5th Circ. Holds Chesapeake To $20M Judgment Over Failed Deal

Law360, Houston (September 12, 2012, 10:36 PM EDT) -- The Fifth Circuit on Wednesday denied a bid by Chesapeake Energy Corp. to overturn a $19.8 million judgment against it for backing out of a deal to acquire oil and gas leases from Peak Energy Corp. in 2008. 

The Fifth Circuit ruled that a letter of intent inked by execs from Chesapeake to purchase Peak’s mineral interests in land located in east Texas at a rate of $15,000 per acre was enforceable under Texas law as a contract, despite containing a property description that vastly overstated...
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