Mineral Code Requires Individual Notice, Not Class Notice, Before Suit On Mineral Lease

The Louisiana Mineral Code requires a lessor to give the lessee written notice of the lessee's failure to make timely or proper payment of royalties, as a prerequisite to a judicial demand for damages or dissolution of the lease. Can such a notice be given on behalf of a putative class, as a prerequisite to a class action on behalf of lessors against a lessee?

On March 25, we reported that the U.S. Fifth Circuit had certified this question to the Louisiana Supreme Court. But the Louisiana Supreme Court denied certification, leaving the question to be decided by the Fifth Circuit. And on July 6, the Fifth Circuit answered the question, holding that notice on behalf of a putative class does not satisfy the Mineral Code's written-notice requirement.

While this decision does not in itself rule out class actions on mineral leases, it will likely hamper any effort to instigate such a class action.

Posted by RPW at July 10, 2004 02:54 PM