Pennzoil v Texaco - Nwaka Isamah Professor Valenza Honors...

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Nwaka Isamah Professor Valenza Honors Legal Studies February 12, 2013 Pennzoil Co v. Texaco Inc The Case Oil giants, Pennzoil and Texaco were seeking to expand their company shares of stock and had both been eyeing the small company Getty Oil. Pennzoil reached out to Getty and offered to purchase about “three sevenths of Getty’s outstanding shares for $110 a share.” Pennzoil drafted a letter of intent which weighed heavily the terms and agreements of the future transaction. With full knowledge of the transaction between both companies, Texaco then intercepted the letter and offered to buy Getty’s shared for $128, enraging Pennzoil. Pennzoil, headquartered in Texas, sued Texaco in the Texas district court for tortious breach of contract, actual damages of $7.53 million, and punitive damages of the same amount. i The court kept the actual damages but lowered the punitive damages to 3 billion. Seeing that they were fighting a losing battle with damages they could not afford, Texaco transferred the case to the White Plains district court in New York where its company was headquartered. Texaco cited an infringement of its constitutional and statutory rights and the fact
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  • Spring '13
  • Valenza
  • Supreme Court of the United States, Texaco, Pennzoil

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