Judge Finds in Favor of Gardere Client BP

05 April 2013 News

Law360 covered U.S. District Judge Vicki Miles-LaGrange's finding that Chesapeake Exploration LLC owed $22 million to Gardere's client, BP American Production Co., for title defects on wells it sold to BP in Oklahoma. BP purchased oil and gas properties in Oklahoma from Chesapeake in 2008 for $1.75 billion and later prevailed in arbitration over a number of title defect disputes related to the sale.

Chesapeake paid $11 million awarded to BP through arbitration; however, it disputed that it owed an additional $22 million that it had been offsetting pending resolution of its $22 million in title claims, all of which were rejected in the arbitration. The parties then fought in court over the effect of the arbitration award. Ultimately, Judge Miles-LaGrange found that BP was entitled to the additional $22 million, plus prejudgment interest and attorneys' fees.

BP was represented by Gardere Litigation Partner David M. Bates.

Subscribers may access the full article here.

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