Cargill, Inc. v. Offshore Logistics, Inc., No. 79-3245

CourtUnited States Courts of Appeals. United States Court of Appeals (5th Circuit)
Writing for the CourtBefore HILL, GARZA and THOMAS A. CLARK; GARZA
Citation615 F.2d 212
PartiesCARGILL, INCORPORATED, Plaintiff-Appellant, v. OFFSHORE LOGISTICS, INC., Defendant-Appellee. Summary Calendar. *
Docket NumberNo. 79-3245
Decision Date07 April 1980

Page 212

615 F.2d 212
CARGILL, INCORPORATED, Plaintiff-Appellant,
v.
OFFSHORE LOGISTICS, INC., Defendant-Appellee.
No. 79-3245
Summary Calendar. *
United States Court of Appeals,
Fifth Circuit.
April 7, 1980.

Onebane, Donohoe, Bernard, Torian, Diaz, McNamara & Abell, Randall C. Songy, Lafayette, La., for plaintiff-appellant.

Page 213

Phelps, Dunbar, Marks, Claverie & Sims, Howard Daigle, Jr., New Orleans, La., for defendant-appellee.

Appeal from the United States District Court for the Western District of Louisiana.

Before HILL, GARZA and THOMAS A. CLARK, Circuit Judges.

GARZA, Circuit Judge:

In this diversity case we are asked by the Appellant, Cargill, Inc., to rule contrary to the state law of Louisiana as previously followed by this court. This we decline to do and affirm the court below.

On November 19, 1977, a helicopter owned and operated by the Defendant and Appellee here, Offshore Logistics, Inc., struck and severed a power line owned by Central Louisiana Electric Company, Inc., hereinafter called CLECO. Appellant Cargill, Inc. alleges that as a result of this incident CLECO was unable to supply electrical power to its salt mine in Belle Isle, Louisiana, thus forcing Plaintiff to suffer its alleged damages. The power was off for a period of three days and Cargill alleges that it lost production revenues and had to pay contractual penalties to customers whom they could not supply what they had contracted to do.

The court below granted the Defendant Appellees' motion for summary judgment which had been filed claiming that the complaint failed to state a cause of action under the substantive law of Louisiana.

CLECO did not have the necessary facilities to service the electrical needs of Cargill at its salt mine and on March 19, 1962, Plaintiff Appellant Cargill and CLECO entered into an agreement for electric service to the Plaintiff Appellants' salt mine under which CLECO would furnish Cargill all of its electrical power needs. The parties agreed that the cost of building this thirteen mile transmission line and power stations would cost no less than $250,000.00 and attached a Rider to the usual form of electrical power contract under which Cargill agreed to pay a facilities charge to CLECO of $2,000 per month during the ten year period of the contract. Cargill agreed to pay so much for each kilowatt hour of power used plus $2,000.00 a month. Under the Rider CLECO agreed to rebate so much for power used by Cargill and any other customer receiving power from this transmission line and facilities but the rebate could never exceed the amount of the facilities charge of $2,000 per month. The contract was to terminate in October of 1972. At the time of the severance of the transmission line Sun Oil Company was also receiving power from CLECO to operate its gas processing plant located on Belle Isle.

The contract between CLECO and Cargill contemplated that Cargill would pay the facilities charge provided for in the Rider whether they bought power or not from CLECO. CLECO reserved the right to remove its poles, lines and power station facilities from the property of Cargill at the termination of the agreement.

The negligence of the Appellee Offshore Logistics, Inc. resulted in damage to the physical property of CLECO and they were the only ones that could receive damages for such negligence since they were the owners of the physical property damaged. It seems to be clear that...

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13 practice notes
  • American Waste & Pollution Control Co. v. Browning-Ferris, Inc., BROWNING-FERRI
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • 23 Diciembre 1991
    ...the Supreme Court of Louisiana and not this court to change the substantive law of that state." Cargill, Inc. v. Offshore Logistics, Inc., 615 F.2d 212, 215 (5th Cir.1980). It took the Louisiana Supreme Court almost 90 years to recognize a quite narrow cause of action for tortious contractu......
  • Jackson v. Johns-Manville Sales Corp., JOHNS-MANVILLE
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • 22 Enero 1986
    ...Supreme Court of [Mississippi] and not this court to change the substantive law of that state." Cargill, Inc. v. Offshore Logistics, Inc., 615 F.2d 212, 215 (5th Cir.1980). Finally, "under Erie we cannot skirt the clear import of state decisional law solely because the result is harsh." Par......
  • Parker v. Brush Wellman, Inc., No. CIV.A.1:04 C V 0606.
    • United States
    • United States District Courts. 11th Circuit. United States District Courts. 11th Circuit. Northern District of Georgia
    • 29 Marzo 2005
    ...has indicated is appropriate. Such is not the proper function of a federal court. See Page 1299 Cargill, Inc. v. Offshore Logistics, Inc., 615 F.2d 212, 215 (5th Cir.1980) (it is up to state high court, and not federal court, to change state law);7 see also City of Philadelphia v. Beretta U......
  • Aspen Specialty Ins. v. Muniz Engineering, Civil Action No. H-05-0277.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (1st Circuit)
    • 30 Marzo 2007
    ...law," even though a party "cites ... many scholarly criticisms of the rule" at issue. Cargill, Inc. v. Offshore Logistics, Inc., 615 F.2d 212, 215 (5th Cir.1980). Thus, a federal court must apply state law C. Insurance Agent Liability in Texas. Under Texas law an insurance agent can be liab......
  • Request a trial to view additional results
13 cases
  • American Waste & Pollution Control Co. v. Browning-Ferris, Inc., BROWNING-FERRI
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • 23 Diciembre 1991
    ...the Supreme Court of Louisiana and not this court to change the substantive law of that state." Cargill, Inc. v. Offshore Logistics, Inc., 615 F.2d 212, 215 (5th Cir.1980). It took the Louisiana Supreme Court almost 90 years to recognize a quite narrow cause of action for tortious contractu......
  • Jackson v. Johns-Manville Sales Corp., JOHNS-MANVILLE
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • 22 Enero 1986
    ...Supreme Court of [Mississippi] and not this court to change the substantive law of that state." Cargill, Inc. v. Offshore Logistics, Inc., 615 F.2d 212, 215 (5th Cir.1980). Finally, "under Erie we cannot skirt the clear import of state decisional law solely because the result is harsh." Par......
  • Parker v. Brush Wellman, Inc., No. CIV.A.1:04 C V 0606.
    • United States
    • United States District Courts. 11th Circuit. United States District Courts. 11th Circuit. Northern District of Georgia
    • 29 Marzo 2005
    ...has indicated is appropriate. Such is not the proper function of a federal court. See Page 1299 Cargill, Inc. v. Offshore Logistics, Inc., 615 F.2d 212, 215 (5th Cir.1980) (it is up to state high court, and not federal court, to change state law);7 see also City of Philadelphia v. Beretta U......
  • Redguard, LLC v. Areno (In re Areno), Case No. 18-20717
    • United States
    • U.S. Bankruptcy Court — Western District of Louisiana
    • 22 Mayo 2020
    ...to the Supreme Court of [that state] and not [a federal] court to change ... substantive law." Cargill, Inc. v. Offshore Logistics, Inc. 615 F.2d 212, 215 (5th Cir. 1980) ; Aspen Specialty Ins. Co ., 514 F. Supp. 2d at 982.The relevant factors here are: La. R.S. § 12:1320, and the rationale......
  • Request a trial to view additional results

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