Royalty disputes can put a mineral interest owner’s income at stake for years, and a strong trial strategy often decides who comes out ahead. Condon Tobin Members Brandy Manning and Jared Pace, supported by Senior Paralegal Darla Strittmatter, recently obtained a jury verdict and judgment for a firm client in a West Texas district court.

The case began when an oil and gas operator sued our client to recover approximately $500,000 it claimed to have overpaid on our client’s royalty interest. Our team countered that the opposite was true. Our client had been underpaid, and the counterclaims against the operator and its affiliate sought the royalties owed under two oil and gas leases.

The jury sided with our client, awarding more than $1.8 million in underpaid royalties and rejecting the operator’s overpayment claim entirely. The court later denied the operators’ motion to disregard the jury’s findings, granted the team’s motion for entry of judgment in full, and ordered royalty payments to resume under both leases.

The court also held that the operator could not recoup its alleged overpayments because they did not result from a mistake of fact. The ruling reinforces an important protection for royalty owners in Texas: an operator that pays with knowledge of the relevant facts cannot later reverse those payments based on a revised reading of the lease.

Brandy and Jared turned a claim against our client into a substantial recovery and secured the royalty income owed going forward.

This success reflects the value of pairing deep knowledge of Texas oil and gas law with thorough preparation and a clear, persuasive case. As royalty and lease disputes continue to arise across the Permian Basin, our energy team remains focused on bringing that same level of skill and diligence to every matter, from the first pleading through verdict and beyond.