Harco Energy, Inc. v. Re-Entry People, Inc.
This case involves an appeal by Harco Energy, Inc., Larry D. Cotten, and Prime Western Development, Inc., from a judgment rendered in favor of The Re-Entry People, Inc. The dispute originated from an agreement for Re-Entry to perform oilfield services on the Ruth Hatcher Lease in Hardeman County, Texas, for which Re-Entry was not fully paid. The Re-Entry People, Inc. initially sued Cotten, Harco Land, Inc. (Land), Harco Energy, Inc., and Prime Western Development, Inc. on claims including breach of contract, fraud, fraudulent transfer of assets, alter ego, and negligent misrepresentation. Following a bench trial, judgment was rendered against all defendants. Land did not appeal. The appellate court affirmed the trial court's judgment against Larry D. Cotten, individually, finding legally and factually sufficient evidence for breach of contract and fraud. However, the court reversed the judgment as to Harco Energy, Inc. and Prime Western Development, Inc., and rendered judgment that Re-Entry take nothing against them, citing legally insufficient evidence for their liability.