Coalinga Mohawk Oil Co. v. Standard Oil Co.

This is an action upon a contract entered into between plaintiff and defendant for the recovery of additional compensation claimed by plaintiff to be due for oil delivered under the contract. At the conclusion of plaintiff’s ease the court directed the jury to bring in a verdict for defendant. The appeal is from the judgment rendered on that verdict.

The contract between the parties was dated May 17, 1915, and a copy thereof appears in the record. It provided for the sale by plaintiff for the period of one year from the date thereof of certain crude oil produced by plaintiff from the premises described in the contract. The controversy between the parties arises under the price clause of the contract, which reads as follows:

On June 7, 1916, the contract between the parties was extended “with the understanding that all of the proceeds resulting from the sale of the oil to the Standard Oil Company, will, from and after the date of this letter, be deposited by the Standard Oil Company in such responsible bank as you (Coalinga Mohawk Oil Company) may select, there to remain until the title to your property is finally adjudicated.”

On March 12, 1917, the contract was again extended…