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HUGGS, INC. v. LPC ENERGY, INC.

No. 88-4822.

889 F.2d 649 (1989)

HUGGS, INC., et al., Plaintiffs-Appellees, Cross-Appellants, v. LPC ENERGY, INC., Defendant-Appellant, Cross-Appellee. G.E. HUGGS, d/b/a Exordium Oil & Gas Company, Plaintiff-Appellee, Cross-Appellant, v. LPC ENERGY, INC., Defendant-Appellant, Cross-Appellee. HUGGS, INC., Plaintiff-Appellee, Cross-Appellant, v. LPC ENERGY, INC., Defendant-Appellant, Cross-Appellee.

United States Court of Appeals, Fifth Circuit.

December 8, 1989.

Attorney(s) appearing for the Case

Blake G. Arata, Ernest E. Svenson, Gordon, Arata, McCollam & Duplantis, New Orleans, La., James Fleet Howell, Katherine Clark Hennessey, Shreveport, La., for defendant-appellant, cross-appellee.

David Klotz, Bodenheimer, Jones, Klotz & Simmons, Shreveport, La., for plaintiffs-appellees, cross-appellants.

Before POLITZ, DAVIS, and DUHE, Circuit Judges.

DUHE, Circuit Judge:

McRae Exploration, Inc. (McRae) and Huggs, Inc. (Huggs) were parties to a letter agreement (the contract) and a Joint Operating Agreement (J.O.A.) relating to the exploration for and production of oil and gas. Huggs prepared both documents. Thereafter, LPC Energy, Inc. (LPC) succeeded to the rights and obligations of McRae under both the contract and the J.O.A.

The contract provided that Huggs would acquire mineral leases in the prospect...

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