Ramsey Herndon LLC v. Whiteside

Illinois Supreme Court PLAs
Civil Court
Contract
Citation
PLA issue Date: 
March 29, 2017
Docket Number: 
No. 121668
District: 
4th Dist.

This case presents question as to whether trial court properly dismissed for failure to state cause of action plaintiff’s lawsuit alleging that defendant breached terms of oil and gas lease in that defendant, as assignee of 25 percent of said lease, failed to continue payment of overriding royalties to plaintiff out of oil extracted from leased land. Trial court found that, under terms of lease assignment to defendant, plaintiff had failed to reserve any overriding royalty interest to herself. Appellate Court, in reversing trial court, found that lease assignment contained exception that required defendant to assume and be bound by each assignor’s rights with respect to overriding royalties, and that said exception required defendant to pay plaintiff overriding royalty that plaintiff had previously obtained from others under instant lease. (Dissent filed.)