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Former CEO Accused of Breach Following Termination Sues Oil Companies Over Arbitration Award

SOUTHEAST TEXAS RECORD

Monday, November 25, 2024

Former CEO Accused of Breach Following Termination Sues Oil Companies Over Arbitration Award

State Court
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In a significant legal move, two Delaware-based companies have taken action to confirm an arbitration award against a former executive. On November 1, 2024, Elk Petroleum Aneth, LLC and Elk Operating Services, LLC filed a petition in the District Court of Harris County, Texas. The complaint targets Dr. Raymond Ambrose, seeking judicial confirmation of an arbitration decision rendered by the American Arbitration Association.

The plaintiffs, Elk Petroleum Aneth and Elk Operating Services, are both limited liability companies with their principal offices located in Denver, Colorado. They initiated this legal proceeding under the Texas Arbitration Act and the Federal Arbitration Act to confirm an arbitration award issued on October 18, 2024. The case revolves around Dr. Raymond Ambrose, who previously served as CEO of Elk and whose employment was governed by an agreement effective from July 15, 2020. This agreement mandated that any disputes be resolved through arbitration in Houston, Texas.

Ambrose's tenure as CEO ended on May 16, 2023. Subsequently, he filed for arbitration alleging several claims including fraud in inducement and age discrimination under both Texas Labor Code § 21.051 and the federal Age Discrimination in Employment Act. He also claimed breach of contract related to his employment and grant agreements with Elk. In response, Elk countered with claims for declaratory judgment regarding breaches by Ambrose that could affect severance entitlements and other financial aspects tied to his role.

After a thorough process involving discovery and hearings held between August 7-9, 2024 in Houston, Arbitrator Hon. Elizabeth Ray (Ret.) ruled largely in favor of Elk on October 18th. The arbitrator found that Ambrose had forfeited all severance due to breaches of his employment agreement but awarded him $200,000 plus interest for a STIP bonus related to the year 2023.

Elk now seeks court confirmation of this final award which resolves all disputes between them and Ambrose. They argue there are no grounds for modifying or vacating the arbitrator's decision as per relevant statutes such as TEXAS CIVIL PRACTICES & REMEDIES CODE §171.087; hence they request an order confirming it along with any further relief deemed appropriate by the court.

Representing Elk Petroleum Aneth LLC and Elk Operating Services LLC is attorney M Scott Barnard from Akin Gump Strauss Hauer & Feld LLP based out of Dallas Texas while details about representation for Dr Raymond Ambrose remain undisclosed at this time pending further developments within these proceedings identified under Case ID: 2024-76638 before Judge Tianni Williams presiding over Court Number:127

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