Texas Oil & Gas Corp. v. Hagen

CORNELIUS, Chief Justice.

Jeff Hagen and others (plaintiffs) are royalty owners in three .gas units operated by the defendant Texas Oil & Gas (TXO). They brought this suit as a class action representing themselves and all other similarly situated royalty owners, alleging that TXO had failed to pay the proper royalties on gas production from the units. Their action was based generally on breach of contract, failure to market the gas with good faith and reasonable diligence, and fraud by misrepresentation and concealment. After a nonjury trial the district court rendered judgment for plaintiffs…