Stockbridge Energy, LLC v. Taylor

October 7, 2015 by Justia

Plaintiff Stockbridge Energy, LLC brought suit against Jim Taylor, John Groninger, Jr., and Taylor Drilling Corp. in 2003, alleging, among other things, a breach of the parties' partnership and agreement for oil and gas lease development in Osage County. Specifically, Stockbridge alleged the defendants failed to account for the profits and losses of the partnership, failed to transfer property according to the parties' agreement, engaged in "secret transactions," and misappropriated profits due the partnership. The individuals, Jim Taylor and John Groninger, Jr., specially appeared and moved to dismiss for failure to state a claim on the grounds that the petition showed no individual liability on their part and that the theory of "piercing the corporate veil" was not viable under the facts as pled. Stockbridge did not respond to the motion of the individual defendants and, on August 17, 2004, an order was filed wherein the trial court granted the unopposed motions to dismiss. There was no discussion regarding any amendment of the petition nor did the trial court's order of dismissal set forth a time to allow any amendments. More than four years after the order granting the motions to dismiss, Stockbridge filed a motion seeking to amend its petition to add Taylor and Groninger back in as individual defendants. Over the objections of the defendants, the trial court granted leave to amend by no later than May 20, 2009. Stockbridge filed an amended petition re-naming Taylor and Groninger, and also added a new defendant, David Bomberger. Taylor and Groninger appealed the Court of Civil Appeals' judgment which agreed with the trial court in adding them back into the litigation after they had been dismissed years ago. The individual defendants argued to the Supreme Court that the time to amend the pleadings in this case, if any, should not have extended beyond the applicable statute of limitations or the one year savings clause to which a dismissed claim is otherwise subject. The Supreme Court agreed and reversed the appellate court's order. View "Stockbridge Energy, LLC v. Taylor" on Justia Law