Anglin v. Cutler

BARNARD, P. J. This is an action to recover for labor and materials alleged to have been furnished to the defendants.

The plaintiff’s assignor was in the business of selling lumber and building oil well derricks. The defendants Cutler and Ochs operated the Cutler-Ochs Producing Company, as copartners, and also controlled the Kenneth Oil Producing Company, of which they and their wives were the only directors. They were also directors and officers of the Philip Oil Producing Company, of which their secretary was the only other director. The Kenneth Oil Producing Company owned a lease near Newhall and was also conducting operations on another lease in the Kettleman Hills, the title of which was in the Philip Oil Producing Company. One White was employed by the Kenneth Oil Producing Company and was acting as superintendent of the operations on both of these leases, although Cutler and Ochs were in active charge of all of these operations. The defendant Kaplan was attorney for the Cutler-Ochs Producing Company and for the Kenneth Oil Producing Company, and under a written authorization was acting as agent and trustee for the partnership in collecting income from certain oil properties which he was to disburse on orders given him from time to time by Cutler and Ochs.

In July, 1941, the Kenneth Oil Producing Company contracted with Eosemead Oil Company to drill an oil well on the Newhall lease. The Eosemead Company purchased a der[44]rick from the plaintiff’s assignor which was moved to this property and which was fully paid for. However, certain extra work was done by plaintiff’s assignor of the value of $100, which was ordered by the defendants’ superintendent, White, and which was not paid for. Also, certain lumber of the value of $50 which was on the Newhall property when the rig was completed was kept by White for the defendants and was not paid for.

Shortly thereafter, White, at the direction of Ochs, arranged with the plaintiff’s assignor to furnish the material and labor and erect a second-hand derrick on the Kettleman Hills property, and agreed to pay $1,000 therefor. Plaintiff’s assignor delivered the material to that property and completed the work, the operations there being in charge of White, who was acting for the partnership and for the Kenneth Oil Producing Company. This was not paid for. About the same time lumber of the value of $54.08 was delivered to a different lease owned by the Kenneth Oil Producing Company, which admits receiving it and that it is liable therefor.