Fifth Circuit Allows $46M Energy Contract Dispute to Continue
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The U.S. Court of Appeals for the Fifth Circuit reversed a Houston trial judge and allowed Houston-based International Energy Ventures Management to continue to pursue a $46.5 million breach-of-contract dispute against Hong Kong-based United Energy Group.
In the litigation, International Energy Ventures alleges that it agreed to help United Energy evaluate and buy in 2011 British Petroleum’s Pakistani oil and gas assets. In exchange, International Energy Ventures alleges that it expected to receive its share of 6 percent of the $775 million acquisition price of BP’s Pakistani assets. According to International Energy Ventures’ allegations, lawyers from the Houston office of the now-defunct Dewey & LeBoeuf represented United Energy in the transaction and helped negotiate a contract between the Houstonians and United Energy.
In an opinion issued Aug. 24, a Fifth Circuit three-judge panel affirmed Houston U.S. District Judge Kenneth Hoyt’s dismissal of International Energy Ventures’ claims against an individual broker, Sean Mueller. But the appeals court reversed Hoyt’s dismissal of International Energy Ventures’ claims against United Energy, ruling that the court could exercise personal jurisdiction over United Energy, a non-Texas resident defendant, because the company had “minimum contacts” in Texas “such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.”
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