The Jackson Law Firm

Partnership dispute embattles Texas oil companies

No matter what size a business is, many find the need to work with other businesses. It could be merely having a relationship, making things more official on a contract level or even engaging in a partnership. Depending on the route that is chosen, a Texas owner could find him- or herself amidst business disputes should there be a disagreement. In one recent case, the argument is worth billions of dollars.

Two Texas-based companies are awaiting a trial that could give outsiders a look at how oil companies in America operate. The businesses had allegedly planned to build a pipeline from the oil hub of Cushing to Houston for refinement and shipping. One of the companies, a Dallas-based energy provider, claims that its partner and another organization conspired to cut them out of the project.

According to court papers, however, the two other businesses - one based in Houston and the other in Alberta - claim that no official joint venture or partnership was ever established. The Dallas and Houston companies did, however, sign a nonbinding agreement in 2011. The Dallas energy company alleges that the businesses jointly approached customers and marketed the pipeline together before the Houston company ended their relationship to form a similar venture with the Alberta company.

Whenever a business finds themselves at odds with another company, they should hire an attorney to help them navigate business litigations. Sometimes partnership disputes can be settled out of court, but as is the case with these Texas companies, many times legal proceedings are necessary. An attorney can aggressively pursue a case to protect a business' assets.

Source: Dallas News, "Two Texas energy giants take multibillion-dollar dispute to jury," Mark Curriden, Jan. 28, 2014

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