Redefining Willful Misconduct: Texas Appellate Court Announces a New, Lower Standard
By EsqSocial Corporation 01/06/21
In Apache Corp. v. Castex Offshore, Inc., the Texas Fourteenth District Court of Appeal announced that showing an oil-and-gas operator’s “willful misconduct” under an operating agreement’s exculpatory clause does not require proof of intent to harm non-operators, but instead proof of “deliberate mismanagement committed without regard for the consequences.” 2021 WL 1881213, *1 (Tex. App.—Houston [14th Dist.], May 11, 2021) (no pet. h.). Apache represents a significant development in Texas...
By: Adams and Reese LLP