TEXACO, INC. V. PENNZOIL CO
729 S.W. 2d 768 (1987)
NATURE OF THE CASE: Texaco (D) appealed a judgment, which awarded compensatory and
punitive damages to Pennzoil (P) for D's tortious interference with a contract between P and
a third oil company.
FACTS: Pennzoil (P) and Getty Oil agreed on P's purchase of Getty subject to the approval
of each board, A Memorandum of Agreement was signed which was also subject to board approval
and a press release was issued. Texaco (D) made a counter offer to Getty's board. Getty's
board repudiated the deal with P and sold the company to D. P sued D for tortious
interference with a contract. D contended that the Memorandum of Agreement was not a binding
contract; it was subject to approval by the board of Getty Oil, and it was to expire by its
own terms if not approved at the board meeting that was to begin January 2. However, before
it was submitted to the board, it had been executed by parties who controlled the majority
of the outstanding shares of Getty Oil. The jury gave the verdict to P. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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