By Erin Ailworth
After accusing its former chief executive of stealing trade
secrets, Chesapeake Energy Corp. must try to settle its dispute
with the old CEO's new company through arbitration, according to a
district court judge in Oklahoma.
Chesapeake sued American Energy Partners LP and several of its
affiliates in mid-February. Chesapeake contends that the rival
company was built by Chesapeake co-founder and former chief, Aubrey
McClendon, using confidential data and maps of oil and gas
prospects taken shortly before Mr. McClendon's ouster from
Chesapeake in 2013.
Though Mr. McClendon isn't named in the suit, American Energy
argued that under the terms of Mr. McClendon's separation agreement
with Chesapeake, the case should be settled via arbitration.
"Chesapeake cannot escape its contractual commitment to
arbitrate through the procedural gimmick of leaving Mr. McClendon's
name off" the lawsuit, American Energy said in court filing
requesting arbitration.
Oklahoma County District Court Judge Thomas Prince agreed to the
request at the end of April, a court docket shows. It isn't clear
when arbitration begins.
In a Friday filing with the U.S. Securities and Exchange
Commission, American Energy said it believes the judge's decision
has put an end to Chesapeake's lawsuit.
A representative for Chesapeake declined to comment. American
Energy couldn't be reached for comment.
Write to Erin Ailworth at Erin.Ailworth@wsj.com
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