Friday, March 25, 2011

Court Declines to Dismiss Breach of Contract Case in Dufour v. Carrizo Oil and Gas

Photo Courtesy of Dreamworks
After Carrizo withheld the royalty payment for nine months, the lessors initiated a lawsuit alleging breach of contract and fraud, and Carrizo moved to dismiss the case. The Court ruled that a "Special Warranty Title" provision in a lease, providing that a judicially determined claim or cloud on the title would entitle Carrizo to withhold payment, did not entitle Carrizo to subjectively terminate the lease for any title related issue. The provision required a judicial determination of the title defect before payment could be withheld. To read the full decision, please view the Memorandum Opinion and Order.

Written by Steven P. Trialonas, Research Fellow
March 25, 2011

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