10th Circ. Decertifies Classes In XTO Gas Royalty Suits

Law360, Los Angeles (July 9, 2013, 9:58 PM EDT) -- XTO Energy Inc. scored a pair of victories Tuesday when the Tenth Circuit decertified the classes in Kansas and Oklahoma class actions accusing the natural gas company of underpaying royalties through improper deductions of expenses it paid to process the gas.

The appellate court, which remanded the two cases to district courts, said that the burden was on the royalty owners to demonstrate that the implied duty of marketability demonstrated commonality among their class members.

The three-judge panel further ruled that XTO’s uniform payment methodology didn't...
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