In 17th District Court
Los Angeles, Ca
Case No. 4437

R. S. Baker et al
Vs.
The California Star Oil Works Company

COMPLAINT

Filed April 22nd, 1878
In the District Court of the 17th Judicial District of the State of California, in and for Los Angeles County

R. S. Baker and E. F. Beale - Plaintiffs
Vs.
The California Star Oil Works Company, a Corporation, Sanford Lyon, Christopher Leaming and F. B. Taylor – Defendants


The plaintiffs above named complain of the said defendants and for cause allege:

1.
That heretofore, to wit, on the 12th day of April, 1876, plaintiffs R. S. Baker and E. F. Beale were the owners and possessed of the following described property situated in the County of Los Angeles, State of California, and particularly described as follows, to wit: Commencing at a point five hundred (500) feet due east from what is known as the Pico Oil Springs, said point being a stake marked No. 1: from thence running north five hundred (500) feet to a stake marked No. 2: thence west one thousand (1000) feet to a stake marked No. 3: thence south one thousand (1000) feet to a stake marked No. 4: thence east one thousand (1000) feet to a stake marked No. 5: thence north five hundred (500) feet to a stake marked No. 1, the place of beginning, the same being one thousand feet of what is known as the Pico Oil Springs Claim.

2.
That plaintiff R. S. Baker is now the owner of said described property and all thereof.

3.
That on the 12th day of April 1876, while seized and possessed of said premises, plaintiffs leased the same by indenture of lease in writing to one Reuben Denton in which said Indenture of lease the defendants Sanford Lyon and Christopher Leaming were joined with said above named plaintiffs as parties of the first part, for a period of three years from and after said 12th day of April 1876, for, and in consideration of, the covenants and agreements set forth in said Indenture of lease and, which said, Indenture was, and is, in the words and figures following to wit:

“This lease made the 12th day of April A. D. 1876 between R. S. Baker and E. F. Beale, Sanford Lyon and Christopher Leaming, parties of the first part, and Reuben Denton, party of the second part, witnesseth: That the said parties of the first part, for and in consideration of the stipulations, rents, and covenants, hereinafter contained on the part of the said party of the second part, his executors, administrators and assigns, to be paid, kept and performed, have granted, demised, and let unto the said party of the second part, his executors, administrators and assigns, for the sole and only purpose of mining and excavation for petroleum, coal rock or carbon oil and other valuable mineral or volatile substances, all of that certain tract of land situated in Los Angeles County and State of California and bounded and described as follows:

Commencing at a point five hundred (500) feet due east from what is known as the Pico Oil Springs, said point being a stake marked No. 1: from thence north five hundred feet (500ft) to a stake marked No. 2: thence west one thousand feet (1000ft) to a stake marked No. 3: thence south one thousand feet (1000ft) to a stake marked No. 4: thence east one thousand feet (1000ft) to a stake marked No. 5: thence north five hundred feet (500ft) to a stake marked No. 1, the place of beginning, the same being one thousand feet of what is known as the Pico Oil Springs Claim. To have and to hold the said premises for the said purpose only unto the said party of the second part, his executors, administrators and assigns for, during and until the full term of three (3) years next ensuing the day and year above written. The said party of the second part hereby covenants in consideration of the said grant and demise, to deliver up to the said party of the first part, their heirs and assigns, the full one eighth part of the petroleum, coal rock, or carbon oil, or other valuable minerals or volatile substances discovered, excavated, pumped, and raised, on the premises herein leased, as produced, excavated, or pumped, in the crude state, in tanks at the well. The party of the second part to furnish said tanks, and in case the party of the second part shall pipe from the said wells to the plain below, at or near the line of the railroad to be constructed through a place know as the San Fernando Tunnel, that then the said party of the second part will pipe down through their piping aforesaid, to the end of said piping as above stated, at the option of the parties of the first part, all or any of their oil, being the proportion as hereinafter set forth, at the rate and charge not exceeding twenty five cents per barrel there for, each barrel to consist of forty two gallons.

The party of the second part further covenants and agrees, at the election of the parties of the first part, to take all oil which may be set apart to the parties of the first part under the agreement aforesaid, and in the condition aforesaid, at its market value, during each calendar month of the term of this lease, or any portion thereof, and to pay there for every thirty days what the parties of the first part shall elect to sell, the market value of the oil, to which the parties of the first part shall be entitled, under the covenants above specified. The party of the second part is to have the use of the whole well now in process of construction upon said premises, and no more, for the purpose of taking oil and petroleum from the said premises without the written consent of the said R. S. Baker. One of the said wells to be by the said party of the second part sunk to a depth of five hundred feet (500ft) unless a full flowing well be struck at a less depth. It is expressly understood and agreed by the parties hereto that the well now on said premises known as the Sanford Lyon’s well shall be and hereby is exempt and reserved from the operation of this lease, to the Sanford Lyon or any other person or persons by him there unto authorized for any and all purposes for which the same was sunk and especially for the purpose of taking oil and petroleum from the premises aforesaid. And the said Sanford Lyon, his heirs and assigns, shall during the full period of this lease be allowed free access across and over said premises, to said well, for all purposes necessary for the use and free enjoyment of the uses and purposes for which said well is constructed. It is further covenanted and agreed that the parties of the first part during the time of the continuance of this lease, shall have free and uninterrupted passage, and right of way, over all of the premises hereby leased to any and all lands claimed, occupied, or owned, by the said parties of the first part at or near the above demised premises, and for which it may be necessary or convenient to pass over or above the above demised premises for necessary or convenient ingress or egress, or either, and the party of the second part covenants and agrees at the expiration of this lease to give and surrender up the said premises and the said wells peaceably and without consideration. It is further mutually understood and agreed that in case the said party of the second part shall fail or neglect for the space of ninety days at any time during the continuance of this lease, to properly and in a workmanlike manner operate and use said wells, that then this shall terminate, be void, and of no further force and effect, and the parties of the first part will there upon be restored to all their rights, privileges, and estates, in like manner as though this lease had never been executed. Time is hereby declared and expressly agreed to be of the essence of this lease. In witness whereof the said parties hereto have hereunto set their hands and seals this 12th day of April A. D. 1876.

Robert S. Baker
E. F. Beale by his attorney in fact Robert S. Baker
Sanford Lyon
Christopher Leaming
Reuben Denton"

4.
That under and by virtue of said lease, the said Reuben Denton agrees among other things, to deliver and pay to the said lessors as the rental of said property, one eighth part of the petroleum, coal oil, or carbon oil, or other valuable minerals or other volatile substances discovered, excavated, pumped, or raised upon the premises hereinbefore described, as produced, excavated, or pumped, in the crude state in tanks at the well said tanks to be furnished by said lessee.

5.
That said Reuben Denton, under and by virtue of said lease, further covenanted and agreed in consideration thereof and of the granting and execution of said lease, that he would in a workmanlike manner operate and use the oil and petroleum wells upon said premises, constantly during the period of said lease, and in case of failure so to do for any period of ninety days during said term, that said lease should be and thereupon become forfeited and at an end.

6.
That there were at said time four oil and petroleum wells upon said premises particularly specified in said lease, to the working of which the said Denton was by said lease limited and exclusively confined.

7.
That the product of said wells since the 12th day of April 1876, as plaintiffs are informed and believe, and upon such information and belief aver, has been and now is twelve hundred barrels per month, and of the value of three dollars gold coin per barrel.

8.
That said defendant, the California Star Oil Works Company, is and since the 4th day of May 1876 has been a corporation organized and existing under the laws of the State of California, and now holds by assignment, and is the assignee of the said Reuben Denton of said lease and on the 5th day of May 1876, accepted said assignment and covenanted and agreed in consideration thereof, to perform and faithfully discharge each, every, and all singular the obligations of the lessee in said lease, and then took and has ever since held and now holds possession of said leased premises.

9.
That said defendant corporation has failed and neglected and refused to said plaintiffs and to said Sanford Lyon and Christopher Leaming, or to either, or all of them, although due demand therefore has been made, one eighth of the product of said wells and of said premises, or any other or any portion of the product thereof as produced, excavated, or pumped in tanks at the well, or in any other manner, or to in any manner pay to said plaintiffs or to the said Lyon and Leaming, or to either, or all of them, the rental of said premises or any part of portion thereof, or in any manner to account therefor, and that the same and all thereof is now due and owing from said defendant corporation to plaintiffs.

10.
That plaintiffs are entitled to have and receive of and from said defendant corporation all of the aforesaid rental of said premises. That the defendants Sanford Lyon and Christopher Leaming claim to have some interest in said rental, for which reason they are made parties defendant herein, but plaintiffs aver that said Lyon and said Leaming have not, nor has either of them any right or interest in, or to, said rental of said premises, or any part or portion thereof.

11.
That at the time of the assignment of said lease by said Denton to said defendant, the California Star Oil Works Company, and at the time of the acceptance thereof by said defendant corporation, the defendant F. B. Taylor was, and ever since has been, and now is a member of said corporation and an owner of a large share of its stock. That after the assignment of said lease by said Denton as aforesaid, the said defendant Taylor entered into a fraudulent conspiracy with said Defendant Corporation for the purpose of fraudulently acquiring the said property of said plaintiff R. S. Baker, and in pursuance of said fraudulent conspiracy, the said Taylor afterwards, to wit, on or about October 28th 1877, and while a member of said defendant corporation and the owner of a large part of its stock as aforesaid, acquired certain pretended interest in said leased property adverse to the said R. S. Baker and also certain pretended interest in the said rental of said property. That said Taylor now claims to have some interest in said rental, for which reason he is made a party defendant herein, but plaintiffs aver that said Taylor has no right or interest in, or to, said rental of said premises or any part or portion thereof.

12.
That the plaintiff R. S. Baker is now the lawful owner and is entitled to the possession of all of said above described leased premises, and has heretofore, to wit, on the [blank] day of April 1878 commenced an action in the above entitled Court against the defendant, the California Star Oil Works Company, a corporation, and others, to recover the possession of said premises, which said action is now pending in, and undetermined by, said court.

13.
That said defendant, the California Star Oil Works Company, is in the possession of said premises and refuses, and has continuously refused, for more than twelve months last past to operate or use the said wells, or any or either of them, as covenanted and agreed in and by said lease. That by such failure to operate said wells as provided for in said lease, the product thereof has been greatly lessened and impaired and will be almost entirely lost if said defendant corporation continues to use and operate said wells as it is now doing and has done as herein before alleged, and the said premises will in consequence and by reason thereof, sustain material and irreparable damage and injury and the interest and property of said plaintiffs in said oil and in said premises will be almost entirely lost.

14.
That for the proper and workmanlike use and operation of said wells it is essential that the flow of the oil thereof should be constant and unimpeded and upon information and belief the plaintiffs allege that the said defendant, The California Star Oil Works Company, has for more than twelve months last past constantly checked and suppressed the flow of oil from said wells, and still continues to do so to the great, irreparable and permanent injury of said wells and to the great and irreparable loss to these plaintiffs. That other and different wells from those above referred to have been bored and are now being bored in the same vicinity, by other and different parties which tap the same oil deposit that supplies the wells herein in question, and that by checking and suppressing the flow of said oil in said last mentioned wells, as said defendant corporation has been and now is doing as aforesaid, the said oil is, and will be, forced to find an outlet elsewhere and the yield of said wells so checked and suppressed as aforesaid is, and will be, greatly diminished to the great irreparable loss of plaintiffs. That by the nature of things, it will be and is impossible correctly to estimate the said diminished yield. That the said defendant, the California Star Oil Works Company, has threatened to continue to use and operate the said wells and the oil thereof in the same manner it has heretofore used and operated the same and in the same negligent, injurious, and unworkmanlike manner herein before stated, and plaintiffs allege, upon information and belief, that if said defendant corporation is allowed to keep possession of said premises it will in the future continue to work and use the said wells, and the oil thereof, in the same manner it has heretofore done and is now doing, and in the same negligent, ruinous, and unworkmanlike manner as aforesaid, to the irreparable damage of said property and of these plaintiffs. Wherefore plaintiffs pray judgment against the said defendants, that the said defendant, the California Star Oil Works Company, be compelled to account for all rents and profits and for the amount of crude oil and petroleum produced, excavated or pumped from said wells since the making of said lease to the present time, and deliver over and pay to plaintiffs their proportion of said oil or the value thereof, that it be adjudged that defendants Sanford Lyon, Christopher Leaming, and F. B. Taylor have no interest therein, and that pending this litigation, a receiver be appointed by the court to take and hold possession of said above described leased premises and of said wells and of said oil and all thereof, and truly account therefore, and for such other further and general relief as may be just and proper.

Brunson & Eastman
Attorneys for Plaintiff



State of California
County of Los Angeles

R.S. Baker being first duly sworn deposes and says: That he is one of the plaintiffs in the above entered action. That he has heard the foregoing complaint, read, and knows the contents thereof. That the same is true of his own knowledge, except as to the matters and things therein stated on his information and belief, and as to those matters and things he believes it to be true.

Robert S. Baker
April 22, 1878