The Texas Supreme Court ruled in favor of Merit Energy Company, represented by a Locke Lord team of Tom Loose and Cynthia Timms (both of Dallas), by denying a petition for review from an earlier appellate victory. In 2011, Merit sought to reform certain assignments of oil and gas overriding royalties after the company had sold a package of overriding royalty interests to Lakota Energy Limited Partnership at a public auction sale. Years later, Lakota sent Merit a letter claiming that it had purchased interests greater than, and other than, those listed for sale in the auction catalog. After an attempt to resolve the disputes amicably failed, a case was tried to a jury in 2012. Ultimately, the jury returned a unanimous verdict in favor of Merit. The trial court overruled Lakota’s motion for a new trial and motion for judgment notwithstanding the verdict and entered final judgment for Merit and that Lakota take nothing on its counterclaims. Lakota appealed and, in November 2016, the Fort Worth Court of Appeals affirmed the trial court’s judgment on the jury’s verdict. Thereafter, Lakota filed a petition for review in the Texas Supreme Court and the court ordered briefing on the merits, but ultimately denied Lakota’s petition.
Posted January 26, 2018