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Contract Disputes Texas Business Litigation

Gray Reed

Oral Promises, Paper Truths in a Texas Mineral Transaction

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The Texas Supreme Court in Roxo Energy Company, LLC v. Baxsto, LLC reinforced a fundamental contract principle: when fully integrated agreements plainly conflict with prior oral representations, reliance on those inconsistent...more

McGinnis Lochridge

"Void" Means Void: How Missing Consent Toppled a $2.5 Million Pipeline Judgment

McGinnis Lochridge on

The Tyler Court of Appeals reversed a $2.5 million judgment against pipeline successors (Coffeyville Resources Crude Transportation, LLC v. ExxonMobil Pipeline Co., No. 12-23-00276-CV, 2025 WL 356222 [Tex. App.—Tyler Jan. 31,...more

Freeman Law

Third-Party Beneficiary Rights Under Texas Nonprofit Corporation Charter

Freeman Law on

On June 27, 2025, the Texas Supreme Court rendered a 32-page opinion in the case of Southern Methodist Univer. v. South Central Jurisdictional Conference of the United Methodist Church, No. 23-0703, __ S.W.3d __ (Tex. June...more

Jackson Walker

Texas Legislature Expands Business Court Role in Intellectual Property Matters with Passage of HB 40

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The 2025 biennial session of the Texas Legislature brought changes to the Texas Business Court that was created in 2023. With the passage of House Bill 40 (HB 40), the legislature expanded the Business Court’s jurisdiction to...more

Bracewell LLP

Texas Supreme Court Affirms Mineral Estate Ownership of Produced Water in Landmark Ruling

Bracewell LLP on

In a significant decision for Texas property and energy law, the Texas Supreme Court has affirmed the Eighth Court of Appeals’ ruling in Cactus Water Services, LLC v. COG Operating, LLC, holding that produced water — a...more

McGinnis Lochridge

Plain Language Meets Common Sense: Hidden Traps in Oil Patch Contract Interpretation

McGinnis Lochridge on

What happens when a court reads your contract literally for one issue but decides what 'makes sense' for another? A geophysicist just found out. In early April 2025, the Amarillo Court of Appeals reversed in part and...more

McGinnis Lochridge

Texas Business Court Weighs Jurisdiction over Out-of-State Property Interests

McGinnis Lochridge on

When can a Texas court rule on New Mexico property disputes? The answer hinges on whether the property interest is 'central' or just 'incidental' to the real fight....more

Baker Donelson

U.S. Fifth Circuit Firmly Shuts Courthouse Doors on Petitions to Vacate Arbitration Awards for "Manifest Disregard of the Law"

Baker Donelson on

The U.S. Court of Appeals for the Fifth Circuit in United States Trinity Energy Services., L.L.C. v. Southeast Directional Drilling, L.L.C., 135 F.4th 303 (5th Cir. 2025) ruled that "manifest disregard of the law" is not a...more

Gray Reed

Texas Operator Protected From Royalty Payment Error

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The takeaway from DDR Weinert, Limited et al v. Ovintiv USA Inc. is that equitable recoupment rescued a royalty payor from its mistaken payment of royalties. But first, The events. The Richters were mineral lessors...more

Jackson Walker

Texas Business Court Upholds Exculpation Clause—Limits Fiduciary Duty Exposure

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In its May 22, 2025, memorandum opinion, the Business Court of Texas dismissed all claims against Christopher Doyle (PEC’s CEO) and certain Blackstone-affiliated entities. The Court held that § 13.9 of the Third Amended...more

Vinson & Elkins LLP

House Bill 40 Approved by the Texas Legislature—Expanding Business Court Jurisdiction and Operations

Vinson & Elkins LLP on

As an update to Vinson & Elkins’ prior coverage of House Bill 40 (“H.B. 40”)—new legislation that expands the jurisdiction and operations of the recently opened Texas business courts—both houses of the Texas Legislature...more

McGinnis Lochridge

Supreme Court of Texas Washes Out the “Anadarko Washout”

McGinnis Lochridge on

The so called “Anadarko Washout” involves a washout of oil and gas leases on undivided working interests owned by non-operating mineral cotenants. This particular species of lease washouts is based on two recent cases from...more

Gray Reed

Operator Excused from Texas Relinquishment Act Claims

Gray Reed on

In Williams O & G Resources, LLC v. Diamondback Energy, Inc., a federal magistrate judge concluded that the Texas Relinquishment Act does not apply to public-school lands patented after 1931. The report and recommendation was...more

Fox Rothschild LLP

Texas Supreme Court Reverses Liability Finding Against Franchisor

Fox Rothschild LLP on

A recent Texas Supreme Court decision fully overturned a jury’s finding that a franchisor was liable for the criminal actions of a franchisee’s employee. This decision underscores the importance of a franchisor having clearly...more

Gray Reed

Texas Pore Space Ownership – Royalty Calculation

Gray Reed on

In Myers-Woodward, LLC v. Underground Services Markham, LLC et al, (discussed previously) the parties disagreed on how to calculate Myers’ royalty on salt produced by Underground....more

Jackson Walker

Business Court of Texas Clarifies “Qualified Transaction” Jurisdiction

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The Business Court of Texas’ recent opinion in Atlas IDF, LP v. NexPoint Real Estate Partners, LLC offers important guidance on the meaning of a “qualified transaction” under Texas Government Code Chapter 25A and the...more

Baker Botts L.L.P.

Write it Down or Forever Hold Your Peace: Texas Supreme Court Rejects Fraud Claims Based on Oral Representations in Mineral Deals

Baker Botts L.L.P. on

On Friday, May 9th, the Supreme Court of Texas addressed important issues regarding the enforcement of written contractual representations in its per curiam opinion styled Roxo Energy Co., LLC et al. v. Baxsto, LLC, ---...more

McGinnis Lochridge

All Depths or Just One Formation? Court Clarifies Royalty Conveyance in Rock River v. Pioneer

McGinnis Lochridge on

This recent case (Rock River Minerals, LP v. Pioneer Nat. Res. USA Inc., No. 08-23-00216-CV, 2024 WL 4528917 [Tex. App.—El Paso Oct. 18, 2024, no pet. h.]) explored whether an assignment of an overriding royalty interest,...more

McGinnis Lochridge

Can "Free of Cost" Term Achieve Point-of-Sale Royalty Base?

McGinnis Lochridge on

A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed...more

Bradley Arant Boult Cummings LLP

Manifest Disregard Discarded: Fifth Circuit Limits Grounds to Vacate Arbitration Awards

“Manifest disregard of the law” is no longer a valid basis to challenge arbitration awards, at least not in the federal courts of Texas, Mississippi and Louisiana. Rather, according to the Fifth Circuit’s decision in U.S....more

Jackson Walker

Texas Supreme Court Clarifies Fiduciary Duties Between Business Partners

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The Texas Supreme Court has provided clarity on the fiduciary duties between business partners, particularly in the context of limited partnerships. The case, Bertucci v. Watkins, involved a dispute between two business...more

Porter Hedges LLP

Should I File My Next Construction Case in the New Texas Business Court? Maybe.

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The Texas Business Court is a statewide, specialized trial court created to resolve certain complex business disputes. Five of the planned eleven divisions began operating September 1, 2024, with two appointed judges in each...more

Orrick, Herrington & Sutcliffe LLP

The Texas Business Court: What You Need to Know

Texas has joined more than two dozen other U.S. states in creating a court system to handle certain business disputes. Companies with cases in the new Texas Business Court will appear before appointed judges with expertise in...more

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