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Remedies Keyed to Kovacic-Fleischer, 8th
Lazy M Ranch, Ltd. v. TXI Operations, LP
Citation:
978 S.W.2d 678 (1998)Facts
In February 1996, TXI began negotiations with Dr. George Morris, Jr., owner of Lazy M Ranch, Ltd., for exploration and mining rights. On April 1, 1996, TXI and Dr. Morris executed a contract whereby TXI paid $2,000 for the right to explore 1,669 acres specifically described by metes and bounds and received an exclusive option to lease 300 acres for mining. To exercise the option, TXI was required to provide written notice within six months and tender $98,000. Dr. Morris died in August 1996. On September 27, 1996, TXI attempted to exercise its option by delivering notice and a $98,000 check. George Morris III, who succeeded his father as president of Lazy M Management, refused to lease the land, returning the check with a letter stating that TXI had breached the contract by entering upon and testing land outside the 1,669-acre restricted area. Morris’s affidavit stated that TXI personnel conducted repeated unauthorized testing outside the permitted area despite Lazy M’s objections, thereby obtaining valuable subsurface geological information that belonged to Lazy M.
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