Borusan Mannesmann Pipe US, Inc. v. Hunting Energy Services, LLC
24-0183
Tex.Jun 27, 2025Background
- Borusan Mannesmann Pipe US, Inc. (Borusan) manufactures steel pipes and hired Hunting Energy Services, LLC (Hunting) to perform pipe expansion and threading services.
- Borusan and Hunting included competing terms and conditions in their purchase orders and invoices, each attempting to control indemnification for pipe defects.
- After Borusan sold threaded pipes to a third party, Sooner Pipe LLC, defective pipes were discovered downstream, causing damages.
- Hunting sued Borusan for indemnity, among other claims, and Borusan counterclaimed, each seeking declaratory judgments on indemnification obligations.
- The trial court ruled in favor of Hunting, requiring Borusan to indemnify it; the court of appeals refused to consider Borusan’s indemnity argument, holding it was forfeited due to inadequate briefing.
- The Texas Supreme Court reviewed whether Borusan had preserved its indemnity argument on appeal.
Issues
| Issue | Borusan's Argument | Hunting's Argument | Held |
|---|---|---|---|
| Did Borusan forfeit its challenge to the trial court's ruling that Borusan must indemnify Hunting by inadequately briefing the issue on appeal? | Borusan asserted its brief sufficiently challenged the enforceability of Hunting’s invoice terms and thus preserved the issue. | Hunting argued Borusan didn’t cite legal authority and failed to support its claim against indemnifying Hunting. | The Supreme Court ruled Borusan did not forfeit the argument; the court of appeals should consider the merits. |
| Are Hunting’s invoices valid and enforceable contracts obligating Borusan to indemnify Hunting? | Borusan argued no, highlighting its purchase orders' exclusivity clause and asserting it never expressly agreed to Hunting’s terms. | Hunting argued yes, stating the invoices and terms governed the relationship and required indemnity by Borusan. | Not decided; remanded for the court of appeals to consider on the merits. |
| Is failure to include case law citations a sufficient reason to find appellate forfeiture? | Borusan maintained that record citations and substantive argument preserved the issue, emphasizing rules prioritize merits-based decisions. | Hunting contended lack of citation and analysis amounted to waiver/forfeiture under appellate rules. | The Supreme Court held case law/statutory citations are not always required for issue preservation. |
| Should the court of appeals have resolved the merits rather than dismissing for briefing defects? | Borusan argued appellate courts should resolve cases on the merits whenever possible. | Hunting supported the dismissal for inadequate briefing. | The Supreme Court agreed with Borusan, citing precedent for merits-based resolution. |
Key Cases Cited
- Perry v. Cohen, 272 S.W.3d 585 (Tex. 2008) (endorsing the principle that appellate courts should resolve cases on the merits whenever possible)
- Bertucci v. Watkins, 709 S.W.3d 534 (Tex. 2025) (disfavoring summary dismissal of issues for briefing shortcomings and favoring decisions on substantive grounds)
