$2.9 Million Verdict For Plaintiffs Against Oil And Gas Driller

On April 22, 2014, after a two-and-a-half week trial, a Dallas County Court at Law entered a final judgment on a split jury verdict awarding $2.925 million to Texas family, Bob and Lisa Parr from Decatur, against Barnett Shale operator, Aruba Petroleum, Inc., of Plano, Texas, for personal injury and property damages arising out of Aruba's drilling operations near the Plaintiffs' property. Parr v. Aruba Petroleum, Cause No. 11-1650-E, County Court at Law No. 5, Dallas County, Texas. Although it has been characterized by some observers as a "win against fracking," there are reasons to question whether the verdict will stand on appeal and whether it is a harbinger of verdicts to come in the oil and gas industry.

Background

Plaintiffs filed suit in March 2011 against Aruba Petroleum, Inc., Encana Oil & Gas (USA) Inc., Halliburton Co., Republic Energy Inc., Ryder Scott Co., and Tejas Production Services, alleging "cumulative environmental contamination and polluting events caused by the conduct and activities of the various Defendants." Tejas was dismissed by agreement without prejudice, Halliburton was dismissed with prejudice after the court granted its motion for a "no-evidence" summary judgment, Republic was dismissed, and finally, Encana and Burlington Resources Oil & Gas Co. were dismissed with prejudice after settling with the Plaintiffs.

Plaintiffs originally claimed: (1) assault – infliction of bodily injury; (2) intentional infliction of emotional distress; (3) negligence; (4) gross negligence; (5) negligence per se; (6) private nuisance; (7) trespass and subsurface trespass to real property; and (8) strict liability for abnormally dangerous activities. However, after both sides filed motions for summary judgment, the only claims remaining against the two defendants, Aruba and Encana (Encana settled several months later), were nuisance and trespass. Plaintiffs proceeded to trial against Aruba as the sole defendant. Plaintiffs alleged the drilling activities conducted on and around their land resulted in exposure to toxic airborne chemicals, trespass on their property, and disturbance of the livestock they kept on adjacent land. After a two-and-a-half-week trial, the jury awarded Plaintiffs $2.925 million in damages which included $2 million for past physical pain and suffering by Bob and Lisa Parr and their daughter, $275,000 for loss of property value, $250,000 for future physical pain and suffering, and $400,000 for past mental...

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