Cross Border Resources, Inc. v. Black Shale Minerals, LLC

Filing 16

ORDER by District Judge Kenneth J. Gonzales granting in part 15 Motion to Consolidate. (tah)

IN THE UNITED STATED DISTRICT COURT
FOR THE DISTRICT OF NEW MEXICO

CROSS BORDER RESOURCES, INC.,
Plaintiff,
Civ. Nos.

17-1013 KG/SMV
17-1016 MV/CG

v.
BLACK SHALE MINERALS, LLC,
Defendant.

ORDER OF LIMITED CONSOLIDATION
This matter comes before the Court on the Defendant’s Unopposed Motion to
Consolidate (Motion), filed December 5, 2017. (Doc. 15). The parties seek to consolidate two
contract actions that were removed from New Mexico’s Fifth Judicial District Court: Cross
Border Resources, Inc., v. Black Shale Minerals, LLC , Civ. No. 17-1013 KG/SMV and Cross
Border Resources, Inc., v. Black Shale Minerals, LLC , Civ. No. 17-1016 MV/CG. The parties
agree the “actions …. involve common question[s] of law or fact,” as required by Fed. R. Civ. P.
42(a). Counsel for Plaintiff has also advised that following consolidation, the parties intend to
submit a stipulated order transferring venue to the United States Bankruptcy Court for the
Northern District of Texas (Texas Bankruptcy Court). The Texas Bankruptcy Court—which is
currently presiding over Plaintiff’s Chapter 11 bankruptcy case—would then preside over all
remaining issues.
The Court agrees it is appropriate to consolidate the cases for the purpose of determining
the proper forum and, if appropriate, transferring the cases to the Texas Bankruptcy Court. To

the extent such actions implicate the automatic bankruptcy reference under 28 U.S.C. § 157, the
Court withdraws the reference to rule on issues relating to consolidation and proper forum. See
Administrative Order No. 84-0324 (referring the exercise of jurisdiction over all bankruptcyrelated filings to the Bankruptcy Court); 28 U.S.C. § 157(d) (“The district court may withdraw,
in whole or in part, any case or proceeding referred under this section, on its own motion or on
timely motion of any party, for cause shown.”). If and when the cases are transferred, any
automatic bankruptcy reference will remain intact, and the Texas Bankruptcy Court may
determine whether continued consolidation is appropriate.
IT IS ORDERED:
1.

The Motion to Consolidate (Doc. 15) is granted, in part.

2.

Cross Border Resources, Inc., v. Black Shale Minerals, LLC , Civ. No. 17-1013

KG/SMV and Cross Border Resources, Inc., v. Black Shale Minerals, LLC , Civ. No. 17-1016
MV/CG are consolidated to determine issues relating to the proper forum.
3.

Unless and until the cases are transferred, all future filings shall be filed under

Civ. No. 17-1013 KG/SMV.

________________________________________
UNITED STATES DISTRICT JUDGE

Consolidation of the cases was approved by the following parties, although the Court made edits
to the proposed stipulated order:
HINKLE SHANOR LLP

By: ___/s/ Richard E. Olson_____________________
Richard E. Olson
P.O. Box 10
Roswell, NM 88202-0010

[phone]
[phone] fax
[e-mail]
Attorneys for Plaintiff Cross Border Resources, Inc.
GALLAGHER & KENNEDY, P.A.

By: __/s/ Gene F. Creely, II_______________________
Gene F. Creely, II
Germaine R. Chappelle
1233 Paseo De Peralta
Santa Fe, NM 87501
[phone]
[phone] fax
[e-mail]
[e-mail]
Attorneys for Defendant Black Shale Minerals, LLC