Rees-Jones, Thompson & Knight Appealing Noel Court Judgment in Partnership Dispute

HOUSTON, May 19, 2011 /PRNewswire/ -- Attorneys for Dallas oil and gas entrepreneur and Chief Holdings LLC founder Trevor Rees-Jones are appealing a Houston district court judgment awarded to a career lawyer who sued over a business deal that paid him millions of dollars on an investment of only $560.

The judgment signed May 18, 2011, by Judge Ravi K. Sandill in the 127th District Court in Houston calls for attorney D. Bobbitt Noel Jr. to receive $196.1 million.

Mr. Noel, a partner in Houston's Vinson & Elkins who has practiced law for more than 30 years, filed the lawsuit based on claims that he was misled into selling his interests in Chief Holdings two years before the company was sold to Devon Energy Production Company in 2006.  After making an initial investment of only $560, Mr. Noel accepted a buyout deal offered to all investors that paid him $6.5 million. The buyout agreement included Mr. Noel's broken promise to not file the very claims he later filed in D. Bobbitt Noel Jr. v. Devon Energy Production Co., et al., No. 2008-39598.

In the judgment, Mr. Noel was awarded $116.4 million as the amount he would have received from the sale of Devon if he had not redeemed his interest. The court added another $62.9 million for "disgorgement of profits," which was effectively punitive damages. In the original verdict issued in March, jurors in Judge Sandill's court rejected arguments for punitive damages and recommended an award between $8.3 million and $116 million.

Dallas attorney Craig Haynes of Thompson & Knight, who represents Mr. Rees-Jones, says the judgment is not supported by Texas law.

"This judgment would allow Mr. Noel to double dip by awarding him millions of dollars in damages, plus millions more in disgorgement, which is essentially the same punitive damages that were rejected by the jury," says Mr. Haynes. "We are confident the Texas appellate courts will agree that this judgment is flawed, and enforce the buyout contract that Mr. Noel voluntarily signed so he could claim a risk-free, $6.5 million return on his investment."

About Thompson & Knight

Established in 1887, Thompson & Knight is a full-service firm providing legal solutions to public and private companies, governments, and individuals in all areas, including commercial and tort litigation, finance, banking, securities, mergers and acquisitions, taxation, intellectual property, corporate governance, creditors' rights, real estate, labor, white collar defense, and environmental matters, among others. We are particularly recognized for our depth of experience and capabilities on behalf of clients in the energy industry, both domestically and around the world. Thompson & Knight has approximately 350 attorneys with offices in Texas and New York and international offices and associations in the Americas, North Africa, Europe, and Asia.

For additional information:
Becky S. Jackson
Chief Client Services Officer
214.969.1478

SOURCE Thompson & Knight

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