Texas Supreme Court

John David Gavenda, Petitioners v. Strata Energy, Inc., Respondents

January 22, 198629 Tex. Sup. Ct. J. 169

Summary

The Texas Supreme Court held that division and transfer orders are not binding on royalty owners when the operator prepares erroneous orders and retains part of the underpayment, thereby being unjustly enriched. The Court also attributed the attorney’s negligence to the operator under agency law and awarded attorney’s fees to the royalty owners.