SCOTX To Orca: ‘Vague Assurances’ Should Have Been A Clue

AUSTIN – The Texas Supreme Court Friday ended Orca Asset’s $400 million claim against JPMorgan Chase Bank over disputed titles to mineral leases in the Eagle Ford Shale.

The court said that Orca ignored “red flags” that warned of cloudy title when it signed a letter of intent to lease mineral rights to 919 acres in DeWitt County from JPMorgan, an agent for the trust that owned the rights. The warnings included the bank’s strict negation-of-warranty language in the lease and Orca’s knowledge that competitors might delay recording their leases.