Lejeune Bros. v. Goodrich Petroleum Co.
| Decision Date | 28 November 2007 |
| Docket Number | No. 06-1557.,06-1557. |
| Citation | 981 So.2d 23 |
| Parties | LEJEUNE BROTHERS, INC. v. GOODRICH PETROLEUM CO., L.L.C., et al. |
| Court | Court of Appeal of Louisiana — District of US |
Donald T. Carmouche, Victor L. Marcello, John H. Carmouche, Kenneth Jay DeLouche, William R. Coene, III, Brian T. Carmouche, Talbot, Carmouche & Marcello, Gonzales, LA, M. Bofill Duhe, Robert C. Vines, New Iberia, LA, Patricia E. Weeks, John P. Gonzalez, Weeks & Gonzalez New Orleans, LA, for Plaintiff/Appellant, LeJeune Brothers, Inc.
Scott C. Sinclair, Sinclair Law Firm, L.L.C., Shreveport, LA, Defendant/Appellee, Goodrich Petroleum Co., L.L.C.
Williams G. Davis, Milling, Benson, Woodward, L.L.P., Baton Rouge, LA, for Defendant/Appellee, Tom Brown, Inc.
D. Reardon Stanford, Hoyt & Stanford, L.L.C. Lafayette, LA, for Defendant/Appellee, Margaret Viator Estis Saunier.
Court composed of SYLVIA R. COOKS, OSWALD A. DECUIR and JAMES T. GENOVESE, Judges.
In this oil and gas contamination case, the Plaintiff appeals the trial court's judgment granting the Defendant's motion for partial summary judgment and exception of no right of action. For the following reasons, we affirm.
The property at issue in this case, a tract of land located in Iberia Parish, was acquired by David Baez, Jr. through his father's estate in 1963 and through a transfer from his mother in 1965. In 1976, an oil well known as the "D. Baez No. 1 Well" was drilled and completed as a producer. The well was operated by Hawthorne Oil & Gas Corporation (a predecessor of defendant Goodrich Petroleum) under a mineral lease that had been granted by Baez in 1970.1 The Baez Well was plugged and abandoned in 1987. However, the Baez lease continued by virtue of production from another well, the Boutte Well, which covered a portion of the property. Production in the Boutte well became sporadic in 1993, lapsed for 180 days in 1998, and ceased entirely in April 1999.
On September 19, 2000, LeJeune Brothers purchased the property at issue from Baez. One-half of the mineral rights in the sale were reserved by Baez, but this reservation was conditioned upon an agreement by Baez not to use the surface for mineral exploration or development. After the sale, LeJeune Brothers discovered that the property was contaminated with oilfield exploration and production waste. LeJeune Brothers maintained it had no knowledge of the contamination when it purchased the property.
On August 22, 2003, LeJeune Brothers filed suit against Goodrich Petroleum and several other defendants, alleging its property had been damaged and contaminated as a result of oil and gas activities. LeJeune Brothers dismissed its claims against all of the original defendants, except for Goodrich Petroleum. Goodrich Petroleum answered the suit and also filed third party demands against Tom Brown, Inc., Margaret Ellis Saunier, Sandra Ann Estis Turner, Wendy Marie Estis Touchet, Jamie Marie Estis Benoit and Edward Ivey Estis, Jr., alleging under various theories that they were liable for either contribution or indemnity for any possible judgment that Goodrich Petroleum may owe to LeJeune Brothers. Tom Brown, Inc. then filed its own cross-claim against the Estis family third-party defendants seeking indemnity for any amounts which Tom Brown, Inc. may be cast in judgment. LeJeune Brothers did not file any claims against either Tom Brown, Inc. or the Estis family.
Goodrich moved for partial summary judgment, claiming that LeJeune Brothers did not have contract and punitive damage claims against it.2 On June 30, 2006, the trial court granted Goodrich's motion, finding LeJeune Brothers did not have contract claims against Goodrich as it was not a successor or assignee of any rights under the mineral lease granted by Baez in 1970. The trial court rendered the following written reasons for judgment:
Since 1996, with the Amendment of Louisiana Code of Civil Procedure Article 966, summary judgments are favored by Louisiana Courts. Although the burden begins with the mover on the Motion for Summary Judgment, once the mover has made a prima facie showing that its motion should be granted, the burden then shifts to the non-moving party to present evidence that a material factual issue remains.
In the case at bar, Lejeune Brothers L.L.C. (Lejeune Brothers) concedes that there is no genuine issue of material fact relative to their punitive damages claim and the claim for mental anguish. The only issue remaining is whether Lejeune Brothers' contract claim is supported by the facts of this case and Louisiana law. As the facts of this case do not support a finding that Plaintiff has acquired the right to sue as a party to a contract or assignee, the specific issue is whether Plaintiff acquired the right to sue, pursuant to the Baez Lease, by virtue of a stipulation pour autrui.
After review of the pertinent language of the Baez Lease and jurisprudence, this Court finds the language of the Baez Lease does not create a stipulation pour autrui in favor of Lejeune Brothers. See Broussard vs. Northcott Exploration Company, Inc., 481 So.2d 125, 127 (La.1986). The language of this contract is distinguishable from the language and subsequent pronouncements of Andrepont v. Acadia Drilling Company, 255 La. 347, 231 So.2d 347, 351 (1969); and Hazelwood Farm, Inc. v. Liberty Oil and Gas Corp., et al, 790 So.2d 93 (La.App. 3 Cir. 6/20/01).
Lejeune Brothers further argued that they acquired the right to sue in contract because of the implied obligation to restore the property to its original pre-lease condition that is inherent in all mineral leases, citing Terrebonne Parish School Board v. Castex Energy, Inc., 893 So.2d 789, 791-792, 2004-0968 (La.1/19/05), Mineral Code Article 122, LSA-R.S. 31:122. While the Terrebonne Court addressed the obligations owed the lessor and/or assignee inherent in all mineral leases, applying the jurisprudence and Civil Code articles discussed, the Court held "in absence of an express lease provision, Mineral Code Article 122 does not impose a duty to restore the surface to its original, pre-lease condition absent proof that the lessee has exercised his rights under the lease unreasonably and excessively." Id. at 801. Additionally, no evidence was offered that suggest the facts before us fall under the line of cases that require restoration as a matter of expressed obligations found in the lease and outside the purview of the mineral code. Thus, movants are entitled to summary judgment as a matter of law as no genuine issue of material fact exist on the limited question before the Court.
Goodrich then filed an exception of no right of action on July 7, 2006, asserting that LeJeune Brothers had no right of action to maintain their non-contractual claims. Specifically, Goodrich argued "the claim for damages that is being pursued by LeJeune Brothers is actually a claim that belonged to Baez and has not been transferred or conveyed to LeJeune Brothers." On that same date, LeJeune Brothers filed a motion for reconsideration of the trial court's ruling granting partial summary judgment. The matter was set for hearing on July 25, 2006, after which the trial court granted the no right of action dismissing "all tort claims alleged by LeJeune Brothers, L.L.C., against Goodrich Petroleum, L.L.C., for damage to the subject property." On that date, the trial court also denied LeJeune Brothers' motion for reconsideration of its earlier ruling granting the partial motion for summary judgment. On August 9, 2006, the trial court signed a comprehensive judgment prepared by Goodrich dismissing all claims of LeJeune Brothers and dismissing all of the pending third party demands.
LeJeune Brothers filed a motion for new trial, which was denied by the trial court. This appeal followed, wherein LeJeune Brothers appealed from the following rulings and actions of the trial court:
(1) The judgment granting Goodrich's motion for partial summary judgment.
(2) The judgment granting Goodrich's exception of no right of action, dismissing all of LeJeune Brothers' tort claims for damage to the subject property.
(3) The judgment of August 9, 2006, dismissing all claims of LeJeune Brothers.
As to the three judgments appealed from, LeJeune Brothers asserted the following assignments of error:
(1) The trial court committed error in granting partial summary judgment on the contract claims of plaintiff.
(2) The trial court committed error in finding that plaintiff was not a successor or assign of Baez who is entitled to bring this restoration action to enforce the express and implied obligations on the mineral lease.
(3) The trial court committed error in failing to find that plaintiff was a third party beneficiary of the mineral lease.
(4) The trial court committed error in granting Goodrich's exception of no right of action on the tort claims of plaintiff.
(5) The trial court committed error in dismissing all claims of the plaintiff in its judgment of August 9, 2006.
(6) The trial court committed error in failing to find that plaintiff has a right and cause of action for restoration damages under the Mineral Code, articles 11 and 122.
(7) The trial court committed error in dismissing plaintiff's claims under La. Civ.Code art. 667 and claims for unjust enrichment.
LeJeune Brothers contends partial summary judgment should not have been granted on its contract claims, because it succeeded to the rights in the Baez Lease because it was a party or assignee of that lease. Goodrich argued to the court below that LeJeune Brothers "is not a party to the Baez Lease, is not an assignee to the Baez Lease, and is not a third party beneficiary under the Baez lease." Thus, Goodrich argues LeJeune Brothers has no contract claims based on that lease. The trial court agreed with Goodrich.
The facts are undisputed that...
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