DMN: Jury Awards $3 Million in Fracking Contamination Case
A Dallas jury has awarded a Wise County couple $3 million in their case against Plano-based Aruba Petroleum.
Free Speech, Due Process and Trial by Jury

A Dallas jury has awarded a Wise County couple $3 million in their case against Plano-based Aruba Petroleum.

Energy Transfer Partners is asking a judge to award it $914.6 million for damages it suffered over an alleged joint venture with Houston-based Enterprise Products Partners that failed in 2011.

A federal judge rejected Sierra Club claims that Luminant violated emission standards under the federal Clean Air Act at its Big Brown Power Plant.

A Dallas jury, in a potential landmark verdict that has attracted a lot of attention from energy companies and general counsel, ruled last Tuesday that two businesses can be involved in a legally binding partnership even when one of the parties never intended for the joint venture to be official. The jury ordered Enterprise to pay ETP $319 million in damages for violating the corporate version of a common law marriage. The victory was the largest for prominent trial lawyer Mike Lynn and one of the largest ever awarded by a North Texas jury. However, it did not find that Enterprise and Enbridge conspired for Enterprise to breach its duty to ETP for their partnership. Jurors awarded ETP $319 million in actual damages to ETP, but an additional amount for restitution could be added. The jury’s conclusion is a landmark decision for Texas business lawyers and their corporate clients for what under State law constitutes a business partnership. The decision follows four full weeks of intensive testimony from the three oil and gas giants. ETP claimed that Enterprise violated their “Double E” partnership agreement by cutting ties with ETP to pursue a more financially viable pipeline project with Enbridge and that the two conspired to cut ETP out of their new deal. More details as the story develops.

When does a business relationship become a partnership? That question is at the heart of a multibillion-dollar dispute involving Energy Transfer Partners, Enterprise and Enbridge Inc. that is scheduled to start trial this week in Dallas.

The state agency is being accused of retaliating against a former employee after he reported unlawful actions of his supervisor.

Texas’ environmental watchdog is expected to reveal Friday whether it will continue allowing municipalities and power generators to jump to the front of the line over the right to use increasingly scarce water in the Brazos River region. A state judge ordered the Texas Commission on Environmental Quality to stop that practice, ruling that it should follow a more than 100-year-old system for allocating water, called the priority doctrine. Read more for the details.

The potentially historic Deepwater Horizon trial is scheduled to start Monday and Donald Goldwin is right in the middle of it. “This case is unprecedented, both in terms of the size of the litigation and the amount of money at stake," says Godwin, who is lead lawyer for Halliburton. "Damages could exceed $70 billion. I’ve never seen anything like it. Nobody has.” But don't expect Godwin to settle: "I'm here to win."

Lawyers say ruling sets precedent for valuing gas containing high content of injected carbon dioxide, which is then separated out to make marketable hydrocarbon products.

Industry says legal battle could harm state’s renewable energy credit market; TXU says those claims are overblown. Nina Cortell of Haynes and Boone argues for FPL Energy, while James Ho of Gibson Dunn represents Luminant Energy.

For a small oil and gas company like Dallas-based Longview Energy, the chance to obtain a lease in the red-hot Eagle Ford Shale was an opportunity that doesn’t come along every day. So it was a huge disappointment in 2010 when a promising lease of 46,000 acres was rejected by two of the company’s directors, representatives of The Huff Energy Fund, a New Jersey private equity company that owns 39 percent of Longview. What Longview did not know is that three days earlier, the very same land had been secured by a portfolio group that was 99 percent owned by the equity fund. Now, a South Texas judge has awarded Longview Energy the rights to the land valued at more than $500 million. It is one of the largest judgments ever involving the Eagle Ford play.

Refusal to rehear case likely means more court disputes with landowners
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