Honolulu Oil Corporation v. Katharine H. Kennedy and Mark C. Eiworthy, Executors of the Will of Frank Kennedy, Deceased

The facts in this case are drawn from the agreed statement of facts and documentary exhibits.

This action was commenced on November 21, 1950, by Katharine H. Kennedy and Mark Elworthy (hereinafter referred to as “appellees”), as executors of the estate of Frank Kennedy, against Honolulu Oil Corporation (hereinafter referred to as “Honolulu”) for damages on account of alleged underpayments to Kennedy of various oil royalties by Honolulu and its predecessors in interest. The claim of appellees is limited to underpayments'for the period from July 1, 1931, to and including August 29, 1935, during which time it is claimed that an artificially depressed price for oil, rather than its real market value, was used to determine the amount of the royalties due. The parties stipulated that, if appellees are to recover at all, the amount of the judgment shall be $9,519.11, plus interest, i-f allowed.

. Frank Kennedy was owner of some land in fee (120 acres, a quarter section) in' the Kettleman Hills area of Fresno County. He also held a U. S. Oil and Gas Prospecting Permit, giving him rights over approximately 2,500 acres in -.the same area. On January 6,1927, Kennedy ■ executed four…