Expert: Alan H. Coogan Date: 5/5/2008 Subject: "Bad Faith" by Gas company Leasing Mineral Rights
Question I live in Texas. I signed lease with Llano Royalty, LLC in July of 2007. Up until about three weeks ago, they did not pay any signing bonus. Since then I signed with another company. So now, nine months later, Llano wants to pay me! And as I have found out, its because LLano is trying to sell my lease to the company I signed with the second time!
The check was not sent certified so Llano has no proof that they paid me.
The new lease I singed with the second company (Hillwood Energy) gave me a bank draft at the time of the signing.
Llano has my lease document recorded in the Tarrant county court house.
I have sent a "demand release" letter to Llano stating they release my document (sent it certified with return receipt).
Otherwise I have threatened to take legal action against them.
This proves that Llano did not act in "good faith" and had no intentions of drilling, only to low-ball me and to sell my lease for a profit. What a bunch of low class people.
Do I have a case?"
Answer Dear Richard: First I do not practice law in Texas. In general, you appear to have stated a claim or cause of action for breach of contract. If so, you have a case, but not necessarily a winner--just a messy law suit. Be careful and consider the question of whether one or both of the companies has a claim against you. In other words, get some paid for legal advice- they've got a lot of lawyers in Dallas.
AHC