Litel Explorations, L.L.C. v. Aegis Dev. Co.

• Decision Date: 12 November 2020
• Docket Number: CW 20-373
• Parties: LITEL EXPLORATIONS, L.L.C. v. AEGIS DEVELOPMENT COMPANY, L.L.C., et al.
• Court: Court of Appeal of Louisiana — District of US

307 So.3d 1087

LITEL EXPLORATIONS, L.L.C.

v.AEGIS DEVELOPMENT COMPANY, L.L.C., et al.

CW 20-373

Court of Appeal of Louisiana, Third Circuit.

November 12, 2020

Donald T. Carmouche, Victor L. Marcello, John H. Carmouche, William R. Coenen, III, Brian T. Carmouche, Todd J. Wimberley, Ross J. Donnes, D. Adele Owen, Leah C. Poole, Caroline H. Martin, Christopher D. Martin, Michael L. Heaton, Talbot, Carmouche, & Marcello, 17405 Perkins Road, Baton Rouge, LA 70810, (225) 400-9991, COUNSEL FOR PLAINTIFF/APPLICANT: Litel Explorations, LLC

David P. Bruchhaus, Wesley A. Romero, Mudd, Bruchhaus & Keating, LLC, 422 E. College Street, Suite B, Lake Charles, LA 70605, (337) 562-2327, COUNSEL FOR PLAINTIFF/APPLICANT: Litel Explorations, LLC

Alan J. Berteau, R. Benn Vincent, Jr., Matthew Smith, Hattie V. Guidry, Kristi D. Obafunwa, Lauren J. Rucinski, Kean Miller LLP, P. O. Box 3513, Baton Rouge, LA 70821, (225) 387-0999, COUNSEL FOR DEFENDANT/RESPONDENT: BP America Production Company

Douglas C. Longman, Carmen M. Rodriguez, Jones Walker LLP, 600 Jefferson Street, Ste 1600, Lafayette, LA 70501, (337) 593-7600, COUNSEL FOR DEFENDANT/RESPONDENT: Apache Corporation

Boyd A. Bryan, F. Gibbons Addison, Jones Walker LLP, 445 North Blvd., Suite 800, Baton Rouge, LA 70802, (225) 248-2134, COUNSEL FOR DEFENDANT/RESPONDENT: Apache Corporation

D. Russell Holwadel, Ira J. Rosenweig, Adams Hoefer, Holwadel, LLC, 400 Poydras St., Ste 2450, New Orleans, LA 70130, (504) 581-2606, COUNSEL FOR DEFENDANT/RESPONDENT: Denbury Onshore, LLC

Eric E. Jarrell, Robert J. Burvant, Michael J. Cerniglia, King, Krebs & Jurgens, P.L.L.C., 201 St. Charles Ave., 45th Floor, New Orleans, LA 70170, (504) 582-1233, COUNSEL FOR DEFENDANT/RESPONDENT: ConocoPhillips Company

Brian W. Capell, Brittan J. Bush, Liskow & Lewis, 822 Harding Street, Lafayette, LA 70505, (337) 232-7424, COUNSEL FOR DEFENDANT/RESPONDENT: Gary Production Company

Michael Lester Schilling, Jr., Michael L. Schilling, Jr. & Associates, P. O. Box 4907, Lafayette, LA 70502, (337) 739-0777, COUNSEL FOR DEFENDANT/RESPONDENT: MTBB Acquisitions, LLC

Christoffer C. Friend, Meghan E. Smith, Jones Walker LLP, 201 St. Charles Ave, Ste 4700, New Orleans, LA 70170, (504) 582-8000, COUNSEL FOR DEFENDANT/RESPONDENT: Oxy USA, Inc., CanadianOxy Offshore Production Company

William D. Lampton, W. Thomas McCall, Jr., Jones Walker LLP, 445 N. Blvd, Ste. 800, Baton Rouge, LA 70802, (225) 248-2000, COUNSEL FOR DEFENDANT/RESPONDENT: Oxy USA, Inc., Canadian Oxy Offshore ProductionCompany

Kevin R. Derham, Garrison, Yount, Forte, & Mulcahy, 909 Poydras, Ste 1800, New Orleans, LA 70112-4053, (504) 527-0686, COUNSEL FOR DEFENDANT/RESPONDENT: Sandhill Production

Jakson D. Logan, III, Attorney at Law, 511 Queensbury Drive, Lafayette, LA 70508, (214) 605-0494, COUNSEL FOR DEFENDANT/RESPONDENT: Sandhill Production

Daniel C. Hughes, A Professional Law Corporation, 126 Heymann Blvd., Lafayette, LA 70503, (337) 237-6566, COUNSEL FOR DEFENDANT/RESPONDENT: Henry Production Company, Inc.

Patrick D. Gallaugher, Jr., Phillip W. DeVilbiss, Scofield, Gerard, Pohorelsky, Gallaugher & Landry, LLC, 901 Lakeshore Dr., Ste. 900, Lake Charles, LA 70601, (337) 433-9436, COUNSEL FOR DEFENDANT/RESPONDENT: Manti Resources, Inc.

David N. Luder, Barrasso Usdin Kupperman Freeman & Sarver, LLC, 909 Poydras St., 24th Floor, New Orleans, LA 70112, (504) 589-9700, COUNSEL FOR DEFENDANT/RESPONDENT: Hanley Petroleum LLC

John A. Adams, F. Jonathan Rice, Lousiana Office of Conservation, P. O. Box 94275, Baton Rouge, LA 70804, (225) 342-5500, COUNSEL FOR INTERVENOR/RESPONDENT: State of Louisiana through the Office of Conservation, and its Commissioner, Richard P. Ieyoub

Phillip E. Foco, John A. Viator, Patrick H. Hunt, Colin P. O'Rourke, Bienvenu, Bonnecoze, Foco, Viator & Holinga, APLLC, 4210 Bluebonnet Blvd., Baton Rouge, LA 70809, (225) 388-5600, COUNSEL FOR DEFENDANT/RESPONDENT: Exxon Mobil Oil Corporation Mobil Exploration and Producing Southeast, Inc.

Paul J. Hebert, Mark D. Sikes, William H.L. Kaufman, Valerie V. Guidry, Ottinger Hebert, L.L.C., 1313 West Pinhook Road, Lavayette, LA 70503, (337) 232-2606, COUNSEL FOR DEFENDANT/RESPONDENT: Pioneer Natural Resources USA, Inc.

Celeste D. Elliott, Shaundra M. Schudmak, Lugenbuhl, Wheaton, Peck, Rankin & Hubbard, 601 Poydras St., Suite 2775, New Orleans, LA 70130, (504) 568-1990, COUNSEL FOR DEFENDANT/RESPONDENT: United Specialty Insurance Company

J. Todd Reeves, The Reeves Law Firm, L.L.C., 1401 Enclave Parkway, Ste. 400, Houston, TX 77077, (281) 597-8880, COUNSEL FOR DEFENDANT/RESPONDENT: Texas Oil Distribution & Development, Inc.

Court composed of Elizabeth A. Pickett, D. Kent Savoie, and Jonathan W. Perry, Judges.

SAVOIE, Judge.

Relator, Litel Explorations, LLC (Litel), seeks writs from the granting of several motions for partial summary judgment which found that it did not have a right of action to enforce certain obligations.

STATEMENT OF THE CASE

This is a legacy lawsuit that involves two adjacent tracts of land, the Riviana Tract and the Lyon Tract, which are located in Jefferson Davis Parish. Litel acquired ownership of the Riviana Tract in March of 2016 from Jackson Land Company (Jackson).¹ Litel acquired ownership of the Lyon Tract in May of 2016 from Emery Lyon (Emery) and his wife.²

Litel filed a suit for damages against thirty-six defendants, including Mobil Oil Exploration & Production Southeast, Inc. (MOEPSI), Apache Corporation of Delaware (Apache), and BP America Production Company (BP). The petition was twice amended. The suit alleged that the two tracts were contaminated by oil and gas exploration and production activities.

In response, MOEPSI filed three motions for partial summary judgment on the issues of lease termination and Litel's right to enforce obligations under: (1) the 1954 Lyon Oil, Gas, and Mineral Lease granted by Ralph R. Lyon and Gilbert Lyon, Sr., to A. B. Crutcher, Jr. (the 1954 Lyon OGML), which was stipulated to have terminated no later than December 1, 1991; (2) the 1953 Oil, Gas, and Mineral Lease from Louisiana State Rice Milling company, Inc., to Louisiana Land & Exploration (the 1953 LRM OGML), which was stipulated to have terminated no later than March 16, 1993; and (3) the 1990 Riviana OGML, which was stipulated to have terminated no later than April 1, 1994. Apache filed a motion for summary judgment on the issues of lease termination and Litel's right to enforce obligations under the 1953 LRM OGML. BP filed motions for partial summary judgment on the issues of lease termination and Litel's right to enforce obligations under the 1953 LRM OGML and the 1954 Lyon OGML.

The motions for partial summary judgment came for hearing on June 12, 2020. The trial court granted the motions in open court. On July 2, 2020, the trial court signed a written judgment that granted the motions and dismissed: (1) all claims asserted by Litel seeking to enforce any obligations owed by MOEPSI, Apache, and BP under the 1953 LRM OGML; (2) all claims asserted by Litel seeking to enforce any obligations owed by MOEPSI and BP under the 1954 Lyon OGML; and (3) all claims asserted by Litel seeking to enforce any obligations owed by MOEPSI under the 1990 Riviana OGML.

Litel timely filed its notice of intent to seek supervisory writs, and the trial court set a return date of July 12, 2020. This writ application was timely filed. MOEPSI filed an opposition to the writ application. Apache and BP filed a joint opposition to the writ application. Litel filed a reply brief.

SUPERVISORY RELIEF

This matter concerns the granting of three motions for partial summary which dismiss certain claims asserted by Litel, finding that Litel has no right of action to enforce certain obligations against MOEPSI, Apache, and BP. The judgment is, therefore, a partial summary judgment under La.Code Civ.P. art. 1915(B).

We note that writ applications involving the granting of partial summary judgments under Article 1915(B) are routinely denied by this court and remanded to the trial court when there is an adequate remedy through an ordinary appeal, either by obtaining a designation that the partial summary judgment constituted a final judgment under Article 1915(B)(1) for express reasons given or by an appeal following the complete adjudication of the case.³ See Spears v. Shelter Mut. Ins. Co. , 14-1191 (La.App. 3 Cir. 4/1/15), 160 So.3d 631, writ denied , 15-872 (La. 6/19/15), 172 So.3d 653. See also, Terrell v. Town of Lecompte , 18-1087, p. 1 (La. 9/28/18), 253 So.3d 134, 135, wherein the Louisiana Supreme Court remanded the case to the trial court "for a determination of whether or not this partial summary judgment is a final judgment. If it is certified as a final judgment, then it can be appealed, provided appellate requirements are met. If this partial summary judgment is not designated as a final judgment, then there is an adequate remedy on appeal."

However, we note that if the instant matter proceeds to trial without review of this partial summary judgment, it creates the possibility that a second trial would be necessitated by the reversal of the summary judgment on appeal. As noted by the fourth circuit when the grant of a partial summary judgment came before it on a writ application:

Since a court of appeal has plenary power to exercise supervisory jurisdiction over district courts and may do so at any time, the issue of whether this Court should exercise its supervisory jurisdiction to review such judgments appears to be left to the sound discretion of the court. Herlitz Const. Co., Inc. v. Hotel Investors of New Iberia, Inc ., 396 So.2d 878 (La.1981).

Christiana v. S. Baptist Hosp. , 03-1880, p. 4 (La.App. 4 Cir. 2/4/04), 867 So.2d 809, 811-812 (footnotes omitted).

Furthermore, in Trapp v. Allstate Prop. & Cas. Ins. Co. , 18-544, p. 1 (La.App. 3 Cir. 9/19/18), 255 So.3d 639, 640 (footnote omitted), just prior to the Louisiana Supreme Court's ruling in Terrell , 253 So.3d 134, this court granted a rehearing to consider the...