West Texas Utilities Co. v. Exxon Coal USA, Inc.

OPINION

MACY, Justice.

West Texas Utilities Co. appeals from the district court’s ruling that Exxon Coal USA, Inc. may select either of the remedies enumerated in the parties’ contract if West Texas repudiates that contract.

We affirm in part and reverse in part.

West Texas raises the following issues:

I. The District Court erred by misinterpreting the Coal Sale and Purchase Agreements (the “Contracts”) to allow Exxon, upon a repudiation by [West Texas], to hold the Contract open for up to 20 years and to seek annual “Minor Breach” liquidated damages instead of “Major Breach” liquidated damages.

II.…