Quimbee logo
DMCA.com Protection Status
From our private database of 16,500+ case briefs...

Tenneco Inc. v. Enterprise Products Co.

Supreme Court of Texas
925 S.W.2d 640 (Tex. 1996)


Tenneco Oil Company (Tenneco Oil) (defendant) and Enterprise Products Co. and other mineral companies (plaintiffs) jointly owned a natural gas liquids fractional plant. The plant’s operating agreement contained a right of first refusal stating that if an owner wished to sell its ownership interest, it must make the offer available to the other owners before selling to a third party. There was an exception to this requirement for transfers to wholly owned subsidiaries. Tenneco Oil transferred its ownership to Tenneco Natural Gas Liquids (Tenneco Gas), a wholly owned subsidiary. This transfer did not invoke the right of first refusal. Tenneco Oil then sold all of Tenneco Gas’s stock to Enron Gas Processing Company (Enron). The plaintiffs brought suit against Tenneco Oil, claiming that Tenneco Oil’s failure to offer the stock sale to the plaintiffs violated the right of first refusal in the operating agreement. The trial court granted Tenneco summary judgment. The court of appeals reversed. Tenneco appealed.

Rule of Law


Holding and Reasoning (Abbott, 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 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read 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. Read more about Quimbee.

Here's why 408,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 16,500 briefs, keyed to 223 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.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial