Texas Pipeline Ruling Offers Confidence On Partnership Law

Law360 (February 25, 2020, 2:37 PM EST) -- On Jan. 31, the Supreme Court of Texas clarified the law of partnership formation in the closely watched case of Energy Transfer Partners LP v. Enterprise Products Partners LP.[1] The case addressed whether parties can unintentionally form a partnership, despite having unmet contractual preconditions to formation.

Debate around this question has been churning since 2014, when a jury found that a partnership was formed by conduct alone, regardless of the unmet conditions precedent. The Dallas Court of Appeals reversed this decision in 2017, restoring some clarity for contracting parties.

The Supreme Court of Texas has now laid the confusion to rest:...

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