Texas Supreme Court continues to hold that merger clauses alone do not defeat fraudulent inducement claims.

The Texas Supreme Court recently issued its opinion in Int'l Bus. Machines Corp. v. Lufkin Indus., LLC, 17-0666 (Tex. Mar. 15, 2019), clarifying existing law relative to waivers of fraudulent inducement and “string along fraud” claims. In this case involving a contract to purchase a business-management software system, the Court once again affirmed that clear … Continue reading Texas Supreme Court continues to hold that merger clauses alone do not defeat fraudulent inducement claims.

Texas Supreme Court Limits Fraudulent Inducement Claims When Allegations Contradict Contract Language

In Mercedes-Benz USA LLC et al. v. Carduco Inc. dba Cardenas Metroplex, No. 16-0644, the Texas Supreme Court further limited fraudulent inducements claims.  It determined that a company could not reasonably rely on representations made by the defendant leading up to the purchase of a car dealership because those representations were directly contradicted the express … Continue reading Texas Supreme Court Limits Fraudulent Inducement Claims When Allegations Contradict Contract Language

Non-disclosed connections with counsel, including past campaign donations, are insufficient to disqualify an arbitrator.

In Sebastian v. Bliss Builders, Inc., (No. 09-18-00223-CV) the Sebastians appealed the trial court’s order vacating their arbitration award against Bliss Builders arising out of a residential construction contract. The underlying matter was arbitrated by a retired judge. Bliss Builders sought to vacate the arbitration award alleging that Stovall failed to disclose: (a) a campaign … Continue reading Non-disclosed connections with counsel, including past campaign donations, are insufficient to disqualify an arbitrator.

The Language in Oil & Gas Agreements Governs the Royalty Caclulation

The Texas Supreme Court issued its opinion in the most closely watched case involving royalty agreements since Chesapeake Exploration, L.L.C. v. Hyder.  In Burlington Resources Oil & Gas Company LP v. Texas Crude Energy, LLC and Amber Harvest, LLC, Number 17-0266 (Tex. 2019), the Texas Supreme Court held that overriding royalties paid by Burlington Resources … Continue reading The Language in Oil & Gas Agreements Governs the Royalty Caclulation

Advancement of Attorneys’ Fees Through Trial–Upheld by the Fort Worth Court of Appeals

In L Series, et al. v. Holt, Number 02-17-00415-CV (Tex. App.—Fort Worth 2019), the trial court ordered that the Plaintiff entities advance the Defendant’s attorney’s fees during the pendency of the lawsuit under an “advancement of expenses” provision in the company agreements.  The Plaintiffs contested the trial court’s ruling by both mandamus and an interlocutory … Continue reading Advancement of Attorneys’ Fees Through Trial–Upheld by the Fort Worth Court of Appeals