Leaseholders seek class arbitration in royalty dispute with Chesapeake

A group of oil and natural gas leaseholders has filed a brief in the U.S. District Court for the Northern District of Ohio, arguing their case against Chesapeake Exploration LLC over contracts for royalty payments should be allowed to proceed to class arbitration, according to Mealey’s Fracking Report. In Chesapeake Exploration v. Henceroth, N.D. Ohio, No. 16-150, Chesapeake had filed a declaratory judgment action against Dale Henceroth and other oil and gas royalty owners, claiming their leases prohibit class arbitration. Mealey’s says the leaseholders had earlier moved for class arbitration of their claims that Chesapeake underpaid them on royalties. In their brief, the leaseholders asked the U.S. District Court to deny Chesapeake’s motion for a summary judgment on the arbitration issue, contending Ohio arbitration law applies to the case. “Moreover, the leaseholders argue that Ohio permits class arbitration where is no class action waiver, as in the case at hand,” Mealey’s says.

Ohio, Oil & Gas Litigation