pjc-oil-and-gas-2022-lib

PJC 313.15

D AMAGES

PJC 313.15 Question and Instruction on Damages for Breach of Express Market Value Royalty Provision [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 pay royalty based on the market value of the [ gas/other product ] at the well? Consider only the difference, if any, between the market value at the well of Paul Payne ’s royalty share of [ gas/other product ] produced from the subject well[ s ] and the amount of royalty that Paul Payne was actually paid on [ gas/ other product ] produced from such well[ s ]. 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 313.15 should be used to determine damages for breach of the express market value royalty provision and should be predicated on a “Yes” answer to PJC 303.8. 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 royalty 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.

244