Continental Resources loses court fight over $2.4 million in overbilling

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The Oklahoma Supreme Court ruled against Continental Resources Inc. this week in a lawsuit in which the Oklahoma City-based oil and gas company alleged it had been overbilled $2.4 million by a North Dakota oilfield company.

Continental’s lawsuit was against Wolla Oilfield Services, LLC, a North Dakota limited liability company that operates as a hot oil service provider in North Dakota. The suit was filed under the Oklahoma Consumer Protection Act after Continental learned from a whistleblower in Wolla’s accounting department notified Continental about systematic overbilling in connection with the arrangement made between the two firms.

Wolla had sent electronic billing to Continental’s Oklahoma City headquarters and Continental tried to argue the alleged overbilling fell under the state’s Consumer Protection Act.

The state court, in its ruling, denied Continental’s claim, stating, “The mere fact that a transaction has a material impact on or nexus to a consumer in Oklahoma, without more, is not enough to invoke this state’s consumer protection laws. The focus is on the location of the offending conduct, and such conduct must occur in this state.”

The justices went on to declare, “Conduct which creates a violation of the OCPA must occur within this state in order for the OCPA to be applicable. If such offending conduct occurs in more than one state then a court must determine where the conduct primarily and substantially occurs.”

Click below to view the ruling

https://law.justia.com/cases/oklahoma/supreme-court/2022/120039.html?utm_source=summary-newsletters&utm_medium=email&utm_campaign=2022-05-04-oklahoma-supreme-court-dd3dfb992e&utm_content=text-case-read-more-1