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 Feeling shortchanged by a ruling that allows the Continental
Resources <CLR.N> chief executive officer to keep around 94 percent
of the estimated $18 billion rise in his Continental shares during a
26-year marriage, Sue Ann Hamm will appeal within a few weeks, one
of her lawyers, Ron Barber, told Reuters on Thursday.
She believes the decision was "not equitable," Barber said.
On Monday, Oklahoma County Court Judge Howard Haralson ordered the
CEO, who is believed to own more oil than any other American, to pay
his ex-wife $995 million. The ruling allows her to keep additional
assets, including a California ranch and an Oklahoma home, worth
tens of millions more.
The Hamm v. Hamm divorce judgment is one of the largest in U.S.
history, but Sue Ann's award is a small fraction of the wealth
Haralson allowed Harold Hamm to keep.
He holds more than 68 percent of Continental's stock, a stake valued
at around $13.5 billion today. It was worth more than $18 billion
before the 9 1/2-week divorce trial began in August. Continental
shares have fallen sharply since then, in line with global oil
prices.
 Haralson ruled that $1.4 billion of the growth in his Continental
shares during the marriage was "marital capital" to be split with
Sue Ann. The rest was awarded to Harold as “separate property.”
“Sue Ann is disappointed in the outcome of this case. She dedicated
25 years as Harold’s faithful partner in family and business,”
Barber said.
A lawyer and economist, Sue Ann Hamm worked at Continental during
stretches of the couple’s marriage, which began in 1988. At one
point, the ruling says, she was an executive in charge of
Continental's crude marketing division. She left the company in
2008. At other times she worked in the home, helping to raise the
couple's two children.
In Oklahoma, a divorce appeal can be heard by a State Court of
Appeals panel or the Oklahoma Supreme Court.
A higher court could review the case and affirm Haralson’s judgment,
or modify the award. It could also send the case back to Haralson to
be re-tried.
Family law experts say the process could take anywhere from 18
months to several years. Sue Ann Hamm has 30 days from when the
ruling was filed, on Nov. 10, to appeal it.
As part of Monday's ruling, Haralson ordered Harold Hamm to pay his
ex-wife more than $322 million by Dec. 31, and continue with monthly
payments of at least $7 million until he covers an additional $650
million balance. She has received around $23 million from the
marital estate since filing for divorce in 2012.
To secure the judgment, Haralson placed a lien on 20 million shares
of the CEO’s Continental stock. Whether an appeal would alter the
payment schedule remains unclear.
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Craig Box, an attorney for Harold Hamm, said the CEO considers
Haralson’s ruling to be “fair and equitable.” Hamm declined to
comment on the prospect on an appeal. The Hamm divorce is a
"personal matter," said Continental spokeswoman Kristin Miskovsky.
The company has said the case has no impact on business.
Following the news, shares of Continental extended earlier losses.
They fell 3.1 percent on the day as U.S. oil prices sank below $80
per barrel for the first time in four years.
400-FOLD INCREASE
The Hamms had no prenuptial agreement. During their marriage,
Continental's value soared by around 400-fold, and Hamm, the 13th
child of sharecroppers, became Oklahoma's richest person.
Hamm, 68, founded Continental in 1967, more than two decades before
he married Sue Ann. But Oklahoma law typically requires that the
enhanced value of premarital property be split "equitably" in a
divorce if it resulted from the efforts or skills of either spouse
during marriage.
Haralson attributed most of Continental's growth during the marriage
to passive or market factors, including rising oil prices and new
drilling technologies.
Continental holds a leading position in the Bakken Shale, the
largest U.S. oil discovery in decades. Harold Hamm is often credited
with pioneering its development.
During the trial, his lawyers contended that passive factors and the
"teamwork" of others at Continental accounted for most of the
company's dazzling growth during the marriage.
 "We believe that Harold should be given more credit for
Continental's success," Sue Ann Hamm's lawyers said.
(Editing by Jonathan Leff and Douglas Royalty)
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