Perry Cline, on behalf of himself and all others similarly situated v. Sunoco, Inc. (R&M), et al.

District Court, E.D. Oklahoma·Decided August 18, 2026·No. 6:17-cv-00313·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF OKLAHOMA PERRY CLINE, on behalf of himself and all others similarly situated, Plaintiff, V. Civil Action No. 6:17¢v313 SUNOCO, INC. (R&M), et al., Defendants. OPINION This case began as a fight between a farmer and a fuel company. Over nine years ago, oil- well owner Perry Cline sued Sunoco, Inc. (R&M), and Sunoco Partners Marketing & Terminals, L.P. (collectively, “Sunoco”), in Oklahoma state court. Cline alleged that Sunoco had failed to pay him interest on late payments for oil from his well as required by Oklahoma’s Production Revenue Standards Act (“PRSA”). See Okla. Stat. tit. 52, §§ 570.1-.15. Sunoco removed the suit to this Court, where Cline and a class of similarly situated well owners prevailed on their PRSA claim after a four-day bench trial.! But Sunoco’s “string of appeals”? and post-trial filings have spanned nearly six years since the Court entered its Judgment Order on August 17, 2020. (ECF No. 308.) Like Jarndyce v. Jarndyce, Cline v. Sunoco “drones on”—it “still drags its dreary length before the court, perennially hopeless.” Charles Dickens, Bleak House ch.1 J 8 (1853). The class suggests this droning and dragging is due to Sunoco’s and defense counsel’s bad faith, and the plaintiffs move for various sanctions as a result. Doubtlessly, Sunoco and its lawyers have strolled right up to the line of acceptable professional conduct in an attempt to delay paying what the company owes. But

' Cline v. Sunoco, Inc. (R&M), 479 F. Supp. 3d 1148, 1168-72 (E.D. Okla. 2020). 2 Cline v. Sunoco, Inc. (R&M), 159 F.4th 1171, 1179 (10th Cir. 2025).

neither the applicable statute nor the Court’s inherent powers permit the Court to impose the requested sanctions. The Court, therefore, will deny the class’s motion, and this case will drone on. I. BACKGROUND? Sunoco operates as a first purchaser of crude oil. Oklahoma law generally’ obligates first purchasers to pay promptly for purchased oil. Okla. Stat. tit. 52, § 570.10(B)(1). Paying late triggers interest due to the owner of the oil well. Jd. § 570.1~.15. At some point in the now-distant past, Sunoco decided to not pay the statutory interest automatically; instead, it adopted a practice of withholding interest unless or until a late-paid owner made a demand for it.> Cline and other underpaid well owners eventually noticed their lighter wallets and sued Sunoco for breaching its statutory obligation to pay interest and for committing fraud. (ECF No. 2-2, at 9-11.) Sunoco believed its nonpayment practice conformed with the PRSA. As the Court’s summary judgment opinion described, Sunoco contend[ed] that it is liable for interest when it makes late payments, but that the PRSA does not require it to pay that interest at the same time it makes the late payments. ... Sunoco argues that § 570.10(D) only requires proceeds to “earn interest” and that Sunoco “shall be liable” for the interest unless an exception provides otherwise. Because the PRSA does not expressly set forth a payment schedule or require “first purchasers or holders of proceeds” to pay interest absent a claim for that interest, Sunoco contends that the Court cannot “rewrite” the PRSA to require interest payments automatically with the late payment.

3 This case has a long and convoluted history. Here, the Court recites only those facts necessary to resolve the instant motion. Further, the page number in any record citation refers to the page number assigned by the Court’s electronic docket filing system. 4 Exceptions to this obligation exist but do not apply to Sunoco. See, eg., id. § 570.10(B)(3). > (Trial Tr. vol. 1, 78:6-9, 82:20 to 85:19, 116:3-6; Pl.’s Ex. 339.)

(ECF No. 231, at 6.) Sunoco, however, was wrong. The plain language of § 570.10 requires Sunoco to pay interest at the same time it makes a late payment, and on August 17, 2020, the Court entered a post-trial Opinion and Order holding Sunoco liable for owed interest. Years of procedural sparring and appeals have followed.’ It is this defense—that the PRSA held Sunoco liable for interest but did not require Sunoco to pay it sans demand—that the class now describes as an original sin from which all alleged litigation abuses followed. Because Sunoco’s primary defense against the central PRSA claim “was frivolous,” unconscionable conduct “has permeated the litigation” in service of that defense from the case’s beginning. (ECF No. 711, at 6, 12.) Daniel McClure, Esq., the class claims, “was the principal architect behind” this litigation strategy. (/d. at 26.) As the class summarizes, [T]his entire litigation stemmed from Sunoco’s and Mr. McClure’s intentional choice to ignore the duties imposed by the PRSA and adopt a blatantly frivolous position that the Oklahoma Legislature wrote a statute that said Sunoco “shall be liable” for interest but never actually had to pay it. There would have been no lawsuit had Sunoco merely paid the money it knew it owed. (ECF No. 716, at 5.) The class attributes eleven varieties of litigation abuse to this forbidden fruit.’ First, the class alleges Sunoco “misrepresented” its proposed discovery schedule with respect to possible “bifurcated” discovery. (ECF No. 711, at 8-9.) Second, Sunoco “intentionally withheld substantive documents” until the end of discovery “to strategically prejudice” Cline. (Ud. at 9.) Third, the class accuses Sunoco of “with[o]ld[ing]” a “deficient” privilege log until less than two

6 (id. at 9; ECF No. 298, at 25-28, 48.) 7 See supra n.2. 8 The Court cites to the class’s motion and omits internal citations in that motion which refer to the underlying docket entries relevant to each accusation.

wecks before the anticipated close of discovery (though Sunoco ultimately provided an “amended” log). (/d. at 9-10.) Fourth, Sunoco sent directly to Cline “a check for unpaid interest” with “no prior discussion with his counsel” in an attempt to “pick off” the class representative. (/d. at 10- 11.) Fifth, the class accuses Sunoco of “intentionally with[olding] its suspense data” and delaying its expert’s report to “prejudice and burden[]” them. (/d. at 11.) Sixth, Sunoco filed a “baseless” motion to “clarify” the class, which reduced to “nothing more than ‘an argument to cut down the size of the class.’” (/d. at 11-12.) Seventh, the class says Sunoco deployed “ambush tactics” at trial by attempting to use “information not previously disclosed” disguised as “demonstrative” exhibits. (/d. at 12.) Eighth, after largely losing at trial, Sunoco and McClure “made multiple statements that were not true” simply to “seek a new trial.” (/d. at 13-14.) Ninth, the class asserts Sunoco’s dishonesty continued at the United States Court of Appeals for the Tenth Circuit by critiquing discovery deadlines and the case’s underlying scheduling order—but Sunoco did so “knowing that it was not [] appealing the schedule and that it had never moved to continue the trial.” (/d. at 14.) Tenth, Sunoco “create[ed] intentional delay and needless cost” by filing “a frenetic string of appeals.” (/d. at 14— 15.) Eleventh, and finally, the class faults Sunoco for “obvious delay tactics” in the form of a “circuitous route to the Supreme Court [of the United States]” to avoid paying what it owes to class. (Ud. at 15-16.) For this conduct, the class seeks monetary sanctions against Sunoco and non-monetary sanctions against McClure pursuant to 28 U.S.C. § 1927 and the Court’s inherent powers. As to the oil giant, the class seeks an order “shifting a// costs and fees incurred by . . . the [c]lass in this

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Perry Cline, on behalf of himself and all others similarly situated v. Sunoco, Inc. (R&M), et al., (E.D. Okla. 2026).

Perry Cline, on behalf of himself and all others similarly situated v. Sunoco, Inc. (R&M), et al. (Perry Cline, on behalf of himself and all others similarly situated v. Sunoco, Inc. (R&M), et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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