Sheila Murphy v. Continental Resources, Inc.

CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 8, 2026
Docket24-3494, 24-3502
StatusPublished

This text of Sheila Murphy v. Continental Resources, Inc. (Sheila Murphy v. Continental Resources, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheila Murphy v. Continental Resources, Inc., (8th Cir. 2026).

Opinion

United States Court of Appeals For the Eighth Circuit ___________________________

No. 24-3494 ___________________________

Sheila Murphy; Ben Murphy

Plaintiffs - Appellees

v.

Continental Resources, Inc.

Defendant - Appellant ___________________________

No. 24-3502 ___________________________

Keith Rychner; Omer Rychner; Roselyn Rychner

Defendant - Appellant ____________

Appeal from United States District Court for the District of North Dakota - Western ____________

Submitted: December 18, 2025 Filed: July 8, 2026 ____________ Before LOKEN, LAVENSKI R. SMITH, and KOBES, Circuit Judges. ____________

LAVENSKI R. SMITH, Circuit Judge.

Sheila Murphy and Ben Murphy (the Murphys) sued Continental Resources, Inc. (Continental), alleging violations of North Dakota law related to Continental’s drilling and oil production operations on the Murphys’ land. Represented by the same legal counsel as the Murphys, Keith Rychner, Omer Rychner, and Roselyn Rychner (the Rychners) brought a similar lawsuit against Continental for its operations on the Rychners’ land. The Murphys and the Rychners (collectively, Appellees) both settled their lawsuits against Continental, and the district court 1 awarded attorneys’ fees to Appellees pursuant to N.D.C.C. § 28-26-06. In these consolidated appeals, Continental argues that the district court erred by awarding unreasonable attorneys’ fees and not allowing the parties to present oral arguments on the issue. Finding no error, we affirm.

I. Background Appellees are surface landowners in North Dakota.2 Continental is a commercial oil and gas producer. Continental owns the rights to drill and produce oil and gas from the mineral estates underlying some or all of Appellees’ land.

North Dakota Century Code Chapter 38-11.1, also known as the Oil and Gas Production Damage Compensation Act, creates a process to compensate surface landowners like Appellees whose land is subject to mineral development. Relevant here, the Act requires mineral developers like Continental to compensate surface

1 The Honorable Daniel M. Traynor, United States District Judge for the District of North Dakota. 2 Sheila Murphy leases her land to her son, Ben Murphy, who manages their ranch.

-2- owners “for lost land value, lost use of and access to the surface owner’s land, and lost value of improvements caused by drilling operations.” N.D.C.C. § 38-11.1-04.

In compliance with N.D.C.C. § 38-11.1-04, Continental provided Appellees with written notice of the drilling operations it planned on their land. Continental eventually commenced its operations on Appellees’ land, as permitted by the statute.3 The parties entered compensation negotiations, but these failed. Appellees sued Continental.

This long-lived litigation began when the Murphys filed their lawsuit in federal district court. They were represented by the Braaten Law Firm and sought compensation for damages pursuant to N.D.C.C. §§ 38-11.1 and 32-03-30 and alleged violations of North Dakota trespass and nuisance laws. Similarly, the Rychners, also represented by the Braaten Law Firm, filed their lawsuit in federal district court two days later. The Rychner suit, however, only sought compensation pursuant to N.D.C.C. § 38-11.1. Both cases were assigned to the district court that sometimes held joint hearings for the cases. The parties engaged in extensive litigation, including disputes related to discovery; expert witness disclosures, particularly which party had to disclose first; scheduling; dispositive motions; and attorneys’ fees.

Early on, the parties unsuccessfully attempted to resolve the cases through mediation. Following mediation, Continental filed offers of judgments in both cases. Continental offered $160,000 to resolve the Murphys’ claims and $140,000 to resolve the Rychners’. These offers would exclude the recovery of attorneys’ fees. Appellees rejected Continental’s offers, and litigation continued. Eventually, in 2023, the parties agreed to stipulated judgments. The Murphys agreed to resolve their claims for $76,541, and the Rychners agreed to resolve theirs for $110,000.

3 Continental notified the Murphys and commenced drilling operations on their land at a different time than it notified the Rychners and commenced drilling operations on their land. The differences in those dates are irrelevant for purposes of these consolidated appeals. -3- Following the stipulated judgments, Appellees moved for attorneys’ fees and expenses pursuant to N.D.C.C. § 38-11.1-09. This statute entitled Appellees to reasonable attorneys’ fees, costs, and disbursements. In their motions, Appellees acknowledged that “both parties were in the ‘weeds’ on issues.” R. Doc. 128, at 4. 4 Accordingly, Appellees did not request the full amount expended on fees. Instead, they requested a discounted amount to recognize the difference between the “fees reasonably incurred and those that another party is reasonably required to reimburse.” Id. at 5. Appellees also explained that their requested fee awards included discounts resulting from an agreed upon reduced billing rate for paralegals. Moreover, Appellees explained that they did not request any fees that they incurred after August 2023, despite the litigation continuing into December 2023. In support of their fee requests, Appellees produced attorneys’ fees invoices. Ultimately, the Murphys requested an award of $415,346.10 and the Rychners requested $360,714.33.

In its response, Continental argued that Appellees’ “extraordinary” fee requests were unreasonable considering the “straightforward” nature of the dispute. R. Doc. 140, at 2. Specifically, Continental raised eight objectionable features of the fee requests. These objections included (1) Appellees’ counsel’s excessive redactions on billing entries, excess block billing on research billing entries, and excessive time spent on research in an uncomplicated case; (2) Appellees’ counsel’s discovery practices, including their pursuit of discovery that Continental contended was unnecessary and irrelevant; (3) the size of the fee request in relation to the fee that landowners recovered in Continental Resources, Inc. v. Fisher, 102 F.4th 918 (8th Cir. 2024), an Oil and Gas Production Damage Compensation Act case where we affirmed an attorneys’ fee award of $249,243.60; (4) Appellees’ “lack of success,” R. Doc. 140, at 21; (5) the amount of attorneys’ fees Appellees that

4 Citations to “R. Doc.” refer to the docket for the Murphys’ case, number 1:19-cv-00069. In this opinion, every citation to a quotation from a document in the Murphys’ case can also be found in the corresponding document in the Rychners’ case. For example, this quote can be found in the Murphys’ memorandum in support of their motion for attorneys’ fees, as well as the Rychners’. -4- incurred compared to Continental; (6) Appellees’ delays in obtaining an appraisal; (7) Appellees’ counsel’s simultaneous representation of the Murphys and the Rychners in similar cases, including Continental’s belief that Appellees’ counsel did not take advantage of economies of scale like Continental’s counsel did; and (8) Appellees’ failure to segregate claims that allowed for the recovery of attorneys’ fees from claims that Continental contended did not permit recovery.

In a separate motion, Continental requested an in-person oral argument on Appellees’ motion for attorneys’ fees. Continental believed that an “in-person oral argument” would benefit the district court and the parties “[g]iven the amount of fees sought, the length of the litigation, the volume of evidence presented, the number of time entries involved, and the issues which Continental raised with respect to [Appellees’] request for fees.” R. Doc. 143, at 1–2.

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Sheila Murphy v. Continental Resources, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheila-murphy-v-continental-resources-inc-ca8-2026.