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JONES v RELIANT ENERGY RESOURCES Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 17,634, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: JONES, State: DE Delaware, UniqueCaseRef: DE>CC>00017634, Jones, Mccoy, Arkoma, Arkla, Collateral Estoppel, Settlement, Klein, Liability, Royalty Owners, Delaware, Pay, Holding, Circuit, Determination, Gas, Cross Timbers Oil, Successor-in-interest, Ocean Energy, Arkla Parties, Relitigate, Fees, Arkansas Law, Complaint, Successors-in-interest, Take-or-pay Claim, Public Policy, Judgement, Cross Timbers, Energy, Connection, District Court, Reliant Energy, Arkoma Production, Reliant Energy Resources, Aec, Contracts, Take-or-pay, Production , ContentID: 120239692

Case Documents
1 2001-02-02 MEMORANDUM OPINION
[ see first page and extracted highlights below  ] ItemID: 100221
20 pages
PDF
2 2000-04-17 JOINT OPENING BRIEF IN SUPPORT OF DEFENDANTS MOTIONS TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 102628
31 pages
PDF
3 1999-12-07 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101550
18 pages
PDF
Total Documents: 3 documents , 69 pages
Price: $ 29.95


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1 . MEMORANDUM OPINION

EXTRACTED KEY WORDS
ARKLA
DEFENDANTS
COURT
ARKOMA
PLAINTIFFS
ROYALTY OWNERS
MCCOY
KLEIN
DELAWARE
ARKLA PARTIES
ENERGY
SETTLEMENT
CIRCUIT
GAS
CROSS TIMBERS OIL
TAKE-OR-PAY
PRODUCTION
COLLATERAL ESTOPPEL
DISTRICT COURT
SUCCESSORS-IN-INTEREST
ARKLA EXPLORATION
LIABILITY
DETERMINATION
GAS PURCHASE CONTRACTS
OCEAN ENERGY
SEAGULL ENERGY
WILMINGTON
ATTORNEYS
ARKOMA HOLDING
      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                     IN AND FOR NEW CASTLE COUNTY

JERRAL W. JONES and                                ..
MICHAEL V. MCCOY,                                  ....
                   Plaintiffs,                     .... C.A. No. 17634
                                                   .
RELIANT ENERGY RESOURCES CORP., as                 :
successor-in-interest to ARKLA, INC, and           :
OCEAN ENERGY, INC., SEAGULL ENERGY :
E&P, INC., ARKOMA HOLDING CORP., and               :
CROSS TIMBERS OIL CO., as                          ..
successors-in-interest to ARKOMA
PRODUCTION CO., and as successors-in-
interest to ARKLA EXPLORATION CO.,

                   Defendants.

                          MEMORANDUM OPINION

                    Date Submitted:      September 27,200O
                    Date Decided:           February 2,200l

David C. McBride and Christian Douglas Wright, Esquires, of YOUNG,
CONAWAY, STARGATT & TAYLOR, Wilmington, Delaware; Roger W.
Yoerges and Jt%nifer E. Grishkin, Esquires, of WILMER, CUTLER &
PICKERING; Attorneys for Plaintiffs

A. Gilchrist Sparks III, Donna L. Culver and David J. Teklits, Esquires, of
MORRIS, NICHOLS, ARSHT & TUNNELL, Wilmington Delaware; Joseph L.
McEntree, Britt K. Latham,  Esquires, of JONES, DAY, REAVIS & POGUE,
Dallas, Texas; Attorneys for Defendant Reliant Energy Resources Corp.

Robert J. Steam, Jr., Esquire of RICHARDS, LAYTON & FINGER, Wilmington,
Delaware; Attorney for Defendant Ocean Energy, Inc., Seagull Energy E&P, Inc.,
Arkoma Holding Corp. and Cross Timbers Oil Company


JACOBS, VICE CHANCELLOR



       Although they now stand on opposite sides, the parties to this lawsuit

were all co-defendants in an earlier federal court action brought by a class of

royalty owners having a contractual relationship with one of the defendant

SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • OCEAN ENERGY, INC., SEAGULL ENERGY:
  • successors-in-interest to ARKOMA PRODUCTION CO., and as successors-in-interest to ARKLA
  • David C. McBride and Christian Douglas Wright, Esquires, of YOUNG, CONAWAY, STARGATT &
  • Gilchrist Sparks III, Donna L. Culver and David J. Teklits, Esquires, of MORRIS, NICHOLS,
  • Robert J. Steam, Jr., Esquire of RICHARDS, LAYTON & FINGER, Wilmington, Delaware; Attorney
  • both times against the current plaintiffs.
  • Those defendants have
  • McCoy" or the plaintiffs) were the founders,
  • owners to share in one-eighth of the proceeds from gas that Arkoma
  • produced and sold ITom the royalty owners' land.
  • Defendant Arkla Inc.
  • contract which was typical of many GPC's, included a "take-or-pay" clause that required Arkla
  • Klein v. Jones, 980 F.2d 521,524 (8th Cir.
  • In 1986, Arkla Exploration Company, a wholly-owned gas
  • renegotiated the A&la-Arkoma gas purchase contracts (including
  • The "Arkla parties" and "the defendants" collectively refer to and include Reliant Energy
  • action was removed to the United States District Court for the Western
  • receive a portion of those settlement proceeds.
  • the Eighth Circuit,
  • Eighth Circuit also reversed the District Court's determination that the
  • defense of collateral estoppel, and alternatively, for failure to state a claim
  • on whether the liability issue that the plaintiffs seek to litigate is the

  • 2 . JOINT OPENING BRIEF IN SUPPORT OF DEFENDANTS MOTIONS TO DISMISS

    EXTRACTED KEY WORDS
    MCCOY
    COURT
    COLLATERAL ESTOPPEL
    ARKOMA
    DEFENDANTS
    LIABILITY
    PAY
    ARKLA
    HOLDING
    DELAWARE
    PLAINTIFFS
    KLEIN
    DETERMINATION
    CIRCUIT
    LAW
    ROYALTY OWNERS
    RELITIGATE
    ARKANSAS LAW
    COMPLAINT
    PUBLIC POLICY
    JUDGEMENT
    RELIANT ENERGY RESOURCES
    CROSS TIMBERS OIL
    SETTLEMENT
    SUCCESSORS-IN-INTEREST
    OCEAN ENERGY
    CROSS TIMBERS
    EQUITY SUPPORT
    UNJUST ENRICHMENT
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                     IN AND FOR NEW CASTLE COUNTY
    
    JERRAL W. JONES and MICHAEL V. MCCOY,
    
                               Plaintiffs,
    
                      V.
                                                                C . A .   N o .   17634-NC   `-.'  -"
                                                                                          .;
    RELIANT ENERGY RESOURCES CORP., as
    successor-in-interest to ARKLA, INC., and
    OCEAN ENERGY, INC., SEAGULL ENERGY
    E&P, I?vC., ARJSOMA HOLDING CORP., and
    CROSS TIMBERS OIL CO., as
    successors-in-interest to ARKOMA
    PRODIJCTION  CO., and as successors-in-
    interest to ARKLA EXPLORATION CO.,
    
                               Defendants.          I
    
                                    JOINT OPENING BRIEF IN SUPPORT
                                OF DEFENDANTS' MOTIONS TO DISMISS
    
    
    MORRIS, NICHOLS, ARSHT  & TUNNELL                    RICHARDS, LAYTON  & FINGER
    A. Gilchrist Sparks III                              Robert J. Steam, Jr.
    Donna L. Culver                                      One Rodney Square
    1201 N. Market Street                                P. 0 Box 55 1
    P. 0. Elox 1347                                      Wilmington, Delaware 19899
    Wilmington, Delaware 19899-1347                      (302) 658-6541
    (302) 658-9200
                                                           Attorneys for Defendants Ocean Energy,
                                                           Inc., Seagull Energy E&P, Inc., Arkoma
    OF COUNSEL:                                            Holding Corp. and Cross Timbers Oil Co.
    
    JONES, DAY, REAVIS  & POGUE
    Joseph L. McEntee
    Britt K. Latham
    2727 North Harwood Street
    Dallas., Texas 75201-1515
    (214) 220-3939
    
       Attorneys for Defendant
       Reliant Energy Resources Corp.
    
    April 17, 2000
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • OCEAN ENERGY, INC., SEAGULL ENERGY
  • E&P, I?vC., ARJSOMA HOLDING CORP., and CROSS TIMBERS OIL CO., as successors-in-interest to
  • OF DEFENDANTS' MOTIONS TO DISMISS
  • JONES, DAY, REAVIS & POGUE
  • Reliant Energy Resources Corp.
  • The Issue That Jones And McCoy Seek To Relitigate --"Who Should Pay" -- Is The Same Issue Of
  • The Determination Of Who Should Pay Was Necessary To
  • E. Public Policy And Equity Support The Application of
  • Clark v Teeven Holding Co.,
  • Klein v. Arkoma
  • The United States Court of Appeals for the Eighth Circuit not once, but twice,
  • determined that, as a matter of law, plaintiffs Jones and McCoy' -- and not Arkoma, Arkla and
  • Complaint at 150.
  • Jones' and McCoy's claims are precluded by collateral estoppel.
  • equitable indemnity or unjust enrichment.
  • and because a finding of unjust enrichment would clearly frustrate the law and public
  • Landowner-lessors ("royalty owners") who owned mineral rights to property located in the
  • royalty owners alleged that they were entitled to share in the settlement of the take-or-pay
  • the defendants tiled motions for summary judgment.
  • since the Western District of Arkansas and the Eighth Circuit applied Arkansas law in Klein,

  • 3 . COMPLAINT

    EXTRACTED KEY WORDS
    ARKOMA
    MCCOY
    ARKLA
    DEFENDANTS
    SETTLEMENT
    COURT
    PLAINTIFFS
    KLEIN
    SUCCESSOR-IN-INTEREST
    LITIGATION
    ROYALTY OWNERS
    FEES
    GAS
    TAKE-OR-PAY CLAIM
    CONNECTION
    RELIANT ENERGY
    ARKOMA PRODUCTION
    AEC
    CONTRACTS
    ATTORNEYS
    LIABILITY
    OCEAN ENERGY
    CORPORATION TRUST
    TAKE-OR-PAY DISPUTE
    DISTRICT COURT
    CROSS TIMBERS
    PRICING PROVISIONS
    ARKLA PARTIES
    AGREEMENT
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARF
    
                                  IN AND FOR NEW CASTLE COUNTY                                         
    
    
    JERRAL W. JONES and MICHAEL V. MCCOY, )
    
                            Plaintiffs,
                                                        i
                      V.
    
                                                        ;
    RELIANT ENERGY RESOURCES CORP.,                             C.A. No. 17 6 39 k/ c
    as successor-in-interest to ARKLA, INC.; and        i
    OCEAN ENERGY, INC., SEAGULL ENERGY                  )
    E&P, INC., ARKOMA HOLDING CORP., and                )                                    -  ?
    CROSS TlMRERS OIL CO., as
    successors-in-interest to ARKOMA                                                          "
                                                        1                                    iJ
    PRODUCTION CO., and as successors-in-interest )                                          s  I
    to ARKLA EXPLORATION CO.,                                                                c>
                                                        ;                                    ,-
                            Defendants.                 )
    
    
                                             COMPLAINT
    
    
           Plaintiffs Jerral W. Jones and Michael V. McCoy, by their undersigned attorneys, as and
    
    for their Complaint against defendant Reliant Energy Resources Corp., as successor-in-interest to
    
    Arkla, Inc., and defendants Ocean Energy, Inc., Seagull Energy E&P, Inc., Arkoma Holding
    
    Corp., and Cross Timbers Oil Co., as successors-in-interest to Arkoma Production Company and
    
    Arkla IExploration  Company, hereby allege as follows:
    
    
    
    
    
    
    
    
    
    
    
    WP3 : 436433.2                                                                           56229.1001
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARF
  • JERRAL W. JONES and MICHAEL V. MCCOY,)
  • Plaintiffs Jerral W. Jones and Michael V. McCoy, by their undersigned attorneys, as and
  • Arkla, Inc., and defendants Ocean Energy, Inc., Seagull Energy E&P, Inc., Arkoma Holding
  • Arkla IExploration Company, hereby allege as follows:
  • This action arises out of Defendants' unjust and inequitable failure to make good
  • to Plaintiffs for expenses, including legal fees, incurred by Plaintiffs in connection with
  • litigation and settlement of Klein v. Arkoma Production Co.,
  • The basis for liability in the KlRl litigation
  • Defendant Reliant Energy Resources Corporation is a Delaware
  • Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801.
  • information and belief, Reliant is doing business as "Reliant Energy Arkla" and is the
  • successor-in-interest, via merger, of Ocean Energy, Inc., a Delaware corporation.
  • several successors-in-interest to both AEC and Arkoma.
  • Cross Timbers appears to be the successor-in-interest or one of several
  • the royalty owners typically were entitled to oneeighth of the proceeds from gas that Arkoma
  • Many of these contracts, including a contract known as "GPC
  • entered into a stock purchase agreement under which AEX acquired all of Arkoma's outstanding
  • Over the next two years, Jones and McCoy on the one hand and the Arkla parties
  • the take-or-pay claim.
  • Western District of Arkansas in March 1990, and the district court, by order dated October 10,
  • owners' claim, if any, was against their lessee, Arkoma, which settled the take-or-pay
  • In addition, Jones and McCoy incurred more than $l,OOO,OOO in attorneys' fees,
  • Arkoma's decision to amend the gas purchase contracts to eliminate the pricing provisions.
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