Case Update: Fifth Circuit Unanimously Affirms Ovintiv’s District Court Win on Royalty Recoupment in the Eagle Ford

Hogan Thompson Schuelke Secures Appellate Victory on Behalf of Ovintiv

The United States Court of Appeals for the Fifth Circuit unanimously affirmed Hogan Thompson Schuelke’s Western District of Texas win on a royalty recoupment dispute for North American energy company Ovintiv in DDR Weinert, Ltd. & DDR Williams Ltd. v. Ovintiv USA, Inc. The firm represented Ovintiv in the dispute with two royalty owners, DDR Weinert, Ltd. & DDR Williams Ltd. (Plaintiffs), regarding royalty interests in the Eagle Ford Shale. This case is important because it concerns operators’ right to recoup overpayments—a common industry practice that had previously not been addressed in depth by Texas courts. 

Ovintiv had recouped overpayments that had been paid to the Plaintiffs’ predecessors-in-interest from the Plaintiffs’ royalties. The Plaintiffs’ predecessors-in-interest are the current owners of the Plaintiff entities, and the Plaintiffs claimed that Ovintiv’s recoupment of more than $600,000 was improper because the overpayments being recouped had been paid to their predecessors. The parties filed cross motions for summary judgment.

In June 2023, The Western District of Texas agreed that Ovintiv had the right to recoup these overpayments and entered judgment in favor of Ovintiv on all claims. An appeal was filed with Fifth Circuit, and oral argument took place in May 2024. The Texas Oil & Gas Association (TXOGA) also weighed in on the case with an amicus brief in favor of Ovintiv. 

In February 2025, the Fifth Circuit unanimously affirmed the district court’s decision, granting Hogan Thompson Schuelke the appellate win.

Chris Hogan, Samantha Thompson and Jennifer Josephson handled the appeal for Hogan Thompson Schuelke.