Procedural Posture

[Saim Khan]

Defendant debtor challenged a judgment from the Superior Court of Kern County (California), which found in favor of plaintiff creditor in an action to recover for reasonable value of services and material claimed. By stipulation, a receiver was permitted to intervene in the action. Hire the lawyer for lawsuit San Diego and consult with him all matters and issues.

Overview

In a dispute over an agreement to drill an oil well, the trial court found that the debtor was indebted to the creditor individually and to him as intervenor and as trustee and receiver for an oil drilling company, a copartnership. The debtor answer with a general denial and alleged, as a separate defense, that the creditor had agreed to recondition a certain oil well and furnish the outfit and other supplies in exchange for a lease, subject to a royalty interest. The trial court rejected the debtor's contentions concerning the alleged agreement and found that the creditor had furnished services and material to the debtor in the amount noted. The court held that because the parties never made a formal or express agreement, an agreement that they would make such a contract in the future amounted to nothing. The court found that the parties' agreement to enter into negotiations and try to agree upon the terms of a contract could not be the basis of a cause of action. Therefore, the court affirmed the judgment.

Outcome

The court affirmed the judgment rendered by the trial court, which found in favor of the creditor in the action against the debtor to recover for reasonable value of services and material claimed.