News & Analysis as of

Contract Interpretation Appeals Contract Disputes

Wiley Rein LLP

Louisiana Appellate Court Enforces Bodily Injury Exclusion in an Errors and Omissions Policy

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The Court of Appeal of Louisiana, Third Circuit, has held that a bodily injury exclusion in a carrier’s errors and omissions policies barred coverage for a third-party claim by another carrier and a third-party demand by an...more

Bennett Jones LLP

Bennett Jones Acts for CPKC in Setting Aside "Extraordinary" C$228 Million Award on Commercial Land Deal

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On July 2, 2025, the Court of Appeal of Alberta set aside a C$228 million judgment against Canadian Pacific Kansas City Limited (CPKC) and the Province of Alberta (the Province), arising from a failed real estate transaction....more

Gray Reed

Ambiguity Frees Louisiana Royalty Owner From Post-Production Costs

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In Franklin v. Regions Bank the Fifth Circuit concluded that a royalty clause in a mineral lease resulted in a gross proceeds royalty; the royalty owners did not bear their proportionate share of post-production costs. Read...more

Fox Rothschild LLP

When a Prenuptial Agreement Says “Waiving All Rights”, It Really Does Mean Waiving All Rights

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Too often, litigants (and sometimes attorneys) treat prenuptial agreements as documents that either don’t have to be followed and/or should be attacked as a matter of course to try to get the party who entitlements are...more

Bradley Arant Boult Cummings LLP

The Predominant Factor Test: Determining Whether the UCC or Common Law Applies to Mixed Contracts for Goods and Services

Construction law in the United States consists of two main bodies of legal rules. The first, federal law, applies to contracts involving the U.S. government and its agencies. The second, state law, applies to pretty much...more

A&O Shearman

When life gives you oranges, try to find an implied term

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The court implied a term into a contract for the supply of orange pulp that, in the absence of agreement between the parties, the price was to be fixed at a reasonable or market price. ...more

Cooley LLP

Court of Appeal Upholds Contract With Open Price Clause

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The English Court of Appeal’s judgment in KSY Juice Blends UK Ltd v. Citrosuco GmbH provides helpful guidance on the enforceability of long-term supply contracts where the price for part of the goods is left open to be agreed...more

Sands Anderson PC

Wild Doctrines Can’t Be Broken: Why the Virginia Supreme Court Reined in Adequate Assurance

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In a May 2025 decision, Under Wild Skies, Inc. v. National Rifle Association of America, the Supreme Court of Virginia declined to incorporate the doctrine of “adequate assurance” (Restatement (Second) of Contracts § 251)...more

Greenberg Glusker LLP

California Supreme Court Affirms Alternative-Performance Cotenancy Clauses in Retail Leases

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The California Supreme Court upheld a shopping center cotenancy provision, which allowed the tenant to pay reduced rent if the center’s occupancy fell below a certain threshold, finding the lease provision was an enforceable...more

Morris James LLP

Delaware Supreme Court Examines Contractual Ambiguity of Waiver Clauses

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Terrell v. Kiromic Biopharma, Inc., No. 131, 2024 (Del. Jan. 21, 2025) - In a decision addressing the interpretation of waiver clauses within stock option agreements, the Delaware Supreme Court reversed the Court of...more

Blake, Cassels & Graydon LLP

L’influence des tribunaux sur les contrats : Survol de décisions récentes rendues par des cours d’appel et la Cour suprême

La jurisprudence canadienne récente influe sur l’approche que devraient adopter les rédacteurs de textes juridiques au moment de formuler des clauses contractuelles. Des décisions clés, notamment de la Cour suprême du Canada...more

Troutman Pepper Locke

Fifth Circuit Finds ANR Pipeline’s Tariff Does Not Require Simultaneous Delivery for Short-Notice Shipments

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On May 22, 2025, the U.S. Court of Appeals for the Fifth Circuit (“Fifth Circuit”) addressed a dispute between ANR Pipeline Company (“ANR”) and FERC. The case centered on the interpretation of ANR’s tariff and whether it...more

McDermott Will & Emery

Running on Empty: ‘Stang’ With No Anthropomorphic Characteristics Isn’t Copyrightable Character

The US Court of Appeals for the Ninth Circuit affirmed a district court’s denial of copyright protection for a car that had a name but no anthropomorphic or protectable characteristics. Carroll Shelby Licensing, Inc. v....more

Gray Reed

Texas Supreme Court Decides Who Must Produce to Maintain an Oil and Gas Lease

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In Cromwell v. Anadarko E & P Onshore LLC the Supreme Court of Texas did what it so often does: In order to provide “legal certainty and predictability”, the Court considered the plain language of a contract in order to...more

McGinnis Lochridge

Supreme Court of Texas Washes Out the “Anadarko Washout”

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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

Houston Harbaugh, P.C.

Sixth Circuit Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

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Let’s assume you own 105 acres in Greene County, Pennsylvania. In 2020, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...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

Can a Production Sharing Agreement Override Surface Owner Consent? Hamilton v. ConocoPhillips Explored

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A landowner’s failure to provide consent for surface use related to oil and gas operations does not necessarily preclude the lessee from conducting activities if the lease agreements allow surface use....more

Mayer Brown

Legal Developments in Construction Law: May 2025

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1. ABSENCE OF NOVATION SINKS ADJUDICATION AWARD AGAINST ASSIGNEE - A contractor obtained an adjudication award against an assignee of its employer, which had gone into administration.  But was that assignee the correct...more

Warner Norcross + Judd

Michigan Court of Appeals Splits with Federal Courts and Holds Standard Stellantis Contract Terms Enforceable

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Earlier this week, the Michigan Court of Appeals issued its opinion in FCA US, LLC v. Kamax Inc., et al., the latest in a string of court decisions interpreting the enforceability of supply chain contracts in the wake of the...more

McGinnis Lochridge

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

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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

Blake, Cassels & Graydon LLP

From Court to Contract: Navigating Recent Supreme Court and Appellate Decisions

Recent Canadian case law is reshaping how legal drafters should approach contractual clauses. Key decisions, including rulings from the Supreme Court of Canada and appellate courts in British Columbia, Alberta, Ontario and...more

McGinnis Lochridge

Affirmative Defenses Are Insufficient to Rebut the Van Dyke Presumption

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Under Van Dyke, deeds with double-fraction royalty reservations referencing “1/8” are presumed to reserve a floating royalty interest unless clearly contradicted. Defenses like waiver, ratification, and limitations cannot...more

Husch Blackwell LLP

Fifth Circuit: "Manifest Disregard of the Law" Cannot Be Grafted to FAA as a Basis for Vacatur of Arbitration Award

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In affirming a district court’s denial of a petition to vacate an arbitration award, the U.S. Court of Appeals for the Fifth Circuit recently rejected the argument “that manifest disregard of the law remains viable as an...more

McGinnis Lochridge

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

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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

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