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Texas Injury Under Willful Misconduct in Master Service Agreement
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Willful Misconduct Defined, How Broad Is That Exception to Your MSA? | Bradley Arant Boult Cummings LLP
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A Texas Appellate Court Defines Willful Misconduct In A Model Form JOA In Apache Corp v Castex Offshore Inc | Vinson & Elkins LLP
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[Co-author : Ashley Atwood]
Apache Corporation v. Castex Offshore Inc. et al, answers the question, What constitutes willful misconduct in oil field operations? This was a breach of contract suit involving operator Apache and non-operator Castex.
In the exculpatory clause of the model form JOA, the operator can be liable only in the event of gross negligence or willful misconduct. In considering willful misconduct, under both the Texas and Louisiana definitions of “willfulness”, intent to cause harm is not required.
The question is whether the evidence establishes that a defendant-operator intentionally or deliberately engaged in improper behavior or mismanagement, without regard for the consequences of his acts or omissions.
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Apache Gets $80.4M Jury Award Knocked Down To $13.5M
Law360 (May 11, 2021, 5:18 PM EDT) A jury s $80.4 million award against Apache Corp. in a dispute over the construction of a Louisiana gas well and processing facility was knocked down to about $13.5 million Tuesday when a Texas appellate court partially sided with Apache.
The Fourteenth Court of Appeals in Houston trimmed the award in favor of Castex Offshore Inc. after holding that it failed to prove Apache engaged in willful misconduct as it related to the drilling of the well. It upheld the damages connected to the jury s finding that there had been willful misconduct regarding the construction of the processing facility.