DISCLAIMER: Any unofficial case summaries below are prepared by the clerk's office
as a courtesy to the reader. They are not part of the opinion of the court.
221817P.pdf 08/10/2023 H&T Fair Hills, Ltd. v. Alliance Pipeline L.P.
U.S. Court of Appeals Case No: 22-1817
U.S. District Court for the District of Minnesota
[PUBLISHED] [Melloy, Author, with Loken and Kobes, Circuit Judges]
Civil case - Arbitration. Plaintiffs, landowners on a pipeline
right-of-way, filed this class action alleging defendant had violated
their contractual rights by failing to pay for crop damages; defendant
moved to compel arbitration for the 73% of landowners with arbitration
clauses in their easements; the district court found these landowners had
agreed to arbitrate some, but not all, of the relevant issues in the
dispute. Defendant appeals, arguing the district court erred by not
sending all issues to arbitration for those plaintiffs whose easements
contained arbitration provisions. Held: the district court properly
ordered arbitration of damage issues but erred in carving out three other
issues from arbitration; the issue of whether defendant is required to
continue a crop loss program in inextricably intertwined with the damage
issue, as is the second question - whether plaintiffs must show damages to
crops were caused by defendant; the arbitration provisions also cover the
final issue of declaratory relief; essentially, the district court must
dismiss from the class those members subject to the arbitration
agreements, and their claims should be dismissed without prejudice; the
law suit can proceed with respect to the class member without arbitration
agreements.