The Permian is a hotbed of deal activity, with the Dallas Morning News declaring that an “arms race” is breaking out to acquire the best acreage positions.
But what are purchasers really buying? Does the due diligence process move too fast (or not at all, making it an empty exercise)? Do purchasers really know that their title is good? Are they unknowingly wasting their money, only to discover that they have done so decades after the investment is made and the profits are owed to the true owner?
The Texas Supreme Court has now strongly moved to put the risk of title loss on the oil and gas interest purchaser or lessee, holding that a purchaser/lessee was not even entitled to a trial on the question of whether it had reasonably relied on the lessor’s own admitted misrepresentations about its title.
In an opinion delivered March 23, the court upheld the dismissal as a matter of law of the purchaser’s claims arising from title failure. In so doing, the court upended the rule that a seller always remains liable for its own fraudulent statements, instead placing the risk on sophisticated buyers. Read more
National Law Journal Names Chrysta Castañeda a Finalist for Elite Trial Lawyers Honor
/in Awards and Recognition /by The Castaneda FirmChrysta Castañeda
Chrysta Castañeda has been named a finalist for The National Law Journal’s inaugural list of Elite Women of the Plaintiffs Bar award.
Other finalists are:
The final winners will be announced at the Elite Trial Lawyers event on Oct. 5, 2018, at the Bellagio Hotel in Las Vegas. Read more
Kirkland Partner’s $11M Salary = Big Win for Women
/in Commercial Litigation /by Chrysta CastañedaThe New York Times broke the news recently that a woman commercial litigator had achieved a stratospheric salary guarantee with one of the largest law firms in the world. By moving from Cravath, Swaine & Moore to Kirkland & Ellis, Sandra Goldstein has reportedly secured an $11 million annual salary guaranteed for five years. Read more
Does Your Lawyer Treat You Well?
/in Legal Ethics /by Chrysta CastañedaWith that in mind, I decided to write this blog post to raise clients’ expectations of what they should be getting from their lawyers, both in terms of service and communication.
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Chrysta Castañeda Named to D Magazine ‘Best Lawyers in Dallas’
/in Awards and Recognition /by The Castaneda FirmChrysta Castañeda
Ms. Castañeda, the founding partner of The Castañeda Firm, focuses on oil and gas litigation in the upstream sector, as well as commercial litigation and products liability disputes involving technical evidence. A former engineer, she frequently represents operators, working interest owners, mineral owners and investors on contract and operational questions. She also has served as national coordinating counsel for products manufacturers in products liability and toxic tort claims. Read more
Caveat Emptor: Texas Supreme Court Puts Greater Due Diligence Burden on the Backs of Oil & Gas Asset Buyers
/in Oil & Gas/Energy Litigation /by Chrysta CastañedaBut what are purchasers really buying? Does the due diligence process move too fast (or not at all, making it an empty exercise)? Do purchasers really know that their title is good? Are they unknowingly wasting their money, only to discover that they have done so decades after the investment is made and the profits are owed to the true owner?
The Texas Supreme Court has now strongly moved to put the risk of title loss on the oil and gas interest purchaser or lessee, holding that a purchaser/lessee was not even entitled to a trial on the question of whether it had reasonably relied on the lessor’s own admitted misrepresentations about its title.
In an opinion delivered March 23, the court upheld the dismissal as a matter of law of the purchaser’s claims arising from title failure. In so doing, the court upended the rule that a seller always remains liable for its own fraudulent statements, instead placing the risk on sophisticated buyers. Read more
Former Texas Supreme Court Justice Craig Enoch’s New Trial Tip – plus more!
/in Trial Strategy /by Chrysta CastañedaFormer Texas Supreme Court Justice Craig Enoch
I was honored to have had the opportunity to work with former Texas Supreme Court Justice Craig Enoch recently on the Mesa Petroleum Partners case, which resulted in a $117 million judgment plus interest for our client, T. Boone Pickens.
I sat down with Justice Enoch to ask about his insights into trial and appellate practice based on his decades of experience as a trial judge, court of appeals chief justice, and Supreme Court justice – as well as an advocate at his own law firm. Not only did he share inside knowledge about how judges view cases, he gave me a tip about new trial motions that not many trial lawyers know. Read more
Three Easy(ish) Legal Resolutions for the New Year
/in Commercial Litigation /by Chrysta CastañedaBut regardless of whether you are on target or wondering why you made them in the first place, New Year’s resolutions have a place in your legal life as well.
Here are three easy(ish) steps toward improving your legal affairs, both personal and professional. Read more
Final Judgment Entered in Mesa Lawsuit Against Baytech, Delaware Basin Resources
/in Oil & Gas/Energy Litigation /by The Castaneda FirmChrysta Castañeda
After a successful mandamus petition to Texas’ Eighth Court of Appeals, lawyers for Mesa Petroleum Partners and legendary oilman T. Boone Pickens are celebrating the entry of a final judgment of approximately $135 million against Baytech LLP and Delaware Basin Resources LLC, both of Midland, Texas.
Chrysta Castañeda, of Dallas’ The Castañeda Firm, served as lead trial counsel to Mesa and Pickens in the 2016 trial that resulted in the jury verdict against Baytech and DBR. Final judgment was issued on December 8, just before the deadline set by the El Paso-based Court of Appeals, which ordered the trial judge to enter judgment by December 9. Read more
Litigation Lessons from a Top-Flight Expert Witness
/in Trial Strategy /by Chrysta CastañedaAuthor’s Note: On the one-year anniversary of our trial victory for T. Boone Pickens and Mesa Petroleum Partners, I am sharing an interview with one of our key expert witnesses, Ricardo (‘Rick”) Garza. Rick was an amazing person and loved to share his knowledge of petroleum engineering with lawyers and juries. I am very sad to report that Rick passed away on October 27, 2017. He will be terribly missed.
As any good trial lawyer knows, the success of your case is greatly affected by your team, including co-counsel, local counsel, paralegals, jury consultants and expert witnesses, among others. I have had the pleasure of working with Ricardo Garza, one of the best engineering expert witnesses you’ll find anywhere, most recently during a 3½ -week trial in the West Texas town of Pecos. Our team represented Mesa Petroleum Partners LP in the hotly contested case involving oil and gas investments. Read more
Litigation Issues in Area of Mutual Interest (AMI) Agreements
/in Oil & Gas/Energy Litigation /by Chrysta CastañedaUnlike the standardized Joint Operating Agreement, though, AMI contracts tend to be handcrafted by the parties promoting the deal, and often have unintended flaws and consequences. If you’re an investor or operator who wants to put together an AMI Agreement, what do you watch out for? And what about buying an interest or properties that might be encumbered by an AMI Agreement? Will your due diligence reveal the significant issues associated with AMI obligations? Read more