Chevron just merged with/bought Texaco creating ChevronTexaco.
Texaco used to be the Texas Company.
In January 1984 Pennzoil (now part of Devon Energy) tried to take over Getty Oil, in cooperation with the Sarah C. Getty Trust, and the J. Paul Getty Museum, which owned 40.2 + 11.8% of Getty Oil, or together more than 50% (this was crucial).
The jury found, among other things, that:
At the end of a board meeting on January 3, 1984, the Getty entities intended to bind themselves to an agreement providing for the purchase of Getty Oil stock, whereby the Sarah C. Getty Trust would own 4/7th of the stock and Pennzoil the remaining 3/7th; and providing for a division of Getty Oil's assets, according to their respective ownership if the Trust and Pennzoil were unable to agree on a restructuring of Getty Oil by December 31, 1984;
Texaco knowingly interfered with the agreement between Pennzoil and the Getty entities;
(3) As a result of Texaco's interference, Pennzoil suffered damages of $7.53 billion;
(4) Texaco's actions were intentional, willful, and in wanton disregard of Pennzoil's rights; and,
(5) Pennzoil was entitled to punitive damages of $3 billion.
All this was based on a Memorandum of Intent, not a final agreement.
The jury ruled that what Texaco did was "tortious interference" and awarded Pennzoil $10.53 Billion, and Texaco filed for bankruptcy protection, got thrown out of the DJIA, and later settled for about $3 Billion.
And with that resolved, emerged from Ch 11.
Then Pennzoil pissed away most of the money. Actually, they got a favorable "like kind" ruling based on that they had intended to own 3/7 of Getty, and they got IRS approval to use the pretax proceeds to buy an interest in other oil company(ies), and they did I recall buy Chevron stock.
Their lawyer got $400 million. |
