Texas Supreme Court
Jimmy B. Myers, Petitioner v. Gulf Coast Minerals Management Corporation, Respondent
October 3, 19626 Tex. Sup. Ct. J. 24
Summary
The Texas Supreme Court held that the farmout agreement required Gulf Coast Minerals Management Corporation to pay the additional $2,000 consideration, rejecting the lower appellate court's view that the term "may earn" was merely permissive. The Court read the contract as a whole, giving effect to the operative clauses that obligate payment, and therefore affirmed the trial court's summary judgment for Myers. Justice Griffin dissented, arguing that the Court of Civil Appeals was correct that Gulf Coast had no duty to pay the $2,000.