HOUSTON – Bracewell LLP’s trial team secured a significant jury trial victory for Ironman Recycling, SWD East Texas and GEP Haynesville II in the Texas Business Court’s Eleventh Division. The dispute with Panola Operating and AXE Directional Drilling concerned the development, operation and financial management of an East Texas saltwater disposal facility.
The plaintiffs initially advanced damages models approaching $15 million for allegedly unpaid hauling revenues, capital credits, and historical and future economic losses. Bracewell’s trial team, led by partner Richard F. Whiteley, substantially narrowed the plaintiffs’ claims and available damages theories. They then secured complete vindication on the remaining hauling-payment claim, which went to the jury in a six-day trial. The jury found that GEP had not breached the master services agreement and awarded no damages to the plaintiffs.
The jury also returned affirmative findings for Ironman on its counterclaims. It found that AXE intentionally interfered with Ironman’s operating agreement and awarded approximately $2.51 million in damages. It separately found that Panola committed fraud concerning facility pumps and awarded Ironman an additional $120,000. Certain remaining breach-of-contract claims are left for the Court to decide.
The case centered on a newly built saltwater disposal well in Panola County that can handle approximately 25,000 barrels of injected wastewater per day. Bracewell’s clients alleged that the plaintiffs mismanaged the facility’s construction and operations, causing millions of dollars in damages. They also alleged that millions of dollars were missing from Ironman’s operating account. Earlier in the case, on December 15, 2025, Bracewell obtained an injunction against the plaintiffs that removed Panola as the operator of the facility.
Bracewell trial team included:
Partner: Richard F. Whiteley
Associates: Cole A. Thoms, Eston Jones and Joshua Strauss