Eatinger v. BP America Production Co.

271 F.R.D. 253, 182 Oil & Gas Rep. 17, 2010 U.S. Dist. LEXIS 78352, 2010 WL 3023957
CourtDistrict Court, D. Kansas
DecidedAugust 2, 2010
DocketNo. 07-1266-EFM
StatusPublished
Cited by14 cases

This text of 271 F.R.D. 253 (Eatinger v. BP America Production Co.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eatinger v. BP America Production Co., 271 F.R.D. 253, 182 Oil & Gas Rep. 17, 2010 U.S. Dist. LEXIS 78352, 2010 WL 3023957 (D. Kan. 2010).

Opinion

MEMORANDUM AND ORDER

ERIC F. MELGREN, District Judge.

Plaintiff Gene R. Eatinger, on behalf of himself and other royalty owners of wells located in Kansas, brings claims against Defendant BP America Production Company (“BP”) for underpayment or non-payment of royalties on natural gas and/or constituents of the gas stream produced from Kansas wells leased by BP. From Plaintiffs’ Amended Complaint, they claim that they are the beneficiaries of an implied covenant with BP through which BP is obligated to place the gas extracted from their wells, along with all constituent parts, in marketable condition at no cost to Plaintiffs. Contrary to this implied covenant, Plaintiffs claim that BP deducted from their royalty payments or otherwise charged them for placing the gas and constituent parts in marketable condition. In addition, Plaintiffs claim BP paid them a lower starting price than it received in arms-length sales transactions, and further claim that BP made no payments at all for gas constituents such as condensate, nitrogen, and helium. Plaintiffs also allege that BP made misleading and fraudulent representations regarding methods of calculation and forms of payment. BP moved for summary judgment as to claims advanced by the prospective plaintiff class covered by previously-settled class actions in Kansas,1 after which the Court barred Plaintiffs’ claims that occurred prior to August 1, 2004.2 Prior to the Court issuing its decision on BP’s summary judgment motion, Plaintiff moved for certification of the class.

On July 27, 2010, Plaintiffs Motion for Certification came before the Court for hearing. For the following reasons, the Court grants Plaintiffs’ motion.

A. MOTION TO CERTIFY CLASS

I. Standard

Whether to certify a class is committed to the broad discretion of the trial court.3 In exercising this discretion, the Court should err on the side of class certification because it has the authority to later redefine or even decertify the class if necessary.4 In deciding whether to certify, the Court must perform a “rigorous analysis” as to whether the proposed class satisfies the requirements of Rule 23 of the Federal Rules of Civil Procedure.5 Rule 23 does not provide the Court with the authority to conduct a preliminary inquiry into the merits of the lawsuit to determine whether it may be maintained as a class action.6 The Tenth [257]*257Circuit, however, has emphasized that the question of class certification involves considerations that are “ ‘enmeshed in the factual and legal issues comprising the plaintiffs cause of action.’ ”7 Although the Court may not evaluate the strength of a cause of action at the class certification stage, it must consider, “without passing judgment on whether plaintiffs will prevail on the merits,” whether the requirements of Rule 23 are met.8

As the parties seeking class certification, Plaintiffs have the burden to demonstrate “under a strict burden of proof’ that the requirements of Rule 23 are clearly satisfied.9 In doing so, Plaintiffs must first satisfy the prerequisites of Rule 23(a) by demonstrating that: (1) the class is so numerous that joinder of all members is impracticable, (2) questions of law or fact are common to the class, (3) the claims of the representative parties are typical of the claims of the class; and (4) the representative parties will fairly and adequately protect the interests of the class.10 After meeting these requirements, Plaintiffs must demonstrate that the proposed class action fits within one of the categories described in Rule 23(b).

In this ease, Plaintiffs seek to proceed under Rule 23(b)(3), which requires that “questions of law or fact common to the members of the class predominate over any questions affecting individual members” and that a class action “is superior to other available methods for the fair and efficient adjudication of the controversy.”11

II. DISCUSSION

a. Class Definition

In determining whether to certify a class, the Court first addresses the proposed class definition. “Defining the class is of critical importance because it identifies the persons (1) entitled to relief, (2) bound by a final judgment, and (3) entitled under Rule 23(c)(2) to the “best notice practicable” in a Rule 23(b)(3) action.”12 Thus, the definition must be “precise, objective, and presently ascertainable.”13

Plaintiffs seek class certification of the following class: [258]*258BP argues that by including a timeframe that begins September 9, 1990, the proposed class definition encompasses a time period for claims that are barred by prior class action settlements, as raised in its Motion for Summary Judgment. Therefore, BP contends that any class definition approved by the Court should only target those royalty owners from August 1, 2004 to date of notice.

[257]*257All royalty owners of BP America Production Company (and its predecessors and successors) from wells located in Kansas that have produced gas and/or gas constituents (such as residue gas or methane, natural gas liquids, helium, nitrogen, or condensate) from September 9,1990 to the date of class notice and whose gas was processed at BP’s Jayhawk Processing Plant (or previously was gathered over the A, B, or C gathering lines that were historically operated by Williams).
Excluded from the Class are: (1) the Mineral Management Service (Indian tribes and the United States); and (2) Defendant, its affiliates, predecessors, and employees, officers and directors.14

[258]*258As a result of the Court’s ruling on BP’s summary judgment motion, the parties agreed during the July 27th class certification hearing that the proposed definition for the class should be modified to reflect the August 1, 2004 date. Thus, subsequent to that hearing, the parties jointly submitted to the Court the following proposed class definition:

All royalty owners of BP America Production Company (and its predecessors and successors) from wells located in Kansas that have produced gas and/or gas constituents (such as residue gas or methane, natural gas liquids, helium, nitrogen, or condensate) on or after August 1, 2004 to the date of Class Notice and whose gas was processed at BP’s Jayhawk Processing plant.
Excluded from the Class are: (1) the Mineral Management Service (Indian tribes and the United States); (2) Defendant, its affiliates, predecessors, and employees, officers and directors; and (3) any claims for Gathering Charges.15

The Court, therefore, finds that the proposed class definition, as modified, is sufficiently defined so as to allow potential class members to be identified.

b. Rule 23(a) Requirements16

1. Numerosity

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Bluebook (online)
271 F.R.D. 253, 182 Oil & Gas Rep. 17, 2010 U.S. Dist. LEXIS 78352, 2010 WL 3023957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eatinger-v-bp-america-production-co-ksd-2010.