Imo Oil & Gas Co. v. Knox
| Decision Date | 14 July 1931 |
| Docket Number | Case Number: 19764 |
| Parties | IMO OIL & GAS CO. v. KNOX. |
| Court | Oklahoma Supreme Court |
¶0 1. Malicious Prosecution -- Elements of Cause of Action to Be Shown in Suit for Damages.
The elements entering into and necessary to be shown in a suit for damages for malicious prosecution are: (1) That the prosecution was commenced against plaintiff; (2) that it was instituted or instigated by defendant; (3) that it was malicious; (4) that it has been legally and finally terminated in plaintiff's favor; (5) that it was without probable cause.
2. Same--"Malice"--Exemplary Damages.
By malice it is meant that an unreasonable and wrongful act was done intentionally without just cause or excuse. Such malice may arise from want of probable cause. However, express malice may be established, and when established it forms a basis for exemplary damages.
3. Same--Recovery not Barred by Mere Fact That Defendant Secured Advice of Counsel.
In an action for damages for a malicious prosecution, where the evidence shows that the defendant acted from motives of private interest and without probable cause to support the prosecution the mere fact that advice of counsel was secured as to a phase of the oppressive use of the process of law and other measures brought against the injured party--such fact will not bar a recovery.
Appeal from District Court, Garfield County; Charles Swindall, Judge.
Action by Charles E. Knox against the Imo Oil & Gas Company. Judgment for defendant, and plaintiff appeals. Affirmed.
McKeever, Moore & Elam, for plaintiff in error.
Simons, McKnight, Simons & Smith, for defendant in error.
¶1 This action was instituted by Charles E. Knox against the Imo Oil & Gas Company, and based upon malicious prosecution of a civil action. On May 31, 1922, the Empire Gas & Fuel Company owned an oil and gas lease on a quarter section of land in Garfield county. R. E. Hoy owned the fee. On January 18, 1924, Hoy secured a judgment canceling the lease in part on the ground of nondevelopment. The Empire Company had developed a small producing well on the premises, so the decree of cancellation reserved unto the Empire Company approximately ten acres about the well. The Empire Company assigned to Knox the right to drill additional wells upon the ten-acre tract so reserved. The Imo Oil & Gas Company, on June 7, 1924, purchased an oil and gas lease upon the quarter section of land, exclusive of the ten acres heretofore mentioned, and immediately commenced drilling a well between 30 and 40 feet from the east line of the ten-acre tract. On September 22, 1924, it brought in this well. On March 1, 1925, the Imo Company commenced another well at a location east of their first well, and further development followed. Thereupon Knox commenced operations near the east line of the ten-acre tract and offsetting the Imo Well No. 3, whereupon Mr. Hawkins, president of the Imo Company, consulted a lawyer, and through him brought an action in injunction to restrain the operations of Knox, and alleged in the petition for injunction that the Empire Company had no right to drill any additional wells upon the ten-acre tract, and that it had no right to assign to Knox the right to drill thereon.
¶2 A demurrer was presented and by the court sustained on December 14, 1925; the cause was dismissed, the court finding that plaintiff had no right to maintain the action for the reason that it had no right, title, or interest, legal or equitable, in or to the ten-acre tract of land, but that the Empire Company had the right to assign its rights and interest, under its lease as to the ten-acre tract, to defendant Knox. The plaintiff appealed, and the decision of the lower court was sustained on October 19, 1926. Imo O. & G. Co. v. Chas. E. Knox Oil Co., 120 Okla. 13, 250 P. 117.
¶3 Whereupon Knox instituted the instant action to recover damages by reason of the alleged malicious prosecution. Verdict was in favor of plaintiff in the sum of $ 8,000 actual damages, and $ 3,000 punitive damages. Judgment was rendered accordingly.
¶4 The evidence disclosed that the Imo Company had located and drilled its well No. 1, at a point 23 feet from the east line of the ten-acre tract and its No. 3 well at a point 33 feet east of the east line of the tract near the southeast corner. No doubt the conclusion below was that the Imo Company so located its wells to drain the oil from the ten-acre tract, and when Knox acquired his right to the ten-acre tract and located his well No. 2, as an offset to the Imo Well No. 3, to protect his interest, that the Imo Company, through Mr. Haskins, president, sought to hinder and did hinder the Knox operations, in the meantime securing the oil to itself by drainage.
¶5 When the Imo Company brought its injunction action against Knox, no temporary injunction order was sought for the reason, as explained in the evidence of the attorney for the Imo Company, that an injunction bond would have been required, with the resulting liability in event the court found the order of injunction was wrongfully obtained. So, in lieu of a temporary order of injunction and bond therefor, and yet for the purpose of impounding the value of Knox's oil runs, the Imo Company served notice, by letter, on the Champlin Refining Company, purchaser of oil from Knox, that the Imo Company claimed the oil produced from the ten-acre tract. The Champlin Refining Company refused to pay Knox for such oil unless an indemnifying bond be given it by Knox, and this Knox was unable to do. The result was that Knox was unable to get money with which to properly develop the ten-acre tract, but the Imo Company continued swabbing its well offsetting, as aforesaid, and draining the ten-acre tract.
¶6 After Knox brought in well No. 2, he located well No. 3, at a point west and on the south line of his ten-acre tract; the Imo Company offset this well with its No. 6. Knox erected his derrick, but was unable to proceed with drilling his well No. 3 for lack of funds, until the court passed upon the demurrer in the injunction suit, whereupon the Champlin Refining Company resumed payment to Knox for oil runs, enabling Knox to resume drilling on well No. 3. By reason of this delay, he lost production of this well for 30 days to his detriment by drainage and otherwise. It appears, also, that Hawkins, president of the Imo Company, sought to induce the Pepper Gasoline Company to refrain from taking gas from Knox, by threatening to discontinue selling gas from the Imo wells to the Pepper Company in event the Pepper Company dealt with Knox. The result was that Knox did not sell gas produced from the ten-acre tract, but lost the value thereof.
¶7 Knox also established that he was forced to pay $ 700, attorney fee, in defending his interest in the injunction action.
¶8 The Imo Company, as plaintiff in error, contends, for reversal of the judgment (under its first assignment or error), that one of the five essential elements, as a condition precedent to recovery in an action for malicious prosecution, is lacking in the case at bar; that that essential element is want of probable cause. Wherefore, they assert, their demurrer to the evidence of Knox should have been sustained; that said alleged error of law occurring at the trial was presented in the motion for new trial, which was by the trial court overruled.
¶9 This contention is without merit. The Imo Company had no right to maintain the action in injunction against Knox. It had no interest in the ten-acre tract. It was doubtful itself of its right to maintain the action. It was fearful of its liability in event it gave injunction bond, nevertheless, it became an aggressor, not only in court, but in many other places, always seeking the advantage, and all in connection with the injunction action which was instituted with misgivings on its part as to its right and consequent liability.
"The elements entering into and necessary to be shown in a suit for damages for malicious prosecution are: (1) That the prosecution was commenced against plaintiff; (2) that it was instituted or instigated by defendant; (3) that it was malicious; (4) that it has been legally and finally terminated in plaintiff's favor; (5) that it was without probable cause."...
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