We represented Patriot Natural Gas in breach of contract dispute. Patriot was to acquire PetroQuest’s East Texas O&G assets, including 30 horizontal wells for $115 million. After the Purchase and Sale Agreement was signed, Patriot discovered the wells had significant casing pressure issues and other environmental defects. Patriot raised these defects to PetroQuest, but PetroQuest disputed the defects and refused to cure. Patriot terminated the PSA and requested return of its $11.5 million deposit. PetroQuest accused Patriot of willfully breaching the PSA, asserting that the defects were invalid and claiming PetroQuest should receive the deposit. Patriot sued PetroQuest, and PetroQuest counterclaimed.
Parties tried the case to the bench in a two-week trial in June 2024. The Court agreed that PetroQuest had breached the PSA and issued a $11.99 million verdict awarding our client the deposit and its actual damages. After Patriot presented its attorneys’ fees evidence, the parties negotiated an agreed final judgment with no appeal. The final judgment awarded Patriot the full escrow account (which contained $12 million with interest), $3.6 million in attorneys’ fees, and $481,000 for out-of-pocket damages, for a total value of $16+ million.
