BY REID WILSON
A $469,375,000 Million Dollar trial court verdict based on a “letter of intent,” later reverse on appeal resonates in the real estate industry, where letters of intent are commonplace.
How it started: Enterprise Products, a Houston based pipeline developer/operator approached Energy Transfer, a Dallas based competitor, to investigate a shared development transaction to transport oil from the important industry storage center in Cushing, Oklahoma to Houston, thereby eliminating a major logistics bottleneck. They signed the following documents for the proposed “Double E Pipeline”:
- Initially, a Confidentiality Agreement to permit sharing of information, with the intention to work toward a letter of intent for the proposed transaction.