Oklahoma - Oil & Gas

摘要

Attorney Fee and Incentive Fee in Royalty Class Action Reversed on Appeal Chieftain Royalty Co. v. Enervest Energy Institutional Fund XIII-A, L.P., 861 F.3d 1182 (10th Cir. 2017), rev g sub nom. Chieftain Royalty Co. v. SM Energy Co., No. 5:11-cv-00177, 2015 WL 9451069 (W.D. Okla. Dec. 23,2015), involved a class action for the alleged underpayment of royalties from gas wells located in Oklahoma. The parties previously reached a settlement agreement "for a cash payment of $52 million, to be distributed pro rata to the class members afterpayment of expenses and fees." Id. at 1185. "Class counsel moved for attorney fees in the amount of 40% of the settlement fund, plus interest; and the lead plaintiff, Chieftain Royalty Company [(Chieftain)], requested an incentive award of 1% of the fund." Id. After a hearing on the settlement, the court awarded class counsel attorney fees of 331/3% of the fund and an incentive award to Chieftain of V%% of the fund. Id. Two class members objected to the award and appealed.