Fortitude Energy, LLC v. Sooner Pipe LLC

Full title: FORTITUDE ENERGY, LLC, Appellant/Cross-Appellee v. SOONER PIPE LLC, Appellee/Cross-Appellant

Court: Court of Appeals For The First District of Texas

Date published: Aug 30, 2018

Facts

Beginning in 2013, Fortitude and San Gabriel entered into several participation agreements and joint operating agreements concerning the exploration and development of oil and gas leases in Reeves County, Texas (“the Reeves County Leases”). Fortitude owned a working interest in the leases, and San Gabriel, along with a related entity known as Pecos Production Company, LLC, served as the operator

Sooner Pipe is a company that provides pipe used in oilfield operations. In June 2014, Sooner Pipe and San Gabriel entered into a contract under which Sooner Pipe provided San Gabriel with pipe for four different wells. Sooner Pipe issued ten invoices to San Gabriel throughout the summer of 2014. San Gabriel did not pay Sooner Pipe, and the total outstanding balance under the invoices was $410,872.40. In July 2015, Sooner Pipe’s counsel sent a letter to San Gabriel, demanding payment of the outstanding invoices or Sooner Pipe would file suit.

Issue

Decision

We affirm the portion of the trial court’s judgment that awards Sooner Pipe $410,872.40 in damages from Fortitude. We remand the case to the trial court to determine the amount of attorney’s fees, prejudgment interest, postjudgment interest, and court costs to which Sooner Pipe is entitled.

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