6th Circ. Backs Chesapeake Win In Landowners' Royalties Suit

Law360 (May 21, 2020, 7:27 PM EDT) -- The Sixth Circuit on Thursday affirmed an Ohio federal court's dismissal of a class action brought by landowners claiming a Chesapeake Energy Corp. unit shorted them on oil and gas royalties, ruling that the company's actions "conform to the language of the leases."

Dale H. Henceroth, Marilyn S. Wendt and eight other landowners filed suit in 2015, alleging Chesapeake Exploration LLC had breached its contracts with them by underpaying their owed royalties. Specifically, the landowners said Chesapeake should be paying them royalties based on a higher price associated with the later-enhanced and more expensive gas further down the line.

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