Harris

FACTS

This case has a complex history, which we summarize as briefly as possible. Up until 2006, Harris was the principal owner of two corporations, Energy Development Corporation (Energy) and South Coast Oil Corporation (South Coast). According to a declaration filed by Harris, these two corporations acquired, among other things, old and disused oil wells in Huntington Beach. In 2006, Energy and South Coast filed bankruptcy proceedings. During those proceedings, Harris was contacted by Niclas Biornstad, a representative for investor Madhukar Murarka, who was interested in investing to bring the wells owned by Energy and South Coast back into operation. Eventually, they agreed upon terms, and each party nominated legal entities to be the contracting parties. Harris nominated HB-1, and Murarka formed and designated PDOG. HB-1 was designated as the company to hold the joint venture assets in Huntington Beach, which was an area of mutual interest (AMI) under the agreement the parties eventually executed. HB-2 LLC (HB-2), which was not yet formed, was designated to hold assets in a second area of mutual interest (AMI-2). Paul Langland, Harris’s attorney and designated manager of…