Natural Gas Pipeline Co. of America v. Pool
30 S.W.3d 618 | Texas Court of Appeals, 7th District (Amarillo) | 2000
What This Case Means for Subcontractors
A gas lease automatically ended when production stopped, as stated in the lease's habendum clause. The company operating the lease continued using the land after termination without permission. The court ruled this was bad faith trespass and ordered the company to pay damages, attorney's fees, and return the equipment. For subcontractors, this shows that lease terms control when work rights end, and continuing work after termination can trigger liability.
Key Takeaways
- •Check your contract's termination clause carefully—it may end automatically without notice when certain conditions occur (like cessation of work or production)
- •Continuing work or using property after a contract ends can expose you to trespass liability and bad faith damages, even if you claim the owner allowed it
- •Document when work actually stops and when you vacate the property; disputes over termination dates can be expensive
The lease has lapsed and ended pursuant to the terms of its habendum clause due to cessation of production.
Frequently Asked Question
What happens if I keep working on a project after my contract's termination date passes?
You can be sued for trespass and bad faith damages, even if the property owner doesn't immediately kick you off. Courts look at the contract language to determine when your rights actually end. Always confirm termination in writing and remove your equipment promptly when the contract ends.
Related Cases
Atlantic Marine Constr. Co. v. United States Dist. Court for Western Dist. of Tex.
Forum-selection clauses in federal contracts are enforced through §1404(a) transfer motions, not §1406(a) dismissals, and must be given controlling weight except in exceptional circumstances.
Texas Natural Resource Conservation Commission v. IT-Davy
Sovereign immunity bars a contractor's breach-of-contract suit against a state agency absent express legislative consent; neither the agency's conduct, contract terms, nor general statutes waive immunity from suit.
Martin K. Eby Construction Company, Inc. v. Dallas Area Rapid Transit
A contractor must exhaust administrative remedies established by a regional transportation authority before pursuing breach of contract claims in court, even when the authority lacks governmental immunity from suit.
General Services Commission v. Little-Tex Insulation Co.
The State does not waive sovereign immunity from breach-of-contract suits by accepting contract benefits; Chapter 2260's administrative procedure is the exclusive remedy for such claims.
Moncharsh v. Heily & Blase
An arbitrator's decision is generally not reviewable for errors of fact or law, with limited exceptions for fraud, corruption, exceeding powers, or procedural unfairness.
Rory v. Continental Insurance
Unambiguous contractual limitations periods in insurance policies must be enforced as written unless they violate law or public policy; judicial assessments of reasonableness cannot override clear contract terms.