Houston Misused Ordinance In Drilling Permit Case: Court

Law360, New York (May 4, 2011, 3:54 PM EDT) -- A Texas appeals court on Tuesday upheld a $2 million judgment for Maguire Oil Co. over a 1991 stop-work order and permit revocation by the city of Houston that blocked the company from drilling near Lake Houston.

A three-judge appeals panel rejected Houston's challenges to the 2009 damages award and a trial court's finding that Maguire and related plaintiffs suffered a compensable regulatory taking because of the city's unreasonable interference with its property rights.

Courts had previously ruled that the city was erroneously acting on an...
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