Murphy Exploration & Production Co. v. Adams

In this contract dispute over an offset provision in an oil and gas lease the Supreme Court reversed the judgment of the court of appeals reversing the trial court’s judgment in the lessee’s favor, holding that the court of appeals read a requirement into the lease that its unambiguous language did not support.In reversing, the court of appeals concluded that the lessee did not conclusively prove that it complied with the offset provision. The Supreme Court reversed the court of appeals’ judgment and reinstated the trial court’s judgment s modified to remove the award of appellate attorney’s fees, holding (1) the offset provision contained specific requirements, and the lessee met those requirements; and (2) the court of appeals’ reading of the offset provision to contain a proximity requirement constituted a significant deviation from the language the parties chose. View "Murphy Exploration & Production Co. v. Adams" on Justia Law