pjc-oil-and-gas-2022-lib

PJC 313.18

D AMAGES

Remedies. If the lessor is seeking monetary damages, this issue should be condi tionally submitted after the breach issue. In a case alleging a breach of the implied covenant to develop in an oil and gas lease, the lessor is generally required to seek monetary damages and cannot obtain cancellation, except in extraordinary circum stances where the lessor has no adequate remedy at law. W.T. Waggoner Estate v. Sigler Oil Co. , 19 S.W.2d 27, 29–31 (Tex. 1929). See also Sun Exploration & Produc tion Co. v. Jackson , 783 S.W.2d 202 (Tex. 1989); Christie, Mitchell & Mitchell Co. v. Howell , 359 S.W.2d 658 (Tex. App.—Fort Worth 1962, writ ref’d n.r.e.). Texas gener ally follows the view that conditional cancellation is the preferred remedy when can cellation is sought. See W.T. Waggoner Estate , 19 S.W.2d at 32; see also Perkins v. Mitchell , 268 S.W.2d 907, 908 (Tex. 1954). 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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