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As a matter of first impression, in Cheapside Mins., Ltd. v. Devon Energy Prod. Co., L.P., No. 23-40591, 2024 WL 886951 (5th Cir. Mar. 1, 2024), the Fifth Circuit held that an oil-and-gas royalties class action belongs in federal court based on its interpretation that the “principal injuries” prong of the CAFA local controversy exception requires all plaintiffs sustain their principal injuries in the forum state.  While most Plaintiffs sustained their injuries in Texas, others did not.  Accordingly, the Fifth Circuit concluded that the principal injuries prong was not satisfied.  Because Plaintiffs failed to demonstrate that the local controversy exception applies the Fifth Circuit vacated the district court’s remand order.

Read the full post by attorney Sheri Corales on Liskow’s Gulf Coast Business Law Blog here.

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