pjc-oil-and-gas-2022-lib

PJC 304.1

E XECUTIVE R IGHTS

the executive engaged in acts of self-dealing that unfairly diminished the value of the non-executive interest.” KCM Financial LLC , 457 S.W.3d at 82. Actionable self-dealing “has most commonly been observed in situations where the executive employs a legal contrivance to benefit himself, a close familial relation, or both.” KCM Financial LLC , 457 S.W.3d at 81; see, e.g., Manges , 673 S.W.2d at 183; Luecke v. Wallace , 951 S.W.2d 267 (Tex. App.—Austin 1997, no pet.); Dearing, Inc. v. Spiller , 824 S.W.2d 728 (Tex. App.—Fort Worth 1992, writ denied). Actionable self dealing has been found when the executive, who also owned the surface estate, had knowledge that other undivided mineral owners leased their interest to a particular les see, but refused to lease to that same lessee in order to reap the benefits of an “unbur dened” surface estate. Texas Outfitters Limited, LLC , 572 S.W.3d at 657. Actionable self-dealing has also been observed when the executive attempts to deprive the non executive of a term-limited interest. Comanche Land & Cattle Co. v. Adams , 688 S.W.2d 914, 916 (Tex. App.—Eastland 1985, no writ); Kimsey v. Fore , 593 S.W.2d 107, 112 (Tex. App.—Beaumont 1979, writ ref’d n.r.e.).

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