Justia Oklahoma Supreme Court Opinion Summaries

The issue on appeal to the Supreme Court centered on whether Lincoln Farm, L. L. C. breached a contract to sell potatoes to Farming Technology Corporation, and whether certain provisions of the Uniform Commercial Code involving the unavailability of a carrier and a commercially impracticable method of delivery were applicable to the parties. Farming Technology argued at trial that Lincoln Farm was required to build a private rail spur in order to fulfill Lincoln Farm's contractual obligation to load potatoes on railcars or trucks furnished by Farming Technology Corporation to take delivery of the potatoes. After review of the contract in question, the Supreme Court held that the contract unambiguously stated that Farming Technology Corporation would furnish railcars or trucks to take delivery of the potatoes, and that the contract did not state that Farming Technology had the right to insist on delivery solely by rail, or to insist that Lincoln Farm build a private rail spur. View "Lincoln Farm, LLC v. Oppliger" on Justia Law

Charles Sheffer, Jennifer Sheffer, and their minor son, J.S., were injured when their tractor trailer collided with a rental vehicle leased to William Garris and driven by David Billups, employees of Carolina Forge Company, L.L.C. Plaintiffs sued Carolina Forge on theories of respondeat superior and negligent entrustment. They also sued the Buffalo Run Casino, the Peoria Tribe of Indians of Oklahoma, and PTE, Inc. for dram-shop liability. The trial court granted summary judgment in favor of Carolina Forge, finding as a matter of law Carolina Forge was not liable for its employees' actions under a theory of respondeat superior and did not negligently entrust the rental vehicle to its employees. The trial court also dismissed, sua sponte, the Buffalo Run Casino, PTE, Inc., and the Peoria Tribe of Indians of Oklahoma, determining that injunctions issued by the Western District of Oklahoma prohibited suit for any tort claims against a tribe or a tribal entity. Plaintiffs appealed both orders. Upon review, the Supreme Court concluded the Peoria Tribe was immune from suit in state court for compact-based tort claims because Oklahoma state courts are not courts of competent jurisdiction as the term is used in the model gaming compact. Furthermore, the Court found that because Congress has not expressly abrogated tribal immunity from private, state court dram-shop claims and because the Peoria Tribe and its entities did not expressly waive their sovereign immunity by applying for and receiving a liquor license from the State, the tribe was immune from dram-shop liability in state court. View "Sheffer v. Buffalo Run Casino" on Justia Law

Plaintiffs (the Sheffer family) were injured when their truck collided with a rental vehicle leased to and driven by employees of Carolina Forge Company, L.L.C. Plaintiffs sued Carolina Forge on theories of respondeat superior and negligent entrustment. The trial court granted summary judgment to Carolina Forge, finding as a matter of law that Carolina Forge was not liable for its employees' actions under that theory, and did not negligently entrust the rental to the employees. Upon review of the record, the Supreme Court concluded reasonable minds could have differed on whether the employees were in the course and scope of their employment at the time of the accident and whether Carolina Forge negligently entrusted the vehicle to them. The Court reversed the grant of summary judgment and remanded the case for further proceedings. View "Sheffer v. Carolina Forge Company, LLC" on Justia Law

In August of 2009, Samson Resources Company owned oil and gas leases covering 87.78 mineral acres in Roger Mills County, Oklahoma, including the Schaefer Lease. The Schaefer Lease covered 70 net acres in the Southwest Quarter of Section 28 and had a three-year primary term that ended on November 22, 2007. If drilling operations were commenced by the end of the primary term, the lease would continue so long as such operations continued. On August 2, 2007, Newfield sent a letter to Samson, proposing to drill a well in Section 28. The estimated cost of the well was over $8.5 million dollars. On August 9, 2007, Newfield filed an application with the Commission, seeking to force pool the interests of Samson and other owners in Section 28. Newfield sent an e-mail dated April 14, 2008, to Samson that informed Samson that Newfield had commenced operations prior to the expiration of the Schaefer Lease. Newfield's e-mail stated that Samson had underpaid well costs and that an election to participate with 87.78 acres would require prepayment of $1,411,982.45. Samson responded by e-mail on the same date, informing Newfield its intent was only to elect its 17.78 acres. On April 28, 2008, Samson filed an Application seeking to have its election to participate in the well limited to 17.78 acres rather than 87.78 acres. After an administrative hearing, the Administrative Law Judge determined that Samson's timely election to participate only covered 17.78 acres of its interest and that Samson accepted the cash bonus as to its remaining 70 acres. The Oil and Gas Appellate Referee reversed the ALJ's determination, finding that the ALJ improperly relied on actions which occurred prior to the issuance of the pooling order. The Commission issued Order No. 567706, which adopted the Referee's report, reversed the ALJ, and declared that Samson had elected to participate to the full extent of its 87.78 acre interest in the unit. The Commission found Samson made a "unilateral mistake" when it elected to participate to the full extent of its interest. Samson appealed the Commission's order to the Court of Civil Appeals, which affirmed. Before COCA issued its opinion affirming the Commission, Samson filed an action in the district court alleging actual fraud, deceit, intentional and negligent misrepresentation, constructive fraud, and breach of duty as operator. Samson also alleged Newfield's actions amounted to extrinsic fraud on the Commission, rendering Pooling Order No. 550310 invalid as to Samson's working interest attributable to the 70-acre Schaefer Lease. The trial court granted Newfield's motion to dismiss for lack of subject matter jurisdiction, finding the petition to be an impermissible collateral attack on a valid Commission order. The Court of Civil Appeals affirmed. After its review, the Supreme Court found that Samson's actions for damages sounding in tort were beyond the Commission's jurisdiction, and the district court in this case was the proper tribunal for Samson to bring its claims. The trial court's order granting Newfield's Motion to Dismiss was reversed, and the case was remanded for further proceedings.View "Samson Resources Co. v. Newfield Exploration Mid-Continent, Inc." on Justia Law

A commercial website operator filed this declaratory judgment action seeking a determination of the reasonableness of the fee charged by the Rogers County Clerk for electronic copies of records and for a determination that the corporation was entitled to an electronic copy of the official tract index of county land records. Plaintiff County Records, Inc. is in the business of operating a website that provides land records to on-line subscribers, including the county clerk records for all 77 counties in Oklahoma. In April 2009, Plaintiff requested electronic copies of land records from the County Clerk's office including an electronic copy of the official tract index. The request for an electronic copy of the official tract index was denied based on Defendant's belief that she is legally prohibited from providing it to Plaintiff for its intended commercial sale of the information. The trial court granted summary judgment to the corporation and directed the Clerk to provide all the requested electronic copies at a "reasonable fee." Upon review, the Supreme Court reversed, finding that Plaintiff was not legally entitled to the tract index information in electronic form and the county clerk is prohibited by a specific provision in the Open Records Act from providing information from the land records for resale.View "County Records, Inc. v. Armstrong" on Justia Law

The appellant wife and the appellee husband owned a business together. The business had been the sole property of the wife until shortly before the parties' marriage, when the husband bought a forty-nine percent interest in the business for five-thousand dollars. The wife filed for divorce five years later. During the pendency of the divorce, the wife terminated the husband from the marital business. Husband, still a co-owner of the marital business and receiving the benefits of this ownership, started a competing business. The trial court, in determining the value of the husband's share of the business did not consider any loss in value to the marital business because of the husband's competing business. The Court of Civil Appeals affirmed. The Supreme Court granted certiorari to review this matter and held that the trial court should have, in settling the value of the business for property settlement purposes, included any loss in business value because of the husband's competing business. The only issue presented on appeal was whether the trial court erred in its valuation of the marital business. The Court reversed and remanded the case to the trial court for a valuation of the parties' marital business : "Such a determination must include its value as of the date that the husband purchased a share of the business, as well as any offset to the valuation of husband's share of the business because he received money from the business during the pendency of the divorce. . . .These questions must all be covered by the trial court the second time around. The evidence, taken as a whole, shows that the valuation of [the business], and thus the husband's portion of the property settlement, was against the clear weight of the evidence." View "Colclasure v. Colclasure" on Justia Law

The issue before the Supreme Court in this case was whether the good faith requirement of 12A O.S. 2011 section 2-403 extended to third parties and requires that the third party be notified of a debtor's financial condition. The trial court found the interest of Plaintiff-Appellee Bank of Beaver City (Bank) in the livestock of cattle operation and debtor Lucky Moon Land and Livestock, Inc. (Lucky Moon) to be superior to that of another creditor of Lucky Moon, Defendant-Appellant Barretts' Livestock, Inc. (Barretts). The Bank alleged that in 2004 it perfected a security interest in all of Lucky Moon's livestock, including all after-acquired livestock, giving it a superior claim to cattle purchased by Lucky Moon from Barretts to satisfy the debt owed by Lucky Moon to the Bank. Barretts asserted that the Bank did not have priority over it because the Bank was not a good faith secured creditor. The trial court granted the Bank's motion for summary judgment, finding that the Bank's perfected security interest had preference over Barretts' unperfected security interest. Barretts appealed, contending that Bank did not have a superior security interest because: 1) the Bank's security interest never attached; and 2) the Bank had not acted in good faith. The Court of Civil appeals affirmed the judgment of the trial court. The Bank sought certiorari, contending that: 1) the case presents an issue of first impression as to when good faith under 12A O.S. 2011 section 2-403 should be determined; 2) Bank's security interest never attached; and 3) the Court of Civil Appeals' decision was inconsistent with a different decision of the Court of Civil Appeals on which the court relied. Upon review, the Supreme Court held that 12A O.S. 2011 section 2-403 did not extend to third parties nor require that the third party be notified of a debtor's financial condition. View "Bank of Beaver City v. Barretts' Livestock, Inc." on Justia Law

The Oklahoma Tax Commission assessed corporate income taxes against Vermont Corporation Scioto Insurance Company for 2001 through 2005, based on payments Scioto received from the use of Scioto's intellectual property by Wendy's restaurants in Oklahoma. In response, Scioto protested these assessments on the ground that it did not contract with the Wendy's restaurants in Oklahoma for use of the property in question and did not conduct any business whatsoever in Oklahoma. The Tax Commission denied Scioto's protest and the Court of Civil Appeals affirmed. The Supreme Court previously granted certiorari. Upon review, the Court vacated the Court of Civil Appeals opinion, reversed the Tax Commission's denial of Scioto's protest and remanded the case with instructions to sustain Scioto's protest. View "In re Income Tax Protest of Scioto Ins. Co." on Justia Law

Claimant Carl Wynne was a truck driver. While he was in Tennessee driving a truck for his former employer, he heard that Triad Transport, Inc. was hiring. Claimant called Triad’s headquarters in McAlester and spoke to a recruiter who had hiring authority. Claimant requested that an application be sent by fax to Odessa, Texas, where he lived. He completed the application and sent it by fax to McAlester. A week or so later, the recruiter phoned while Claimant was driving somewhere between Georgia and Arizona that his application had been approved. Claimant agreed to travel to McAlester for orientation. He returned his prior employer's truck to a terminal in Tuscon, Arizona, and a Triad employee gave him a ride to a Triad satellite terminal in Laveen, Arizona. There, he passed a drug test, was provided a fuel card, and dispatched to Rockwall, Texas with a load. In 2010, Claimant was injured in a motor vehicle accident in Colorado while he was driving Triad’s truck. He filed a Form 3 claim for benefits in the Oklahoma Workers' Compensation Court which Triad opposed. The trial tribunal conducted a hearing solely on the issue of the court's jurisdiction. Two witnesses were presented, Claimant and the President of Employer. Claimant testified concerning when and where he was actually hired, and Employer's President testified to the general hiring practices of his company. The recruiter was not called to testify. The trial tribunal made several findings of fact and concluded that it had jurisdiction to hear the case of Claimant's subsequent injury as Claimant's hiring and final assent to permanent employment relationship between claimant and respondent occurred in Oklahoma. A three-judge panel of the Workers' Compensation Court unanimously affirmed the decision. The Supreme Court’s de novo review of the record, the testimony of the witnesses, and the arguments of the parties lead to the conclusion that Claimant's final assent to employment did not occur until he attended the orientation in Oklahoma, “[t]hat process began when Claimant first made contact with [Triad’s] recruiter, but it did not end until Claimant gave his final assent to employment during the orientation in Oklahoma. The Workers' Compensation Court did not err in determining that it has jurisdiction to hear the claim.” View "Triad Transport v. Wynne" on Justia Law

Appellants David and Barbara Moore defaulted on the Note to their mortgage in 2008. U.S. Bank, National Association, commenced foreclosure proceedings later that year, not in its individual capacity, but solely as trustee on behalf of GSAA Home Equity Trust 2006-6 (Appellee). According to the verified petition, the Appellee was "the present holder of said Note and Mortgage having received due assignment through mesne assignments of record or conveyance via mortgaging servicing transfer." The original petition did not attach a copy of the note in question sued upon. Appellants answered, pro se in 2009, disputing all allegations and requesting that the Appellee "submit additional documentation to prove [its] claims including the representation that they were the "present holder of said Note." Appellee subsequently filed an amended petition and a second amended petition to add additional defendants. Neither of these amendments included a copy of the note. Appellee submitted its Motion for Summary Judgment to the court, again representing that it was the holder of the Note. Documentation attached to the Motion attempted to support this representation: including the Mortgage, the Note, an Assignment of Mortgage, and an Affidavit in Support of Appellee's Motion for Summary Judgment. For the first time, Appellee submitted the Note and Mortgage to the trial court. The note was indorsed in blank and contained no date for the indorsement. Appellants did not respond to Appellee's Motion, and the trial court entered a default judgment against them. The trial court entered a final judgment in favor of the Appellee. Upon review, the Supreme Court found no evidence in the record establishing that Appellee had standing to commence its foreclosure action: “[t]he trial court's granting of a default judgment in favor of Appellee could not have been rationally based upon the evidence or Oklahoma law.” The Court vacated the trial court’s judgment and remanded the case for further proceedings. View "U.S. Bank v. Moore" on Justia Law