Colorful Contracts

Following up on the Orca opinion’s memorable warning about “red flags” and justifiable reliance, in American Midstream v. Rainbow Energy Marketing Corp. the Texas Supreme Court held that “[t]he e courts below impermissibly blue-penciled extra words into … the contract that gave rise to this dispute …” (specifically, reading the contract as if the words “scheduled” and “physical” appeared in a key contract term about deliveries). No. 23-0384 (Tex. May 23, 2024).