Craig Haynes Mentioned in Law360 on Bank of America Matter

“Royalty Trust Unitholder Can’t Sue XTO, Bank Of America”

In a case of first impression, a Texas appellate court on Monday held neither XTO Energy Inc., as the settlor of a publicly traded oil and gas royalty trust, nor trustee Bank of America NA can be subject to a unitholder derivative suit alleging the trust was shortchanging royalty payments.

The Fifth Court of Appeals in Dallas dismissed derivative claims filed against XTO, an ExxonMobil Corp. subsidiary, that alleged the company cheated the New York Stock Exchange-traded Hugoton Royalty Trust out of $60 million in royalties, and held Texas law does not permit trust beneficiaries to bring derivative claims on behalf of the trust against the trustee, Bank of America.

Bank of America was represented by David Levy, Charles Moore  and Ryan Wooten of Morgan Lewis & Bockius LLP and Craig Haynes of Thompson & Knight LLP.