Fisher v. Tomlinson Oil Co.
Supreme Court of Kansas
527 P.2d 999 (1974)
L.B. Fisher (plaintiff) held oil-drilling rights that required him to drill a well by a set date or lose the rights, with an additional year to drill if the first well came up dry. Fisher assigned these rights to Tomlinson Oil Co. (defendant) in exchange for Tomlinson's commitment to begin drilling by that same deadline; Tomlinson failed to drill at all. Fisher sued for breach of contract, and the trial court granted him summary judgment for $8,500 -- the cost of drilling a well on the property. Tomlinson appealed, arguing geological evidence showed there was no oil on the property, so Fisher suffered no actual damages and the award was inappropriate.
Whether the general measure of damages for breach of a contract to drill an oil or gas well is the cost of drilling the well for which the parties contracted.