pjc-oil-and-gas-2022-lib

D AMAGES

PJC 313.14

PJC 313.14 Question and Instruction on Damages for Breach of Implied Duty to Reasonably Market Production [Insert predicate, PJC 313.1.] QUESTION ______ What sum of money, if any, if paid now in cash, would fairly and reasonably compensate Paul Payne for his damages, if any, that resulted from Larry Les see ’s failure to reasonably market the [ oil/gas ]? Consider only the difference, if any, between the royalty Paul Payne would have received if Larry Lessee had acted as a reasonably prudent operator would under the same or similar circumstances, taking into account the interests of both Larry Lessee and Paul Payne in marketing the [ oil/gas ] produced from the lease, and the royalty Paul Payne actually received. Do not add any amount for interest on damages, if any. Answer in dollars and cents for damages, if any. Answer: _______________ COMMENT When to use. PJC 313.14 should be used when seeking damages for breach of the duty to reasonably market and should be predicated on a “Yes” answer to PJC 303.7. Causation. To recover damages for breach of contract, a plaintiff must establish damages sustained as a result of the breach. Southern Electrical Services, Inc. v. City of Houston , 355 S.W.3d 319, 324 (Tex. App.—Houston [1st Dist.] 2011, pet. denied). Submission of separate answers. If there are multiple plaintiffs or lessees, it will normally be necessary to require an answer for each. It may also be necessary to require an answer for each well and each month in issue in the dispute if the plaintiff is seeking to recover prejudgment interest from multiple wells or sales or if the statute of limitations is in issue. Tex. Nat. Res. Code §§91.401–.406; Tex. Fin. Code §§ 304.101–.107. Prejudgment interest. Instructing the jury not to add interest is suggested because prejudgment interest, if recoverable, will be calculated by the court at the time of judgment. If interest paid on an obligation is claimed as an element of damages, it may be necessary to modify the instruction on interest.

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