(DOWNLOAD) "Barbara Oil Co. v. Kansas Gas Supply Corp." by Supreme Court of Kansas " Book PDF Kindle ePub Free
eBook details
- Title: Barbara Oil Co. v. Kansas Gas Supply Corp.
- Author : Supreme Court of Kansas
- Release Date : January 28, 1992
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 75 KB
Description
The opinion of the court was delivered by Natural gas producers, Barbara Oil Co. (Barbara) and Pickrell
Drilling Co. (Pickrell), sued Kansas Gas Supply Corporation
(KGS), a natural gas pipeline company, and three KGS affiliates
(the Oxy companies) in separate actions later consolidated at the
district court level. Barbara and Pickrell claimed KGS
[250 Kan. 440]
breached "take or pay" contracts by not buying the required
minimum amounts of gas for several years commencing in 1983. KGS
filed a third-party action against Kansas Gas and Electric
Company (KG&E), claiming KG&E should indemnify KGS for any
liability it had to Barbara and Pickrell. KGS's indemnity action
claimed its failure to purchase the required minimum amounts of
gas resulted either from KG&E's breach of its contract with KGS
or fraud by silence, i.e., KG&E intentionally failed to notify
KGS of its reduced need for gas; alternatively, KGS's action
claimed that when KGS extended its gas contracts with the
producers it acted as the agent of KG&E and, therefore, KG&E, as
principal, was obligated to indemnify KGS for its liability to
Barbara and Pickrell. Before trial, KGS and the Oxy companies
settled with Barbara and Pickrell. KG&E moved for summary
judgment on all of KGS's claims. The trial court granted summary
judgment on KGS's indemnity for breach of contract claim on
grounds the statute of limitations had run, but it denied summary
judgment on the agency and fraud claims. At the close of KGS's
case and again at the close of all the evidence, KGS moved for a
directed verdict on the agency and fraud by silence claims. The
trial court denied KG&E's motions, finding there was sufficient
conflicting evidence to submit the questions of agency and fraud
by silence to the jury. The jury found (1) KG&E had fraudulently
concealed anticipated changes in its gas requirements but KGS's
fraud claim was barred by the statute of limitations and (2) when
KGS extended its contracts with Barbara and Pickrell, KGS had
acted as KG&E's agent. The jury awarded KGS $5,250,000.
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