WAGNER & BROWN, LTD. v. HORWOOD

No. 00-0041.

58 S.W.3d 732 (2001)

WAGNER & BROWN, LTD., and Canyon Energy, Inc. d/b/a Canyon Pipeline Corp., Petitioners, v. Lonnie HORWOOD and David Lawrence Glass, Respondents.

Supreme Court of Texas.

Decided August 30, 2001.

Rehearing Overruled November 29, 2001.


Attorney(s) appearing for the Case

Harper Estes, Steven C. Kiser, Leslie J. Kramer, Lynch Chappell & Alsup, Midland, Alex Wilson Albright, Austin, Jack Ratliff, Blanco, for Petitioners.

George S. Finley, Smith Rose Finley Harp & Price, San Angelo, Levon G. Hovnatanian, Martin Disiere & Jefferson, Robert Herring, George M. Fleming, Fleming & Associates, Houston, for Respondents.


Justice O'NEILL delivered the opinion of the Court.

In this case, we must decide whether the discovery rule applies to oil and gas royalty owners' claims that the lease operator deducted improper gas gathering and compression charges from the gas purchase price, thus reducing the amount paid as royalties. The court of appeals held that the discovery rule applied to defer accrual of the royalty owners' claims because their injury was both inherently undiscoverable...

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