Appeals court upholds $6 million judgment in support of OKC oil company

The Denver Federal Appeals court has ruled against two defendants who appealed after losing a lawsuit filed by Husky Ventures, Inc., an Oklahoma City oil and gas company.

The unsuccessful appeal had been filed by B55 Investments,  LTD and its president Christopher McArthur. A jury awarded Husky $4 million compensatory damages against B55 and McArthur and another $2 million punitive damages against McArthur.

B55 and McArthur were investors in Husky’s drilling projects and attempted a takeover of the company following 2014 Participation Agreements.  As the lawsuit by Husky claimed, McArthur demanded Husky buy out his interests for more than $25 million. When Husky refused, McArthur allegedly convicted several other companies to take legal actions against Husky.

The lawsuit alleged breach of contract and tortious interference with contract and business relationships. Husky also demanded a permanent injunction against B55 and McArthur. In trial, the jury awarded the millions against B55 and McArthur and a judge granted a permanent injunction against the two. They appealed and lost as the Denver Federal Appeals court ruling B55 and McArthur “posed a significant risk of continuing and future harm to Husky.”

As the court pointed out, “They had threatened to destroy Husky’s business before; in fact, they had succeeded in divesting Husky of key business relationships and its interests in numerous oil and gas leases. This threat continued even after Husky filed suit.”

The Appeals Court denied their motion for a new trial and upheld the lower court’s rulings.