Some Oklahoma homeowners who filed suit against seven energy companies, blaming them for an increase in their earthquake insurance rates have lost their challenge to a judge’s dismissal of their legal action.
The 10th U.S. Circuit Court of Appeals in Denver has upheld the district court judge’s ruling against Matt Meier, Sheryl Meier, Kai Bach and others. They had filed the original suit in Payne County District Court against Chesapeake Operating LLC; Devon Energy Production company, LP; Midstates Petroleum Company, LLC; New Dominion, LLC; range Production Company, LLC; Special Energy Corporation; and White Star Petroleum, LLC.
But the suit was later re-filed in Oklahoma City federal court in June of 2017. On August 13, 2018, U.S. District Judge Stephen P. Friot ruled against the homeowners and dismissed their suit.
The only damages sought by those who filed the suit were the increased costs of obtaining and maintaining earthquake insurance. The lower court ruled that Oklahoma law does not permit recovery of increased insurance premiums stemming from a defendant’s creation of risk. And the Federal Appeals Court agreed.
The plaintiffs also asked that the Appeals Court certify the question and refer it to the Oklahoma Supreme Court, but the appeals court judges would not do so.
In their appeal, the plaintiffs contended the increase in earthquake activity was causing by the energy companies and resulted in earthquake insurance rates increasing by as much as 260 percent. They did not claim that the increased seismic activity caused any actual damage to their homes or property.
