Jerry L. Phillips, Inc. v. Ratley

Bullock, J.:

Gary M. Ratley owned an oil and gas lease north of Iola, Kansas, known as the “Latta” lease. In connection with the development of this lease, Ratley employed Jerry L. Phillips, Inc., to drill and equip two new wells, to obtain “core samples” in connection with the drilling of these wells, and to “wash down” two additional wells. Regrettably, the two new wells turned out to be “dry holes” and when Phillips billed Ratley for the work, payment, like the oil, was not forthcoming.

The agreement under which Phillips furnished the services and materials described was entirely oral and…