Sarah M. Spaeth v. Union Oil Company of California, a Corporation

BREITENSTEIN, Circuit Judge.

This diversity action presents a claim by a lessor against a lessee for tortious breach of an Oklahoma oil and gas lease implied covenant to protect against drainage. After trial the jury found that the defendant had breached the lease and awarded both actual and punitive damages. Subsequently, the court awarded partial lease cancellation. The appeal of the lessee raises many issues of fact and law. We affirm the jury verdict that defendant breached the lease and the court decision for partial lease cancellation. We reverse the awards of actual and punitive damages.