Weak Int'l Arbitration Link Boots Oil Row To State Court

Law360, Dallas (September 19, 2012, 6:04 PM EDT) -- A Texas federal judge on Tuesday remanded to state court a shareholder derivative suit against a subsidiary of Helia Tec Co. Ltd. over an allegedly fraudulent transfer of oil and gas royalties, ruling the suit was too tenuously related to an international arbitration agreement to stay in federal court.

The suit is rooted in a bigger dispute over a $15 million stake in a gas field and plant in Papua New Guinea, and it pits two Texas executives against a South Korean company in a fight...
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