Attorneys for Cleveland-Cliffs have petitioned the Minnesota Supreme Court to review a lower court’s decision that allowed the termination of a mineral lease agreement by its rival and landlord, Mesabi Metallics.
The Minnesota Court of Appeals in December upheld a district court ruling that allowed termination to move forward based on an arbitration panel. Justices deciding the matter late last year ultimately said the Federal Arbitration Act (FAA) should prevail when reviewing arbitration awards in state court.
Cliffs, on Jan. 6, asked the Minnesota Supreme Court to reconsider the ruling as it seeks a “de novo” review by the lower courts, which would effectively let lower courts examine the issue from the beginning, without giving weight to prior decisions.
“This Court should make clear that Minnesota is not the outlier of outliers—that state law, not the FAA, sets the standards for judicial review of arbitration awards,” wrote W. Anders Folk, a Jones Day attorney representing the company, in the filing. “State law thus did not matter to the Court of Appeals.”
If the state’s highest court takes up the case, it will continue a legal battle over the lease agreement that started in 2017, and the long-running feud between the companies that dates back several more years.
At stake are 3,200 acres of iron ore near the Mesabi Metallics project in Nashwauk and Cliffs’ operations at Hibbing Taconite.
The former is in its final regulatory stages before production can start at the Iron Range’s first new mine in decades. Hibbing Taconite has undergone two rounds of layoffs, the most recent set to take place next month.
It’s unclear how further appeal will directly impact both projects. The Minnesota Supreme Court has 60 days from Jan. 6 to decide on hearing the case or denying the petition.
The land and minerals in question were first leased to Cliffs in 2017 by Glacier Park Iron Ore Properties as part of a larger transaction that saw the Cleveland-based steel giant also purchase property at the Nashwauk site. The company has since gained control of state mineral leases there.
Glacier Park sold the land to Mesabi Metallics in 2021 to settle a legal dispute, putting the bitter rivals in a landlord-renter relationship. Mesabi Metallics moved to terminate the leases in October 2023, citing the lack of a mine plan from Cliffs and claiming they weren’t allowed access to the property.
An arbitration panel ruled that Cliffs failed to request arbitration on time and dismissed the case. The company argued the panel exceeded its authority set in the Minnesota Uniform Arbitration Act (MUAA), and didn’t determine whether Cliffs breached the contract.
A district judge in Itasca County said the MUAA allowed for a de novo review, but sided with the arbitration panel. The Court of Appeals similarly upheld the decision last month, but said the FAA settled underlying questions of law.
Of note
Andrew M. Luger, the former U.S. Attorney for Minnesota, was listed as also representing Cliffs for Jones Day. Luger, who served as U.S. Attorney from 2014-2017 and 2022-2025, rejoined the firm as a partner last year, specializing in white collar defense.
