Genecov Group, Inc. v. Roosth Production Co

In Genecov Group, Inc. v. Roosth Production Co., 144 S.W.3d 546 (Tex. App.--Tyler 2003, pet. denied), Genecov sought a declaration that certain oil and gas leases were valid and that it, rather than Roosth, was the lawful operator of the gas unit. Id. at 548. The parties agreed to arbitrate the question of whether the leases were valid, but the arbitrators were not asked to determine which party was the lawful operator. Id. After the arbitration was completed, Genecov filed a second lawsuit against Roosth, asking the court to find Genecov to be the lawful operator of the gas unit and for other relief. Id. at 550. The trial court granted Roosth's motion for summary judgment on Genecov's claims based on res judicata. Id. On appeal, the court rejected Genecov's contention that it should be able to have its operator issue determined in the second suit because the arbitrators did not consider it in the first suit. Id. at 553. The court held that res judicata barred Genecov's operator issue in the second lawsuit because it was based on the same facts contained in the first lawsuit. Id.