Seagull Energy E & P, Inc. v. Eland Energy, Inc.
Supreme Court of Texas
207 S.W.3d 342 (2006)
Relevant factsFree
Eland (defendant) assumed lease obligations to pay Seagull (plaintiff) its share of operating expenses on offshore rigs, then assigned its interest to Nor-Tex, which failed to pay; Eland argued the assignment itself relieved it of the payment obligation, but the leases were silent on whether assignment released liability, and the appellate court agreed with Eland, reversing the trial court's judgment for Seagull.
IssueFree
Whether a party that assigns its contractual rights and duties to a third party is still liable under the contract unless released by the other original contracting party.