Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca10-88-02639/USCOURTS-ca10-88-02639-0/pdf.json

Nature of Suit Code: 140
Nature of Suit: Negotiable Instruments
Cause of Action: 

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PILBO 

UNITED STATES COURT OF APPEALS 

TENTH CIRCUIT 

United States C9Uff t;)f Appeals 

Tenth Cir::uit 

MAR 19 1§90 

ROBERT L. HOECKER 

FEDERAL DEPOSIT Clerk INSURANCE 

CORPORATION, as Receiver of Penn 

Square Bank, N.A., 

Plaintiff-Appellee, 

v. 

BIRD INVESTMENTS; DON BUCHHOLZ; 

ALLEN COBB; and DEDMON 

MCGARRAHAN, II, 

Defendants-Appellants, 

and 

JOHN CLARK CALDWELL; J. WILLIAM 

PRICE; JAMES RICHARDSON; JAMES 

MOYNIHAN, d/b/a R&M Investments; 

JACK REYNOLDS; and KERMIT P. 

SCHAFER, JR. , 

Defendants. 

FEDERAL DEPOSIT INSURANCE CORPORA-) 

TION, as Receiver of Penn Square 

Bank, N .A., 

Plaintiff-Appellee, 

v. 

BIRD INVESTMENTS; DON BUCHHOLZ; 

JOHN CLARK CALDWELL; ALLEN COBB; 

DEDMON MCGARRAHAN, II; J. WILLIAM 

PRICE; JAMES RICHARDSON; JAMES 

MOYNIHAN d/b/a R&M Investments; 

JACK REYNOLDS; KERMIT P. SCHAFER, 

JR., 

Defendants, 

and 

REGIS DAHL, 

Defendant-Appellant. 

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No. 88-2574 

(DCCIV 86-767-R) 

(W.D. Okla.) 

No. 88-2639 

(DCCIV 86-767-R) 

( W. D. Ok la. ) 

Appellate Case: 88-2639 Document: 01019966130 Date Filed: 03/13/1990 Page: 1 
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FEDERAL DEPOSIT INSURANCE CORPORA-) 

TION, as Receiver of Penn Square 

Bank, N.A., 

Plaintiffs-Appellees, 

v. 

BIRD INVESTMENTS; DON BUCHHOLZ; 

ALLEN COBB; DEDMON MCGARRAHAN, II; 

and REGIS DAHL, 

Defendants-Appellants, 

and 

EL DORADO 1979 DRILLING PROGRAM 

LTD., an Oklahoma Limited Partnership; EL DORADO EXPLORATION CORP., 

an Oklahoma corporation; SOUTHEAST 

EXPLORATION CORPORATION, an 

Oklahoma corporation; JOE R. LOVE; 

CARL B. KENDRICK; C. E. DUFFNER; 

WAYNE COPELAND; TOM KNOTT d/b/a 

K-C-1 Partnership, an Oklahoma 

General Partnership; JOE R. LOVE, 

CARL B. KENDRICK, and THE ESTATE 

OF CHARLES C. SELLER, JR., d/b/a 

Love, Kendrick & Sellers, an 

Oklahoma General Partnership; 

ROBERT MITCHELL, JOHN CLARK 

CALDWELL; J. WILLIAM PRICE, JAMES 

RICHARDSON; JAMES MOYNIHAN d/b/a 

R&M Investments; JACK REYNOLDS; 

and KERMIT P. SCHAFER, JR., 

Defendants. 

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ORDER AND JUDGMENT1 

No. 89-6057 

(DCCIV 86-767-R) 

(W.D. Okla.) 

1 This order and judgment has no precedential value and shall 

not be cited, or used by any court within the Tenth Circuit, 

except for purposes of establishing the doctrines of the law of 

the case, res judicata, or collateral estoppel. 10th Cir. R. 

36.3. 

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Appellate Case: 88-2639 Document: 01019966130 Date Filed: 03/13/1990 Page: 2 
Before MCKAY and BARRETT, Circuit Judges, and O'CONNOR, District 

Judge. 2 

Defendants are limited partners in El Dorado Exploration 

Company 1979 Drilling Program, Ltd. When defendants subscribed to 

their limited partnership shares, each put up a percentage of his 

equity share in cash and satisfied the balance by executing a letter of credit. The Drilling Program later returned the letters of 

credit to the limited partners, but defendants executed Assumption 

Agreements by which they assumed their proportionate shares (up to 

the amount of their equity contributions) of the partnership's 

production loan from Penn Square Bank. The Bank is now in receivership, and the production loan is in default. The FDIC, acting 

as receiver of Penn Square Bank, brought this action seeking 

enforcement of the assumption agreements claiming to be a thirdparty beneficiary. In the alternative, the FDIC seeks to enforce 

the defendants' liability for unpaid capital distribution to the 

partnership pursuant to Okla. stat. tit. 54 § 158 (1969). The 

second theory is based on the notion that the letters of credit 

did not satisfy the capital contribution requirements of the statute making the subscribers liable for partnership debts up to the 

limit of their deficient contributions. The trial court granted 

summary judgment on both theories. In addition, the court 

2 Honorable Earl E. O'Connor, Chief Judge, United States 

District Court for the District of Kansas, sitting by designation. 

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Appellate Case: 88-2639 Document: 01019966130 Date Filed: 03/13/1990 Page: 3 
rejected a claim that the statute of limitations had run on the 

obligation. 

We have reviewed the parties' arguments as well as the briefs 

and the record in this case. We conclude that the trial court was 

correct for the reasons stated in its orders and judgment. Nothing we could say would add substantially to what the trial court 

has already set forth. We therefore AFFIRM for the reasons given 

by the trial court. 

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Entered for the Court 

Monroe G. McKay 

Circuit Judge 

Appellate Case: 88-2639 Document: 01019966130 Date Filed: 03/13/1990 Page: 4