$8.2 Million Judgment for Breach of Contract Reversed on Appeal

Deborah Hankinson, Brett Kutnick, and Jennifer Rangel Stagen successfully represented Eagle Oil & Gas Company (“Eagle Oil”) in an appeal of a judgment after a jury trial awarding the plaintiff, TRO-X, L.P., over $8.2 million in damages and attorney’s fees, based on alleged breaches of a contract to acquire and dispose of oil and gas leases and interests.  Following oral argument, the Court of Appeals for the Eleventh District of Texas in Eastland held that (1) Eagle Oil could not, as a matter of law, deprive TRO-X of its right to retain an unpromoted working interest by selling to Eagle Oil & Gas Partners, LLC on a promoted basis without consultation with TRO-X, (2) the evidence conclusively establishes that Eagle Oil did not deprive TRO-X of its right to retain an unpromoted working interest, (3) Eagle Oil did not breach the agreement by sending a letter to TRO-X, and (4) Eagle Oil could not, as a matter of law, deprive TRO-X from acquiring its proportionate share of an overriding royalty interest and working interest back-in, and the evidence conclusively establishes that Eagle Oil did not deprive TRO-X of the interests.  The court thus reversed and rendered judgment that the plaintiff take nothing on its multi-million dollar breach-of-contract claims against Eagle and instead rendered judgment that the plaintiff recover $379,788.80 under a court-ordered accounting.  The court further affirmed the take-nothing judgment rendered in favor of the firm’s other client, Eagle Oil & Gas Partners, LLC, on the plaintiff’s tortious interference claim.  Eagle Oil & Gas Co. v. TRO-X, L.P., 416 S.W.3d 137 (Tex. App.—Eastland  2013, pet. filed), reh’g denied, 427 S.W.3d 580 (Tex. App.—Eastland  2014).