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Friday, June 2, 2017

Chesapeake Energy Benefits From Pennsylvania Court Ruling on Underpaid Royalties

From The Legal Intelligencer:
On April 28, U.S. District Judge Matthew Brann of the Middle District of Pennsylvania issued the latest opinion in a series of high-profile decisions regarding class arbitrability of oil and gas leases. In Chesapeake Appalachia v. Scout Petroleum, 4:14-CV-0620, (M.D. Pa. April 28), Brann granted Chesapeake's motion for partial summary judgment, and entered a declaratory judgment that the leases at issue do not permit class arbitration, and instead require individual (or bilateral) arbitration. Brann's opinion rejected Scout's novel argument that as a matter of Pennsylvania contract law, class arbitration was impliedly authorized under the leases.
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