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Prospect Capital Awarded Full Damages of $1.3 million in a Breach of Release Suit

HOUSTON, November 28, 2011: Porter Hedges secured $1.3 million in damages for Prospect Capital in a breach of release and covenant not to sue countersuit in the United States District Court for the Southern District of Texas – Houston Division. Judge Melinda Harmon agreed entirely with Prospect’s arguments and awarded its entire request for attorneys’ fees and expenses incurred in defense of Prospect. The suit is Prospect Energy Corporation vs. Dallas Gas Partners, LP et al, No. 4:10-cv-01396.

In her opinion, Judge Harmon noted that the fee request was “extremely well-constructed, meticulous, and thorough, with highly persuasive support for the requested fees and expenses as reasonable and necessary in this lengthy litigation, continually obstructed, prolonged, and aggravated by Defendants’ conduct.” She noted that the request for fees and expenses was “conservative, erring on the side of restraint.”

She further wrote in the opinion that “the fees of [Porter Hedges] professionals who worked on this case were within the range of and even lower than those of comparable firms doing similar work in the Houston and Dallas area.”

This case dates back to 2004 when Dallas Gas Partners, LP sued Prospect Energy. Porter Hedges won summary judgments on behalf of client Prospect Energy (now Prospect Capital) on fraud, tortious interference, and breach of contract claims related to a failed acquisition financing to the would-be borrower Dallas Gas Partners, LP, and on Prospect’s counterclaim for breach of a release and covenant not to sue executed by Dallas Gas’s partners. See news release from 2009.

The Porter Hedges team for this lawsuit was led by Litigation partners Ken Alexander and Ray Torgerson.

OPINION AND ORDER AWARDING FEES AND EXPENSES

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