Carter Barron Drilling v. Badger Oil Corp.
United States District Court for the District of Colorado
581 F. Supp. 592 (1984)
The contract between Badger Oil Corporation (Badger) (defendant) and Carter Barron Drilling (Carter Barron) (plaintiff) stipulated that Badger, as operator of a mine owned by Knee Hill Energy, Inc., would pay Carter Barron, the contractor, to drill for oil and gas on the property. Badger relied on its payments from Knee Hill Energy to pay Badger’s contractors. As a result, when Knee Hill Energy fell behind in its payments to Badger, Badger was unable to pay Carter Barron’s drilling bill. Carter Barron sued Badger for breach of contract. Badger proffered evidence that, within the oil and gas industry, the common understanding was that in such situations, a contractor’s only recourse was to recover directly from the owner. Carter Barron disputed Badger’s description of industry practice and moved for summary judgment.
Rule of Law
Holding and Reasoning (Kane, J.)
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