SDM secured an appellate victory for a leading energy exploration and production company in a mass action lawsuit where 214 plaintiffs claim over $100 million in alleged underpaid oil-and-gas royalties.

SDM’s client removed the case to federal court based on the Class Action Fairness Act (“CAFA”). The plaintiffs sought remand based on CAFA’s “local controversy” exception. The district court agreed that the local controversy exception applied and ordered the case remanded.

On appeal, the Fifth Circuit reversed, agreeing that the case should remain in federal court pursuant to CAFA and not be remanded to state court.  Chris Sileo and Jane Webre led the appellate team of SDM attorneys.

The case is Cheapside Minerals, Ltd. v. Devon Energy Prod. Co., L.P., 94 F.4th 492 (5th Cir. 2024).  A copy of the Fifth Circuit’s opinion is available here.