DANIEL L. HOVLAND, Chief District Judge.
Before the Court is a motion to intervene filed by Weatherford U.S., L.P, (Weatherford) on July 31, 2017.
This cases arises from a declaratory judgment action over a dispute of the constitutionality of a City of Williston ordinances, Ordinance 1026 and 1050, repealing the Special Permitted Use of "man camps" or "crew camps" during the recent oil boom in western North Dakota. The complaint in this case was filed on April 14, 2016.
In August of 2016, the City of Willison passed Ordinance 1050, which prompted a motion to file an amended complaint and a motion to vacate the preliminary injunction.
Weatherford asserts it is entitled to intervention as a matter of right pursuant to Rule 24(a)(2) or in the alternative, permissive intervention pursuant to Rule 24(b).
At the onset, Weatherford asserts that its motion to intervene is timely. The City of Williston responds that Weatherford's motion is untimely and would prejudice it if Weatherford were allowed to intervene. To determine whether a motion to intervene is timely, courts consider "(1) the extent the litigation has progressed at the time of the motion to intervene; (2) the prospective intervenor's knowledge of the litigation; (3) the reason for the dely in seeking intervention; and (4) whether the delay in seeking intervention may prejudice the existing parties."
First, although the case has been pending since April of 2016, the only activity of substance in the case has been the issuance and vacation of the preliminary injunction. The parties jointly agreed to stay all deadlines in the matter in May of 2017. Discovery has not been completed and no dispositve motions have been filed. The Court finds this factor favors intervention.
Second, the assertions regarding factors two and three, when Weatherford knew of the litigation and it's reasons for delay in seeking intervention, are closely related. Weatherford admits it knew of the litigation "not long after it was filed."
Finally, Weatherford asserts that the City of Williston has not been prejudiced by the delay in seeking intervention, noting that Weatherford's claims are nearly identical to those of the current plaintiffs; the case has been stayed; and that any ongoing settlement negotiations cannot be the basis for a finding of prejudice. The City of Williston contends that intervention would prejudice the existing parties because the City of Williston believes a settlement is "imminent" with the existing Plaintiffs. However, that was fourth months ago and the case has not settled. The City of Williston asserts that Weatherford failed to respond to attempts to discuss potential resolution. Eighth Circuit case law clearly states that ongoing settlement negotiations do not automatically create prejudice to the parties if another party seeks to intervene.
In sum, although Weatherford delayed in filing its motion to interview, the underlying litigation had not progressed significantly by the time they moved to intervene and the delay in seeking intervention did not prejudice the existing parties. Accordingly, the Court finds that Weatherford's motion to intervene is timely.
A party seeking mandatory intervention must establish that (1) it has a recognized interest in the subject matter of the litigation; (2) the interest might be impaired by the disposition of the case; and (3) the interest will not be adequately protected by the existing parties.
Weatherford asserts that (1) its interests are nearly identical to those of the other plaintiffs; (2) its interests may be impaired if the Court finds the ordinances are valid; and (3) its interests are not adequately represented by the existing parties because any potential settlement, injunction, or recovery of damages may not apply to it if it is not a party to the action. The City of Williston relied upon its arguments of untimeliness and prejudice and did not address the three factors for intervention under Rule 24(a)(2).
As to factor one, the Court finds that Weatherford clearly has an interest in the subject matter of the litigation. Weatherford, like the existing plaintiffs, was subject to the ordinances passed by the City of Williston. The Court also finds that Weatherford's interests may be impaired by the disposition of the case. If the Court were to find the ordinances were valid, Weatherford would be required to comply with the ordinances. Regardless of the outcome of this case, Weatherford's interests will be impacted by its disposition.
Finally, as to whether Weatherford's interests are adequately represented by the existing parties, the Court finds this factor favors intervention. Intervenors are typically required to carry only a minimal burden of showing that their interest are not adequately protected by the existing parties.
The Court carefully reviewed the entire record and concludes Weatherford has satisfied the requirements for intervention as of right under Rule 24(a)(2) of the Federal Rules of Civil Procedure. Accordingly, the motion to intervene (Docket No. 84) is