What does it take to make a legally binding partnership under Texas law? This is one of the key questions at the heart of a bitter legal battle related to a huge oil pipeline deal.

After losing at the trial court level over a business disagreement and being hit with a $535 million jury verdict, Enterprise Products Partners, along with its affiliate Enterprise Products Operating, went on the offensive with its appeal to the Fifth Court of Appeals in Dallas seeking to overthrow the judgment awarded to Energy Transfer Partners (ETP) and its affiliate Energy Transfer Fuel.

ETP contends that this is a business dispute centering on Enterprise's breach of its duty of loyalty. According to ETP, Enterprise formed the Double E partnership with ETP to market and pursue a pipeline project to transport crude oil from Cushing, Oklahoma, to the Gulf Coast. ETP further argues that it and Enterprise did everything to create a partnership under the Texas Business Organization Code, including agreeing to share profits and losses, jointly controlling the partnership, contributing money and property, and expressing an intent to be partners.