What legal remedies are available if a company fails to pay royalties on time?

When dealing with oil and gas law in the state of Pennsylvania, a company can be held liable for failing to pay royalties on time. The remedy for this violation depends on the type of agreement the company had with the affected party. One legal remedy that can be sought is a court injunction, which orders the company to comply with the agreement. This type of relief is appropriate when the company has not yet paid the royalties, but could still do so. Injunctive relief may require the company to pay the outstanding royalty amount in a timely manner and provide assurance of future payments. The second legal remedy that could be pursued is an action for breach of contract. If the royalties were due on a certain date, the affected party may file a breach of contract lawsuit against the company, alleging that they did not adhere to the terms of their agreement. If the court finds the company liable, they may award damages, which may include restitution and/or compensatory damages, meaning that the company may be required to pay the royalties owed, plus interest. Lastly, a claimant may file an action for declaratory relief. A court may declare that the company has violated the agreement and owes the affected party the appropriate amount of royalties. Regardless of the remedy sought, the affected party will have to provide evidence to support their claim that the company has failed to pay the royalties on time.

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What legal remedies are available if a company fails to pay royalties on time?

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