Texaco, Inc. V. Pennzoil, Co.
In 1984, Pennzoil made an informal but binding contract with Getty Oil to purchase the company. The Texaco oil company encroached on the deal in an attempt to acquire Getty for itself.
Pennzoil filed a lawsuit that turned out to be a landmark. At first it was adjudicated by Judge Anthony J.P. Farris; it was finished by visiting Judge Solomon (Sol) Casseb of San Antonio. Pennzoil, represented by Joe Jamail and Baine Kerr, won $10.53 billion from Texaco, represented by Dick Miller.
The case was appealed. The decision of the trial court was upheld on condition that Pennzoil file a remittitur agreeing to a reduction of punitive damages from $3 billion, to $1 billion. Compensatory damages of $7.53 billion remained unaffected. Pennzoil paid Mr. Jamail $335 million and Mr. Kerr $10 million for the victory.
After Texaco filed for bankruptcy, Pennzoil agreed to settle the case for $3 billion
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