Chesapeake Energy 1999 Annual Report Download - page 28

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from CP and $235,000 jointly and severally from the other two defendants. The court further awarded, jointly and
severally from all defendants, $77,500 of attorneys' fees in the event of an appeal, $1,900 of sanctions, interest and
court costs. CP and the other two defendants filed an appeal of the judgment in the Court of Appeals for the Seventh
District of Texas in Amarillo on October 12, 1999, and they have each posted a supersedeas bond.
Joseph H. Pool, et al. v. NGPL, et al., No. 98-36, first filed February 2, 1998, refiled May 20, 1998, jury
trial in July 1999, verdict for plaintiffs. The jury found that the defendants were bad-faith trespassers and produced
gas from the leases as a result of fraud. On September 28, 1999, the court entered final judgment for plaintiffs
terminating the lease, quieting title to the lease (including existing gas wells and all attached equipment) in plaintiffs
as of June 1, 1999 and awarding actual damages of $1.5 million, attorneys' fees of $97,500 in the event ofan appeal,
interest and court costs. CP's liability for this award is joint and several with the other two defendants. Thecourt
also awarded exemplary damages of $1.2 million against each of CP and the other two defendants. CP and the other
two defendants filed an appeal of the judgment in the Court of Appeals for the Seventh District of Texas in Amarillo
on October 12, 1999, and they have each posted a supersedeas bond.
A. C. Smith, et al. v. NGPL, et al., No. 98-47, first filed January 26, 1998, refiled May 29, 1998. On June
18, 1999, the court granted plaintiffs' motion for summary judgment in part, finding that the lease had terminated due
to the cessation of production, subject to the defendants' affirmative defenses. A jury trial is scheduled in May 2000.
Joseph H. Pool, et al. v. NGPL, et al., No. 98-35, first filed February 2, 1998, refiled May 20, 1998. On
December 3, 1999, the Court entered a partial summary judgment finding the lease had terminated and that
defendants' affirmative defenses all failed as a matter of law except with respect to the defense of revivor against
certain of the plaintiffs. CP and the other defendants filed a motion to reconsider on December 22, 1999.
Joseph H. Poo!, etal. v. NGPL, etal., No. 98-49, first filed March 10, 1998, refiled May 29, 1998.
Joseph H Pool, et al. v. NGPL, et al., No. 98-50, first filed March 18, 1998, refiled May 29, 1998.
Joseph H. Poo!, et al. v. NGPL, et al., No. 98-51, first filed December 2, 1997, refiled May 29, 1998.
Joseph H. Poo!, etal. v. NGPL, etal., No. 98-48, first filed February 2, 1998, refiled May 29, 1998.
Joseph H. Poo!, etal. v. NGPL, etal., No. 98-70, first filed March 23, 1998, refiled October 22, 1998.
The Poo! cases listed above were first filed in the U.S. District Court, Northern District of Texas, Amarillo
Division. Other related cases pending are the following:
Phi!lip Thompson, et al. v. NGPL, et a!, U.S. District Court, Northern District of Texas, Amarillo Division,
Nos. 2:98-CV-012 and 2:98-CV-106, filed January 8, 1998 and March 18, 1998, respectively (actions consolidated),
jury trial in May 1999, verdict for Company and co-defendants. The jury found plaintiffs' claims were barred by the
payment of shut-in royalties, laches, and revivor. Plaintiffs have filed a motion for a new trial.
Craig Fu!ler, et al. v. NGPL, et al., District Court of Carson County, Texas, 100th Judicial District, No.
8456, filed June 23, 1997, cross motions for summary judgment pending. No trial date has been set.
Pace v. NGPL et al., U.S. District Court, Northern District of Texas, Amarillo Division, filed January 29,
1999. Defendants' motion for summary judgment pending. Trial date in June 2000.
Ra!ph W. Coon, et al. v. MC Panhand!e, Inc., et al., U.S. District Court, Eastern District of Texas, Lufkin
Division, No. 2:98-CV-63, filed March 27, 1998. All lease termination claims have been withdrawn. Only royalty
calculation issues remain.
The Company has previously established an accrued liability that management believes will be sufficient to
cover the estimated costs of litigation for each of these cases. Because of the inconsistent verdicts reached by the
juries in the four cases tried to date and because the amount of damages sought is not specified in all of the other
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