A former executive of long-acquired oil company InterOil must pay a Swiss investor $210 million in damages and interest under a final judgment entered Thursday in Texas federal court, affirming a jury's findings last year that the executive breached agreements between the two.
U.S. District Judge Randy Crane ordered Philippe Mulacek, founder of Exxon-acquired InterOil, to pay investor Carlo Civelli $138 million in damages and $72 million in pre-judgment interest. The court said roughly $50 million should be credited against the judgment, though it has not yet finalized how that credit will be applied.
Judge Crane also rejected Mulacek's efforts to cap the appeal bond at $25 million, teeing up an evidentiary hearing next month in which the oil executive plans to seek to lower the bond amount below the final judgment amount.
The dispute goes back to a 2017 suit in which Civelli said he had entered into a series of informal agreements with Mulacek to finance oil and gas ventures. The agreements, which Civelli later alleged Mulacek failed to abide by, included loans tied to InterOil shares, profit-sharing from asset sales and cost-sharing on joint projects.
Mulacek has argued Civelli was handling assets belonging to Mulacek's family and was not entitled to a loan repayment or a share of the profits.
After years of litigation, a jury last December found Mulacek violated the agreements with Civelli and awarded the investor $138 million in damages.
The court applied a 6.75% pre-judgment interest rate to the damages, rejecting Mulacek's request for a 3.48% rate or, at most, 5%.
Mulacek moved to strip $50 million from the damages, noting Civelli's own expert calculated that Civelli owed roughly that amount to Mulacek. Judge Crane determined the amount should be credited against the judgment, as noted in docket entries, but the credit was not reflected in the final judgment.
Mulacek also sought another $21 million reduction of the verdict on the grounds that the statute of limitations blocked some of the damages. But the court rejected those claims.
In anticipation of the final judgment, Mulacek asked the court to cap the supersedeas bond at $25 million, under Texas law, but Judge Crane also rejected that request.
In letters sent to the court Wednesday, Mulacek's counsel noted that if the cap or reductions were not approved, Mulacek would ask the court to lower the bond amount at its discretion.
An evidentiary hearing is tentatively scheduled for April 22, where Mulacek's counsel is expected to show financial data and evidence as to why the bond should be reduced.
Counsel for Civelli, Richard Schwartz of Munsch Hardt Kopf & Harr PC, told Law360 they are "delighted" about Judge Crane's decision.
Counsel for Mulacek did not respond to a request for comment Thursday.
Civelli is represented by Richard A. Schwartz and Michael A. Harvey of Munsch Hardt Kopf & Harr PC, Michael B. Martin of Martin Walton Law Firm, and Andrew B. Bender and Sharon McCally of AndrewsMyers PC.
Mulacek is represented by Michael M. Fay, Jenny H. Kim and Valecia Battle of Boies Schiller FlexnerLLP, Warren Harris of Bracewell LLP, R. Paul Yetter, Reagan W. Simpson, Justin S. Rowinsky and DavidJ. Gutierrez of Yetter Coleman LLP, and Allyson N. Ho of Gibson Dunn & Crutcher LLP.
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