Royalty and Royalty Interests: Overriding Royalty Damages: Proof Court Jurisdiction, Procedure and Review: Discovery Sanctions

摘要

For a discussion of-the underlying facts, see 167 0.&G.R.227, which led to the remand on the damages issue. Upon remand, the trial court awards Retamco actual damages of $5,656,409, attorney's fees of over $700,000 and $10,000,000 in punitive damages against each of the defendants. Held: reversed and remanded. Defendants challenge the plaintiffs standing to pursue these claims for the first time in this second appeal. Since standing is essential for a court to have authority to decide a case it cannot be waived and may be presented for the first time upon appeal. The basis of the standing defense is that the documents show that the plaintiff in this case is not the same corporate entity as "Retamco Operating, Inc.," the party that executed the 1984 contract. But the petition originally filed which led to the default judgment specifically asserted that the plaintiff entered into the 1984 contract. That fact is a judicial admission that cannot be controverted by later evidence or pleadings. Having lost on the merits of the default judgment, the defendants may not now challenge the facts as established by the petition that served as the basis for the default judgment. The court also dismisses the statute of limitations defense proffered by the defendants because it has been waived since the defendants' original answer was properly stricken as a result of discovery sanctions. The court, however, does agree with the defendants that there is insufficient evidence to support the actual damages awarded. The evidence relating to an award of unliquidated damages after a default judgment may be challenged on appeal. The only testimony offered by Retamco on damages was the testimony of a landman who apparently did not provide any supporting objective facts, figures, or data to support his opinion on the ultimate amount of damages. Without such an evidentiary basis for calculating the amount of damages, an award may not be issued. Without an award of actual damages, there can be no award of attorney's fees or punitive damages. The case is therefore remanded for a trial to determine the proper amount of damages.