Justia Oklahoma Supreme Court Opinion Summaries

Articles Posted in Energy, Oil & Gas Law
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Defendant-appellant offered to purchase plaintiffs-appellees' mineral interest in Seminole County. At the time, plaintiffs did not know that they had inherited the mineral interest, that the mineral interest was included in a pooling order, or that proceeds had accrued under the pooling order. Defendant admitted it knew about the pooling order and the accrued proceeds but did not disclose these facts in making the offer. Plaintiffs signed the mineral deeds which defendant provided, and subsequently, they discovered the pooling order and the accrued proceeds. Plaintiffs filed suit against defendant for rescission and damages, alleging misrepresentation, deceit and fraud. The trial court entered summary judgment in favor of plaintiffs. The Court of Civil Appeals reversed. The issues before the Supreme Court on appeal were: (1) whether the summary judgment record on appeal established that defendant owed the plaintiffs a duty to disclose the pooling order and the accrued mineral proceeds when it made an unsolicited offer to purchase their undivided mineral interest in Seminole County and provided the mineral deeds to be executed; and if so, (2) whether rescission of the mineral deeds was a remedy for defendant's breach of the disclosure duty. The Court held that defendant owed a duty to disclose the accrued mineral proceeds to plaintiffs when it offered to purchase the mineral interest and provided the mineral deeds conveying the mineral interest and assigning the accrued mineral proceeds, if any. Furthermore, the Court held that rescission is an appropriate remedy in this case for the breach of defendant's disclosure duty. View "Croslin v. Enerex, Inc." on Justia Law

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In 2004, Plaintiff-Appellant Vick Hubbard filed suit against Defendants Kaiser-Francis Oil Company, Texas Southwest Gas and GBK Corporation for breach of an oil and gas lease and a gas purchase contract. Pursuant to 12 OS Supp. Sec. 1101.1(B), Defendants offered Plaintiff $275 for each of the seven alleged breaches. Plaintiff did not accept the offers and did not submit a counteroffer. By the statute, the offers were deemed rejected. Defendants moved for summary judgment that was granted and entered by the trial court. Plaintiffs appealed. Thereafter, Defendants filed a joint motion to recover their costs and fees based on Plaintiff's failure to obtain a judgment for more that the combined amount of Defendants' offers. In 2005, the parties reached an agreement on litigation costs and attorney fees that were to be paid by Plaintiff. Plaintiff paid that amount and Defendants withdrew their motion. Because of Plaintiff's appeal, the case was remanded to district court. The parties moved for summary judgment. The court granted Defendants' motion. Judgment for Defendants was entered in 2007. Defendants subsequently filed a supplemental joint combined motion for attorney fees for costs they incurred since 2005. In 2008, the district court granted Defendants' motion. On appeal to the Supreme Court, the issues presented for review were matters of first impression. Of import in this case was: (1) whether Defendants were entitled to attorney fees under Sec. 1101.1 because they received a summary judgment, and (2) whether a judgment that was appealed and remanded negated Defendants' 1101.1 offer of judgment made prior to the appeal. Upon careful consideration of the arguments, the Supreme Court affirmed the lower courts' decisions in this case. The Court held that Defendants were entitled to litigation costs, and that the offer of judgment was applicable throughout the case, including through any appeals and remand. View "Hubbard v. Kaiser-Francis Oil Co." on Justia Law