XML 26 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
LEGAL PROCEEDINGS
9 Months Ended
Dec. 31, 2011
Disclosure Text Block Supplement [Abstract]  
Commitments Disclosure [Text Block]

8. LEGAL PROCEEDINGS

 

Paradigm Lift Technologies, LLC v. UHC Petroleum Corporation

On September 21, 2009 Paradigm Lift Technologies, LLC filed a lawsuit against UHC Petroleum Corporation in the 63rd District Court in Edwards County, Texas for sworn account for equipment allegedly purchased by UHC Petroleum Corporation. The case is in the discovery stage and the Company will continue to vigorously defend its position.

 

Jeff Toth v. Glen Rose Petroleum Corp.

On January 27, 2010, Jeff Toth filed a petition in the 63rd District Court in Edwards County, Texas against Glen Rose Petroleum Corporation for trespass, surface damage, and use of filler. The petition was served on February 18, 2010 and is in the discovery period and the parties have submitted to mediation.

 

Langston Family Partnership and Buccaneer Energy Corporation v. Glen Rose Petroleum Corporation

On October 9, 2009, an action was commenced in the District Court in Kaufman County, Texas, by Langston Family Limited Partnership and Buccaneer Energy Corporation against the Company seeking recovery of funds and compensation for services allegedly advanced to the Company. The Company was served in March 2010 and defended the action. The action was amended on May 4, 2010 to, among other things, add Mr. Langston as a plaintiff. See, also Glen Rose Petroleum Corporation v. Joseph Langston, below. As of August 2, 2011, this matter, along with the related matter of Glen Rose Petroleum Corporation v. Joseph Langston, below, was settled. Langston agreed to discontinue and withdraw his claims with prejudice in exchange for receiving $80,000 in a lump sum payment and $3,333 each month for twelve (12) months thereafter and returning to the Company all shares of the Company’s common stock in which he or anyone related to him had beneficial control or ownership. The lump sum payment of $80,000 was paid in August 2011. The monthly payments of $3,333 commenced on October 1, 2011.

 

Glen Rose Petroleum Corporation v. Joseph Langston

On April 1, 2010, the Company filed an action in the Delaware Court of Chancery against Mr. Langston, the Company’s former Chief Executive Officer, based upon alleged breaches of fiduciary duties as an officer and director of the Company and alleged self-dealing. On July 8, 2010, the Court denied jurisdiction in Delaware due to the prior action of Mr. Langston in Kaufman County, Texas, and directed the Company to proceed in the Texas Court. See also, Langston Family Partnership and Langston Family Partnership and Buccaneer Energy Corporation, above, which was settled. As of August 2, 2011, the Company agreed to discontinue its claims and pay Langston $80,000 in a lump sum payment and $3,333 each month for twelve (12) months thereafter in consideration for Langston returning to the Company all shares of the Company’s common stock in which he or anyone related to him had beneficial control or ownership. The lump sum payment of $80,000 was paid in August 2011. The monthly payments of $3,333 commenced on October 1, 2011.

 

Pernice v. Glen Rose Petroleum, et. al.

On or about April 15, 2011, the Company was advised of an action filed in the Los Angeles Superior Court, in the State of California, by an individual against the Company and others, including Blackwood Capital Limited and Andrew Taylor-Kimmins, our CEO. The claim alleges, among other things, breach of contract and negligent misrepresentations arising out of a proposed transaction related to certain securities and indebtedness of the Company purportedly held by the individual. On June 13, 2011, the parties agreed to a settlement that includes a lump sum payment to Mr. Pernice of $110,267 which was paid in full on July 27, 2011.

 

Porter, LeVay & Rose, Inc. v. Glen Rose Petroleum.

On September 6, 2011, an action against the Company was filed in the Supreme Court of the State of New York, County of Westchester by Porter, LeVay & Rose, Inc. The settlement amount of $79,323, due by the Company to Porter LeVay & Rose, Inc., was paid in full on January 23, 2012.

 

Potential Shareholder Derivative Litigation

On September 25, 2010, the Company was advised by its counsel in the Langston matters that the firm received a letter from Mr. Langston’s counsel purportedly constituting a notice to the Company and its directors of “a potential shareholder derivative lawsuit against the officer and directors of Glen Rose Petroleum”.

 

In the course of events, this matter no longer is applicable due to a settlement having been reached between the Company and Langston (see Langston Family Partnership and Buccaneer Energy Corporation v. Glen Rose Petroleum Corporation, above, and Glen Rose Petroleum Corporation v. Joseph Langston, above).

 

Other

The Company does not have any other litigation current or contemplated. However, the Company terminated Geoff Beatson, an engineering consultant, and has taken issue with various vendors, any of which could result in litigation, which the Company will vigorously pursue and defend.

 

Also, the Company may routinely be involved in government administrative proceedings relating to our oil and gas operations. The Texas Railroad Commission regulates the oil and gas industry in Texas and Texas law requires that the Texas Railroad Commission issue permits for a variety of activities. The Company can provide no assurance that all of the Company’s requested permits will be granted.