Phillips Petroleum Company, GPM Gas Corporation, Phillips Gas Marketing Company, Phillips Gas Company, and GPM Gas Trading Company v. Kathryn Aylor Bowden, Beulah Poorman Vick, Omer F. Poorman, Monte Cluck and Benny Ted Powell
This interlocutory appeal concerned a trial court's class certification order involving Phillips Petroleum Company and several affiliates as appellants, and royalty owners as appellees. The royalty owners alleged underpayment of royalties due to Phillips' inter-affiliate transactions. The appellate court reviewed the certification of three subclasses, scrutinizing the predominance of common issues and the adequacy of class representation under Texas Rule of Civil Procedure 42. The court found that individual issues predominated over common ones, particularly regarding lease interpretations and the intent behind various gas royalty agreements. Furthermore, issues of intra-class antagonism and the potential for res judicata to bar future claims were identified as problems. Consequently, the appellate court reversed the class certification order and remanded the case for further proceedings.