Karl Stern is recognized as one of the nation’s leading trial lawyers focused on the energy industry. For over 35 years he has tried sophisticated commercial cases to juries, courts, and arbitrators in state and federal courts throughout the U.S. and before domestic and international arbitral tribunals. Many of his cases deal with complex transactions in the energy industry, including disputes relating to joint ventures, international energy investments, joint operating agreements, gas and power trading and marketing, and the development, acquisition, sale and ownership of oil, gas, renewable energy, and power assets. Karl’s cases also involve mergers and acquisitions as well as governance (corporate, LLC, and partnership), shareholder rights, and claims related to insolvency. Karl has received consistent recognition as among the top in his field by Chambers, The Best Lawyers in America, Benchmark Litigation, Legal 500 U.S., Lawdragon 500, and Thomson Reuters. Recently Chambers USA notes, "he's not only energetic and sharp, but also very calm, deliberate and presents as someone with excellent judgment. He's a wise counselor." Chambers USA further states, "he is fantastic in the courtroom, has a presence where he can explain complex matters succinctly for a jury and gets the best results for the client."
Energy Industry Disputes (Domestic & International)
- Recovered $640,000,000 (net of fees) from Petrobras on behalf of Vantage Drilling Company in an ICDR arbitration arising out of the wrongful termination of a deepwater rig charter
- Successfully defended a state owned oil company in an ICC arbitration of a $1 billion dispute over a net profits interest in an oil field development project in Chad
- Obtained a nine-figure settlement on behalf of merchant power producer Talen Montana LLC from PPL Corp. in connection with a fraudulent transfer claim based on PPL’s distributions out of Talen Montana prior to spinning it off, with multi-front litigation in Montana state court, Delaware Chancery Court, and the U.S. Bankruptcy Court for the Southern District of Texas
- Obtained take-nothing award in the defense of an ICDR arbitration of a $1.3 billion claim against client arising out of the ownership and operation of an international gas and power trading and marketing company
- Handled a number of cases for midstream companies in connection with claims related to the dedication of natural gas and NGLs to midstream pipeline and processing assets
- Resolved business interruption claims against a petrochemical terminal in an ICDR arbitration arising out of a catastrophic fire at the facility
- Defended an oil trading company in class action claims for violations of the Commodities Exchange Act based on alleged manipulation of Brent Crude pricing
- Defended a master limited partnership, its general partner, and the directors of the general partner in a state court fraud action arising out of $1.5 billion acquisition of oil and gas properties
- Obtained a liability finding in favor of the claimant in the Canadian arbitration of a claim against a major oil producer for wrongful termination of a gas supply contract, which settled as the parties awaited a “baseball” style decision on damages
- Prevailed in a fast-track arbitration initiated by pipeline company client against minority owner of a jointly owned pipeline to resolve governance disputes that the minority owner was using to effectively block a $585 million recapitalization of the pipeline joint venture
- Represented Lloyd’s of London and other international insurers in state court trial of $850 million in insurance coverage claims arising out of the EXXON VALDEZ oil spill
- Defended $500 million claim against oil field services firm for alleged misappropriation of confidential information in connection with the development of an oil and gas field in Kazakhstan
Financial, M&A, Governance, and Securities
- Represented a single-member Special Litigation Committee of the Baker Hughes Board of Directors in connection with its investigation of a derivative action against GE and members of the Baker Hughes Board and successfully handled proceedings in Delaware Chancery Court and the Delaware Supreme Court following the Committee’s recommendation that the litigation be terminated
- Obtained nine figure settlement on behalf of toll road concession from a Spanish and a US infrastructure company in a suit for fraudulent transfers and breaches of fiduciary duty in connection with the defendants’ development of the concession
- Defended numerous securities class actions, including defense of a case arising out of a failed SPAC transaction
- Defended companies and their directors in a number of cases challenging merger and acquisition transactions, as well as a number of cases involving challenges to MLP transactions with affiliates (including dropdowns and reverse-dropdowns)
- Prevailed in trial of mutual mistake claim against hedge fund relating to amendments of warrants resulting in rescission of issuance of $35 million worth of shares to defendant
- Obtained favorable settlement on behalf of client in Texas and England to enforce the client’s right to a share of Aston Martin as a participant in the consortium that acquired Aston Martin from Ford Motor Company
- Defended investment banking firm in a suit arising out of an unsuccessful effort to underwrite $200 million in tax exempt municipal bonds to finance an acquisition of several hospitals
- Successfully defended and prosecuted a number of cases involving claims by minority shareholders for breaches of fiduciary duty by majority shareholders
Antitrust
- Defended large global steel distributor in six-week jury trial of claims that steel distributors and steel mills conspired to boycott new entrant in the market
- Obtained dismissal class action against oil trading company involving claims that traders conspired to manipulate Brent Crude pricing in violation of the antitrust laws
- Represented a building products distributor in an AAA arbitration in New York in connection with a price-fixing claim against the manufacturer
- Defended a manufacturer of explosives in civil antitrust litigation
- Defended a major airline in civil antitrust litigation
- Antitrust & Competition
- Class Action Litigation
- Domestic U.S. Arbitration
- Energy Sector Disputes
- Lender Liability & Other Banking Financial Institution Litigation
- Litigation Representing Plaintiffs
- Securities Litigation
- Mergers & Acquisitions Litigation
- International Arbitration
- The University of Texas School of Law
- Southern Methodist University
- The State Bar of Texas
- United States Supreme Court
- United States Courts of Appeals:
- Fifth Circuit
- United States District Courts:
- Southern District of Texas
- Western District of Texas
- Northern District of Texas
- Vinson & Elkins:
- Managing Partner, Houston office, 2014
- Firmwide Head of Litigation, 2011-14
- Firmwide Head of Complex Commercial Litigation Practice Group, 2007-11
- Management Committee, 2006-12
- Ranked in Chambers USA in the categories of Litigation: General Commercial (2015-2023) and Litigation: Energy & Natural Resources (2018-2019)
- The Best Lawyers in America® in commercial litigation, 2005 – 2025; alternative dispute resolution, 2006 -2021; antitrust law, 2006 – 2025; securities litigation, 2013 – 2025; arbitration, 2013 – 2025; mergers & acquisitions litigation, 2013 – 2025; antitrust litigation, 2023-2025 (Woodward White, Inc.)
- Legal 500 U.S. "Hall of Fame" in Energy Litigation: Oil and Gas, 2008 - 2024
- Ranked in Legal 500 USA, Energy Litigation: Oil and Gas, “Recommended Lawyers”, 2008-2024
- Named by Lawdragon 500 Leading Lawyers in America for Energy Litigation, 2023-2025
- Ranked by Who's Who Legal - Commercial Litigation, 2024
- Named by Euromoney's Benchmark Litigation as a “Local Litigation Star” in commercial litigation,
- international dispute resolution, oil and gas, and securities litigation, 2011 - 2024
- Lawdragon 500 Leading Global Litigators Guide, International Arbitration & Disputes, esp. Energy, 2023-2024
- Named one of Lawdragon 500 Leading Plaintiff Financial Lawyers in Commercial Litigation, esp. Engergy, Securities Litigation, 2021-2023
- Named The American Lawyer’s “Litigator of the Week” for his work in Vantage Deepwater Co. et al. v. Petrobras America Inc. et al.
- Named 2016 Houston Lawyer of the Year in Mergers & Acquisitions by Best Lawyers
- Named as 2015 Houston Lawyer of the Year in Antitrust Law by Best Lawyers
- Selected to the Texas Super Lawyers list, Super Lawyers, 2003 – 2024 (Thomson Reuters)
- Member, International Bar Association
- Member, American Bar Association, Antitrust and Litigation Sections
- Chair of Antitrust and Business Litigation Section of the State Bar of Texas (1999-2000)
- Member, Federal Bar Association
- Co-Chair, CPR Energy
- Fellow, Texas Bar Foundation
- Fellow, American Bar Foundation
- Chair (Former), Houston Bar Foundation