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Appeal in Action for Breach of Oil Well Agreement, and Insurance Matter

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By FindLaw Staff on August 02, 2010 9:14 AM

Employers Mut. Cas. Co. v. Bonilla, No. 09-10476, involved an action for insurance coverage after a state court judgment established liability for a serious accident.  The court of appeals reversed summary judgment for defendants on the ground that the district court erred in denying coverage based on the argument that the injury did not arise from "use" of the vehicle.

In re: Moose Oil & Gas Co., No. 08-40840, involved an action for breach of a Working Interest Unit Agreement and Joint Operating Agreement.  The Fifth Circuit certified the following questions to the Supreme Court of Texas: 1) Did plaintiff have any right to enforce the contract -- the Working Interest Unit Agreement (WIUA) and its attached Joint Operating Agreement (JOA) -- to recover unpaid royalties, regarding certain oil wells, under the "Royalty Provision" of the JOA, either as a third-party beneficiary of the WIUA and JOA or by virtue of having privity of estate with defendant? 2) If plaintiff may enforce the contract, did the WIUA prevent plaintiff from recovering from defendant? 3) If defendant, as a Consenting Party, was responsible for royalties under the JOA, did the JOA Royalty Provision change the agreement within the JOA such that defendant was responsible for all of plaintiff's unpaid royalty jointly and severally, or did the JOA limit defendant's liability for unpaid royalty to the extent of his interest in the two wells at issue between the date of first production and February 2002?

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