U.S. Enercorp, Ltd. v. SDC Montana Bakken Exploration, LLC

966 F. Supp. 2d 690, 181 Oil & Gas Rep. 39, 2013 WL 4400880, 2013 U.S. Dist. LEXIS 114450
CourtDistrict Court, W.D. Texas
DecidedAugust 14, 2013
DocketCv. No. SA:12-CV-1231-DAE
StatusPublished
Cited by12 cases

This text of 966 F. Supp. 2d 690 (U.S. Enercorp, Ltd. v. SDC Montana Bakken Exploration, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U.S. Enercorp, Ltd. v. SDC Montana Bakken Exploration, LLC, 966 F. Supp. 2d 690, 181 Oil & Gas Rep. 39, 2013 WL 4400880, 2013 U.S. Dist. LEXIS 114450 (W.D. Tex. 2013).

Opinion

ORDER: (1) GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS; (2) GRANTING PLAINTIFF LEAVE TO AMEND

DAVID ALAN EZRA, Senior District Judge.

On July 22, 2013, the Court heard oral argument on the Motion to Dismiss filed by Defendants SDC Montana Bakken Exploration, LLC, Val Verde Investments, LLC, and Ringo Shapiro (collectively, “Defendants”). (Doc. # 16.) Amy Davis, Esq., and Corey Wehmeyer, Esq., appeared on behalf of Plaintiff U.S. Enercorp, Ltd.; Olivier Taillieu, Esq., appeared on behalf of Defendants. After careful consideration of the Motion and the supporting and opposing memoranda, and in light of the parties’ arguments at the hearing, the Court, for the reasons that follow, GRANTS IN PART AND DENIES IN PART Defendants’ Motion to Dismiss (doc. #16) and GRANTS PLAINTIFF LEAVE TO AMEND.

BACKGROUND

Plaintiff U.S. Enercorp (“Enercorp”) is a Texas-based oil and gas exploration and production company. (Doc. # 13 (“FAC”) ¶¶ 2, 9.) In 2011, seeking to acquire oil and gas leases in Northern Montana, Enercorp contracted with SDC Montana Consulting, LLC, and SDC Montana, LLC (collectively referred to herein as “SDC Montana Con-[694]*694suiting”), who had an established presence in Montana. (Id. ¶ 10.)1

Pursuant to the contracts between Enercorp and SDC Montana Consulting, the latter was obligated to acquire and deliver to Enercorp oil, gas, and mineral leases in certain parts of Montana, which Enercorp planned to sell to a third party. (FAC ¶ 11.) Soon thereafter, Southwestern Energy Production Company (“SEPCO”) expressed interest in the Montana leases, and Enercorp began structuring a contract to deliver them to SEPCO. (FAC ¶ 13; Resp. ¶ 6.)

Enercorp alleges that, at the same time that it was attempting to structure a deal with SEPCO, Defendants “approached SDC Montana Consulting” and encouraged it “not to perform under its contracts” and “to only perform on terms that were different from and less favorable to Enercorp than the terms actually agreed to in writing.” (Id.) By “fraudulently misrepresenting] that a ‘credit facility’ existed that required the [Montana] leases for collateral, when in fact no such facility ever existed,” Defendants induced SDC Montana Consulting to make “fraudulent assignments of oil, gas, and mineral leases” to Montana Bakken and Val Verde. (Id.) Plaintiff allege that Defendants “knew [that the leases] had already been assigned to Enercorp pursuant to [the contracts]” and that, “[i]n many cases,” Defendants fraudulently acquired and recorded assignments of those same leases later in time “on top of Enercorp’s [assignments].” (Id.; Resp. ¶ 4.)

SEPCO wanted to purchase all the leases that Enercorp had obtained from SDC Montana Consulting and was “avers[e] to any deal that was not completely clean.” (FAC ¶ 13.) Accordingly, Plaintiffs allege that Defendants — now armed with fraudulent assignments of those leases — were able to “extort[ ] their way into Enercorp’s deal with [SEPCO].” (Id.) Knowing that SEPCO would back out of the deal if it learned of title disputes, Defendants allegedly “refused to clear title to the leases Enercorp already owned and intended to deliver to [SEPCO].” (Id.) In addition, Defendants allegedly “threatened to contact SEPCO and interfere with Enercorp’s deal if [their] unlawful demands were not appeased.” (Id.) Enercorp does not indicate what these “unlawful demands” were.

Enercorp, hoping to prevent its deal with SEPCO from falling apart, negotiated a Collaboration Agreement with Defendants, SDC Montana Consulting, and JL Resources, LLC (“Collaboration Agreement”). (Id. ¶ 13.) The main objective of this agreement, which was executed on April 13, 2012, was to resolve any title issues among the parties so that the deal with SEPCO could go forward. (Id.) To wit, the Collaboration Agreement provides:

Given the stated purpose of [SEPCO] to deal with the Leases on simplified terms and with a single contracting Party, and to promote the marketability of the Leases, the Parties acknowledge and agree that the simplification of matters of title to the Leases and the elimination of all encumbrances is essential. To that end each of the Parties does hereby release ... each to the other; all ... causes of action ... which one party may claim against another with regard to title of the leases.

[695]*695(Collaboration Agreement ¶ 6 (emphasis added).) The next section of the Collaboration Agreement clarifies the scope of this release, stating:

Personal Claims Retained. Notwithstanding the foregoing, each of the Parties retains and does not release, any claims or causes of action for damages, losses or monetary deficiencies that any Party may have against another Party, but -with all such claims being of a personal nature against a Party, and not as a claim or encumbrance against the Leases or lands included in the projects.

(Id. ¶ 7 (emphases added).)

The Collaboration Agreement “gave Enercorp the exclusive authority to conduct all necessary negotiations with [SEPCO] in order to finalize and conclude the deal,” and Enercorp insists that “Defendants specifically contracted and agreed not to interfere with Enercorp’s negotiations with [SEPCO].” (FAC ¶ 13.) However, on December 10, 2012, Defendants’ counsel, Olivier Taillieu, sent a letter to SEP-CO alleging defects in Enercorp’s title to the Montana leases and requesting that SEPCO cease making payments under its contract with Enercorp. (Resp. ¶ 7; Mot. Ex. 7.) Enercorp alleges that Defendants “have also made and continue to make harassing phone calls to SEPCO, further slandering Enercorp’s title and interfering with Enercorp’s contract with SEPCO.” (FAC ¶ 15; Resp. ¶ 7.) As a result of Defendants’ actions, SEPCO “has declared a ‘Title Defect’ ” and “is refusing to purchase certain Montana Leases it would otherwise be obligated to purchase----” (FAC ¶¶ 18, 21.)

Enercorp further alleges that, “[b]y Paragraph 12 of the Collaboration Agreement, Defendants were also obligated to return to Enercorp an instrument referred to as the March 9, 2012 Bakken Assignment (the ‘Bakken Assignment’), covering certain Montana Leases.” (FAC ¶ 16.) However, Defendants did not return the Bakken Assignment to Enercorp. Instead, claiming that they held title to the Bakken Assignment, Defendants delivered it directly to SEPCO. (Id.) “The value lost under Enercorp’s contract with [SEP-CO] as a result of Defendants’ breaches of the Collaboration Agreement exceeds $8,000,000.00,” claims Enercorp. (Id. ¶ 16.)

On November 19, 2012, Enercorp filed this lawsuit in the 166th Judicial District Court of Bexar County, Texas, bringing causes of action for tortious interference with a contract, tortious interference with prospective business relations, and slander of title. (Doc. # 1-2 ¶ 8.) On December 31, 2012, Defendants removed the case to this Court. (Doc. # 1.) On January 28, 2013, Enercorp filed an Amended Complaint. (Doc. # 13.) On February 11, 2013, Defendants filed the Motion to Dismiss that is now before the Court. (Doc. # 16.) On February 22, 2013, Enercorp filed a Response in opposition to Defendants’ Motion. (Doc. # 24.) On March 1, 2013, Defendants filed a Reply. (Doc. #25.)

STANDARD OF REVIEW

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966 F. Supp. 2d 690, 181 Oil & Gas Rep. 39, 2013 WL 4400880, 2013 U.S. Dist. LEXIS 114450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-enercorp-ltd-v-sdc-montana-bakken-exploration-llc-txwd-2013.