El Paso Marketing, L.P. and Enterprise Texas Pipeline Llc v. Wolf Hollow I, L.P.

The owner of a gas-fired electric power generating plant sued the owner of the pipeline that supplies fuel to the plant for negligence in allowing interruptions in service and in delivering gas below contractual quality standards. The pipeline owner contends that the suit sounds in contract, not in tort. We agree and thus reverse the court of appeals’ judgment. 1 We also consider whether all the plant’s claimed damages are consequential damages that it agreed to waive. We remand the case to the court of appeals for further proceedings.

I

El Paso Marketing, L.P. manages the gas fuel supply for…