Court Jurisdiction, Procedure and Review: Collateral Estoppel

摘要

For a full discussion of the facts see the case review at 177 0.&G.R. 687. After losing in the earlier litigation, BoMar issues a division order based on a .3055 interest claimed by Loyd and used as the measure of damages. Thereafter, BoMar learns that another operator that is drilling on the same acreage but to a different formation, is paying Loyd on a .20 interest. BoMar then revokes its division order and starts withholding payments based on the .20 interest figure. Loyd moves for summary judgment which is granted by the trial court. Held: affirmed. Loyd asserts that even though the jury in the earlier litigation was not asked to and did not specifically decide the extent to which Loyd owned an unleased interest, the earlier decision should collaterally estop BoMar from challenging the .3055 interest. The court agrees that the earlier litigation was entirely based on Loyd owning a .3055 interest as had been stipulated to by BoMar. As such, the collateral estoppel doctrine will prevent BoMar from challenging the undisputed holding of the earlier litigation that Loyd owns a .3055 interest in the well that BoMar drilled regardless of whether or not Loyd owns a .3055 interest.