaintiffs demand restitution as to amounts paid for fractional interests in oil leases. The basis for the demand is the alleged failure of defendants to perform the terms and conditions of the agreement, including the drilling of the number of wells which, according to the allegations, the defendants agreed to drill. Plaintiff Edward Hart has demanded the sum of $7,320.00, the amount which he paid; plaintiff Eugene F. Hart seeks $1,830.00; the plaintiff Philip E. Hart has also demanded the sum of $1,830.00; the demand of plaintiff Jack W. Field is in the amount of $6,923.00, and that of plaintiff Drew Pearson is in the amount of $14,357.47.

A second claim for relief describes fraudulent representations on the part of the defendants by reason of which the plaintiffs elect to rescind their agreements and recover the amounts paid, plus exemplary damages in the sum of $10,000.00 in favor of each of the plaintiffs against the defendants jointly and severally.

Although no return appears in the file, the Brack Oil Company of Colorado, Inc., the Brack Drilling Company, Inc., Henry B. Brack and Leland E. Brack have moved to dismiss the action and for a more definite statement. The grounds for the requested dismissal are: first, that the allegations do not sufficiently set forth facts showing diversity of citizenship; and, secondly, that certain of the defendants are indispensable and necessary parties and can not be served within the District. Defendants also attack the complaint on the ground that it fails to sufficiently set forth facts constituting fraud. A third basis urged against all plaintiffs except Drew Pearson, is that the claims do not allege that the amount in controversy exceeds Ten Thousand Dollars ($10,000.00).

I.

The motion to dismiss is good as to all the plaintiffs except Drew Pearson for the reason that the amounts alleged do not satisfy the jurisdictional requirement, all of the said amounts being less than $10,000.00. Title 28 U.S.C.A. § 1332.

II.

The second claim for relief alleging fraud, rescission, and demanding exemplary damages is insufficient because exemplary...