Headington Wins $67 million Verdict in Lease Dispute Case

Troutman Pepper Locke LLP achieved a significant legal victory for Headington Royalty, Inc., and Headington Energy Partners, LLC, securing a jury verdict over $67 million in a lease dispute case with Finley Resources, Inc., and Finley Production Company, L.P. The dispute involved a 640-acre oil and gas lease in the Permian Basin, with the jury determining that Finley breached contract notice requirements, resulting in the lease's termination without warning to Headington. The trial, which spanned over seven years, included a favorable ruling from the Texas Supreme Court. With accrued interest, the judgment is expected to exceed $90 million. The terminated lease was part of a development plan slated to start in 2017 or 2018, and Headington had to expend more than $20 million to reacquire rights with additional royalty burdens. The jury awarded compensation for the reacquisition, increased royalty burdens, and future projections. The Troutman Pepper Locke team was led by Scott Hastings, with significant contributions from Matt Hansen, Chase Cobb, Tom Loose, Richard Abernathy, and Charles Crawford.