Opinion ID: 1455975
Heading Depth: 1
Heading Rank: 5

Heading: champerty and maintenance

Text: Santa Fe and some of the other defendants filed third-party claims against Hugoton alleging champerty and maintenance. The trial court granted judgment in favor of Hugoton on these claims. The defendants (third-party plaintiffs) appealed this disposition. Champerty is an officious intermeddling in a suit by a stranger, by maintaining or assisting either party with money or otherwise to prosecute or defend it, and dividing the proceeds obtained in the suit between the party and the stranger. Mitchell v. Amerada Hess Corp., 638 P.2d 441, 444 (Okla. 1981); Hall v. State, Del.Supr., 655 A.2d 827, 829 (1994). Maintenance is an officious intermeddling in a suit which in no way belongs to the intermeddler, by maintaining or assisting either party to the action, with money or otherwise, to prosecute or defend it. Hall v. State, 655 A.2d at 829. Champerty is maintenance with compensation derived from the proceeds of the suit. United States v. Algernon Blair, Inc., 795 F.2d 404 (5th Cir.1986). Both sides to this dispute rely upon Mitchell v. Amerada Hess Corp., 638 P.2d 441 (Okla. 1981). Santa Fe argues that in Mitchell the court had an opportunity to state that champerty was no longer recognized in Oklahoma, and the court declined to say so. Santa Fe states that this must mean that they may bring a champerty claim against Hugoton. Hugoton argues that it was possessed of an interest in the litigation apart from the alleged champertous agreement, and that this interest arose from the trial court's opinion in Pack, supra . Hugoton points to Mitchell and its determination that a claim of champerty did not apply there because the party assisting with the litigation possessed an interest in the litigation apart from the alleged champertous agreement. Id. 638 P.2d at 445. Champerty does not apply to an ordinary oil and gas lease. Janeway v. Whitaker, 106 Okla. 83, 233 P. 197 (1925). Is it champerty for the mineral lessee to assist the lessor with a quiet title proceeding? In Lott v. Kees, 276 Ala. 556, 165 So.2d 106 (1964) that Supreme Court explained that where the leases were characteristic of the industry, and the lessors were without funds to maintain the litigation we do not think the advancement of financial help violated any principle of law or public policy. Id. 165 So.2d at 111. In Lott and Mitchell the courts noted that the circumstances that created a public policy for a claim of champerty have disappeared. Mitchell, 638 P.2d at 444, 446. This is also shown by those opinions explaining that except in certain real estate contracts, a stranger to the champertous agreement no longer has a champerty claim, but must seek redress in the tort actions of malicious prosecution, abuse of process, or wrongful initiation of litigation. McCullar v. Credit Bureau Systems, Inc., 832 S.W.2d 886, 887, 888 (Ky. 1992), (citing cases). The Oklahoma champerty statutes do provide a defense in certain circumstances, but they are not before us in this controversy. [8] Hugoton points to the language of the trial judge in this case. He concluded that Hugoton was a big benefit to the mineral owners by policing the oil companies and keeping them honest. The trial judge concluded that the threat of many small mineral owners banding together with litigation support from companies like Hugoton insured that the terms of their base leases would be fulfilled. The trial court also concluded that this threat had the effect of helping the mineral owners obtain higher royalties and more income from their leases. Santa Fe argues that allowing this type of litigation support fosters unnecessary litigation and increased costs to the mineral lessees. In sum, Santa Fe asks for a champerty rule that would prohibit mineral owners from obtaining litigation assistance from top lessees in challenges to the continued validity of base leases. This State has a strong public policy against the forfeiture of leases. Stewart v. Amerada Hess Corp., 604 P.2d 854, 858 (Okla. 1979). One seeking to forfeit a lease must overcome this burden, and this in itself discourages some claims. Additionally, the torts of malicious prosecution and abuse of process are recognized in this State. Greenberg v. Wolfberg, 890 P.2d 895 (Okla. 1994). Santa Fe is not without remedies for vexatious litigation. Public policy also favors allowing a party to litigate a matter of first impression. Dotson v. Rainbolt, supra . We agree with the trial court that in this case Hugoton served an important interest of the mineral owners in having their first impression case heard in a court of law. The trial court's denial of the third party claims of champerty is supported by the evidence and circumstances in this case.