Marcus Huey v. Equitable Production Company

27 F.4th 252
CourtCourt of Appeals for the Fourth Circuit
DecidedMarch 1, 2022
Docket21-1614
StatusPublished
Cited by5 cases

This text of 27 F.4th 252 (Marcus Huey v. Equitable Production Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marcus Huey v. Equitable Production Company, 27 F.4th 252 (4th Cir. 2022).

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 21-1614

THE KAY COMPANY, LLC; DIANE DILE GREEN, individually and attorney- in-fact for the heirs of Luther E. Kile; THE H. A. ROBSON TRUST; EDWIN N. VINSON, beneficiary and trustee of the H.A. Robson Trust; DAVID H. DAUGHERTY, trustee of the H.A. Robson Trust; MARY BLAIR V. CHAPUISAT, beneficiary of the H.A. Robson Trust; H. DOTSON CATHER, trustee of Diana Goff Cather Trusts; CLYDE EMERSON MCCLUNG, individually; JAMES E. HAMRIC, III, individually,

Plaintiffs,

and

MARCUS HUEY; ESTATE OF JAMES ROBERT HUEY; KENNETH HUEY; RICHARD HUEY; BARBARA HUEY; JOHN HUEY; LAURA MAYNARD, executrix of the estate of Jean Gould, deceased; WEST-GRUBB, LLC; STONEY MEADOWS, LLC; SARABETH LAMM; JAMES G. WEST, LLC; CAPTAIN PERRY, LLC; JENNIE G. WEST, LLC; JENNIE'S LEGACY, INC.; J.B. WEST, LLC; BRENT LAMBIOTTE; CHARLES LAMBIOTTE; JEAN LAMBIOTTE PIGGOTT,

Intervenors/Plaintiffs – Appellees,

v.

EQUITABLE PRODUCTION COMPANY, a qualified Pennsylvania Corporation; EQUITABLE RESOURCES, INC., a Pennsylvania corporation,

Defendants – Appellants,

STATOIL NORTH AMERICA, INC., a Delaware corporation; STATOIL ENERGY, INC., a Virginia corporation; STATOIL ENERGY HOLDINGS, INC., a Delaware corporation; ASHLAND OIL, INC., a Kentucky corporation, Defendants.

Appeal from the United States District Court for the Southern District of West Virginia, at Charleston. Joseph R. Goodwin, District Judge. (2:06-cv-00612)

Argued: December 8, 2021 Decided: March 1, 2022

Before GREGORY, Chief Judge, and TRAXLER and FLOYD, Senior Circuit Judges.

Affirmed by published opinion. Senior Judge Floyd wrote the opinion in which Chief Judge Gregory and Senior Judge Traxler joined.

ARGUED: David Dehoney, MCKOOL SMITH P.C., New York, New York, for Appellants. James Robert Russell, SHUMAN MCCUSKEY & SLICER PLLC, Morgantown, West Virginia, for Appellees. ON BRIEF: Lauren W. Varnado, MCKOOL SMITH P.C., Houston, Texas; Jennifer J. Hicks, BABST CALLAND, Charleston, West Virginia, for Appellants. John F. McCuskey, SHUMAN MCCUSKEY SLICER PLLC, Charleston, West Virginia, for Appellees.

2 FLOYD, Senior Circuit Judge:

This appeal involves a motion to enforce the final judgment and final order in a class

action settlement made in the district court by the defendant in the class action, Appellants

EQT Production Company and Equitable Resources, Inc., (collectively, EQT), and class

members and Appellees, the “Huey Plaintiffs.” Three years after entry of the final

judgment and final order, the Huey Plaintiffs filed a lawsuit in the Circuit Court of Wetzel

County, West Virginia (the Wetzel County litigation) against EQT, alleging that EQT

trespassed on their mineral estate in violation of West Virginia statutory and common law.

The district court denied the motion to enforce the final judgment and final order and

declined to enjoin the Wetzel County litigation. EQT appealed.

We hold that the district court did not err in declining to enjoin the Wetzel County

litigation, and, thus, affirm the court’s denial of EQT’s motion to enforce the final judgment

order and final order.

I.

A.

In August 2006, the district court began presiding over a complex class action in

which class plaintiffs filed a complaint against EQT. The named plaintiffs sought to

represent all West Virginia residents and others who had entered into or were beneficiaries

of oil or gas leases with EQT. EQT was involved in the exploration, production, and sale

of natural gas within West Virginia and had the responsibility to pay the class plaintiffs a

royalty on the gas produced from the wells on the leases in accordance with the terms of

3 their respective leases. Class plaintiffs sought, among other things, “damages for improper

deduction of post-production expenses from their royalty payments and damages for breach

of lease agreements, breach of fiduciary duty, fraud, violation of the West Virginia

Consumer Credit and Protection Act (W. Va. Code § 46A-6-101, et seq.), violation of the

flat rate royalty statute (W. Va. Code § 22-6-8), and punitive damages, all related to the

improper payment of royalties.” J.A. 74 (emphasis added). The Huey Plaintiffs are

members of the Flat Rate subclass in this class action. *

On April 28, 2010, the district court approved a class action settlement of all claims

against EQT. As part of the Second Amended Settlement Agreement, which the district

court adopted as the Final Settlement Agreement (the Agreement), the district court

approved a provision “releasing [EQT] from future claims by Class Members from any and

all royalty claims through the settlement date of December 8, 2008.” J.A. 142 (emphasis

in the original).

The Agreement defines royalty claims as:

Those claims asserted by the Plaintiff Class Representatives in this Action, individually and as representatives of the Class, including claims for * “Flat Rate Subclass” means all persons who have entered into Flat Rate Leases with EPC or its predecessors on lands lying within the boundaries of the State of West Virginia and received or were due to receive royalty payments from EPC or its predecessors during the Compensation Period. The Flat Rate Subclass also includes all persons who have or had oil, gas, or other hydrocarbon production from Flat Rate Wells on lands lying within the boundaries of the State of West Virginia and have received or are due royalty payments from EPC or its predecessors during the Compensation Period. The Flat Rate Subclass also includes all Lessors who have received royalty payments under Flat Rate Leases by virtue of pooling or unitization of their leased acreage.

J.A. 81.

4 improper royalty payments, improper deductions, improper measurement, improper accounting for natural gas liquids, improper sales prices, breach of lease agreements, breach of fiduciary duty, fraud, violation of the West Virginia Consumer Credit and Protection Act (W. Va. Code § 46A-6-101, et seq.), violation of the flat rate royalty statute (W. Va. Code § 22-6-8), and punitive damages, all based upon the failure to pay proper royalty.

J.A. 89 (emphasis added).

The release was also temporally restricted to “the period covered by this settlement.”

J.A. 159. The Agreement defines the relevant “Compensation Period” as being “from

February 1, 2000, to the Effective Date,” J.A. 79, which was “the date by which this

Agreement has been signed by all Parties hereto,” J.A. 80. The Agreement was effective

on or about December 8, 2008.

To obtain settlement funds, participating class members were required to submit a

claim form. The claim form relevant here, the “Flat Rate Claim Form,” notified class

members that by accepting the settlement, they would “release [ ] [EQT] from any and all

Royalty Claims through the Effective Date” and “warrant [their] Ownership Period in the

Covered Lease during the Compensation Period.” J.A. 101. That is, “[a]s consideration

for this settlement,” participating class members “REPRESENT[ED] and

WARRANT[ED] that [they were] the owner[s] of the interest in the lease . . . and [were]

entitled to the Settlement Payment set for[th] herein.” J.A. 102. Further, participating class

members who held Flat Rate Leases were notified that they “cannot seek forfeiture of their

Flat Rate Leases after entry of Final Order and Judgment in this civil action.” J.A. 102.

As members of the Flat Rate Lease subclass, the Huey Plaintiffs submitted a Flat Rate

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27 F.4th 252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marcus-huey-v-equitable-production-company-ca4-2022.