Texas ranchers win $63 million verdict against pipeline companies for fraud

In Texas, a jury delivered a groundbreaking $63 million verdict for ranchers Antonio and Nancy Mercado on March 22, 2025. The court case involved the EPIC Y-Grade Pipeline and EPIC Crude Pipeline, which were found liable for significant wrongdoing. The case was prompted by EPIC’s unauthorized placement of two pipelines across the Mercados’ 276-acre ranch located in Duval County. This action, which facilitated the transportation of large quantities of crude oil and natural gas, led to various adverse effects on the property owned by the Mercados. The jury's ruling determined that EPIC had engaged in fraud, gross negligence, trespass, and breach of contract. This verdict arose from EPIC's failure to comply with specific terms outlined in easement and right-of-way agreements. These terms included providing adequate insurance and compensating the Mercados for damages resulting from the pipeline’s operations. EPIC's conduct allegedly resulted in severe financial implications and environmental degradation for the Mercados, including wildlife loss and a decrease in property value. Additionally, the legal strategies employed by EPIC, including the filing of a lis pendens, severely restricted the Mercados’ ability to sell or obtain financing for their ranch. This situation illustrates the difficulties landowners face against large corporations in legal disputes regarding land use. Attorney James S. Bell, who represented the Mercados, emphasized the implications of this legal decision, signaling to pipeline companies that they must uphold their contractual obligations and recognize landowner rights. The verdict is not only a financial triumph for the Mercados but also serves as a critical turning point in pipeline law, reinforcing the importance of compliance with landowner rights and environmental laws. The case highlights the increasing scrutiny on corporations and the necessity for them to act responsibly and ethically in their dealings with landowners, particularly in resource extraction industries.