A condition precedent was the issue in Preston Exploration Company, et al v. Chesapeake Energy Corporation. This opinion was the result of the parties’ second visit to the federal Fifth Circuit Court of Appeals. In the first trip, the issue was whether the Purchase and Sale Agreement between the parties in a $110 million
Reaping What You Sow – City of Dallas Sued by Trinity East Energy
Suppose I own a large tract of land in the region of the Barnett Shale, the exclusive right to allow (or prevent) drilling on the aforesaid land, and a desparate need for funds. You have $19 million and the desire to exploit the minerals. I take your $19 million, and when you ask for permission
Rumblings From a Louisiana Seismic Agreement
Co-author Ann Weissmann
If the significance of a lawsuit can be gauged by the 23 lawyers and 10 firms identified in the opinion, Olympia Minerals, LLC, et al v. HS Resources, Inc., et al., is as noteworthy as Bush v. Gore, Brown v. Board of Education, and even Kramer v. Kramer
Texas Court Declines Indemnity for One’s Own Bad Acts.
We begin with a philosophical question: Should a person be rewarded for bad behavior? Despite twerkee Miley Cyrus (and her daddy), the Kardashians and, at least for a while Richard Nixon, the answer should be, no. Texas law agrees.
The express negligence doctrine in indemnification agreements “… mandates that the party use express language within
Broker Loses His Override
Co-author Tara Trout Flume
You won’t get what you don’t ask for. That’s a given. But so is, You can’t always get what you want. That’s the end of most lawsuits for one side or the other.
Take Wade Oil & Gas, Inc. v. Telesis Operating Company, Inc., et al, for example. Wade, an
The Prospect Generator’s Case, a Second Look
There is more to learn from Southwestern Energy Production Co. v. Berry-Helfand and Muncey, discussed in a recent post.
Damages – With Room to Run, the Expert Scores.
Courts are entitled to be “flexible and imaginative” when determining damages for misappropriation. The methods could include value of the plaintiff’s lost profits, the defendant’s actual
Hold on to Your Insurance … Federal Court Certifies Deepwater Horizon Questions to Texas Supreme Court
By David Leonard and Julie Palmer
BP’s woes from the Deepwater Horizon disaster in the Gulf continue. The federal Fifth Circuit in In re: Deepwater Horizon, withdrew an opinion of a three-judge panel and certified questions for consideration by the Supreme Court of Texas. Resolution of this dispute could significantly impact insurance law in
Prospect Generator is Vindicated
The prospect generator’s worst nightmare is presented in Southwestern Energy Production Co. v. Berry-Helfand and Muncey. I will over-simplify the facts: Hefland and Muncey toil for years generating James Lime prospects in a five-county area in East Texas. They show it. Dry holes are drilled. More data is generated. They show it many times
The 1956 Model Form JOA Does Not Apply to Future Leases
Co-author Jonathan Nowlin
I learned to drive on an old, black, stick-shift, straight-six, no-radio, no-A/C automobile manufactured the year after the AAPL’s first Form 610 – Model Form Operating Agreement was created. The ’57 Chevy is now considered a classic. Not so with the 1956 Model Form, which is generally considered a relic. Clovelly Oil
No Agreement on Essential Terms Means No Contract
If your written agreement terminates and you engage in extensive discussions to reestablish the agreement but essential terms are not agreed on, you don’t have a binding contract. So said a Texas court in 2001 Trinity Fund, L.L.C. v. Carrizo Oil & Gas, Inc. Trading a bunch of emails without agreeing on the essential terms