WPCD  3z9ܙ |~;~C^(v+LBV04uCb`MTT@Kf'PM lP2KVkƼt vosj JA֊aM@\g*ZH$)'7Eu7I)Pѕ̿A{$ծ_uظf넒bN2ׅ3:nnY7z6+o e.Y/(V_ȚTe-f\HWe(L'| hmEJtZC(+":V=j母)l}CVdy.П_HȩJHM*FOu7iʹ&$ڶȉLP> [;MA 7)vMZ0'ߋ V sj fD-{LYH'د{wרe?BE^WB*# LU :W % 0(b w@4 .6 0l 0DD  U: B AQ 3 0D 0D= 0D D/ B D3 HP LaserJet 4SiHPPCL5MS,,,,,,0nLh,  AZ"Arial RegularX($- - DUUUUUӀօ#%3|x    XX     1    Rule10(b)oftheRulesoftheCourtofAppealsreadsasfollows:  8  0 TheCourt,withtheconcurrenceofalljudgesparticipatinginthecase,mayaffirm,reverseormodifytheactionsofthetrialcourtbymemorandumopinionwhenaformalopinionwouldhavenoprecedentialvalue.Whenacaseisdecidedbymemorandumopinionitshallbedesignated MEMORANDUMOPINION,shallnotbepublished,andshallnotbecitedorreliedonforanyreasoninasubsequentunrelatedcase.((3$ !      0  (#$  0   ""  XXXXVE XX   Ad FILEDXX VE  October14,1998CecilW.CrowsonAppellateCourtClerkdAh ,cAZ"Arial Regular d!"#$&C<< CLevel 1Level 2Level 3Level 4Level 5(3$ !  (3$ !  ($$   1  ((' dxdP Pd'dxd !  TR[A' Legal3'A' Legal3'T7XXdd7    |XX  r )<,(j 8` `@E ` 8ttxP,  r@  INTHECOURTOFAPPEALSOFTENNESSEEt )>.*jx` `@E ` 8ttxPIP tߛ@(ATNASHVILLE XX|Ԉ  ̜KENDLEDAVIDSON,d/b/a 8   )   DAVIDSONOILANDGAS 8   )   ANDERIKB.DAVIDSON, 8   )    0      8   ) Plaintiffs/Appellants, 8   ) `X    0      8   )  AppealNo. F>    0      8   )  01A019712CH00743 ,$  МVS.  0      8   )     0      8   )  PickettChancery     0      8   )  No.1868   МNCMFINANCIALCORPORATION,  )   @      H!  #   d/b/aNCMENERGY,   8   )    0      8   ) Defendant/Appellee. 8   ) vn @ APPEALEDFROMTHECHANCERYCOURTOFPICKETTCOUNTY@&&#ATBYRDSTOWN,TENNESSEE@ THEHONORABLEVERNONNEAL,CHANCELLORPHILLIPSM.SMALLINGP.O.Box340̜Byrdstown,Tennessee38549 AttorneyforPlaintiffs/Appellants̜ONNIEL.WINEBARGERP.O.Box418̜Byrdstown,Tennessee38549 AttorneyforDefendant/Appellee@$AFFIRMEDANDREMANDED  0      8     BENH.CANTRELL,JUDGECONCUR:KOCH,J.CAIN,J.  :39  4XX@% 7 4MEMORANDUMOPINION#4  7 # XX4   #  1      כ          0 Theplaintiffsfiledthisactiontorescindacontractorinthealternativetorecoverdamagesforitsbreach.TheChanceryCourtofPickettCountydismissedthecomplaintandawardedthedefendantajudgmentonitscounterclaim.Weaffirm.  0 TheplaintiffacquiredaleaseontwooilwellsinPickettCounty,Thewellshadpreviouslybeendrilledtoacertaindepthbutneitherhadbeencompleted.DesiringtodrillthewellstotheKnoxformationifnecessarytoobtaincommercialproduction,theplaintiffenteredintoanagreementwiththedefendantforthatpurpose.TheagreementgrantedthedefendantaninterestinbothwellsinreturnfordefendantspromisetodrilleachwelltotheKnoxformationifoilincommercialquantitieswasnotobtainedatalesserdepth.Thedefendantwasgiventherighttodecidewhatconstitutedacommerciallyproducingwell.  0 ThedefendantdrilledonewelltotheKnoxformationbutdidnotfindoilincommercialquantities.ThedefendantthenpreparedtodeepenthesecondwellandprepaidadrillertodrilltotheKnoxformation.Whenthewellwasopened,however,oilflowedfromthewellinlargequantitiesandpreventedthedrillerfromdrillingthewellanydeeper.  0 Thedefendantcompletedthewell,putitonapump,andprovidedstoragetanks.Thewellproducedthirtyeightbarrelsadayfornineteendaysandthenfellofftoalevelofapproximatelyoneandonehalfbarrelsaday. 2+0   0 Theplaintiffsuedthedefendantseekingtohavetheiragreementsetasideforafailureofconsiderationor,inthealternative,tocollectdamagesforthebreachoftheagreement.ThechancellorinanexcellentmemorandumopinionfoundthatthesecondwellwasproducingoilinpayingquantitiesevenconsideringthecostthatwouldhavebeenincurredindrillingtotheKnoxformation.Therefore,thedefendanthadnotbeenarbitraryorunreasonableinexercisingitsjudgmentastowhatconstitutedacommerciallyproducingwell.sSincetheagreementgavethedefendantthatright,thechancellorfoundthattherehadbeennomaterialbreachesoftheagreement.Thechancelloralsofoundthatthepresenceofoilinthesecondwellmadeitimpossibletodrilltheholeanydeeper.  0 Weconcurinthechancellorsfindingsandconclusions.ThecontractϜplainlytiffsaysthatthewellwillbedeepenedifcommercialproductionisnotobtainedatalesserdepthandthedefendantwasgiventhepowertomakethedecisionwhenthatoccurred.  0 WeaffirmthejudgmentofthelowercourtandremandthiscausetotheChanceryCourtofPickettCountyforanyfurtherproceedingsnecessary.Taxthecostsonappealtotheappellant.̜  0      8     ____________________________  0      8     BENH.CANTRELL,JUDGE̜ 926 CONCUR:̜_____________________________WILLIAMC.KOCH,JR.,JUDGE̜_____________________________WILLIAMB.CAIN,JUDGE  80    XXyB @.INTHECOURTOFAPPEALSOFTENNESSEE  @(ATNASHVILLE XyBXԈ  ̜KENDLEDAVIDSON,d/b/a 8   )   DAVIDSONOILANDGAS 8   )   ANDERIKB.DAVIDSON, 8   )     0      8   ) Plaintiffs/Appellants, 8   )  AppealNo.     0      8   )  01A019712CH00743     0      8   )     МVS.  0      8   )  PickettChancery     0      8   )  No.1868 |    0      8   )   tl  МNCMFINANCIALCORPORATION,  )  Affirmedand     H!  #  d\ d/b/aNCMENERGY,   8   )  Remanded TL   0      8   ) Defendant/Appellee. 8   ) 4, XXyB @uu'JUDGMENT   XyBX  0 Thiscausecameontobeheardupontherecordonappealfromthe F> ChanceryCourtofPickettCounty,briefsandargumentofcounsel;uponconsiderationwhereof,thisCourtisoftheopinionthatinthedecreeoftheChancellorthereisnoreversibleerror.  0 InaccordancewiththeopinionoftheCourtfiledherein,itis,therefore,orderedanddecreedbythisCourtthatthedecreeisaffirmed.ThecauseisremandedtotheChanceryCourtofPickettCountyfortheenforcementofthedecreeandforthecollectionofthecostsaccruedbelow.  0 CostsofthisappealaretaxedagainstKendleDavidson,Principal,andPhillipsSmalling,Surety,forwhichexecutionmayissueifnecessary.  0      8   ________________________________  0      8   BENH.CANTRELL,JUDGE  0      8   ________________________________  0      8   WILLIAMC.KOCH,JR.,JUDGE  0      8   ________________________________  0      8   WILLIAMB.CAIN,JUDGE