Henry v. Ballard & Cordell Corp.

418 So.2d 1334, 74 O. & G.R. 280 (1982)

From our private database of 46,000+ case briefs, written and edited by humans—never with AI.

Henry v. Ballard & Cordell Corp.

Louisiana Supreme Court
418 So.2d 1334, 74 O. & G.R. 280 (1982)

SC

Facts

W. F. Henry (plaintiff) was the lessor in a series of oil and gas leases, under which Ballard & Cordell Corporation (Ballard) (defendant) was the lessee. The leases provided that Henry would be entitled to a royalty calculated as a percentage of the market value of any gas sold from the leaseholds. In 1961, Ballard signed a 20-year gas-sales contract with American Louisiana Pipeline Company (ALPC). The sales contract contained a price-escalation clause, allowing the sales price to increase over the course of the contract, and was negotiated at arm’s length and in good faith. ALPC was the only purchaser available to Ballard at this time. Ballard paid Henry royalties calculated based on the price of gas sold under the sales contract. In 1976, the price under the sales contract fell below the market value for gas on the open market. In 1978, Henry brought suit for unpaid royalties, arguing that “market value” as contained in the lease referred to the current market value on the open market, and should be determined each day gas was produced. Ballard presented evidence that 20-year sales contracts were industry custom and that the long-term sales contract had been insisted upon by ALPC. The trial court agreed with Henry’s interpretation. The court of appeal reversed. Henry appealed.

Rule of Law

Issue

Holding and Reasoning (Blanche, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 744,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 744,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,000 briefs, keyed to 987 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 744,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,000 briefs - keyed to 987 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership