Chieftain Royalty Company v. Enervest Energy Institutional Fund XIII-A

CourtCourt of Appeals for the Tenth Circuit
DecidedJanuary 26, 2026
Docket24-6227
StatusPublished

This text of Chieftain Royalty Company v. Enervest Energy Institutional Fund XIII-A (Chieftain Royalty Company v. Enervest Energy Institutional Fund XIII-A) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chieftain Royalty Company v. Enervest Energy Institutional Fund XIII-A, (10th Cir. 2026).

Opinion

Appellate Case: 24-6227 Document: 68-1 Date Filed: 01/26/2026 Page: 1 FILED United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS January 26, 2026 Christopher M. Wolpert FOR THE TENTH CIRCUIT Clerk of Court _________________________________

CHIEFTAIN ROYALTY COMPANY, on its behalf and as representative of a class of similarly situated royalty owners,

Plaintiff - Appellee,

v. Nos. 24-6227 and 24-6228

ENERVEST ENERGY INSTITUTIONAL FUND XIII-A, L.P.; ENERVEST ENERGY INSTITUTIONAL FUND XIII- WIB, L.P.; ENERVEST ENERGY INSTITUTIONAL FUND XIII-WIC, L.P.; ENERVEST OPERATING, LLC; FOURPOINT ENERGY, LLC,

Defendants - Appellees.

------------------------------

DANNY GEORGE,

Objector - Appellant,

and

C. BENJAMIN NUTLEY, as personal representative of the Estate of Charles David Nutley,

Objector - Appellant. _________________________________

Appeal from the United States District Court for the Western District of Oklahoma (D.C. No. 5:11-CV-00177-D) Appellate Case: 24-6227 Document: 68-1 Date Filed: 01/26/2026 Page: 2

_________________________________

John J. Pentz, Oro Valley, Arizona, for Objector-Appellant Danny George.

Eric Alan Isaacson, Law Office of Eric Alan Isaacson, La Jolla, California (John W. Davis, Tampa, Florida, and C. Benjamin Nutley, Kamuela, Hawaii, with him on the briefs) for Objector-Appellant C. Benjamin Nutley.

Bradley E. Beckworth (Jeffrey J. Angelovich, Susan Whatley, Cody L. Hill, and Nathan B. Hall, with him on the brief), Nix Patterson, LLP, Austin, Texas, for Plaintiff- Appellee. _________________________________

Before TYMKOVICH, KELLY, and BACHARACH, Circuit Judges. _________________________________

TYMKOVICH, Circuit Judge. _________________________________

Over sixteen years ago, Chieftain Royalty Co. sued EnerVest Energy’s

predecessor in interest for allegedly underpaying royalties on oil-and-gas wells in

Oklahoma. Though the parties settled in 2015, the case has continued over the

evergreen issue of attorneys’ fees. After two previous appeals and the subsequent

award of attorneys’ fees to plaintiffs, two class members argue the award is excessive

in violation of Oklahoma law.

Exercising jurisdiction under 28 U.S.C. § 1291, we AFFIRM the district

court’s attorneys’ fees order. Oklahoma law requires attorneys’ fees be reasonable

under the circumstances of the case, a standard which the district court correctly

applied and thoroughly analyzed. We find no error and hold the court’s order falls

within its discretion.

2 Appellate Case: 24-6227 Document: 68-1 Date Filed: 01/26/2026 Page: 3

I. Background

Chieftain Royalty represents a certified class of oil-and-gas royalties owners in

Oklahoma. In 2011, Chieftain sued EnerVest Energy’s predecessor in interest,

SM Energy, for allegedly underpaying royalties on wells it operated or marketed.

EnerVest acquired the wells in 2014 and settled with Chieftain a year later, agreeing

to a cash payment of $52 million which would be distributed to the class members

after payment of expenses and fees. Chieftain Royalty Co. v. Enervest Energy Inst.

Fund XIII-A, L.P. (Chieftain I), 888 F.3d 455, 458 (10th Cir. 2017).

Soon after, class counsel moved for final approval of the settlement. It also

moved for attorneys’ fees equaling 40% of the settlement fund, reimbursement for

litigation expenses, and an incentive award of 1% of the settlement amount for the

class representative. Two class members, Charles David Nutley 1 and Danny George,

objected. 2 The district court held a fairness hearing in November 2015 and

subsequently approved the settlement. Applying federal common law, it awarded

33.33% of the fund ($17,333,333.33) to class counsel as attorneys’ fees and 0.5%

($260,000) of the fund to the class representative as an incentive award. App. 129–

38.

Charles Nutley passed away during the case and his interest passed to his 1

estate. The estate continues to press his claim through its personal representative, C. Benjamin Nutley. 2 For convenience, we typically refer to George and the Nutley Estate collectively as “the Objectors.” 3 Appellate Case: 24-6227 Document: 68-1 Date Filed: 01/26/2026 Page: 4

The Objectors appealed and we affirmed the settlement. But we reversed the

attorneys’ fees and incentive awards. Chieftain I, 888 F.3d at 470. We held that

state law, rather than federal common law, governed the availability and calculation

of both attorneys’ fees and incentives. And since we interpreted Oklahoma caselaw

as prohibiting a percentage-of-the-fund award and requiring a lodestar analysis

instead, we reversed the attorneys’ fees award. Id. at 463–64 (citing State ex rel.

Burk v. City of Oklahoma City, 598 P.2d 659, 663 (Okla. 1979)). We also questioned

the availability of any attorneys’ fees award because class counsel, anticipating the

availability of a percentage-of-the-fund award, had not kept the detailed billing

records necessary for a lodestar calculation. Id. at 464. We then made an Erie guess

that Oklahoma would require courts to calculate an incentive award by accounting for

the reasonable time a class representative spends on services helpful to the litigation.

Id. at 469. Because the district court made its incentive award based on a percentage-

of-the-fund, we reversed it as well. Id.

On remand, class counsel filed separate motions for attorneys’ fees of

$17,333,333.33 (33% of the fund) and an incentive award of $260,000.00 (0.5% of

the fund). Responding to our concerns about its lax billing records, class counsel

submitted reconstructed timesheets, affidavits, and expert reports to support its fee

request. It also produced records detailing the class representative’s contributions to

the case. Once again, Nutley and George objected.

Before the district court ruled on the motions, the Oklahoma Supreme Court

clarified Oklahoma’s standards for attorneys’ fees and incentive awards in Strack v.

4 Appellate Case: 24-6227 Document: 68-1 Date Filed: 01/26/2026 Page: 5

Continental Resources, Inc., 507 P.3d 609 (Okla. 2021). Strack held that either a

percentage-of-the-fund or lodestar analysis could satisfy Oklahoma’s class action

attorneys’ fees statute, so long as the ultimate award is reasonable. But the court

explained that lower courts should only calculate an incentive award based on an

analysis of the time a class representative spent on services helpful to the litigation.

The district court applied Strack and granted both motions. First, it reviewed

the Oklahoma class action statute’s thirteen factors and concluded that 33.33% of the

fund was a reasonable attorneys’ fees award under the circumstances. The court then

conducted a lodestar cross-check and determined an award equivalent to its

percentage-of-the-fund method would require a 2.15 lodestar multiplier. After going

through the statutory factors again, the court decided a 2.15 multiplier was

reasonable. Turning to the incentive award, the court held $232,440 was reasonable

based on the time the class representative worked on the case and his average hourly

rate from five similar class actions where he served as the representative.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
Cooter & Gell v. Hartmarx Corp.
496 U.S. 384 (Supreme Court, 1990)
Penncro Associates, Inc. v. Sprint Spectrum, L.P.
499 F.3d 1151 (Tenth Circuit, 2007)
ClearOne Communications, Inc. v. Biamp Systems
653 F.3d 1163 (Tenth Circuit, 2011)
Conti v. Republic Underwriters Insurance Co.
782 P.2d 1357 (Supreme Court of Oklahoma, 1989)
State Ex Rel. Burk v. City of Oklahoma City
1979 OK 115 (Supreme Court of Oklahoma, 1979)
Spencer v. Oklahoma Gas & Electric Co.
2007 OK 76 (Supreme Court of Oklahoma, 2007)
Kitchen v. Herbert
755 F.3d 1193 (Tenth Circuit, 2014)
Parsons v. Volkswagen of America, Inc.
2014 OK 111 (Supreme Court of Oklahoma, 2014)
Cook v. Rockwell International Corp.
790 F.3d 1088 (Tenth Circuit, 2015)
Schell v. OXY USA Inc.
814 F.3d 1107 (Tenth Circuit, 2016)
Anderson Living Trust v. WPX Energy Production
904 F.3d 1135 (Tenth Circuit, 2018)
MILLER v. MAGNUS
2019 OK CIV APP 62 (Court of Civil Appeals of Oklahoma, 2019)
Gottlieb v. Barry
43 F.3d 474 (Tenth Circuit, 1994)
Johnson v. Georgia Highway Express, Inc.
488 F.2d 714 (Fifth Circuit, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
Chieftain Royalty Company v. Enervest Energy Institutional Fund XIII-A, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chieftain-royalty-company-v-enervest-energy-institutional-fund-xiii-a-ca10-2026.