10th Circuit Rules CAFA Jurisdiction Proper—Plaintiff Failed to Prove Home State Exception Applicable
Plaintiff, a royalty owner of Oklahoma natural gas wells, sued for alleged underpayment of royalties. Defendant filed a CAFA removal to federal court. The royalty owner’s motion for abstention or to remand to state court based on the home state exception to CAFA was denied. The 10th Circuit reviewed the record and affirmed. Nichols v. Chesapeake Operating, LLC Plaintiff, a royalty owner in Oklahoma natural gas wells, sued Chesapeake Operating, LLC and Chesapeake Exploration, LLC (Chesapeake) in Oklahoma state court. Chesapeake then removed asserting CAFA jurisdiction because there were at least 100 proposed class members and more than $5,000,000 in controversy. Chesapeake alleged its principal place of business was in Oklahoma and that at least one class member was a Texas citizen.