# U n i t e d S t a t e s C o u r t o f A pp e a l s
For the Eig hth Circu it

_ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _

No . 1 7 -3 7 08

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En erp l u s Res o urces (USA) Co rp o rat i o n , a Del aware co rp o rat i o n

l ll l l l l l l l l l l l ll l l l l l Pl a i n t i

f f - Ap pel l ee

v

.

W i l b u r D. W i l k in s o n

l ll l l l l l l l l l l l ll l l l l l Def

en da n t - Ap pel l an t

Th ree Affi l i at ed Tri b es , Fo rt Bert h o l d Di s t ri ct Co u rt

l l l l l l l l l l l l l l l l l l l l l

Def en d a n t

Reed So d ers t ro m , ag en t fo r W i l b er D. W i l k i ns o n

l ll l l l l l l l l l l l ll l l l l l Def

en da n t - Ap pel l an t

E rv i n J . Lee, an i n d i v i d ual

l l l l l l l l l l l l l l l l l l l l l

Def en d a n t

_

_ _ _ _ _ _ _ _ _ _ _
Ap p eal fro m

Un i t ed St at es Di s t ri ct Co u rt fo r t h e Di s t ri ct o f No rt h Dak ot a - Bi sm arck

_

_ _ _ _ _ _ _ _ _ _ _Su bm i t t ed : Oct o ber 1 5, 2 0 19
Fi l ed : J an u ary 1 4 , 2 0 2 0 [Un pu b l is h ed ]

_ __ _ _ __ _ __ _ _

Befo re SM ITH, Ch i ef J u d g e, GRUENDER an d BENTON, Ci rcu i t J u d g es

.

_ __ _ _ __ _ __ _ _

PER CURIAM

.

En erp l u s Res o urces (USA) Co rp o rat i o n (“ En erp l us ”) b ro u g h t s u it t o reco v er

ap p ro x i m at el y $2 .9 m i l l i on i n o v erp ay m en t s to W i l b u r D. W il k i n s o n

. Th e

o v erp ay m en ts s tem m ed fro m an o v erri d i ng ro y al t y i n teres t p ai d i n co nn ect i o n wi th

a s et t lem en t ag reem en t b et w een , am o n g ot h ers , W i l k i n s o n an d Peak No rt h Dak o t a,

LLC (“ Peak No rt h ”). Peak No rt h s u b s eq u en tl y m erg ed i n to En erp l u s

. Th e d i s t ri ct

co u rt 1 award ed s u m

m ary ju d g m en t in fav o r o f En erp l u s , h o l d i n g t h at i t was en t i t l ed

t o a ret urn o f t h e o v erp ay m en t

. Th e c o u r t a l s o award ed En erp lu s i t s co s t s an d fees

u n d er a co n t ract u al fee-s h i ft i n g p ro v is i on . W i l ki n s on ap p eal s . W e affi rm

.

I. Ba ckg r o un d 2

W i l k i n s o n s u ed Peak No rt h i n t ri b al co u rt

. Su b s eq uen t l y , o n Oct ob er 4

, 2 0 1 0,

P e a k N o rt h an d W i l k i ns o n en t ered i n to a “ Set t l em en t Ag reem en t

, Fu ll M u t u al

Rel eas e, W ai v er o f Cl ai m s an d Co v en an t No t t o Su e” (“ Set tl em e n t Ag reem en t ”), 3

1 Th e Ho n o rab l e Dan i el L. Ho v l an d

, Un it ed S ta t e s D istri ct J u d ge fo r t h e Di s t ri ct

o f No rt h Dak o t a.

2 Th e b ack gro un d s ect i on i s t ak en i n l arg e p art fro m o u r p ri o r op i n i o n , En er p l u s Res o u r ces (US

A) Co r p

. v. W i l ki n s o n , 8 6 5 F.3 d 1 0 9 4, 10 9 5

– 9 6 (8 t h C i r

. 2 0 1 7 ),
wi t h o u t fu rt her at t ri b u ti o n

.

3 In co n ju n ct io n wi t h t h e Set t l em en t Ag reem en t

, th e part i es ex ecu t ed an

“ As s i g n m en t o f Ov erri d i n g Ro y al t y In teres t ” an d d i v is i on o rd ers

. W e refer t o t h es e

o t h er d o cu m en t s co l lect i v el y as t h e “ As s i g ni n g Do cu m en t s.”

-2

-w h ereb y Peak No rt h ag reed t o as s i g n W i l ki n so n an o v erri d i n g ro y alty inte r e st ( O R R I )

i n cert ai n o i l an d g as l eas es l o cat ed i n No rt h Dak o t a. 4

Pu rs uan t t o t h e Set t l em en t Ag reem en t

, Peak No rt h an d W i l k in s o n ag reed t h at

“ an y d i s p u t es ari s i n g u n d er th i s Ag reem en t an d / o r t h e tran s act io n s co n tem p l at ed

h erei n s h al l b e res o l v ed i n t h e Un it ed St at es Di s t ri ct Co u rt fo r t h e Di s t ri ct o f No rt h

D a kota N or

thw e s t Di v i s i o n an d s u ch co urt s h al l h av e ex cl u s iv e ju ri s dic t ion h e r e unde r

an d no p art y s h al l h av e t h e ri g h t t o co n t es t s u ch j u ri sd i ct i o n o r v en u e.” Th e As s i g n i n g

Do cu m en t s co n tai n ed si m i l ar cl au s es , s t at i n g t h at al l d i s p u t es “ s h al l b e r e s o l v ed in

t h e St at e Co u rt s o f t h e St at e o f No rt h Dak o t a o r an ap p li cab le Fed eral D i s t ri ct Co u rt

s i tt i n g in No rt h Dak o t a an d s uch co u rt s s h al l h av e ex cl u s i v e ju ri s d i ct i o n h ereu n d er

an d n ei t h er [p art y ] s h al l h av e t h e ri g h t t o co n t es t ju ri s d i ct i o n o r v en u e.”

In Decem b er 2 0 10

, Peak No rt h m erg ed w i th an d i n t o En erp l u s , wi t h En erp l u s
b ei n g t h e s u rv i v i n g en ti t y

. Becau s e o f an al l eg ed cl eri cal erro r bet ween A u g u s t 2 0 1 4

an d Oct o b er 2 0 1 5

, En erp lu s c l a i m s i t o v erp ai d th e ORRI d u e to W i l k in s o n by

$ 2 ,9 6 1 ,5 1 1 .1 5 . Up o n d i s co v eri n g t h e erro r, En erp l u s p ro m p t l y , b u t un s ucces s fu l l y ,

s o u g ht ret u rn o f t he o v erp ai d fu n d s

.

On Feb ru ary 2 9, 2 0 1 6

, W i l k in s o n s u e d En erp l u s i n t h e Fo rt Bert h o l d Tri b al

Co u rt

, al l eg i n g En erp l u s b reach ed t h e Set t l em en t Ag reem en t b y u n d erp ay i n g

W i l k i n s o n

. Sp eci fi cal l y , W i l k in s o n s o u g h t “ an acco u n t i n g o n th e l eas es , m i n eral

acreag e an d [ORRI] ”; so u g ht “ an o rd er

. . . d ecree[i n g] t h at [En erp l u s] h as n o t fu l l y

p ai d i t s o b li g at i on ”; an d req ues t ed t h at “ t i tl e b e q u i et ed as t o s u ch cl ai m , an d t h at
[En erp l u s ] b e fo rev er d eb arred an d en jo i n ed fro m fu rt h er as s ert i n g t h e s am e.”

4 At t o rn ey Erv i n Lee rep res en t ed W i l k in s o n d u ri n g t h e Set t l em en t A g reem en t

n eg ot i at i on , an d t en p ercen t o f W i l k i n s on ’ s ORRI was as s i g n ed t o Lee as p art o f t h e Set t l em en t Ag reem en t

. Becau se Lee’ s i n t eres t i s d eri v ed fro m W il k i n s o n ’s i n t eres t

an d Lee i s s i m i l arl y s i t u at ed t o W i l k i n s o n i n t h e pres en t act i o n , we n eed n ot

s ep arat el y

d i s cu ss Lee’ s i n t eres t

.

-3

-En erp l u s s u b s eq u en t ly b ro u gh t t h i s act i o n i n t h e fed eral d is t ri ct co u rt

, s eek i n g

(1 ) a p rel i m i nary i n

ju n ct i o n p ro h i b i t i n g W i l k i ns o n fro m p ro s ecu t i n g an y l aws u i t s in

t ri b al co u rt ari s i n g fro m o r rel at i n g t o t he Set t l em en t Ag reem en t an d p ro hi bi t i n g t h e

t r i b a l c o u rt fro m ex erci s i n g ju ri s d i ct i o n o v er E n erp l u s i n W i lk i n s o n ’ s t ri b al co u rt

cas e, an d (2 ) an o rd er req u i ri ng t h at t h e o verp ai d ORRI b e d ep o s i t ed i n to th e d i s t ri ct

co u rt ’ s reg i s t ry

. In res p o n s e, W i l k i n s o n m o v ed t o d i s m i s s

. Th e d is tri ct co u rt g ran t ed

E nerp l u s’ s m o t i o n fo r p rel i m i n ary i n ju n ct i v e rel i ef an d d en i ed W i l k i ns o n’ s m o t i o n

t o d i s m i s s

. Sp eci fi cal l y , t h e co urt en jo i n ed W i l k i n so n fro m p ro s ecu ti n g an y l aws u i t s

ari s in g fro m o r rel at i n g t o t h e Set t l em en t Ag reem en t i n t h e t ri b al co u rt

, p ro h i b i t ed t h e

t ri b al co u rt fro m

ex erci s i n g ju ri s d i ct i o n o ver En erp l u s i n W i l k i n s o n ’ s p en d i n g s u i t

,

an d ord ered W il k i n s o n t o t ran s fer t h e o v erp ai d ORRI i n t o t h e d i s t ri ct co u rt ’ s reg i s t ry

. O n a p p e a l

, we affi rm ed th e di s t ri ct co urt ’ s g ran t of a p rel i m i n ary i n ju n ct i o n

. See

En er p l us , 8 6 5 F.3 d at 10 9 7

– 98

.

En erp l u s t h en m o v ed fo r s u m m ary ju d g m en t

, s eek in g a d et erm i n at i o n t h at i t

was en t it l ed t o ret u rn o f t h e ov erp ay m en t

. W il k i n s on res p on d ed b y ch al l en g i n g

En erp l u s’ s s t an d i n g t o bri ng t h e act i o n , as h e d i d b efo re t h i s co u rt on ap p eal fro m t h e
d i s t r i ct co u rt ’ s g ran t o f th e p rel i m i n ary i n ju n ct i o n

. S

ee id

. (“ W il ki n s on as s ert s t h at

En erp l u s l ack s s t an di n g to en fo rce t h e fo ru m s el ect i o n cl au s e b ecau s e t h e Set t l em en t Ag reem en t i n co rp o rat es b y referen c e th e un d erl y i n g l eas es , wh i ch pro h i b i t t h e

as s i g n m en t o f m in eral i n t eres ts wi t h o u t ap p ro v al fro m t h e Secret ary o f t h e In t eri o r.”).

W i lk i n so n s u b m i t t ed n o ev i den ce i n s u p p o rt o f hi s arg u m en t

. Th e d is t ri ct co u rt

g r an t ed En erp l u s ’ s m o ti o n , fi n d i n g t h at Peak No rt h m erg ed i nt o E nerp l u s an d

,
t h erefo re, En erp l u s h ad s t an d i n g t o b ri n g i ts cl ai m s ag ai ns t W il k i n s on

.

Th ereaft er, En erp l u s fi l ed a s eco n d m o t i o n fo r s um m ary j u d gm en t

, s eek i n g to

p e r m an en t l y en

j o i n W i l ki n s o n fro m p u rs u in g an y cl ai m s rel at ed to t h e Set t l em en t Ag reem en t

, ORRI As s i g n m en t

, o r As s i g n i ng Do cu m en t s an d t o p erm an en t l y en jo in

t h e t ri b al co u rt fro m ex erci s i n g ju ri sd i ct i o n o v er su ch m at t ers

. En erp lu s al s o s o u g ht

-4

-an award o f fe es an d co s t s p u rs u an t t o a fee-s hi ft in g p ro v i s io n in t h e Set t l em en t

Ag reem en t an d As si g n i ng Do cu m en t s

. Th e d is t ri ct co u rt g ran t ed t he m o t i o n an d

award ed En erp l us i t s at t o rn ey ’ s fees an d co s t s

.

W i l k i n s o n m ov ed fo r reco n s i d erat i o n , arg ui n g th at “ t h e Fo rt Bert h o l d In d i an

Res erv at i o n has a law p ro h i bi t i n g t h e as s i g n m en t o f o i l an d g as leas es ” an d t h at

En erp l u s’ s refu s al t o p ro v id e an acco u n t i n g o r p ro v e i ts as s i g nm en t fro m Peak No rt h

i s i n v i o l at i o n o f Res o l ut i o n No

. 0 8 -8 7 -VJ B. M em o

. i n Su p p o rt of M o t

. fo r Reco ns ., En er p l us Res

. (US

A) Co r p

. v. W i l ki n s o n , No

. 1: 1 6 -c v

- 0 0 1 0 3 -DLH-CSM (D.N.D.

No v . 1 6 , 2 0 1 7 ), ECF No . 9 4 . Th e d i s t ri ct co urt d en i ed t h e m o t i o n

.

II. Di scu s s i o n

On ap p eal

, W i l k i n s o n arg u es t h at (1 ) En erp lu s l ack s s t an d i n g t o as s ert i t s cl ai m
b ecau s e i t fai l ed t o s ho w th at Peak No rt h p ro p erl y as s i g n ed t h e m i n eral i nt eres t s to

En erp l u s; (2 ) d i s p u t e d i s su es of m at eri al fact ex i st co n cern i n g “ wh et h er t h ere was

act u al l y an o v erp ay m en t o r u nd erp ay m en t b as ed o n W i l k i n s o n’ s wri t t en ag reem en t

ORRI o f 0 .4 4 6 4 9 % an d En erp l u s ’ [s ] u n wri t t en cl ai m ed o v erp ay m en t b as ed o n [i t s ]

cl ai m t h at W i l ki n s o n ’ s ORRI i s [0 ] .0 0 1 2 4 5 77 %,” Ap p el l an t’ s Br. at 8

– 9; an d (3 ) t h e
d i s t ri ct co u rt erred in n o t co n s i d eri n g En erp l u s ’ s fai l u re t o p ro v i d e “ p r o o f o f i t s

as s i g n m en t fro m Peak No rt h i n v i o l at i o n o f Fo rt Bert h o l d In d i an Res erv at i o n

Res ol u t i o n s an d Po l i ci es .” Id

. at 1 0

.

W e rev i ew d e n o v o th e d i s t ri ct co u rt ’ s g ran t o f s um m ary ju d g m en t to En erp lu s ,

s ee To rg er

s o n v. Ci t y o f Ro ch es t er , 6 4 3 F.3 d 1 0 3 1

, 10 4 2 (8 t h Ci r. 2 0 1 1) (en b an c),

an d n o w affi rm

.

F i rs t

, we h av e al read y reject ed W i l ki n so n ’ s arg u m en t t h at E n erp l u s l a c k s

s t an d i n g b ecau s e En erp l u s has p ro d uced n o pro o f t h at Peak No rt h pro p erl y a s s i g n ed

t h e m i neral i nt eres ts to En erp l u s

. S ee En er p l u s , 8 6 5 F.3 d at 1 0 9 7– 9 8

. As t h e d i s t ri ct

co u rt ex p l ai n ed

, W i l ki n s o n i s “ c o n fu s [i n g ] p ri n ci pl es o f m erg er an d as s i g n m en t .”

-5

-En er

p l us Res . (US

A) Co r p . v. W i l ki n s o n , N o . 1 : 1 6 -cv -0 0 1 0 3 -DLH-CSM , 2 0 1 7 W L

7 2 1 9 7 7

, a t * 4 (D.N.D. Feb

. 2 3

, 2 0 1 7 ). “ Becau s e En erp l u s an d Peak No rt h m erg ed

,
t h er e wa s n o a ss i

g n men t o f an y o i l an d g as l eas es fo r t h e Secret ary o f t he In t eri o r to

ap p ro v e, i f i n d eed s u ch ap p ro v al i s req u i red

. . . . En erp l u s , h av i n g m erg ed wi t h Peak

No rt h an d h av in g m ad e t h e m i s t ak en ov erp ay m en t

, cl earl y h as s t an d i n g .” I d

. (em p h as i s ad d ed ). E n e r p l u s p ro d u ced ev i d en ce o f t h e m erg er wi t h Peak No rt h

t h ro u g h a cert i fi cat e o f m erg er, an d W i l k in s o n h as p ro d u ced n o ev i d en ce to

u n d erm i n e t h e v al i d i t y

o f t h i s cert i fi cat e. Fu rt h erm o re, b ecau s e Peak No rt h m erg ed

wi t h En erp l u s , W il k i n s o n ’ s arg u m en t t h at t h e d is t ri ct co u rt erred i n n ot co n s i d eri n g

E n e r p l u s ’s fai l ure t o pro du ce p ro o f o f t h e al l eg ed as s i g n m en t fro m Peak No rt h

n eces s ari l y

fai l s

.

Seco n d

, n o di s pu t ed i s s u es o f m at eri al fact ex is t as t o t h e am o u n t o f t h e

o v erp ay m en t fro m En erp l u s t o W i l k i n s o n

. Th e reco rd s h ows t hat

, i n re s p o n s e to

En erp l u s’ s m ot i o n fo r s u m m ary ju d g m en t

, W i l k i n so n nev er co n t es ted t he am o u nt o f

t h e o v erp ay m en t o r p ro v i d ed p ro of c o n t r a r y t o t h e d ecl arat i o n s an d ex h i b i t s t h at

En erp l u s p ro d u ced

. As t h e d i s t ri ct co u rt n o ted

, “ W i lk i n s o n

. . . d i d n ot s erv e an y
d i s co v ery req u es t s o r d ep o s i t i o n n o t i ces o n [En erp l u s ] p ri o r to t h e cl o s e o f d i s co v ery

. W i th th e t i m e fo r di sco very cl o sed an d hav in g fai l ed t o p u rs u e d i s co very , [W i l k i n s o n ]

c a n n o t o p p o s e s u m

m ary ju d g m en t o n t h e b as i s t h at d i s co v ery is n o t y et co m p l et e. ”

Id

. W i l k i n s o n ’s fai l u re t o s erv e d i sco v ery o n En erp l u s an d su b s eq u en t fai l u re to

p res en t co n t rary ev id en ce o n t h e am o u n t of t h e ov erp ay m en t m ean t h at W i lk i n s o n h as

fai l ed t o s at i s fy hi s “ o b l ig at [i on ] t o m eet p ro o f w i t h p ro o f at th e su m m ary -ju d g m en t

s t ag e.” Bo l d

er s o n v. Ci t y o f W en t z vi l l e , 8 4 0 F.3 d 9 8 2 , 9 8 6 (8 t h Ci r. 2 0 1 6 ).

III. Co n cl u s i o n

Acco rd i ng l y , we affi rm

t h e ju dg m en t o f t h e d i s t ri ct co u rt

.

__ _ _ _ _ __ _ _ __ _ _ __ _ __ _ _ _ _ _ __ _ _ _ _

-6

-