TERRIE MORGAN-BESECKER
Times-Shamrock Writer

One year after it was reached, a proposed $7.5 million settlement of a federal class-action lawsuit between natural gas leaseholders and Chesapeake Appalachia remains in limbo as law firms continue to battle over how the case should proceed.

The settlement, which was negotiated by the O’Brien Law Group of Moosic and several other law firms, resolved a long-standing dispute between Chesapeake and property owners regarding post-production fees that were deducted from royalties paid for natural gas extracted from their land.

Attorneys for the lead plaintiffs, Demchak Partners, sought approval of the settlement on Aug. 30, 2013. Before a judge could rule, a separate set of plaintiffs led by Russell and Gayle Burkett sought to dismiss the case, arguing it was not in the best interest of leaseholders.

The Burketts, represented by attorney Douglas Clark of Blakely, have a separate case against Chesapeake that is pending before the American Arbitration Association. That case, which began with 87 plaintiffs, has now grown to 172 plaintiffs, according to court documents filed by Clark.

U.S. District Judge Malachy Mannion is now considering motions filed by the Demchak Partners and the Burketts that challenge whether the federal court or the AAA should decide the dispute.

In a legal brief filed Aug. 21, Clark argues that Chesapeake’s contract with the Burketts and others requires disputes go before an arbitrator. The parties recently appeared before a panel of the AAA, which agreed it has jurisdiction over the issue.

Daniel Brier, attorney for Chesapeake, contends that federal appellate courts have held that a plaintiff needs “clear and unmistakable” evidence that parties agreed to submit disputes to an arbitration panel instead of the court. In this case, numerous leaseholders the Burketts seek to represent did not have arbitration clauses in their leases, he said.

Judge Mannion is considering the arguments and will issue a ruling at a later date.