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Fisher v. Tomlinson Oil Co.

Supreme Court of Kansas
527 P.2d 999 (1974)


Facts

Union Gas System, Inc. (Union) assigned L. B. Fisher (plaintiff) oil rights on a tract of land. The assignment required Fisher to drill a well by August 16, 1972. The assignment further provided that if the first well was a dry hole, Fisher would have an additional year to explore and drill. Fisher agreed to assign these drilling rights to Tomlinson Oil Co. (Tomlinson) (defendant) in exchange for Tomlinson’s commitment to commence drilling of a well by August 16, 1972. Tomlinson did not drill the well by the required date. Fisher sued for breach of contract. The trial court granted Fisher’s motion for summary judgment and awarded Fisher $8,500, the cost of drilling a well on the property. Tomlinson appealed, arguing that Fisher did not sustain any damages, because geological evidence showed that there was no oil on the property. Thus, Tomlinson argued, the damages amount the trial court awarded was inappropriate.

Rule of Law

Issue

Holding and Reasoning (Fontron, J.)

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