Opinion ID: 1374307
Heading Depth: 2
Heading Rank: 2

Heading: plaintiffs' action for damages and their parallel ancillary proceeding for equitable accounting

Text: The mineral owners sued the operator for damages. They specifically invoked § 540(B)'s [14] penalty provision (prejudgment interest at the rate of 12%) for violation of § 540(A) [15] and pressed for recovery under several other theories of liability. [16] As an ancillary relief to that action they sought to compel equitable accounting. [17] During the discovery phase of the case, the trial judge ordered the operator to submit its records to an audit by the mineral owners' accountant. [18] Later, he ruled in the mineral owners' favor (as a matter of law) [19] on the operator's liability [20] for the back-in interests [21] and set for jury trial the only remaining issue, that of recovery which would make the plaintiffs whole. Shortly before trial the operator offered to confess judgment for $135,000, [22] and the mineral owners accepted the offer.