McFarland Energy, Inc. v. Chevron U.S.A., Inc., et al.
Published: Sep. 17, 1994 | Result Date: Sep. 6, 1994 | Filing Date: Jan. 1, 1900 |Case number: BC023747 – $47,324,600
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
James S. Bright
(Bright and Brown)
Defendant
William E. Stoner
(Stoner Carlson LLP)
Experts
Plaintiff
Charles A. Champion
(technical)
Wayman T. Gore Jr.
(technical)
Francis Barker
(technical)
Linda Yaussi
(technical)
Dean W. Shepard
(technical)
Defendant
Forrest A. Garb
(technical)
David B. Christofferson
(technical)
Facts
Plaintiff McFarland Energy, Inc., and Defendant Chevron U.S.A., Inc., entered into four separate joint operating agreements in the late 1960's and early 1970's. Each company owned oil and gas leases and property in areas of West Los Angeles, and the joint operating agreements provided for joint operation of oil and gas wells drilled into the jointly-owned areas. Actual operations were conducted by Chevron. Each of the joint operating agreements contained a preferential purchase rights provision providing that, if either party wished to sell its interest in the joint operations, it must first offer to sell those interests to the other party. In 1990 Chevron sold its interest in the joint operating agreement areas together with other of its properties to Stocker Resources, Inc., and Stocker Resources, L.P., for $59,900,000; half of which was financed by Chevron through a production payment. Chevron closed the sale with Stocker, allegedly without first having offered McFarland its right to acquire the joint operating agreement properties pursuant to the preferential rights provision of the joint operating agreements.
Settlement Discussions
Offers and demands were not disclosed.
Damages
$16,424,587 lost profits.
Deliberation
3 days compensatory, 2 days punitive
Poll
12-0 on liability and compensatory damages, 11-1 on punitive damages
Length
21 days
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