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Tug Hill Marcellus LLC v. BKV Chelsea LLC.

2021 COA 17. No. 19CA2234. Colorado Revised Uniform Arbitration Act—Consolidation of Arbitration Proceedings—Appeals.

February 11, 2021

Tug Hill Marcellus LLC, Radler 2000 LP, and Chief Exploration & Development LLC (collectively, Sellers) entered into substantially similar agreements with BKV Chelsea LLC (BKV) for the sale of interests in oil, gas, and mineral leases and related assets. The agreements included identical arbitration provisions. BKV alleged that Sellers breached their agreements and served each Seller with a separate demand for arbitration. Sellers proposed that the arbitration proceedings be consolidated, but BKV refused. Sellers petitioned the district court to consolidate the three arbitration proceedings. The district court entered an order denying Sellers’ petition on grounds that the agreements’ arbitration provisions did not indicate that BKV had consented in advance to consolidate the separate arbitration proceedings.

Sellers appealed, and BKV moved to dismiss for lack of jurisdiction. Under CRS § 13-22-228(1), a party may only appeal two types of arbitration-related court orders entered before an arbitrator enters an award—an order denying a motion to compel arbitration, and an order granting a motion to stay arbitration. An order denying a motion to consolidate separate arbitration proceedings is not appealable because it is not one of the listed pre-award orders. Further, contrary to Sellers’ argument, the district court’s order is not an appealable final judgment. Accordingly, the Court of Appeals lacked jurisdiction to hear the appeal.

The appeal was dismissed.

Official Colorado Court of Appeals proceedings can be found at the Colorado Court of Appeals website.

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