State court to hear claims against Chesapeake

A lawsuit against Chesapeake Energy Corp. can proceed in state court, the Oklahoma Court of Civil Appeals ruled Friday.

The Oklahoma Citybased oil and natural gas company argued the case alleging antitrust practices should be heard in federal court, but the mineral owners who filed the lawsuit wanted the case heard in both jurisdictions.

The trial court previously agreed with Chesapeake and dismissed the state proceedings. The appeals court on Friday, however, reversed that decision and sent the case back to trial court.

“It is well established that federal antitrust law does not pre-empt the assertion of antitrust claims under parallel state antitrust law,” the court ruled.

Chesapeake in 2016 admitted to violating federal antitrust law and has cooperated with the U.S. Department of Justice’s investigation. Because of the cooperation, Chesapeake qualifies for leniency and in federal court is limited to claims of only actual damages.

A Chesapeake spokesman declined to comment Friday, citing ongoing litigation.

While the state case has returned to the trial court, a parallel case is ongoing in federal district court in Oklahoma City. The parties in that case are in mediation. A report was due March 1, but Judge Joe Heaton last week extended the mediation deadline to April 16.