Blogs

Texas Supreme Court Decides KCM Financial v. Bradshaw

03.23.15

On March 6, 2015, the Texas Supreme Court issued its Opinion in the case of KCM Financial v. Bradshaw, (No. 13-0199, 2015 Tex. LEXIS 220, __ S.W.3d __). In its decision, the Court reaffirmed the longstanding principle that an executive rights holder owes a duty of utmost good faith and fair dealing to a non-executive and is prohibited from engaging in self-dealing in connection with the formation of a mineral-lease agreement. However, the Court also explained that the executive is not required to wholly subordinate its interests in favor of the non-executive, and that the executive has autonomy and considerable latitude in negotiating the terms of a mineral lease (just not unbridled discretion). Given the relative rights and interests at play, the Court declined to issue any bright line rules regarding the scope of the duty of utmost good faith and fair dealing. Rather, the Court stated that "in determining whether an executive has fulfilled its duty of utmost good faith and fair dealing in executing a mineral lease, the lease and the circumstances of its execution must be considered as a whole." The controlling inquiry is whether the executive engaged in acts of self-dealing that unfairly diminished the value of the non-executive interest.

Read more about this decision in our March 20 client alert, here.

The publications contained in this site do not constitute legal advice. Legal advice can only be given with knowledge of the client's specific facts. By putting these publications on our website we do not intend to create a lawyer-client relationship with the user. Materials may not reflect the most current legal developments, verdicts or settlements. This information should in no way be taken as an indication of future results.

Search Tips:

You may use the wildcard symbol (*) as a root expander.  A search for "anti*" will find not only "anti", but also "anti-trust", "antique", etc.

Entering two terms together in a search field will behave as though an "OR" is being used.  For example, entering "Antique Motorcars" as a Client Name search will find results with either word in the Client Name.

Operators

AND and OR may be used in a search.  Note: they must be capitalized, e.g., "Project AND Finance." 

The + and - sign operators may be used.  The + sign indicates that the term immediately following is required, while the - sign indicates to omit results that contain that term. E.g., "+real -estate" says results must have "real" but not "estate".

To perform an exact phrase search, surround your search phrase with quotation marks.  For example, "Project Finance".

Searches are not case sensitive.

back to top