Buck Keenan partners Mano DeAyala, Robin Lindley and Robert Paddock represented their residential industrial facilities client, H&H Land, LP, in a lease dispute with its tenant Western International Gas & Cylinders. The dispute concerned rental values for eight U.S. based industrial gas facilities. Western is the largest manufacturer of acetylene gas in the U.S.
In 2022, Buck Keenan obtained an arbitration award valued at resulting in more than $60 million of additional rent over the terms of the leases. The arbitration award re-determined the monthly rent rates for each facility pursuant to the lease terms which in turn increased the value of the properties by more than $60 million.
Western vigorously challenged the award. First, in late 2022, Western simultaneously filed lawsuits in Alabama, Colorado, Florida, Louisiana, North Carolina, Pennsylvania and Texas seeking to enjoin H&H from exercising its rights as Landord. Buck Keenan, partnering with local counsel where needed, defeated each of these lawsuits.
As Buck Keenan was fighting lawsuits across the country, Western also filed suit in Harris County seeking to vacate the arbitration award. Cause No. 2022-81913; H&H Land LP v. Western International Gas & Cylinders, Inc. Western lodged multiple attacks against every facet of the award trying to invalidate it. Despite these challenges, in 2023, a Harris County District Court confirmed as final judgment 100% of the award against Western.
But confirmation of the award did not end the dispute. Because the arbitration only determined the rent rental rates for the eight industrial gas facilities, H&H had to file suit against Western seeking payment for past unpaid rent that accrued during the arbitration proceeding. During oral argument on H&H’s motion for summary judgment for past due rent, Western’s attorneys, checks totaling more than $37 million, representing amounts owed to date. The remaining issues were resolved by settlement soon after.