On May 2, 2025, WilmerHale achieved a significant appellate victory for oil-and-gas producer Continental Resources in a complex, multimillion-dollar mineral rights dispute with the state and federal governments in North Dakota. A panel of the US Court of Appeals for the Eighth Circuit upheld a lower-court ruling that the federal government had waived its immunity to Continental’s lawsuit seeking to resolve conflicting federal and state government leasing claims against the company.
Several years ago, North Dakota and the federal government each claimed ownership over lands leased by Continental, leaving the company facing conflicting demands for millions of dollars in royalty payments. At WilmerHale’s suggestion, Continental sought to avoid potential double liability by filing an interpleader lawsuit—a special type of lawsuit that allows a plaintiff to compel those asserting conflicting claims to a valuable asset to obtain a judicial resolution.
The United States responded to Continental’s lawsuit by asserting sovereign immunity, a doctrine that typically bars anyone from suing the federal government without its consent. Continental argued that federal statute 28 U.S.C. §2410(a) waived the government’s immunity to the company’s lawsuit. The statute provides that the federal government may be named as a defendant in any interpleader action that concerns “real or personal property on which the United States has or claims a … lien.”
A United States District Court for the District of North Dakota judge agreed with Continental’s position and rejected the government’s request to dismiss the lawsuit. The judge then resolved the dispute between North Dakota and the federal government over ownership of the lands (a dispute on which Continental took no position).
The United States appealed the judge’s decision to the Eighth Circuit.
After receiving briefing from the parties and hearing oral argument, a three-judge panel upheld the trial judge’s ruling. The appeals court followed what it called “the plain meaning” of the “clear statutory language,” rejecting the federal government’s argument that the plain language of the relevant state and federal statutes should largely be disregarded in light of legislative history or certain judicial decisions. The court also upheld the judge’s resolution of the land dispute between North Dakota and the United States.
The decision ensures that Continental and entities in similar situations will not be unfairly subjected to the prospect of double liability simply because of sovereign immunity. More broadly, the decision reinforces the principle that courts must give effect to clear statutory language—like that in §2410(a)—rather than legislative history or inapposite judicial decisions.
The WilmerHale team for the Eighth Circuit proceedings included David Ogden, Daniel Volchok (who presented oral argument) and Andres Salinas. The team was assisted by Tom Saunders, Kevin Lamb and Nitisha Baronia and received invaluable support from Russell Davis, Pat Taylor and Jenn King. Former WilmerHale attorneys Paul Wolfson, Nate Custer and David Lehn also provided essential contributions in the early stages of the litigation.