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Breach of Contract TX Supreme Court

McGinnis Lochridge

When Force Majeure Isn't Enough: The Causation Trap That Cost Kinder Morgan $100 Million

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In case you somehow forgot, the 2021 Valentines Day storm coined “Snovid,” “Snowmageddon,” or officially labeled Winter Storm Uri, blanketed Texas in snow and ice, even bringing snowfall to Galveston Beach. As temperatures...more

Winstead PC

Texas Supreme Court Addresses Informal Fiduciary Relationships and The Fiduciary Duties Owed By Accountants

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In Pitts v. Rivas, Rivas brought claims against his accountants for negligence/malpractice, fraud, breach of fiduciary duty, and breach of contract, based on alleged errors in financial statements that harmed his business....more

Gray Reed

Two Words = Six Million Dollars: SCOTX Reverses Trial Court That Added Words to a Gas Transportation Agreement

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In American Midstream (Alabama Intrastate), LLC v. Rainbow Energy Marketing Corporation, the Texas Supreme Court held that the trial court improperly inserted the words “scheduled” and “physical” into a contract. By...more

McGinnis Lochridge

Texas Supreme Court Clarifies Limits of Shut-In Payment Notations in Lease Disputes

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In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more

McGinnis Lochridge

Tackling Free-Use and At-The-Well Royalties

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This lease royalty case involved a dispute over whether the lessee was permitted to deduct volumes of gas used off the premises to power post-production activities on other gas produced from the same well. Carl v. Hilcorp...more

Gray Reed

Texas Supreme Court Allows Enforcement of a JOA Debt After Foreclosure

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In Steelhead Midstream Partners, LLC v. CL III Funding Holding Company, LLC, the Texas Supreme Court authorized a pipeline owner’s breach-of-contract claim—alleging a co-owner used foreclosure to avoid cost-sharing...more

Hicks Johnson

SCOTX Ruling Confirms Individual Liability for Corporate Owners Who Commit Torts

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In Texas, as most other states, it is long settled that corporate agents are personally liable for their own tortious or fraudulent conduct—even if the conduct was done in their capacity as a corporate agent. Section 21.223...more

Snell & Wilmer

An Introduction to the New Texas Business Courts

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It has been approximately two months since the newly established Texas business court system began accepting its first filings on September 1, 2024. This article provides a brief introductory overview of this new court system...more

Freeman Law

Texas High Court Holds that Pandemic Legislation is Not a Prohibited “Retroactive Law”

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On April 26, 2024, the Texas Supreme Court in case number 23-0565 answered “No” to the following certified question presented by the 5th Circuit in the case of Luke Hogan, on Behalf of Himself and Other Individuals Similarly...more

Carlton Fields

Texas Doubles Down on “Intent to Deceive” as Requirement to Void Insurance Policy

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The Texas Supreme Court reinforced common law precedent that insurers cannot avoid liability under an insurance policy based on a misrepresentation in an insurance application unless the insurer can establish that the insured...more

Gray Reed

Long-Running Texas Boundary Dispute Continues

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Ellison v. Three Rivers Acquisition LLC et al., on remand from the Texas Supreme Court, is the third round of a boundary dispute between mineral lessees in Irion County.   For the history of Ms. Ellison’s odyssey from...more

Morgan Lewis - Power & Pipes

Real-World Litigation Impacts of Contract Clauses in Energy Contracts Key No-Reliance Language Under Texas Law

Contracting parties sometimes attempt to rely on merger clauses to avoid future claims arising from reliance on extra-contractual representations such as fraudulent inducement. But in Texas, the inclusion of a standard merger...more

Freeman Law

Texas Law Update: Statute of Limitations, the Discovery Rule, and Fraudulent Concealment

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On January 13, 2023, the Texas Supreme Court issued its opinion in Marcus & Millichap Real Estate Investment Services of Nevada, Inc. v. Triex Texas Holdings, LLC, __ S.W.3d __, 2023 WL __ (Tex. Jan. 13, 2023) (per curiam)...more

Seyfarth Shaw LLP

Texas Supreme Court Confirms that HouseCanary Must Fly Toward a $201 Million Judgment or a Retrial

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On June 17, 2022, the Texas Supreme Court affirmed a lower appellate court’s decision, (which we previously wrote about here), which nixed the plaintiff’s $740 million trade secret win at trial and required the plaintiff to...more

Freeman Law

“Money Had and Received” Claims Under Texas Law

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Texas law provides for a cause of action known as “money had and received.” The cause of action for money had and received is equitable in nature. The claim belongs conceptually to the doctrine of unjust enrichment and seeks...more

Freeman Law

Texas Law and Tortious Interference with Prospective Business Relations

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Tortious interference with business relations involves a third party using false claims against a business in order to drive business away or prevent the business from entering a relationship with another party. The key...more

Gray Reed

Supreme Court Introduces Totality of the Circumstances Test for Implied Ratification

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“Ratification is not a game of ‘gotcha’”, said the Texas Supreme Court in BPX Operating Co. v. Strickhausen.  The Court, in a 5-4 opinion, addressed the standard for an oil and gas lessor’s implied ratification of an...more

Payne & Fears

Texas Supreme Court Gives Policyholders a Greater Voice When Settling Covered Claims

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The Texas Supreme Court recently increased policyholders’ influence over an insurer’s right to settle a third-party claim for less than policy limits. Insurers have long enjoyed a nearly absolute right to settle claims, even...more

Rivkin Radler LLP

The Title Reporter – Winter 2021

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Here is what we cover in this issue of The Title Reporter: A Legal Update for the Title Insurance Industry: •The Supreme Court of Texas has ruled that a special warranty deed conveying real property limited the grantor’s...more

Winstead PC

The Plight of Oppressed Private Company Minority Investors:  No Legal Escape Available Without a Buy-Sell Agreement in Place

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The legal front remains forbidding for private company minority investors who seek to secure a buyout of their ownership stake based on claims for oppression against the company’s majority owners. It has been six years since...more

Carlton Fields

Texas Supreme Court Holds Defendant Did Not Forfeit Right to Appeal Denial of Motion to Compel Arbitration by Waiting Until After...

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In this cattle-feeding dispute, cattle owner Bonsmara Natural Beef Co. and its principal George Chapman brought an action against feed yard owner Hart of Texas Cattle Feeders LLC, alleging claims including breach of contract,...more

Fox Rothschild LLP

Texas Appellate Court Confirms Significance Of Seeking ‘Material Breach’ Finding In Breach Of Contract Case

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Contractual breaches are serious and require an appropriate response. Sometimes the parties to a contract can work though a performance hiccup, however, there are many instances in which a party simply walks away from its...more

Gray Reed

“No Obligation” Clause Dooms Oil and Gas Asset Bid

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In Chalker Energy Partners III LLC v. LeNorman Operating LLC, the Texas Supreme Court reaffirmed its belief in the sanctity of the written contract and the freedom of parties to negotiate and agree to contracts as they...more

A&O Shearman

First No Contract by Ambush. Now No Contract by Email, Texas Supreme Court Says.

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On February 28, 2020, the Texas Supreme Court reversed a ruling from the First Court of Appeals in Houston in the case of Chalker Energy Partners III, LLC, et al. v. Le Norman Operating LLC, 547 S.W.3d 27 (Tex. App.—Houston,...more

Vinson & Elkins LLP

“Why Should I Have To Show Actual Damages When My Contract Has A Liquidated Damages Clause?”

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When you negotiate and execute a contract with a liquidated damages clause, it’s natural to feel like you have a safety net — that in the event of a dispute you can rely on the contract to protect you from having to go...more

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