Roger Salvatora v. XTO Energy Inc

Summary

In this interlocutory appeal, the Third Circuit vacated the Western District of Pennsylvania's order denying XTO Energy's motion to compel arbitration with the unnamed Rule 23(b)(3) class members whose oil and gas leases contained arbitration clauses, and remanded for further proceedings. Applying the federal-rights waiver standard and the intervening Valli caveat for classes with arbitration asymmetries, the court held that none of XTO's conduct—omitting arbitration from its three answers, engaging in class discovery, participating in locally mandated mediation, opposing certification while expressly reserving its arbitration rights, and waiting until after the opt-out period to move—constituted an intentional relinquishment of a known right, because putative class members are not parties before certification and XTO's timing reflected a preference to avoid litigating with arbitrable members. The court also confirmed that the denied order, having the effect of declining to compel arbitration, was appealable under 9 U.S.C. § 16(a)(1)(B).