SCOTX approves attorney fee award against Petrobras for asserting fraud claim barred by settlement release and reliance disclaimer

Two large companies settled a bitter contract-related dispute, but one of them later sued the other, seeking to set aside the settlement agreement on grounds of fraud (among others). The Supreme Court of Texas agreed with the defendants that the fraud claim was barred by an express disclaimer of reliance in the parties’ previous settlement agreement — and the supreme court also held that it was not inappropriate for the trial court to award attorney fees and costs to the defendants:

By asserting claims it had agreed never to assert, Petrobras broke the promise it made in the settlement agreement and caused Astra to incur substantial fees and costs to enforce that promise. We conclude the trial court did not abuse its discretion by awarding Astra its fees and costs.

Transcor Astra Group S.A. v. Petrobras America Inc., No. 20-0932, slip op. at 34 (Tex. Apr. 29, 2022) (reversing court of appeals and reinstating trial court’s summary judgment).