N.Y. Federal Court Says Lease Arbitration Clauses Are Binding on Landowners

ROCHESTER, N.Y. - Arbitration clauses included in 150 leases between New York landowners and drilling firms are binding despite the lack of drilling and alleged failure to pay required fees, a New York federal judge has ruled. Alexander, et al. v. Chesapeake Appalachia, LLC, et al., No. 3:11-cv-308 (N.D. N.Y.).

Judge David N. Hurd of the U.S. District Court for the Northern District of New York ruled March 20 that the arbitration clauses at issue are binding under the Federal Arbitration Act, and he ordered plaintiff landowners to arbitrate disputes with Chesapeake Appalachia LLC and a co-defendant over expiration dates …