BRS Wins Reversal of $40 Million Fraud Judgment
July 9, 2009On June 25, 2009 the Fort Worth Court of Appeals issued an opinion reversing a fraud judgment worth $40 million. The appeal, CMS Energy Resource Management Co. v. Quicksilver Resources, Inc., involved a long-running dispute over a natural gas contract that was signed in 1999. The plaintiff alleged that our client fraudulently induced it to enter into a long-term contract for the sale of natural gas and then breached the agreement, claiming damages of more than $100 million.
The case was defended at trial by BRS partners Joe Redden and Michael Richardson, who defeated the breach-of-contract theory entirely and secured a favorable jury verdict of zero damages with respect to the fraud claim. When the trial court nevertheless rescinded the natural gas contract on the basis of fraud – a decision that cost our client more than $40 million – BRS appealed the judgment. The court of appeals held there was no evidence of any fraud, reversing and rendering judgment in favor of our client. BRS partner Russell Post handled the appeal with the assistance of his appellate colleague John Adcock. (Opinion attached)