Justia Civil Procedure Opinion Summaries

Robert Hall appealed a judgment entered in favor of the defendants Estate of John Hall, Deborah Hall, and Leslie Hall Butzer ("Hall defendants") in this action to quiet title to a non-participating royalty interest (NPRI) in certain real property. The North Dakota Supreme Court concluded the district court did not abuse its discretion in vacating a default judgment against John Hall. However, because res judicata did not bar Robert Hall’s claims, the court erred in granting summary judgment to the Hall defendants. The matter was therefore affirmed in part, reversed in part, and remanded for further proceedings. View "Hall v. Hall, et al." on Justia Law

The United States Bankruptcy Court for the Western District of Oklahoma certified two questions of state law to the Oklahoma Supreme Court. White Star Petroleum, LLC, along with its wholly-owned subsidiary, White Star Petroleum II, LLC were engaged in the business of exploring, acquiring, drilling, and producing oil and natural gas, either as an operator or non-operating working interest owner of various leaseholds across Oklahoma. In 2019, several of White Star's unpaid vendors filed an involuntary bankruptcy petition against White Star. White Star and its affiliates filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. During the bankruptcy proceedings, 78 unpaid vendors filed adversary proceedings seeking adjudication of statutory lien claims under 42 O.S. 144 against White Star's interests in various wells and establishment of trust fund claims under 42 O.S. 144.2. These proceedings were stayed when White Star initiated two adversary proceedings of its own. The first sought adjudication of the priority, validity, and value of approximately 2,000 mechanic's and materialman's liens ("M&M liens") asserted by the 78 unpaid vendors over various interests held by White Star. The second sought an order of the Bankruptcy Court directing several first purchasers of oil and gas to turn over to White Star approximately 2 million dollars, which were being held in suspense after the purchasers received statutory lien notices from the M&M lien claimants. The Bankruptcy Court certified the questions to the Oklahoma Supreme Court to aid in the resolution of these two adversary proceedings. The federal court asked: (1) were the "trust funds" created by Title 42 O.S. 144.2 limited to obligations due non-operator joint working interest owners, or did such funds include payments due holders of mechanic's and materialmen's liens arising under and perfected by Title 42 O.S. 144?; and (2) did the Oil and Gas Owners' Lien Act of 2010, grant an operator and non-operator working interest owners a lien in proceeds from purchasers of oil and gas which is prior and superior to any claim of the holder of a mechanic's and materialmen's lien asserted under Title 42 O.S. 144? The Supreme Court found that answering both questions would have been dispositive of issues pending in the underlying bankruptcy proceedings and that there was then no controlling law on the subject matter of either question. The Court answered both questions in the negative: funds which must be held in trust for payment of lienable claims pursuant to 42 O.S. 144.2 were not exclusively limited to joint-interest billing payments received by operators for services rendered by the lienholders; the Oil and Gas Owners' Lien Act did not grant operators and non-operating working interest owners a lien in proceeds from the sale of oil and gas which is prior and superior to any claim of the holder of a mechanic's and materialman's lien asserted under 42 O.S. 144. View "White Star Petroleum v. MUFG Union Bank" on Justia Law

Petitioners and respondents owned real property in McClain County, Oklahoma, containing and abutting Colbert Lake (the Lake). Petitioners also owned real property containing Colbert Creek, which was the sole source of water that fed the Lake. Respondents sought a permit from the Oklahoma Water Resources Board (OWRB), to sell water from the Lake to oil companies for use in fracking operations. The only notice that the OWRB provided to petitioners of the respondents' permit application was by publication in newspapers. The permits were issued, and petitioners subsequently filed suit at the district court, arguing that they were not given proper and sufficient notice of the permit proceedings. The district court dismissed the lawsuit in a certified interlocutory order, and petitioners appealed. The Oklahoma Supreme Court granted certiorari to address the proper, constitutionally required notice to landowners in such proceedings. The Court held that the notice given was inadequate, therefore judgment was reversed and the matter remanded for for further proceedings. View "Purcell v. Parker" on Justia Law

Environmental Law and Policy Center and Dakota Resource Council (“Appellants”) appealed from a district court judgment affirming the Public Service Commission’s order dismissing Appellants’ formal complaint on the basis of a lack of subject matter jurisdiction. This appeal arose from Meridian Energy Group, Inc.’s construction of a new oil refinery (“Davis Refinery”) in Billings County, North Dakota. In June 2018, Appellants filed a formal complaint with the Commission, alleging: Meridian was required to obtain a certificate of site compatibility from the Commission under N.D.C.C. ch. 49-22.1; and Meridian’s planned facility would have a capacity of refining 50,000 or more barrels per day (bpd). Appellants filed their complaint after the North Dakota Department of Health, now Department of Environmental Quality, granted Meridian a construction permit for a “55,000 bpd” oil refinery. The complaint sought a declaration that Meridian’s refinery was subject to N.D.C.C. ch. 49-22.1 and to the statutory siting process. The Commission determined the complaint stated a “prima facie case” under its pleading rule, and the Commission formally served the complaint on Meridian. Meridian asserted it was constructing a refinery with a capacity of 49,500 bpd, falling outside the Commission’s statutory jurisdictional threshold of 50,000 bpd. Meridian argued, as a result, the Commission did not have jurisdiction over this matter and the complaint must be dismissed. After review, the North Dakota Supreme Court concluded the Commission did not err when it dismissed Appellants’ complaint. The Court affirmed the district court’s judgment and the Commission’s order of dismissal. View "Environmental Law & Policy Center, et al. v. N.D. Public Svc. Commission, et al." on Justia Law

The Board of University and School Lands of the State of North Dakota, the State Engineer, and Statoil Oil & Gas LP appeal from a judgment determining William Wilkinson and the other plaintiffs owned mineral interests in certain North Dakota land. Although the judgment was not appealable because it did not dispose of all claims against all parties, the North Dakota Supreme Court exercised its supervisory jurisdiction to review the summary judgment. The Court concluded the district court did not err in concluding N.D.C.C. ch. 61-33.1 applied and the disputed mineral interests were above the ordinary high water mark of the historical Missouri riverbed channel, but the court erred in quieting title and failing to comply with the statutory process. Therefore, the Court affirmed in part, reversed in part, and remanded for further proceedings. View "Wilkinson, et al. v. Board of University and School Lands of the State of N.D." on Justia Law

The DC Circuit denied the Refinery's motion to proceed under a pseudonym. The court weighed the markedly thin showing of potential injury by the Refinery against the substantial public interest in transparency and openness in cases involving the government's administration of an important statutory and regulatory scheme, holding that the Refinery has not overcome the customary and constitutionally-impeded presumption of openness in judicial proceedings.In this case, the Refinery has failed to demonstrate that requiring it to proceed in its own name will risk the disclosure of sensitive and highly personal information; the Refinery itself faces no risk of physical or mental harm; and the Refinery has chosen to sue a government agency regarding the operation of a statutory program and, in particular, applications for special exemptions from the law's obligations. The court held that none of the factors commonly involved in analyzing a request to proceed anonymously weigh in the Refinery's favor. Furthermore, the Refinery's additional arguments add nothing to its side of the scale either. View "In re: Sealed Case" on Justia Law

In 2013, a fire caused the Sinclair Wyoming Refining Company to restrict operations for several months. It filed a claim with its eighteen insurers, including Infrassure, Ltd., which collectively provided Sinclair coverage for business interruption losses under an all-risk insurance policy. In 2015, after twenty months of claim adjustment, Sinclair and the other seventeen insurers settled the claim. But Infrassure did not agree with the settlement value and eventually exercised its right under the policy to have Sinclair’s covered loss calculated by a panel of three appraisers. The panel valued the loss at $60,365,508, with Infrassure liable for $4,527,413. Infrassure, still unsatisfied, sought to invalidate the award in district court, arguing that the appraisers relied improperly on the settlement amount rather than independently valuing the loss. The district court rejected this theory and confirmed the award, holding Infrassure failed to show any actionable misconduct on behalf of the appraisers. After review, the Tenth Circuit agreed the record revealed nothing warranting setting aside the appraisal award, and therefore affirmed. View "Sinclair Wyoming v. Infrassure" on Justia Law

The Plaintiffs, in their individual capacities and on behalf of similarly situated taxpayers, sought declaratory relief regarding chapter 61-33.1, N.D.C.C., relating to the ownership of mineral rights in lands subject to inundation by the Garrison Dam, was unconstitutional. The district court concluded that N.D.C.C. 61-33.1-04(1)(b) was on its face unconstitutional under the “gift clause,” and enjoined the State from issuing any payments under that statute. The court rejected Plaintiffs’ constitutional challenges to the rest of chapter 61-33.1. The Defendants appealed and the Plaintiffs cross-appealed the trial court’s orders, judgment, and amended judgment. After review, the North Dakota Supreme Court reversed that portion of the judgment concluding N.D.C.C. 61- 33.1-04(1)(b) violated the gift clause and the court’s injunction enjoining those payments. The Supreme Court also reversed the court’s award of attorney’s fees and costs and service award to the Plaintiffs because they were no longer prevailing parties. The Court affirmed the remainder of the orders and judgment, concluding the Plaintiffs did not establish that chapter 61-33.1 on its face violated the North Dakota Constitution. View "Sorum, et al. v. North Dakota, et al." on Justia Law

Plaintiffs filed a citizen suit against Exxon, seeking to recover from more than 16,000 Clean Air Act violations arising from the Baytown, Texas complex.The Fifth Circuit held that Clean Air Act plaintiffs must prove standing for each violation in support of their claims. The court held that the evidence supports the district court's findings of injury, traceability, and redressability for a number of the violations. However, a limited remand is needed for the district court to determine what other violations could have contributed to plaintiffs' members' injuries and then to tabulate its findings. The court noted that it does not require line-by-line findings, but that the district court may group violations. Furthermore, plaintiffs have standing for at least some of the violations that Exxon asserts affirmative defenses against. The court remanded for findings on whether Exxon proved its Act of God defense for the relatively small number of violations occurring during Hurricane Ike. The court affirmed the district court's rejection of Exxon's Rule 52(b) motion, because Exxon failed to meet its burden in supporting its no-fault defenses by failing to identify evidence establishing that it met the relevant criteria for each individual emissions event. Because the court remanded for the district court to determine the number of violations for which plaintiffs have standing, as well as whether Exxon proved its Act of God defense for any violations, the court will also have to reassess the penalties. View "Environment Texas Citizen Lobby, Inc. v. ExxonMobil Corp." on Justia Law

Hess Bakken Investments II, LLC; Arkoma Drilling II, L.P.; and Comstock Oil & Gas, LP, (together the “Hess Group”) appealed an order and judgment dismissing their claims against AgriBank, FCB; Intervention Energy, LLC; and Riverbend Oil & Gas VI, L.L.C. (together, “Appellees”). At issue was the meaning of the term “actual drilling operations” as used in continuous drilling clauses in two oil and gas leases. The district court interpreted the term as requiring “placing the drill bit in the ground and penetrating the soil.” Each side has advanced competing readings of the term based on understandings of English grammar and industry usage. Although at odds, both interpretations are supported by rational arguments. The North Dakota Supreme Court concluded the term was ambiguous; "when ambiguity exists, the parties’ intent becomes a question of fact requiring a factual finding based on extrinsic evidence." Given this ambiguity, dismissal as a matter of law was improper. View "Hess Bakken Investments II, et al. v. AgriBank, et al." on Justia Law