BP America Production Co. v. Laddex, Ltd.

In this oil-and-gas case, we are asked to apply the rule against perpetuities to a top lease and to review the trial court’s judgment terminating a bottom lease based on jury findings that the lease failed to produce in paying quantities over a specified period. The court of appeals held that the rule did not invalidate the top lease at issue and that the trial court erroneously charged the jury on the production-in-paying-quantities question, necessitating a new trial. We agree and affirm the court of appeals’ judgment.

I. Background

BP America Production Company acquired by assignment a 1971…