News & Analysis as of

Breach of Duty Fiduciary Duty Oil & Gas

Gray Reed

Scribner’s Error: A Cautionary Tale of Oil & Gas Fraud

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DALF Energy, LLC v. GS Oilfield Services addresses a fiduciary’s deceptive actions in oil and gas transactions. The Fifth Circuit held: self-dealing may constitute a breach of fiduciary duty even when the principal is...more

Gray Reed

A Breach of Fiduciary Duty in the Oil Patch

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Antero Resources Corp. v. C & R Downhole Drilling, Inc. et al, proves again the extreme risk when one bites the hand that feeds him (shoutout to Greek poet Sappho, 600 BCE). Antero sued former employee Kawsak and his...more

King & Spalding

Freedom of Contract Cited as the Reason for Texas Supreme Court's Affirmation of Court of Appeals Judgment in ETP v. Enterprise

King & Spalding on

On January 31, 2020, the Texas Supreme Court (the “Court”) affirmed the 2017 judgment of the Dallas Court of Appeals that Texas law upholds the rights of contracting parties to agree not to be partners unless certain...more

Winstead PC

Texas Supreme Court Holds That  Parties Can Conclusively Agree That, As Between Themselves, No Partnership Will Exist Unless...

Winstead PC on

In Energy Transfer Partners, L.P. v. Enter. Prods. Partners, L.P., one pipeline company sued another for breaching a duty of loyalty that allegedly arose out of a partnership to develop a pipeline. No. 17-0862, 2020 Tex....more

Jackson Walker

In Major Partnership Decision, Texas Supreme Court Affirms That Businesses Can Contract for Conditions Precedent to Preclude the...

Jackson Walker on

Disputes often arise over whether parties have agreed to, or by their conduct they have, committed themselves to a transaction. On January 31, 2020, the Texas Supreme Court delivered its decision in Energy Transfer Partners,...more

Gray Reed

Oil Fraudster Conspires with His Own LLC

Gray Reed on

In January I commented on the partnership that wasn’t and the lawyer whose actions give the rest of us a bad name. That was Stephens et al. v. Three Finger Black Shale Partnership et al. The court of appeal has substituted...more

A&O Shearman

Texas Supreme Court Agrees to Review Controversial Ruling Regarding Texas Partnerships

A&O Shearman on

On June 28, 2019, the Texas Supreme Court agreed to review a ruling from the Fifth Court of Appeals in Dallas in the case of Energy Transfer Partners LP et al. v. Enterprise Products Partners LP et al, No. 529 S.W.3d 531...more

Gray Reed

Texas Court Addresses Bad Acts in a Lease Play

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An opinion that observes “Obviously the jury was not overly enamored with Appellants.” is worth discussing. The decision is Stephens et al v. Three Finger Black Shale Partnership et al....more

Gray Reed

Farmout Agreement Worked Over By The Court

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What could go wrong when the well recovers two times its costs in nine months? Plenty, as we see in Dimock v. Sutherland Energy....more

Troutman Pepper Locke

Did You Know You’re an Escrow Agent?

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Many purchase/sale transactions require payments into escrow. Sometimes counsel for one of the parties acts as escrow agent to keep the fees down. Providing such a service has its risks. In Alexander O&G, LLC v. Nomad...more

Robins Kaplan LLP

Your Daily Dose of Financial News

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A nearly $5 billion deal between French energy company Total and the oil and gas arm of Danish shipping giant Maersk is making waves this morning. Total will also assume a few tankers-full of Maersk Oil’s debt....more

Gray Reed

Pipeline Partnership Verdict Reversed

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Enterprise Products Partners, L.P. et al v. Energy Transfer Partners, L.P. et al reversed one of the largest jury verdicts in Texas history. You will like this decision if... ...more

Troutman Pepper Locke

Eastern District of Louisiana Dismisses Officer Compensation Fraudulent Transfer Claims in Tow v. Bulmahn

Troutman Pepper Locke on

The U.S. District Court for the Eastern District of Louisiana dismissed a Chapter 7 bankruptcy trustee’s claims against officers and inside directors of ATP Oil & Gas Corporation in Tow v. Bulmahn on Wednesday. In Tow v....more

Gray Reed

A Corporate Opportunity? … Stolen?

Gray Reed on

If you want to get to the meaning of a case, one exercise is to put yourself in the shoes of one participant or the other and see how you react to the events. (This also works well with Bible stories, by the way.) Last week...more

Gray Reed

What is a Corporate Opportunity?

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Let’s say two fellows are in the oil business and one of his activities is as a director of an exploration company. A deal comes in, they present it to the company, but take it for themselves, Did they steal the opportunity...more

Stinson LLP

North Dakota Supreme Court Addresses What Creates a Fiduciary Relationship with a Land Broker

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On September 21, 2015, the North Dakota Supreme Court found that a fiduciary relationship between an oil company and its landman could exist depending upon the existence of a confidential relationship. Irish Oil...more

Gray Reed

How An Oil And Gas Scammer Avoided Justice

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Scoundrels often get away with their crimes by scamming lots of victims for small amounts, so that no one investor can afford to prosecute his claim. Big Rock Investors Association v. Big Rock Petroleum, Inc. was an...more

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