Anderson Living Trust v. WPX Energy Production, LLC

297 F.R.D. 622, 2014 WL 1281750
District Court, D. New Mexico·Decided March 14, 2014·No. Nos. CIV 12-0040 JB/LFG, CIV 12-0917 JB/ACT·Published·Cited by 8 cases

Opinion

MEMORANDUM OPINION AND ORDER

JAMES O. BROWNING, District Judge.

THIS MATTER comes before the Court on: (i) the Defendants’ Motion to Consolidate, filed October 8, 2013, in Anderson Living Trust v. WPX Energy Production, LLC, No. CIV 12-0040 JB/LFG (“Anderson”) (Doe. 134); and (ii) the identical Defendants’ Motion to Consolidate, filed October 9, 2013, in Abraham, v. WPX Energy Production LLC, No. CIV 12-0917 JB/ACT (“Abraham ”) (Doc. 83) (collectively, the “Motions to Consolidate”). The Court held a hearing on February 21, 2014. The primary issue is whether to consolidate Anderson and Abraham pursuant to rule 42(a) of the Federal Rules of Civil Procedure for the purposes of discovery and class certification. Because the Court concludes that consolidation would produce only minor efficiencies, and the Defendants carry the burden of proof in seeking to upturn the default rules that the Plaintiffs are masters of their complaint and that earlier-filed cases receive priority over later-filed cases, the Court denies the Motions to Consolidate, and will manage the cases separately for the purposes of discovery and class certification.

FACTUAL BACKGROUND

Anderson and Abraham arise from overlapping, although not identical, disputes over alleged unpaid royalty payments. The Plaintiffs in Anderson “each own a non-cost bearing interest in the revenues derived from the production and sale of hydrocarbons pursuant to the terms of oil and gas leases owned or partially owned by Williams.” Third Amended Complaint for Underpayment of Oil and Gas Royalties ¶ 14, at 4, filed February 8, 2013 in Anderson (Doc. 88) (“Anderson TAC”). The putative class in Anderson includes

all other owners of ‘non-cost bearing’ interests in the subject wells, i.e. those who are similarly situated as owning royalty or overriding royalty in said wells, located in the States of New Mexico and Colorado, which involve the production of either conventional natural gas or CBM gas (in Colorado), as well as other hydrocarbons, in which Williams owns all or a portion of the leasehold or working interest in the oil and gas lease(s) covering said owners’ interests, and produces and sells hydrocarbons under the terms of said leases____

Anderson TAC ¶ 17, at 5. The Plaintiffs in Abraham bring their action as a class action “on their behalf and on behalf of all current and former owners of Royalty burdening San Juan Basin oil and gas leases and wells now or formerly owned by WPX and its corporate predecessors that are or have been productive of conventional natural gas in the San [624]*624Juan Basin.” Third Amended Complaint ¶ 15, at 6, filed October 29, 2012 in Abraham, (Doc. 15) (“Abraham TAC”).

PROCEDURAL BACKGROUND

There is overlap in the two cases regarding the Defendants. In both cases, WPX Energy Production, LLC, ífk/a Williams Production Company, LLC, is a named defendant. See Anderson TAC ¶ 9, at 2-3; Abraham TAC ¶ 3, at 2. In Anderson, an additional defendant is WPX Energy Rocky Mountain, LLC, frk/a Williams Production RMT Company, LLC. See Anderson TAC ¶ 10, at 3. In Abraham, the two additional defendants are Williams Four Corners, LLC, and Williams Energy Resources, LLC. See Abraham TAC ¶¶ 4-5, at 2-3. The attorneys for the Defendants in Anderson also represent the Defendants in Abraham.

The claims in the two cases are similar, but not identical. Abraham involves disputes over conventional gas production, see Abraham TAC ¶ 13, at 5, while Anderson includes conventional gas production and coalbed methane production, see Anderson TAC ¶ 13, at 3. The Plaintiffs in both cases assert breach of contract, see Anderson TAC ¶¶ 66-70, at 19-20; Abraham TAC ¶¶ 58-61, at 17-18; breach of good faith and fair dealing, see Anderson TAC ¶¶41, 42, 44, at 13-14; id. ¶ 67, at 19; Abraham TAC ¶¶ 62-65, at 18-19; breach of the duty to market, see Anderson TAC ¶¶ 47-59, at 15-17; Abraham TAC ¶¶ 70-79, at 20-22; and violations of the New Mexico Oil and Gas Proceeds Payment Act, N.M. Stat. Ann.1978, §§ 70-10-1 to -5, see Anderson TAC ¶¶ 60-65, at 18-19; Abraham TAC ¶¶ 86-88, at 23. The Abraham Plaintiffs allege unjust enrichment claims against Williams Four Corners and Williams Energy Resources. See Abraham TAC ¶¶ 66-69, at 19. The Anderson Plaintiffs list, as a separate cause of action, fraud and misstatement of the value of gas and affiliate sales, see Anderson TAC ¶¶ 35 — 46, at 12-15, while the Abraham case lists fraudulent concealment as a reason to toll the statute of limitations, see Abraham TAC ¶¶ 55-57, at 16-17.

At a hearing in Abraham on May 1, 2013, on the Defendants’ Motion for an Extension of Deadline to Respond to Plaintiffs’ Motion for Class Certification, filed January 28, 2013 in Abraham (Doc. 34), the Court acknowledged the potential to consolidate, or at least hold joint hearings in, Anderson and Abraham. See Transcript of Hearing at 17:19-20 (Court), taken May 1, 2013, filed October 10, 2013 in Abraham (Doc. 84) (“I’m not saying we consolidate the cases, although I’m open to that____”). On June 18, 2013, the Defendants filed motions in both cases seeking to conduct one joint scheduling conference for both cases. See Defendants’ Expedited Motion for an Order Setting a Joint Scheduling Conference in This Case with the Related Abraham Case, filed June 18, 2013 in Anderson (Doc. 103) (“Anderson JSC Motion”); Defendants’ Expedited Motion to Conduct a Joint Scheduling Conference in This Case and in the Related Anderson Living Trust Matter, filed June 18, 2013 in Abraham (Doc. 45) (“Abraham JSC Motion”). The two motions were substantively identical. The Defendants requested a joint pretrial scheduling conference under rule 16 of the Federal Rules of Civil Procedure to “(1) expedite] disposition of the action, (2) establish[] early and continuing control so that the case will not be protracted because of lack of management, (3) discourag[e] wasteful pretrial activities, (4) improv[e] the quality of the trial through more thorough preparation; and (5) facilitate] settlement.” Anderson JSC Motion ¶ 10, at 3; Abraham JSC Motion ¶ 10, at 3. The Defendants stated that the joint scheduling conference would require the two sets of Plaintiffs’ counsel to confer with the Defendants’ counsel “regarding consolidation generally, and more specifically, a mutually-agreed approach to discovery, class certification briefing, and the class certification motion hearing.” Anderson JSC Motion ¶ 11, at 3; Abraham JSC Motion ¶ 11, at 3. The Defendants contended that this conference “would also expedite the disposition of both cases, and discourage wasteful separate, but parallel pretrial activities, resulting in duplicate discovery, briefing and hearings for two eases which the Court has acknowledged could proceed together.” Anderson JSC Motion ¶ 11, at 3; Abraham JSC Motion ¶ 11, at 3.

[625]*625The Anderson

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Anderson Living Trust v. WPX Energy Production, LLC, 297 F.R.D. 622, 2014 WL 1281750 (D.N.M. 2014).

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