News & Analysis as of

Contract Interpretation Appeals Contract Terms

Bennett Jones LLP

Do You Need to Rush to Mediate? Ontario Court of Appeal Clarifies Interpretation of Multi-Step Dispute Resolution Clause

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Multi-step dispute resolution (MSDR) clauses introduce escalating stages of conflict resolution, which are aimed at promoting settlement prior to engaging in full scale litigation or arbitration. MSDR clauses typically...more

Gray Reed

Texas Royalty Owner Bears Postproduction Costs on Gas Sold at the Wellhead

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City of Crowley v. TotalEnergies E&P USA, is a post-production cost (PPC) case with a predictable result. The Fort Worth Court of Appeals confirmed its reasoning in Shirlaine W. Props. Ltd. v. Jamestown Res., L.L.C from 2021,...more

Clark Hill PLC

Colorado court rules “Fees on Fees” recoverable in contractual disputes, breaking new ground on attorney fee awards

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On Aug. 6, the Colorado Court of Appeals recently addressed a question that had never been definitively answered in the state: whether a prevailing party can recover attorney fees incurred to enforce a contractual...more

Husch Blackwell LLP

Supreme Judicial Court Limits Scope of Massachusetts Noncompetition Agreement

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The Massachusetts legislature passed the Massachusetts Noncompetition Agreement Act (MNAA) in 2018, culminating a longstanding effort to balance employers’ rights to protect legitimate business interests—such as trade...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

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

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

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

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

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

BCLP

Does “Back to Back” Mean “Pay When Paid” in Construction Contracts?

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In Sze Fung Engineering Limited v Trevi Construction Company Limited [2025] HKCA 278, the Hong Kong Court of Appeal (“CA”) ruled that the “back to back” wording in that case was not a “pay when paid” clause, but governed only...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

A&O Shearman

DBS, delay and decoding conditions precedent

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The Court of Appeal has dismissed a claim by the UK Home Office's Disclosure and Barring Service for over GBP1.5 million worth of delay payments against its IT supplier Tata. The contract contained a condition precedent to...more

Blake, Cassels & Graydon LLP

British Columbia and Ontario: Two Diverging Approaches to Interpreting Termination Provisions

Overview - Employers increasingly face challenges regarding whether termination provisions in their employment agreements will be determined to be enforceable if challenged in court. As we continue to see increasing court...more

Freiberger Haber LLP

Giving Two Contract Provisions Their Intended Meaning

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Under New York law, written agreements are construed in accordance with the parties’ intent. “The best evidence of what parties to a written agreement intend is what they say in their writing.” As such, “a written agreement...more

Freiberger Haber LLP

Second Department Holds That Material Term of Contract For Sale of Real Property (i.e., the Property Description) Was Too...

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This BLOG has written numerous times on issues related to contract formation. See, e.g., [here], [here], [here], [here] and [here]. Briefly stated, “[t]o create a binding contract, there must be a manifestation of mutual...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Wyoming Supreme Court Eliminates the Blue Pencil Rule for Noncompete Agreements

On February 25, 2022, the Wyoming Supreme Court issued a decision prohibiting courts from revising, or “blue penciling,” noncompete agreements to be reasonable and enforceable under the law. The decision overrules the Wyoming...more

A&O Shearman

Noticeable difference – notice of SPA claim sufficient in light of recipient’s knowledge

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Based on the actual knowledge of the recipients and the commercial purposes of the notice provision, overturning the Judge, the Court of Appeal found adequate notice had been given of a tax indemnity claim....more

Bradley Arant Boult Cummings LLP

New York is Pro-Choice on Forum Selection Clauses

In Somerset Fine Home Building, Inc. v. Simplex Industries, Inc., the Appellate Division of the Second Department in New York upheld a dismissal based on the plaintiff’s breach of the parties’ forum selection clause. Somerset...more

Foley & Lardner LLP

Supply Contract Update: Michigan Court of Appeals Affirms that a Requirements Contract Need Not Be Exclusive (Cadillac Rubber &...

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On February 11, 2020, the Michigan Court of Appeals issued a significant decision that impacts manufacturing supply contracts – especially those in the automotive industry – holding that a buyer may enforce a supply contract...more

White & Case LLP

Force Majeure: substantial damages even if you cannot perform

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In a recent decision, the Court of Appeal has awarded substantial damages to the innocent party after a force majeure event, in circumstances where the party seeking to rely on the force majeure event to excuse liability...more

Nutter McClennen & Fish LLP

Licensee Challenges Ruling that a Standard Language Forum Selection Clause Bars PTAB Proceedings 

In a case that could have a significant impact on the interpretation and drafting of patent licensing agreements, a patent licensee filed an appeal for an en banc proceeding at the Federal Circuit to challenge the court’s...more

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