Atlas Oil Co. v. Standard Oil Co.

Citations

• 142 La. 601
• 77 So. 471
• 1917 La. LEXIS 1730

Syllabus

<p>(Syllabus 7>?/ the Oourt.)</p> <p>Mines anb Minerals @=>83 — Operation oe Contract — Suit eor Payment — Deeense.</p> <p>Where, under a contract between an oil producer and a pipe owner, the producer gives and the owner accepts a bond for $100,000, the purpose of which is, on the one hand to entitle the producer to demand and receive his proportion of the price of certain oil, to be delivered into the pipe, notwithstanding that adverse claims thereto are pending and threatened, and, on the other hand, to protect the owner of the pipe as against such claims, with respect to payments to be made to the producer, within the amount called for by the bond, the fact, that after paying to the producer $90,000 on the faith of the bond there are still adverse claims pending or threatened affords no sufficient reason why the pipe owner should balk and refuse to pay the remaining $10,000 requix-ed to complete the $100,000 to obtain the payment of which the bond (the solvency of which is unquestioned) was given.</p>