3rd Circ. Denies Class Arbitration In Statoil Royalty Feud

Law360 (February 13, 2020, 7:25 PM EST) -- The Third Circuit on Thursday shot down claims from a pair of landowners in a dispute with a subsidiary of the former Statoil ASA that their gas leases with the company mandated classwide instead of bilateral arbitration in a dispute over alleged unpaid royalties.

A three-judge panel ruled that there was no indication that the arbitration provision in Alan and Carol Marbaker's leases with Statoil USA Onshore Properties Inc. required the company to negotiate with all similarly situated lessors rather than with the couple alone.

"There must be an 'affirmative contractual basis for finding that the parties consented specifically to class...

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