Arbuckle Mountain Ranch v. Chesapeake Energy

Plaintiff and the putative class filed suit claiming to be post-foreclosure owners of disputed oil and gas interests. After the case was removed by defendants under the Class Action Fairness Act (CAFA), 28 U.S.C. 1332(d)(2), plaintiff moved to remand to state court under the local controversy exception. The district court granted the motion and remanded. Although plaintiff has presented sufficient evidence to show that, under the narrow definition, the proposed class consists of over two-thirds Texas citizens, the court concluded that plaintiff has failed to present any evidence about those owners who purchased mineral interests post-foreclosure but have since sold or otherwise relinquished their interests. The court also concluded that plaintiff has not proven that the exception for local controversies applies because the class that the petition at the time of removal sought to have certified is not clearly limited to current owners, and there is inadequate evidence of the citizenship of the interim owners in the broader class. Accordingly, the court reversed and remanded. View "Arbuckle Mountain Ranch v. Chesapeake Energy" on Justia Law