Bruce Baldree focuses his practice on complex commercial litigation.
Jury Trial Defense Win for Breach of Contract and Fraud Matter – Seeking $20 Million+ in Damages
American Ethane Company, LLC v. Utica Marcellus Texas Pipeline, LLC and Kinder Morgan, Inc.
Represented Kinder Morgan, Inc. (“Kinder Morgan”) and Utica Marcellus Texas Pipeline, LCC (“UMTP”), a Kinder Morgan subsidiary, in a case brought by American Ethane Company, LLC (“AEC”) arising out of a 2014 Term Sheet between UMTP and AEC. In May of 2014, AEC was a start-up company funded by Russian billionaires, including Roman Abramovich, Alexander Abramov, and others. AEC, seeking to develop a source of ethane for export to foreign markets, approached UMTP and urged it to continue preliminary development of a potential pipeline that could have been a source of ethane for AEC. However, UMTP had previously determined that shipper interest in the pipeline project was limited, and was therefore considering suspending its development work in 2014.
Under the 2014 Term Sheet, UMTP agreed to continue preliminary development of the pipeline project for a three-month period if AEC would agree to split the $13.8 million budgeted development costs during that period. During that same period, the parties agreed to negotiate the possibility of AEC subscribing for capacity on the pipeline. Ultimately, AEC was unable to provide sufficient credit support to satisfy UMTP as to its creditworthiness. As a result, UMTP terminated negotiations under the Term Sheet in September 2014. The pipeline project was never built. In March 2020, AEC sued Kinder Morgan and UMTP, alleging that it was entitled to reimbursement of the $6.9 million it paid to UMTP under the Term Sheet. In addition to its breach of contract claim, AEC also asserted claims for fraud/fraud in the inducement, exemplary damages, and equitable theories of quantum meruit, unjust enrichment, and promissory estoppel. AEC also sought its attorneys’ fees. In total, AEC sought damages in excess of $20 million.
The case was tried to a jury beginning on May 1, 2025. Bruce gave opening statements, examined multiple witnesses on direct and cross, and successfully excluded the Plaintiff’s expert on voir dire. After the Plaintiff rested, the Court granted our motion for directed verdict on AEC’s equitable claims. On May 12, 2025, the jury returned a complete defense verdict, rejecting AEC’s breach of contract and fraud claims.
Bench Trial Win for Breach of $115 Million Oil and Gas PSA
Patriot Natural Gas LLC v. PetroQuest Energy LLC
Represented the buyer, Patriot, in suit for breach of an agreement by PetroQuest to sell its East Texas oil and gas assets. Our client identified significant environmental defects on the assets during due diligence and invoked its right to terminate. PetroQuest, the seller, rejected the termination and refused to return Patriot’s deposit. Bruce briefed and argued dispositive motions, resulting in the dismissal of several of PetroQuest’s affirmative defenses. The case was tried to the bench in Harris County. Bruce directed and crossed several fact and expert witnesses. After two weeks of evidence, the court found that PetroQuest breached the agreement and entered a final judgment awarding our client its deposit, damages, and attorneys’ fees for a total value over $16 million.
University of Texas Law School, J.D., with honors, 2019
Texas Law Review, Notes Editor
Tulane University, School of Liberal Arts, B.A., cum laude, 2016
State Bar of Texas
Houston Bar Association, Member