Smackdown to Columbia LLC/Chesapeake Natural Gas Royalties Lawsuit - Judge Upholds 404 Million VerdictSomervell County Salon-Glen Rose, Rainbow, Nemo, Glass....Texas


Smackdown to Columbia LLC/Chesapeake Natural Gas Royalties Lawsuit - Judge Upholds 404 Million Verdict

1 July 2007 at 12:48:17 PM

A little background from where I wrote about this before. Now to this week. (And while you read this, don't forget that Chesapeake had tried to threaten to not build their regional headquarters in North Carolina over this, and are still thinking about it. You know, do North Carolinians really want these kind of crooks in their neighborhood? Wah! Wah! To Chesapeake

The judge presiding over a hotly contested natural gas royalties lawsuit has upheld the jury’s $404 million verdict against the state’s biggest gas drillers, setting the stage for a state Supreme Court challenge.

Neither the jury’s finding of fraud nor the size of damages deserve to be overturned, said Roane County Circuit Court Judge Tom Evans in a 101-page ruling released on Thursday.

“The jury’s verdict ... is sustained as being fully supported by the law and the facts,” Evans wrote. “A downward adjustment in punitive damages is not warranted under the evidence and the law, and would amount to a denial of the plaintiffs/lessors’ right to the due process of the law.”

During a post-trial hearing before Evans last March, a NiSource lawyer argued that, given the jury’s findings of fault against the drillers, punitive damages should amount only to around $43 million.

But Evans says in his final ruling that the drillers’ arguments for reducing the damages didn’t stand up.

The drillers contended, for example, that they deducted post-production and marketing costs from the royalties under a good-faith interpretation of their contracts, not with fraudulent intent. But Evans said that such an interpretation contradicts “established practice” in West Virginia and that when contract terms are ambiguous they are to be “liberally construed in favor of the lessor.”

The drillers’ argument was further undercut, Evans said, by the fact that they failed to prove they honestly believed in such an interpretation of the contracts.

“No one testified that CNR thought it had the right to take these deductions based on the royalty clauses of the leases,” he wrote. “Accordingly, [the] defendants’ argument that the award of punitive damages should be set aside because the royalty clauses were ‘ambiguous,’ is without merit and must be rejected.”

     Views: 1366 
Latest Blog Post by salon -Did we elect a monarch? Bah to the Constitution? Trump and the Ukraine

 You! Leave a Comment! You Know you Want To!
You must be a registered member to comment on the blog.
Your first post is held pending approval to make sure you're not a spammer bot

 Not registered? Or you can login!

LOGON - Name:Password:

New poster comments are moderated, meaning they won't show up until approved... or not.  Be patient-we have lives outside this blog, so it might take awhile You want to be rude? totally stupid? inappropriate? Racist? Bigoted? Flame war baiter? Your post may be deleted. Spammers or people posting pretend interest comments but really wanting to hawk their latest book or sell stuff or govt propaganda flacks won't see their posts published. Comments do not necessarily reflect the viewpoint of the site owner(salon).
If you have a problem with logging in or registering, please speak up right away. Love your comments. Oh, except spammers
More on commenting

Click Here for Main Page

Today Is  
Saturday, September 21, 2019

Latest Posts

Did we elect a monarch? Bah to the Constitution? Trump and the Ukraine
salon 9/21/2019

Trump Snorting Adderroll -Podcast interview with Noel Casler who worked on The Apprentice
salon 9/19/2019

Time to Lock Up Ivanka Trump? She used a personal email account to send govt emails
salon 9/18/2019

Corey Lewandowski Is Just a Flat Out Liar
salon 9/18/2019

Not Ever Voting for Unethical Trump-but I'm not a fan of Biden
salon 9/15/2019

New in Trump's Swampy Government- Emuluments Case Back On
salon 9/15/2019

More Blog Headlines


salon > Quick update on this, via Pacer-Click on pic to see larger (Turk Case Update- Telephone Conference Hearing Set for March 8 2019 )

salon > Lance Been awhile. Send me an email at with the names of who you're talking about, above. Also, the newspaper editor is no longer local, ie officed here, but the paper is run.... (What Happened to Jerry Jacene? )

LanceHall > I'd love to see the Hotel Guest books and see if Jacene's name shows up long before he officially *found* the tracks.  I'd like to know if the Visitor's Bureau has emails wit.... (What Happened to Jerry Jacene? )

LanceHall > I see the land or that part of it is now in the hands of Glen Rose's own Corky Underwood. Is Jacene still involved?   I had already informed the Visitor Bureau manager (who's.... (What Happened to Jerry Jacene? )

Home | Blog Home | About | News | Piazza | Calendar | Audio/Video/Open Rec | Search
Write!  |profile | quotes |
top Daily | top Weekly |top Month | top Year | Top All! | archives | subscribe RSS