HOOVER TREE FARM, v. GOODRICH PETROLEUM

No. 46,153-CA.

63 So.3d 159 (2011)

HOOVER TREE FARM, L.L.C., Plaintiff v. GOODRICH PETROLEUM COMPANY, L.L.C., et al, Defendants.

Court of Appeal of Louisiana, Second Circuit.

Rehearing Denied May 12, 2011.


Attorney(s) appearing for the Case

Wiener, Weiss & Madison, A.P.C. by Frank H. Spruiell, Jr. , R. Joseph Naus , M. Allyn Stroud , Cliffe Charles Laborde, III , for Hoover Tree Farm, L.L.C.

Cook, Yancey, King & Galloway, by Bernard S. Johnson , Herschel E. Richard, Jr. , Sidney E. Cook and Gordon, Arata, McCollam, Duplantis & Egan, L.L.P., by Loulan J. Pitre, Jr. , Bob J. Duplantis , for Goodrich Petroleum Company, L.L.C.

Kenneth M. Klemm , Adam B. Zuckerman , Paul K. Colomb, Jr. , for Chesapeake Louisiana, LP.

Parker & Taylor, APLC, by Thomas A. Taylor , Jeffrey T. Parker , Ross D. Betts , for Petroleo Properties, LLC.

Before GASKINS, CARAWAY and LOLLEY, JJ.


CARAWAY, J.

The trial court determined that a $7.6 million payment and a higher lease royalty were owed to the plaintiff/lessor under a mineral lease because of the operation of a so-called most favored nations clause in the lease. The clause required a bonus-related payment and higher royalty for the lessor in the event that the original lessee or its "successors and assigns" acquired other nearby leases for a higher bonus or royalty. The defendant/lessee transferred...

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