Ladd Hirsch in Law360: ETP v. Enterprise: Texas Partnership Created by Conduct — A Dog That Won’t Hunt


Following Texas Supreme Court arguments last month, the final chapter in the long-running legal battle between Energy Transfer Partners LP and Enterprise Products Partners LP is finally coming to an end. Energy Transfer Partners is asking the Texas high court to reinstate the $535 million judgment it obtained after a jury verdict against Enterprise in 2014.

The case presents critical issues regarding the manner in which a Texas partnership can be formed. The importance of these questions for business owners, and the size of the judgment, have made this a closely watched legal conflict since the jury issued its verdict more than five years ago.

This article reviews the issues at stake in the litigation, and explains our prediction that the Texas Supreme Court will not reverse the decision issued by the Dallas Court of Appeals in 2017 — which unanimously overturned the jury’s verdict, and held that no partnership ever arose between ETP and Enterprise. We expect the Supreme Court to rule that in light of the conditions the parties had expressly agreed in writing must be met before a partnership would be formed between them, the contention that a partnership arose by their conduct is a dog that won’t hunt.

Read the full article on Winstead’s Business Divorce Blog.

This article was also published by Law360.

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