# Petition for Writ of Certiorari — Frank C. Minvielle, LLC v. Atlantic Refining Co. (No. 09-493)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2009

## Text

“@e CO mm a Le mA a a

Supremes Couit, U.S.
i y (\) FILED

om 09-493 0CT 22 2009

OFFICE OF THE CLERK
In The
Supreme Court of the United States

e

FRANK C. MINVIELLE, LLC,

Petitioner,
versus

ATLANTIC REFINING COMPANY, OXY U.S.A. INC.,
PACIFIC ENTERPRISES OIL CO. (USA), and
MOSAIC GLOBAL OPERATIONS, INC.,

Respondents.

6

On Petition For A Writ Of Certiorari
To The United States Court Of Appeals
For The Fifth Circuit

%

PETITION FOR A WRIT OF CERTIORARI

o— 4

ViIcTOR L. MARCELLO
Counsel of Record
TALBOYV, CARMOUCHE & MARCELLO
P.O. Box 759
Gonzales, LA 70707-0759
(225) 644-7777

PATRICIA E. WEEKS

JOHN P. GONZALEZ

WEEKS & GONZALEZ, APLC

400 Mayazine Street, Suite 200
New Orleans, LA 70130-2444
(504) 799-2888

QUESTIONS PRESENTED FOR REVIEW

Does the dismissal without prejudice of a re-
moved action for lack of standing preclude a
second action when the plaintiff acquires stand-
ing after the dismissal?

Does a district court have ancillary or supple-
mental jurisdiction to dismiss a removed action
on grounds of res judicata if the plaintiff does not
otherwise have standing under Article III and
state law?

Is a federal court required to remand an action
removed on grounds of diversity when the plain-
tiff has no standing under Article IJI or state
law?

Should Burford abstention be applied to a sui
generis Louisiana statute governing private
claims for oilfield remediation that: (1) requires
substantial involvement of the state’s natural
resources agency in the judicial decision making
process; and (2) mandates an expedited de novo
appeal that is incompatible with federal appel-
late rules and standards of review?

PARTIES TO THE PROCEEDING

The parties to the proceeding in the Honorable
United States Court of Appeals for the Fifth Circuit
whose judgment is sought to be reviewed are:

Frank C. Minvielle, LLC, Petitioner

Atlantic Refining Company, Respondent

OXY U.S.A. Inc., Respondent

Pacific Enterprises Oil Company (USA),
Respondent

Mosaic Global Operations, Inc., Respondent

111

TABLE OF CONTENTS

Page
QUESTIONS PRESENTED FOR REVIEW...... | i
PARTIES TO THE PROCEEDING ..................... ii
TPR CP COREG ee 0 os vcp tse scceseeenscnvssesscacenes ili
TABLE OF AUTHOR Cie oessesssvccccesscnrsssescesescens V
PETITION FOR WRIT OF CERTIORARI .......... 1
CFR EIT r eee Wee WF ssid uh sag nisetersctnrancvansueaavs l

CONSTITUTIONAL AND STATUTORY PRO-
Fee BO te Been ga tccsdcecciesiccsessss oiseesneees

APPENDIX

Opinion of the U.S. Court of Appeals for the
Fifth Circuit filed July 24, 2009.............0.00... App. 1

Judgment of the U.S. Court of Appeals for the
Fifth Circuit filed July 24, 2009.................... App. 17

Memorandum Ruling on Motions for Sum-
mary Judgment from the U.S.D.C. for the
Western District of Louisiana filed September
i Ee hs vennekereouiceniacs plipaitanasauabest sy yeeat eeu App. 19

Judgment from the U.S.D.C. for the Western
District of Louisiana filed September 6, 2007 ... App. 37

TABLE OF CONTENTS — Continued

Page
Memorandum Ruling on Motion for New Trial
and/or to Amend Judgment from the U.S.D.C.

for the Western District of Louisiana filed
Be iy Se iiiiniatasi ccvenrdsensescoseieenis App. 39

Memorandum Opinion — Ruling on Motion
from the U.S.D.C. for the Western District of
Louisiana filed January 12, 2005.................. App. 50

Memorandum Opinion — Ruling on Motions
from the U.S.D.C. for the Western District of
Louisiana filed October 19, 2004................... App. 61

Judgment from the U.S.D.C. for the Western
District of Louisiana filed October 19, 2004...App. 100

28 U.S.C.A. §1332. Diversity of Citizenship;
amount in controversy; costs

SI os ceca sidiiencensapasicoeaaceagastubaacenier merepenecnuenal App. 112

La. Rev. Stat. Ann. §30:29. Remediation of
oilfield sites and exploration and production
as daedtgetasecksapdcsons capnessecaccsesseiandcaeoasavsuuecteds App. 116

TABLE OF AUTHORITIES

Page
CASES
Abortion Rights Mobilization Inc. v. Baker, 885
ee I SE Gite IE oo bs cv eiés cna ssdcvncduseisns cuxcdecactsece 9
Boone v. Kurtz, 617 F.2d 435 (5th Cir. 1980)............. 11
Brereton v. Bountiful City Corp., 434 F.3d 1213
SN Nr II cud. cs naterseckoniesescavcbslacenenieeesecneeee 13
Burford v. Sun Oil, 319 U.S. 315 (1943)............ passim
Garamendi v. Allstate Ins. Co., 47 F.3d 350 (9th
Se I ross cn evar cavaecoxuy sa eacanoeeanox ie caaeecaronrasaiina vad 17
International Primate Protection League uv.
Administrators of Tulane Education Fund,
ee eee Fe BE Py sa ncy sd tusbacdcndusaamraeyeiionenendtenirolies 9
Jepsen v. Texaco, Inc., 1995 WL 607630 (10th
Re WY ra Se gnccois oiics cactescaseusop aioe ncavsciontasiisats Dae 9

Lejeune Bros., Inc. v. Goodrich Petroleum Co.,
LLC, 961 So.24 ZS (Lia. App. ZO0T)......scsccccessessoese 6,7

Maine Ass'n of Interdep. Neighborhoods uv.
Comm’r, Maine Dep't of Human Servs., 876

ee ee © Re Ge Biv Rec. Doc. 89.

4

At oral argument, the court deferred ruling on the motion
for summary judgment based on prescription; and on the Rule
12(b\7) motion to dismiss for failure to join parties who retained
a '/2% mineral interest in the property; for lack of standing, and
for failure to state a claim for attorney’s fees

* See Petition for Damages, Rec. Doc. 1, Paragraphs 1 and 3

* On February 2, 2002, Estis Well Service, L.L.C. was dis-
missed based on fraudulent joinder (Rec. Doc. 55). Defendant
Transok, Ine., was dismissed on February 20, 2004 for plaintiff's
failure to prosecute (Rec. Doc. 65). Finally, Encana was dis-
missed with prejudice on plaintiff's motion (Rec. Doc. 94).

App. 63

Factual Background

The record shows as follows: On September 28,
1961, Juliet Bourgeois Delcambre, a previous owner
of the land at issue, entered into an Oil, Gas and
Mineral Lease (hereinafter referred to as the “1961
lease”) with The Atlantic Refining Company
(“ARCO”) for the purposes of exploring and possibly
drilling for oil on the property. ARCO subleased the
mineral rights to Callery Properties, Inc. on
November 26, 1962." Callery Properties, Inc., in turn,
conveyed its interest in the lease to Petro-Lewis
Funds, Inc. on November 26, 1974.’ Petro-Lewis
conducted operations on the property and on
December 24, 1977 filed a “Plug and Abandon Report”
related to the Delcambre #1 Well (well serial no.
105992).”° Plaintiff alleges that Petro-Lewis breached
the contract and contaminated the property during
its operations. IMC is the successor of Petro-Lewis.

Plaintiff’s predecessor, Minvielle & Segura,
L.L.C. purchased the land in 1998 by Act of Cash
Sale.'’ On November 30, 2001, Frank C. Minvielle

' Attachment to Rec. Doc. 69. On January 10, 1963, Juliet
Delcambre Cowan, daughter of Juliet Bourgeois Delcambre,
ratified the 196] lease. See “Act of Ratification,” attachment to
Rec. Doc. 69.

* “Sublease of Oil, Gas, and Minera! Leases.” attachment to
Rec. Doc. 69.

* “Conveyance,” attachment to Rec. Doc. 69.

° “Plug and Abandon Report,” attachment to Rec. Doc. 41.

Exhibit 8 to Rec. Duc. 41.

App. 64

acquired all ownership of Minvielle & Segura, L.L.C.,
and shortly thereafter changed its name to Frank C.
Minvielle, L.L.C., plaintiff in this action.”

Motions Presented

IMC filed the following motions:

(A) Rule 12(b)(1) Motion Requesting Defer-
ence to the Primary Concurrent Juris-
diction of the Louisiana Office of Con-
servation (“LOC”) and the Louisiana

Department of Environmental Quality
(“DEQ”);

(B) Rule 12(b)\1) and/or 12(b)(6) motion to
dismiss premature claims;

(C) Rule 12(e) motion for more definite
statement;

(D) Rule 12(b\3) motion to dismiss for
improper venue;

(E) Motion for compliance with Rule 20 and
21 regarding improper joinder;

(KF) Rule 12(b)(7) motion dismiss for failure
to join indispensable parties;

(G) Rule 12(b\6) motion to dismiss for
faiture to state a claim for lack of

Rec. Doc. 77

App. 65

standing, nonrecoverable damages, and
prescription.”

On June 2, 2004, the 12(b)(6) motions (Paragraph
(G) above) were converted to motions for summary
judgment since their disposition required reference to
documents outside of the complaint. The parties were
allowed ten days to submit additional information to
be considered in connection with the motion for
summary judgment.” On June 14, 2004, plaintiff
submitted the affidavit of Frank Minvielle, owner of
plaintiff Frank C. Minvielle, L.L.C. Plaintiff sub-
sequently filed the affidavits of Juliet and Finis
Cowan, regarding the previous owners’ knowledge of
the condition of the land at issue.'” Defendant filed a
motion to strike the affidavits, maintaining that
portions of the affidavits were not based on the
personal knowledge of the aftfiants."” Plaintiff filed an
opposition to the motion to strike and the parties filed
supplemental briefs regarding prescription and
indispensable parties."

Rec. Doc. 19.
On June 14, 2004, plaintiff submitted the affidavit of
Frank Minvielle, owner of plaintiff Frank C. Minvielle, L.L.C.
Plaintiff subsequently filed the affidavits of Juliet and Finis
Cowan, regarding the previous owners’ knowledge of the
condition of the land at issue. The parties filed supplemental
briefs regarding prescription
' Rec. Doc. &6
Rec. Doc. 89
Rec. Docs. 90, 92, 93, 96

4

App. 66

Analysis

The district court, sitting in diversity juris-
diction, must apply the substantive law of Louisiana,
while employing Federal procedural rules. Erie R. Co.
v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188
(1938). In the absence of a valid Federal Civil Rule
addressing the point, the court must determine
whether a particular rule is procedural or substantive
by considering the “twin aims of the Erie rule:
discouragement of forum-shopping and avoidance of
inequitable administration of the laws.” Hanna v.
Plumer, 380 U.S. 460, 85 S.Ct. 1136, 14 L.Ed.2d 8
(1965).

(A) Rule 12(b)(1) motion for deference to the
primary concurrent jurisdiction

Plaintiff seeks damages for IMC’s disposal,
discharge, and storage of highly toxic chemicals into
plaintiff’s property. Plaintiff also seeks funds to
conduct a scientific analysis of the extent and nature
of the contamination, the costs to restore the prop-
erty, punitive damages, and attorneys’ fees. IMC
argues that all of the claims are subject to the
primary concurrent jurisdiction of the Louisiana
OMce of Conservation (“LOC”) and the Louisiana
Department of Environmental Quality (“DEQ”), and
that this court should allow those agencies to address
the environmental remediation issues prior to judicial

consideration of liability and damage issues.

App. 67

Louisiana Revised Statute 30:1(D) provides that
the LOC has jurisdiction over claims regarding: “the
disposal of any waste product into the subsurface by
means of a disposal well and the regulation of all
surface and storage waste facilities incidental to oil
and gas exploration and production, shall be within
the jurisdiction of the department.” The LOC also has
jurisdiction over issues regarding surface and storage
waste facilities incidental to oil and gas exploration
and production and abandoned oil and gas wells. La.
R.S. 30:4(C). The DEQ has jurisdiction over remedial
action plans and has set forth a process by which

remediation plans are approved and enforceable.
La.R.S. 30:2286.1.

Under Louisiana law, the deference to the com-
missioner for an initial decision on matters within the
expertise of the LOC, which is contemplated by the
doctrine of primary jurisdiction, is a matter within
the sound discretion of the trial court. Magnolia Coal
Terminal v. Phillips Oil Co., 576 So.2d 475, 489 (La.
1991). The two major considerations underlying the
doctrine are the need for uniformity 1n various areas
of regulated industry, and the special administrative
expertise attributable to agencies due to their
intimate working associations with industries they
regulate. South-West Utilities v. S. Cent. Bell Tel., 339
So.2d 425 (La.1976). Louisiana’s doctrine of primary
jurisdiction is substantive and it requires the federal
courts to exercise discretion as if it were a Louisiana
state court. Mills v. Davis Oil Co., 11 F.3d 1298, 1304-
1304 (5th Cir. 1994).

App. 68

Landowners in Louisiana have no duty to seek
relief from an administrative agency before filing suit
against an oil company. Corbelio v. Iowa Production,
850 So.2d 686 (La. 2003). Plaintiff’s action for
damage to its property is a matter of private law.
Magnolia Coal Terminal v. Phillips Oil Co., 576 So.2d
475, 483 (La. 1991). In Magnolia Coal, the Louisiana
Supreme Court upheld a trial court’s decision, in
deciding a remediation issue, refusing to defer to the
Commissioner of Conservation as a matter of primary
jurisdiction. The court stated that “damages from soil
pollution are within the conventional knowledge and
expertise of a trier of fact and the court of appeal
erred in deciding that the plaintiff’s damages cannot
be fixed until the commissioner of conservation holds
a new hearing.” Magnolia Coal, 576 So.2d at 484.

Considering the applicable law, and the fact that
plaintiff opposes it, the court concludes that pre-
liminary submission of the claims to the LOC and
DEQ is not necessary. Accordingly, the Rule 12(b)(1)
motion for deference to the primary concurrent
jurisdiction of the LOC and DEQ is DENIED.

(B) and (C): Motion to dismiss premature claims,
or for more definite statement

1. Prematurity involving LOC and DEQ

IMC argues that plaintiff’s claims are premature
because plaintiff has not sought review with the LOC
or DEQ, and therefore has failed to exhaust the ad-
ministrative remedies. As discussed above, exhaustion

App. 69

of administrative remedies is not necessary. As dis-
cussed in Corbello, supra, landowners have no duty to
seek relief from an administrative agency before
filing suit against an oil company.

IMC asserts that claims under the Conservation
- Act for contamination of “usable ground water” must
be made with the LOC and DEQ, pursuant to La. R.S.
30:1 and 30:2015.1 (requiring notification of DEQ
in certain cases). Those statutes are inapplicable.
Plaintiff has specifically stated that it does not seek
redress for public issues, but instead has limited its
claims to private causes of action. Louisiana Revised
Statute 30:1 requires exhaustion prior to judicial
review for claims by “a person aggrieved” by a law,
rule, regulation or order made by the assistant
secretary of the office of conservation. Plaintiff has
not asserted that it has been aggrieved by an order of
the LOC or DEQ, and is therefore not limited to a
claim under La. R.S. 30:1."

Nor is La.R.S. 30:14 applicable. The latter stat-
ute authorizes the Commissioner of Conservation to

" La R.S. 30:1 provides:

A person who is aggrieved by any law of this state
with respect to conservation of oil or gas, or both, or
by a provision of this Chapter, or by a rule, regulation,
or order made by the assistant secretary of the office
of conservation hereunder, or by an act done or
threatened hereunder, and who has exhausted his
administrative remedy, may obtain court review by a
sult for injunction or judicial review against the
assistant secretary as defendant

or;

ca

App. 70

enjoin conduct in violation of state laws when
“ongoing or threatened” actions violate conservation
laws of the state. Plaintiff’s claims are for purely
private matters relating solely to the actions of the
defendant oil companies. Plaintiff has specifically
excluded any claims for contamination of usable
ground water and has otherwise avoided claims that
trigger involvement by the Commissioner of
Conservation. Accordingly, IMC’s attempt to require
administrative review by this landowner is without

merit, and the motion to dismiss for prematurity is
DENIED.”

2. Prematurity under leases

IMC contends that plaintiff was required to give
defendants written notice of the alleged breach of
contract and request that defendants correct the
breach prior to filing this suit. IMC asserts that
plaintiff’s complaint is vague and omits specific facts
identifying which leases have been allegedly breached

” To the extent that plaintiff's complaint does mention in
paragraphs 13, 16, 25, and 26 that defendant’s activities have
resulted in contamination of ground water, the court deems
these references merely factual allegations. Since plaintiff
specifically, in paragraph 31, asserts that it is not seeking
damages for contamination or remediation costs for usable
ground water, no such damages are recoverable due to the
exclusion thereof by the complaint. In the event that plaintiff
were to claim damages for contamination or remediation costs of
usable ground water, La. R.S. 30:2015.1, requiring notification of
DEQ, must be followed prior to assertion of any such claims

App. 71

by which defendant, the terms of the leases, the
parties thereto, and the subject lands. IMC reasons
that some of the leases at issue may not have been
terminated yet, and therefore the present claims are
premature.

A review of Exhibit “C” to plaintiff’s opposi-
tion memorandum shows that IMC’s predecessor,
Petro-Lewis Funds, Inc. was involved with a lease
that resulted in work done on plaintiff’s land.
Although plaintiff failed to specify, in its pleadings,
the subject tract of land and whether the lease had
expired, plaintiff’s counsel addressed the issue at
oral argument. The Petro-Lewis lease involved the
Delcambre Well No. 1, which was plugged and
abandoned in 1977. By its own terms, the lease
expired 90 days after production ceased. IMC
conceded that the lease expired in 1977. Thus, the
motion to dismiss for prematurity under the lease is

DENIED.

(D) Rule _ 12(b)(3) motion to dismiss for _ im-
proper venue

IMC maintains that:

To the extent that the plaintiff’s claims must
be brought against the LOC pursuant to La.
R.S. 30:12(A)(2) as discussed in the motion to
dismiss for prematurity raised above, the
19th Judicial District Court (and therefore
the U.S. Dnistrmect Court for the Middle
District of Loutsiana) is the court of proper

e a i a we _*

App. 72

venue for the claims raised by plaintiff’s
Petition.

As discussed above, IMC’s motion to dismiss for
prematurity regarding the necessity to file suit
against the Commissioner of Conservation is without
merit. Accordingly, the motion to dismiss for lack of
venue based on the same arguments is DENIED.

(E) Motion for compliance with Rule 20 and
21 regarding improper joinder

IMC maintains that plaintiff improperly joined
the defendants in this action. Since all other

defendants have now been dismissed, this motion is
DENIED as moot.

(F) Rule 12(b)(7) motion dismiss for failure to
join indispensable parties

IMC argues that there may be other parties
which need to he added, either as defendants or
plaintiffs. Plaintiff argues that there are no other
parties which need to be joined.

At oral argument, the court noted that the sellers
retained a '/2 percent mineral interest in the land sold
to plaintiff. The Act of Cash Sale states:

Sellers reserve and retain unto themselves,
their heirs, successors and assigns, an
undivided ‘2 [percent| of all oil, gas, and
other minerals, including sulphur, in, on and
under the aforedescribed property with the

App. 73

right and authority to exercise all necessary
means for the’ prospecting, exploiting,
producing and development of the minerals,
including all rights of access to and use of
the surface of the land as may be necessary
or incident to this reservation.”

Rule 19(a) F-R.Civ. P. states that parties are
necessary to an action if: “(1) in the person’s absence
complete relief cannot be accorded among those
already parties, or (2) the person claims an interest
relating to the subject of the action and is so situated
that the disposition of the action in the person’s
absence may (i) as a practical matter impair or
impede the person's ability to protect that interest or
(ii) leave any of the persons already parties subject to
a substantial risk of incurring double, multiple, or
otherwise inconsistent obligations by reason of the
claimed interest.”

The Cowans do not own the land in question. The
record indicates they are aware of this action and
have not attempted to state an interest, nor have
any other indispensable parties been identified. The
motion to dismiss for failure to join necessary parties

is therefore DENIED.

’ Exhibit 8 to Rec. Doc. 41

App. 74

(G) Rule _12(b)(6) Motion to Dismiss - Con-
verted to Motion for Summary Judgment

IMC filed a motion to dismiss for failure to state
a claim. Since the parties filed matters outside of the
pleadings which must be considered in order to
determine the motion, the court notified the parties
that the motion would be considered a motion for
summary judgment under Rule 56. F. R. C.P. 12(b).
Summary judgment “shall be rendered forthwith if
the pleadings, depositions, answers to interrogatories,
and admissions on file, together with the affidavits, if
any, show that there is no genuine issue as to any
material fact and that the moving party is entitled to
judgment as a matter of law.” Fed.R.Civ.P.56. An
issue is material if its resolution could affect the
outcome of the action. Anderson v. Liberty Lobby, Inc.,
477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202
(1986). In deciding whether a fact issue has been
created, the court must view the facts and the
inferences in the lhght most favorable to the
nonmoving party. Olabisiomotosho v. City of Houston,
185 F.3d 521, 525 (5th Cir.1999).

1. Prescription
a. Contra Non Valeniium
Plaintiff concedes that the complaint was filed
over twenty years after the alleged breach of contract
and tortious conduct by defendants. Considering that
tort claims prescribe one year after the date of the

alleged tortious conduct, and that contractual claims

App. 75

prescribe ten years after the alleged breach, the
claims arising from defendants’ actions on plaintiff’s
property were prescribed on the face of the petition.
Accordingly, the burden to establish an exception to
the rule of prescription lies with plaintiff. Terrebonne
Parish School Bd. v. Mobil Oil Corp., 310 F.3d 870,
885-886 (5th Cir. 2002). The plaintiff is required to
adduce evidence sufficient to raise a genuine issue of
material fact regarding its claim of an exception from
prescription. Mere allegation or innuendo is insuffi-
cient.

Plaintiff relies on the theory of contra non
valentum to avoid prescription barring the claims in
this case. According to this theory, prescription does
not begin to run until “a plaintiff either knew or
should have known of a cause of action, even if that
knowledge does not occur until long after the
wrongful conduct at issue has occurred.” Simmons uv.
Templeton, 723 So.2d 1009, 1012 (La.App. 4 Cir.
11/10/98). Prescription runs from the time that the
plaintiff has actual or constructive knowledge of the
act, which has been defined as “the time at which the
plaintiff has information sufficient to excite attention
and prompt further inquiry.” National Council on
Compensation Ins. v. Quixx Temporary Serv., Inc., 665
So.2d 120, 124 (La.App. 4 Cir. 11/16/95). Thus,
prescription does not begin to run at the first
indication that the plaintiff may have suffered harm,
but rather it begins to run “when plaintiff has
reasonable basis to pursue claim against specific

defendant.” Jordan v. Employee Transfer Corp., 509

App. 76

So.2d 420, 424 (La.1987). The heart of the inquiry
into constructive knowledge is the reasonableness of
plaintiff’s inaction. /d.

Plaintiff submitted the affidavit of Frank
Minvielle, owner of plaintiff Frank C. Minvielle,
L.L.C., which states that he did not have knowledge
of a claim or reason to suspect that a claim existed
until August 2003, when a geologist issued a report
discussing possible contamination of plaintiff’s

property.

IMC does not contest that plaintiff did not have
knowledge regarding the alleged contamination until
just prior to the filing of suit. Plaintiff did not
purchase the land until 1998, well after the alleged
tortious conduct occurred. However, the claims may
be prescribed if the previous owners of the land knew
or should have known of the possible claims. If they
did not, then under the doctrine of contra non
valentum, prescription only began to run when
plaintiff learned of the potential claims.

In response to the order setting oral argument,
plaintiff submitted the affidavits of Finis E. Cowan,
Jr. and Juliet D. Cowan. The Cowans are married
and Mrs. Cowan’s mother, Mrs. Juliet Delcambre,
owned the land at issue until her death in 1988, at
which time the land passed to Mrs. Cowan and her
children.”’ Mr. Cowan explained that in 1982,

App. 77

PanCanadian Petroleum, Encana’s predecessor, paid
Mrs. Delcambre $21,000.00 for possible contami-
nation from its operations.” With regard to IMC’s
predecessor Petro-Lewis’s oilfield operations, Mr.
Cowan states, “I have never had any information that
would lead me to know or believe that there was any
contamination problems at the Petro Lewis site.”
Mrs. Cowan states, “I have reviewed the above
affidavit and discussed it with my husband. To the
best of my knowledge the statements contained in his
affidavit are true and correct.””

IMC argues that the affidavits of the Cowans are
insufficient to defeat the motion for summary judg-
ment.” IMC maintains that the Cowans’ affidavits
were not based on personal knowledge regarding
what the pre-1988 owners knew. Mrs. Cowan inher-
ited the land from her mother in 1988. Additionally,
IMC argues that since the Cowans’ affidavits contain
language evidencing that they did not know where
the Petro Lewis well was located, they could not
provide information based upon personal knowledge
regarding possible contamination at the site.

The court concludes that the affidavits of the
Cowens establish that prior to selling the property to
plaintiff, they did not know of any contamination, nor
was there any indication that the property may have

Rec. Doc. 86
Rec. Doc. 86

“ Rec. Doc. 89

App. 78

been contaminated by Petro-Lewis. IMC’s argument
that the Cowans did not have personal knowledge
regarding the facts relating to the Petro-Lewis well is
unpersuasive. The Cowans attest that they had no
information regarding possible contamination or
claims against Petro-Lewis, and no reason to believe
that there was any contamination or other problems
with the land prior to it being sold to plaintiff. Their
lack of knowledge is explained by their further
assertions that they were far removed from the
operations and did not even know the exact location
of the well. The Cowans state that they relied upon
the oilfield companies to perform their work
according to the leases. Thus, absent some affir-
mative communication from a company, such as
PanCanadian’s statement to the landowners that it
had contaminated the site, there was no reason to
believe that the companies operating on the land
were doing so in a deficient manner. Moreover, since
the owner of the land prior to 1988, Mrs. Delcambre,
is deceased, it would be virtually impossible for
plaintiff to establish Mrs. Delcambre’s knowledge
regarding the land without relying upon the
affidavits of the Cowans, from whom Mrs. Delcambre
sought advice on issues concerning the land. It is
clear that the Cowans did not know cf contamination,
nor do they have reason to believe that Mrs.
Delcambre had any such knowledge. IMC concedes
that the Cowans are testifying truthfully in their
affidavits.

App. 79

Considering the foregoing, the court concludes
that no one had reason to believe that there was a
problem with the land prior to the 2003 geologist’s
report indicating possible contamination. The doc-
trine of contra non valentum therefore suspended the
running of prescription until plaintiff had knowledge
of the claims shortly before filing suit. IMC’s motion
for summary judgment is’ therefore DENIED
Additionally, IMC’s motion to strike the affidavits of
the Cowans is DENIED.

b. Continuing tort

The doctrine of continuing tort presents an
exception to the one-year prescriptive period. “A
continuing tort 1s occasioned by |the continual]
unlawful acts, not the continuation of the ill effects of
an original, wrongful act.” Crump v. Sabine River
Authority, 737 So.2d 720, 728 (La.6/29/99).°
Addressing the requirement that there be continuous
conduct by the defendant, the Louisiana Supreme
Court stated that “[tjJhe continuous conduct contem-
plated in a continuing tort must be tortious and must
be the operating cause of the injury.” Jd. at 729 n. 7.

In Crump, the Louisiana Supreme Court rejected the

Although the decision regarding contra non valentum
defeats the motion for summary judgment on prescription at
this time, the argument concerning the continuing tort doctrine
will be addressed since there is a possibility that a fact finder

will find that the doctrine of contra non valentum is inapplicable
to the case

App. 80

contention that a continuing breach of duty could
consist of a defendant’s failure to remedy the harm
caused by the initial tortious conduct, stating that
“the breach of the duty to right the wrong and make
the plaintiff whole simply cannot be a continuing
wrong which suspends the running of prescription, as
that is the purpose of any lawsuit and the obligation
of every tortfeasor.” Jd. at 729.

The Louisiana Supreme Court summarized the
doctrine of continuing tort as it applies in Louisiana
property law cases as follows:

When a defendant’s damage-causing act 1s
completed, the existence of continuing dam-
ages to the plaintiff, even progressively
worsening damages, does not present succes-
sive causes of action accruing because of a
continuing tort. Derbofen v. TL. James &
Co., 355 So.2d 963 (La.App. 4th Cir.1977),
writs denied, 357 So.2d 1156, 1168(1.a.), cert.
denied, *886 439 U.S. 911, 99 S.Ct. 280, 58
L.Ed.2d 257 (1978).

In re Moses, 788 So.2d 11738, 1188 (La. 2001). The
practical rule adopted by Louisiana courts in property
damage cases is that prescription begins to run when
the continuous tortious conduct is ahated

The case law distinguishes between ongoing
causes and tortious conduct that has ceased. In cases
such as Patout, where landfill waste was deposited
onto plaintiff's property via trespass, and South
Central Bell, where gas tanks continued to leak, the

ongoing cause was the failure of the defendants to

App. 81

remove the damage causing structure. Estate of Patout
vu. City of New Iberia, 708 So.2d 526 (La. App. 3 Cir.
3/6/98); South Central Bell Telephone Co. v. Texaco,
Inc., 418 So. 2d 531 (La. 1982). In South Central Bell,
leaking underground storage tanks caused contin-
uous damages to plaintiff’s underground telephone
wires. Because both the conduct — the leaking — and
the damages continued, the tort was held to be a
continuous.

In Mouton v. State of Louisiana, 525 So.2d 1136
(La.App. 1st Cir.1988), however, disposal of waste in
the ground was not a continuing tort. The court held
that the tortious conduct was the dumping of waste
onto plaintiff’s property and, since it occurred beyond
the one year prescriptive period, the action had
prescribed. Similarly, in Badalamenti v. Chevron
Chemical Co., 1995 WL 386868, *2 (E.D.La.), the
court found that the tortious conduct at issue was the
disposal of waste onto plaintiff's property. The
operating cause of plaintiff’s injury did not continue
beyond the placement of the waste in the ground, and
therefore, dcfendant’s alleged conduct did _ not
constitute a continuing tort because there was no
ongoing cause. Likewise in Terrebonne Parish School
Bd. v. Mobil Oil Corp., 310 F.3d 870, 885-886 (5th Cir.
2002), the Fifth Circuit upheld the distnct court’s
finding that the continuing tort doctrine was
inapplicable. In Jerrebonne v. Mobil, pursuant to a
mineral lease, the defendant dredged a canal during
its oil operations. After completion of the operations,
the defendant left the canal intact. Plaintiff sued, 40

App. 82

years later, arguing that the existence of the canal
contributed to erosion of its land and the demise of
the marshland habitat. The Fifth Circuit found that
the unlawful conduct was not continuing because the
completed well was abandoned with the canal left
intact in 1959. Thus, even though the damage, i.e. the
erosion, may have been continuing, the continuing
tort doctrine was inapplicable because there was no
continuing cause.

Here, like Mouton, the tortious conduct was the
disposal of waste into plaintiff’s property. The
operating cause of plaintiff’s injury was the actual
disposal or storage of the oilfield waste in plaintiff’s
property. The conduct abated when the defendant’s
ceased operations, which was in excess of 20 years
ago. Simply because the damages brought about by
such conduct may have continued, that is insufficient
to support application of the continuing tort doctrine.
Accordingly, the continuing tort doctrine is
inapplicable to the case at bar.

2. Lack of standing

Plaintiff seeks damages based on JMC’s breach of
the 1961 lease and for IMC’s tortious conduct. IMC
argues that since plaintiff was not a party to the
contract and the previous owners’ rights under the
1961 lease were not specifically assigned to plaintiff,
plaintiff lacks standing to bring the breach of contract
claims. Moreover, IMC maintains that since the

tortious conduct occurred prior to plaintiff owning the

App. 83

property, it cannot assert tort claims for damages.
Plaintiff maintains that it has standing because it is
a third party beneficiary of the contract and because
tort damages can be brought regardless of the timing
of the damages.

a. Contractual claims

Actions arising from a breach of contract or lease
of property are classified as involving personal mghts
rather than real rights. Prados v. South Central Bell
Tel. Co., 329 So.2d 744, 749 (La. 1976), citing Leonard
v. Lavigne, 245 La. 1004, 162 So.2d 341 (1964);
Harwood Oil and Mining Co. v. Black, 240 La. 641,
124 So.2d 764 (1960) overruled on other grounds by
Salvex, Inc. v. Lewis, 546 So.2d 1309 (La.App. 3d
Cir.1989); 2 A. YIANNOPOULOS, LOUISIANA CIviIL Law
TREATISE — PROPERTY, s 95, pp. 275-278 (1st Ed. 1967).
Real rights and obligations transfer from the seller to
the buyer without any special provision. La.Civ.Code
art. 1763. Personal rights, however, do not transfer in
the absence of a special assignment of rights to the
buyer. La.Civ.Code art. 1764. Official Comment (d) of
article 1764 states that, “a particular successor does
not acquire, without stipulation to that effect, any
personal rights that his author has with respect to
the thing.”

There is no dispute that plaintiff has no direct
privity of contract with IMC, nor does plaintiff allege
that it obtained any assignment of rights in the the

App. 84

Act of Sale from the previous owners, other than
warranty of title. The Act of Sale provides:

... Sellers, who, for the price and on the
terms and conditions hereafter expressed
hereby sell, assign, transfer and deliver with
all legal warranties and with full sub-
stitution and subrogation in and to al] the
rights and actions of warranty which Sellers
have or may have against all preceding
owners and vendors unto... Purchaser.”

Such a subrogation clause applies only to warranty of
title and does not assign personal rights for damages
arising from previous leases involving the property
Prados, supra, 329 So.2d 744, 749 (La. 1976).

Plaintiff argues, rather, that it is a third-party
beneficiary of a “stipulation pour autri” contained in
the the contract between the earlier landowners and
IMC’s predecessor. LA.CIv.CODE ANN. art 1978 pro-
vides as follows:

Art. 1978. Stipulation for a third party

A contracting party may stipulate a benefit
for a third person called a third party
beneficiary.

Once the third party has manifested his
intention to avail himself of the benefit, the
parties may not dissolve the contract by

" Exhibit 8 to Rec. Doc. 41

App. 85

mutual consent without the beneficiary’s
agreement.

Comment (b) to ART. 1978 states that “the
beneficiary's intention to accept the benefit may be
made known in any manner, even implied.” Thus, by
simply filing suit, plaintiff has made known its
intention to accept the benefit, if it exists.

The specific language of the contract in question
determines whether a stipulation pour autrui has
been created. The Fifth Circuit has observed the
necessity of clarity in any contractual provision
intended to contain a stipulation pour autrut..

... [SJuch a promise, or a stipulation pour
autrui, “is never presumed. Rather, the
intent of the contracting parties to stipulate
a benefit in favor of a third party must be
made manifestly clear.” Homer Natl Bank v.
Tri-District Dev. Corp., 534 So.2d 154, 156
(La.App. 3d Cir.1988), writ dented, 536 So.2d
1236 (La.1989). As we stated in New Orleans
Public Service, Inc. v. United Gas Pipe Line
Co., 7382 F2d 452 (5th Cir.) (en bance), cert.
denied sub nom. Morial v. United Gas Pipe
Line Co., 469 U.S. 1019, 105 S.Ct. 434, 83
L.Ed.2d 360 (1984):

Louisiana law ts settled that for
there to be a stipulation pour autrui
there must be not only a third-party
advantage, but the benefit derived
from the contract by the third party
may not merely be incidental to the
contract. Rather, the third-party

App. 86

benefit must form the condition or
consideration of the contract in
order for it to be a stipulation pour
autrut. Moreover, a stipulation pour
autrui will be found only when the
contract clearly contemplates the
benefit to the third person as its
condition or consideration.

732 F.2d at 467 (internal quotations and
citations omitted).

Chevron U.S.A., Inc. v. Traillour Oil Co., 987 F.2d
1138, 1147 (5th Cir.1993).

Plaintiff relies on Hazelwood Farm, Inc. uv.
Liberty Oil & Gas Corp., 790 So.2d 93 (La.App. 3rd
Cir.2001), writ denied, 01-2115 (La.7/26/01), 794
So.2d 834, writ denied, 01-2303 (La./10/01), 794 So.2d
836. In Hazelwood, the defendant had conducted oil
and gas exploration and production activities pur-
suant to a contract with a previous landowner. After
purchasing the property, Hazelwood filed suit al-
leging that the defendants’ activities resulted in con-
tamination of the property. Defendant Gulf/Chevron
asserted that Hazelwood was not a party to the lease
and therefore could not bring an action for the breach
of the lease. The court found, however, that Hazel-
wood was the beneficiary of a stipulation pour autrut.
Id. at 100, citing La.Civ.Code art. 1978. The court
noted that several factors are considered in deter-

mining whether a contract provides for a stipulation

App. 87

pour autrut. Id. citing Andrepont v. Acadia Drilling
Co., 231 So.2d 347, 351, 255 La. 347 (1969).*’ The
court looked to the language in the lease, which
provided that “Grantee shall be responsible for all
damages caused by his operations.” The court found
that this language was similar to the relevant phrase
in the Andrepont lease: “The Lessee shall be respon-
sible for all damages caused by Lessee’s operations.”
The latter lease had been found to create a stipu-
lation pour autrui, and accordingly, the Hazelwood
court concluded that the language in the lease must
be interpreted as providing a stipulation pour autrui
in favor of Hazelwood.

In Andrepont supra, the landowner allowed
Andrepont to farm soybeans on a 35-acre tract in
return for twenty percent of his crop. Later, the land
and mineral owners of the tract executed an oil and
gas lease allowing the lessee to enter the land to
explore and produce oil, gas, and other minerals. The

* The factors are: “(1) The existence of a legal relationship
between the promisee and the third person involving an obliga-
tion owed by the promisee to the beneficiary which performance
of the promise will discharge; (2) the existence of a factual
relationship between the promisee and the third person, where
(a) there is a possibility of future liability either personal or real
on the part of the promisee to the beneficiary against which
performance of the promisee (sic) will protect the former; (b)
securing an advantage for the third person may beneficially
affect the promisee in a material way; (c) there are ties of
kinship or other circumstances indicating that a benefit by way
of gratuity was intended.” Andrepont, 231 So.2d at 351.

App. 88

oil company’s operations on the tract were detri-
mental to Andrepont’s soybean crop:

** * (Djuring July, the oil and gas lessee
entered upon the land, built a board road
across Andrepont’s field, dug waste pits and
proceeded to drill a well in search of
minerals. Construction of the road, the drill
site and pits destroyed part of the crop and
impaired drainage in the remainder of the
soybean field. The lack of adequate drainage
left water standing in the field and made it
impracticable to work the crop. As a result,
the remainder of Andrepont’s crop was
damaged by ‘scalding’ and excessive weeds.

Andrepont, 231 So.2d 347, 353-355. The Louisiana
Supreme Court examined the lease form, which
initially read, “The Lessee shall be responsible for all
damages to timber and growing crops of the Lessor
caused by Lessee’s operations.” /d. at 351. The phrase
“to timber and growing crops of Lessor” was then
deleted so that the lease read, “The Lessee shall be
responsible for all damages caused by Lessee’s
operations.” Jd. The Court found that this language
created a stipulation pour autrut. The court wrote:

|Andrepont] is seeking to enforce a benefit
stipulated in his favor by the landowner
lessor as a condition of a commutative con-
tract between the landowner lessor and the
oil and gas lessee. Defendants, as assignees
of the oil and gas lessee, are, therefore,
parties to the contract in which the stipu-
lation 1s a condition... .”

App. 89

Id. at 356. The court reasoned that Andrepont had a
direct right of action against the lessee to recover his
damages as beneficiary of the stipulation.

In Hargroder v. Columbia Gulf Transmission Co.,
290 So.2d 874, 876 (La. 1974), the court found that a
stipulation pour autruit was created by language in
a servitude agreement providing that defendant
“agrees to pay such damages which may arise to
growing crops, timber, or fences from the construction
of the [pipeline].”

An examination of the lease in question shows
that the language contained therein is materially
distinguishable from that presented in Hazelwood
and Andrepont, and Hargroder. Unlike the open-
ended provisions in Hazelwood and Andrepont — “the
lessee shall be responsible for all damages” — the
lease here contemplates damages only “to Lessor and
Lessor’s tenants.” The relevant provision of the 1961
lease sub judice reads as follows:

Lessee shall promptly pay Lessor and
Lessor’s tenants a reasonable sum for any
damage resulting to said premises or the
crops or improvements thereon which may be
caused by or result from the operations of
Lessee hereunder. Within ninety (90) days
after the cessation of drilling operations on
any well located on the leased premises,
Lessee, or its successors and assigns, shall
fill and level all slush pits and shall remove
the drilling equipment and materia] used in
connection therewith from the drill site and

App. 90

shall restore said drill site to substantially
its prior condition, so far as can reasonably
be done, as concerns any material] change in
the surface of such premises caused by or
resulting from operations of Lessee here-
under.

Although the second sentence requiring restora-
tion of the property seems to impose a general
obligation of restoration, the provision must be read
as a whole. The only provision which discusses a right
to damages is limited to damages payable to “Lessor
and Lessor’s tenants.” Under Louisiana case law,
such language does not create a stipulation pour
autrui in favor of plaintiff. In Broussard v. Northcott
Exploration Co., Inc., 481 So.2d 125, 127 (La. 1986),
the court found that no stipulation pour autri was
created by a clause stating, “The Lessee shall be
responsible for all surface damages of the Lessor
caused by the Lessee’s operations” because the lan-
guage was restricted to damages suffered by the
lessor. The court held that the intent of the parties
was key in determining whether a stipulation pour
autrui is created. /d., 481 So. 2d at 127. A later court
cited Broussard in concluding that no stipulation
pour autrui arises in the absence of a clear intention

a Oe oR ene
Lo penetit iuture suriace owners:

Even viewing the clause as a possible stip-
ulation pour autrut (stipulation for benefit of
a third party), the result would be the same.
Broussard v. Northcott Exploration Company,
Inc., 481 So.2d 125 (La.1986); Hargroder v
Columbia Gulf Transmission Co., 290 So.2d

App. 91

874 (La.1974); Andrepont v. Acadia Drilling
Co., Inc., 255 La. 347, 231 So.2d 347 (1969).
The test annunciated in Broussard states
that “[iJn order to determine if a stipulation
{pour autrui] exists, we must look to the
intention of the parties at the time the min-
eral lease was negotiated.” Since the fore-
going analysis indicates no such intention to
benefit future surface owners, there was no
stipulation pour autrui in favor of plaintiffs
in this case.

Ashby v. IMC Exploration Co., 506 So.2d 1193, 1196
fn.7 (La. 1987).

In Prados, supra, 329 So.2d at 751, a land owner
granted a lease to South Central Bell Telephone
Company, allowing it to erect buildings and other
structures on the land. The lease required the com-
pany to remove the structures at the completion of
the lease. Upon termination of the lease, South
Central Bell did not remove the structures, nor did
the owner require removal. Several months later, the
property was sold to Prados. After acquiring the
property, Prados demanded that South Central Bell
remove the structures. The company refused and
Prados filed suit for damages representing the cost of
clearing the property. South Central Bell challenged
Prados’s standing to bring suit based upon a breach of
a former lessee’s obligation to restore the property at
the termination of the lease. Noting that predial

App. 92

leases” involve personal rights, the Louisiana
Supreme Court found that the right to damages was
a personal! right that accrued to the lessor prior to the
sale of the property to Prados. Thus, the court looked
to the act of sale to determine whether the right to
damages was specifically assigned by the previous
owner to Prados. The act of sale stipulated:

. she (Mrs. Ester Binford Prados) does by
these presents, grant, bargain, sell, convey,
transfer, assign and set over with full
guarantee against all mortgages, liens,
claims, evictions, or other encumbrances or
alienations whatsoever, and with subroga-
tions to all her rights and actions of
warranty against all previous owners, and
with full guarantee of title, unto JAMES L.
PRADOS.

The court found that the act of sale made no reference
to the expired lease, nor to the right of the seller toa
restoration of the property to its original state, nor to
the right of damages. The subrogation clause was
directed only to actions of warranty against previous
owners and did not include an assignment of the
right to damages.

The court next determined that no right to
damages from breach of contract could attach to the
property itself, relying on the rule that “a purchaser

* Louisiana civil law uses the terms “predial and personal!
servitude” instead of the term “casement” when classifying
lands.

App. 93

cannot recover from a third party for damage to the
property incurred prior to the sale.” Jd. at 750, citing
Gumbel v. New Orleans Terminal Co., 1 So.2d 686
(1941) overruled on other grounds Lake, Inc. v. LP&L
Co., 330 So.2d 914 (1976); Taylor v. New Orleans Ter-
minal Co., 126 La. 420, 52 So. 562 (1910); McCutchen
v. Texas & P. Ry. Co., 118 La. 436, 43 So. 42 (1907);
Bradford v. Richard, et al., 46 La.Ann. 1530, 16 So.
487 (1894); Clark v. Warner & Co., 6 La.Ann. 408
(1851). The court stated, “The general principle, we
think, is that a buyer is presumed to know the overt
condition of the property and to take that condition
into account in agreeing to the sales price.” /d. at 751.
Accordingly, the court held that Prados did not re-
ceive the right to recover damages against the former
lessee via the act of sale or by virtue of purchasing
the property

Considering the foregoing, the court concludes
that plaintiff did not receive an assignment of rights
from the previous owner, nor did the 1961 lease
create a stipulation pour autrut in favor of plaintiff
Thus, plaintiff does not have standing to bring
contractual claims arising from the 1961 lease.
Accordingly, the motion for summary judgment based
on lack of standing to bring contractual claims is

GRANTED

6. Tort claims

Under Louisiana jurisprudence, the owner of

land at the time of the alleged damages is the person

App. 94

with the real and actual interest to assert a claim for
damages to the land; thus, a subsequent landowner
does not have standing to assert tort claims for
damage to property occurring prior to the landowner’s
acquisition of the land. Gumbel v. New Orleans
Terminal Co., 197 La. 439, 1 So.2d 686 (La.1941)
overruled on other grounds Lake, Inc. v. LP&L Co.,
330 So.2d 914 (La. 1976); St. Jude Medical Office
Building Limited Partnership v. City Glass and
Mirror, 619 So.2d 529, 539 (La. 1993): Dorvin Land
Corp. v. Parish of Jefferson, 469 So.2d 1011 (La. 5th
Cir. 1985).

Plaintiff argues that “Louisiana law is now well
settled that with regard to claims to damage to
immovables, whether the damage at issue occurred
prior to plaintiffs’ acquisition of the subject property
is immaterial.” In support of this proposition,
plaintiff cites three cases, two of which deal with
contract claims, not tort. See Hazelwood Farm, Inc. v
Liberty Oil and Gas Corp., 844 So.2d 380 (La. App. 3
Cir. 2003) (plaintiff had standing to bring contract
claims because it was beneficiary of a stipulation
pour autrt); Magnolia Coal Terminal v. Phillips Oil
Co., 576 So. 2d 475 (La. 1991) (standing not ad-
dressed as the lease was still in effect at time plaintiff
purchased the land).

The third case relied upon by plaintiff is not
instructive on the issue presented here. In Hopewell,

, Rec Loc. 69 at p LO

App. 95

Inc. v. Mobil Oil Co., 770 So.2d 874, 875-876 (La.App.
2d Cir. 2000), defendant’s predecessor had engaged in
oilfield operations on the subject land pursuant to a
lease.” Subsequently, Hopewell bought the property.
Hopewell filed a petition for damages alleging that
the oil and gas operations had resulted in the deposit
of hazardous and toxic wastes on the property.
Hopewell argued that Mobil had a duty to restore the
property, and that the duty extended to a subsequent
landowner. Mobil asserted an exception of no mght of
action, which the trial court denied. The appellate
court reversed, finding that because Hopewell had
purchased the land after the damages had occurred,
it did not have a right of action. Hopewell, 770 So.2d
at 879. The Louisiana Supreme Court reversed the
appellate court, but its reasoning was not entirely
clear. The court wrote:

Judgment of the Court of Appeal is reversed.
Judgment of the trial court denying defen-
dant’s exception of no right of action is

*° “In 1921, the Pugh family ancestors gave Fortuna Oil
Company (Furtuna) the right to construct a casing head pas
plant on the property. Fortuna already held a mineral lease on
this tract. In 1922, the Pugh ancestors sold surface rights on the
property to Fortuna. Oil and gas operations were conducted on
the property by Fortuna. Magnolia Oil Company (Magnolia)
later acquired the property from Fortuna. The casing head gas
plant and several oil and gas wells were operated on the
property. The tract was then conveyed back to the Pugh family
in 1945 in settlement of a lawsuit with Magnolia... The surface
rights were leased to Magnolia. The gas plant later ceased
production, possibly in the 1950s.” Hopewell, 770 So.2d at 875.

App. 96

reinstated. Prados v. South Central Bell
Telephone Company, 329 So.2d 744 (La.1975)
(on rehearing), which the Court of Appeal
relied upon, involves rights arising under a
lease and is distinguishable from the instant
facts. Case remanded to the trial court for
further proceedings.

Hopewell, Inc. v. Mobil Oil Co., 784 So.2d 653, 2000-
3280 (La. 2001).

Although plaintiff characterizes the Hopewell
decision as one of “brevity and clarity,” the court
agrees only with the “brevity” part. The only thing
clear about the decision is that the court did not, by
its brief reversal, establish a new legal principle. If
that had been the court’s intent, it easily could have
said so in plain terms — i.e. that it was conferring
standing upon subsequent landowners to assert tort
claims for property damage occurring prior to their
acquisition of the land. Nor did the decision alter the
rule in Louisiana that the landowner at the time of
the alleged damages is the person with the real and
actual interest to assert a tort claim involving the
property under Gumbel and Dorvin.

The law in Louisiana remains that the owner of
iand at the time of the alleged damages is the person
with the real and actual interest to assert the claim
for damages to the land. See Gumbel v. New Orleans
Terminal Co., supra (purchaser had no right of action
for damages arising from railroad tracks placed on
land prior to purchase of land); Taylor v. New Orleans
Terminal Co., 126 La. 420, 52 So. 562 (1910)

App. 97

(purchaser had no right of action for damages from
railroad company for taking land which occurred
prior to the purchase of the land); McCutchen v. Texas
& P. Ry. Co., 118 La. 436, 43 So. 42 (1907) (purchaser
had no right of action for damages from railroad
company for erecting right of way on land which
occurred prior to the purchase of the land); Bradford
v. Richard, et al., 46 La.Ann. 1530, 16 So. 487 (1894)
(purchaser of land had no right of action for damages
arising from alleged taking of timber by defendant
prior to purchase of the land); Dorvin Land Corp. v.
Parish of Jefferson, 469 So.2d 1011 (La.App. 5th
Cir.1985) (landowner did not have standing to sue
parish for removal of trees and dumping of spoil
where damages took place prior to owner acquiring
title).

It is undisputed that plaintiff is seeking damages
arising from operations which occurred prior to
plaintiff’s acquisition of the land. For the foregoing
reasons, the court concludes that plaintiff does not
have standing to bring tort claims against IMC.
Accordingly, the motion for summary judgment based
on lack of standing to bring tort claims is

GRANTED.

3. Nonrecoverable damages

IMC asserts that plaintiff has no right to recover
damages for mental anguish, punitive damages, or
attorney’s fees.

App. 98

A business entity is incapable of experiencing loss
of enjoyment, mental anguish, and inconvenience.
Whitehead v. American Coachworks, Inc., 837 So.2d
678, 682 (La.App. 1 Cir. 2002) citing City of New
Orleans v. Grand Lodge of Independent Order of Odd
Fellows, 241 So.2d 7, 10 (La.App. 4th Cir.1970).
Plaintiff does not address this issue in its brief. The
motion to dismiss plaintiff’s claims for mental! an-
guish damages contained in Paragraphs 24, 28, and
33 of the Complaint is therefore GRANTED.

Plaintiff asserts a claim for punitive damages
under La. Civil Code Article 2315.3. Article 2315.3
was enacted in 1984 and was repealed in 1996. IMC
argues that plaintiff’s claims for punitive damages
for activities occurring outside the 1984 to 1996 time-
frame should be dismissed. Plaintiff does not oppose
the motion, but argues only that the claim for
punitive damages during this period should not be
dismissed Accordingly, the motion to dismiss
plaintiff’s claim for punitive damages outside of the
period of 1984 to 1996 is GRANTED.

The Complaint included a claim for attorney’s
fees, however, on September 7, 2004, plaintiff’s coun-
sel advised that this claim was being withdrawn.”
This letter effectively provides notice that the motion
to dismiss plaintiff's attorney's fees claim is un-

opposed. Accordingly, the motion to dismiss is
GRANTED as unopposed.

“ Rec. Doc. 97.

App. 99

Signed at Lafayette, Louisiana October 19, 2004.

/s/ M E Methvin
Mildred E. Methvin
United States Magistrate Judge
800 Lafayette St., Suite 3500
Lafayette, Louisiana 70501
(337) 593-5140 (phone)
593-5155 (fax)

App. 100

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF LOUISIANA
LAFAYETTE-OPELOUSAS DIVISION

FRANK C. MINVIELLE, L.L.C. CIVIL ACTION
VS. NO. 03-1908

IMC GLOBAL OPERATIONS, po nie“
INC. TRANSOK INC. JUD THVIN

ENCANA MIDSTREAM, INC. yon eal
ESTIS WELL SERVICE, L.L.C.

JUDGMENT
(Filed Oct. 19, 2004)

For the reasons set forth in the Memorandum
Opinion filed this date,

IT IS ORDERED that the following motions are
DENTED:

°* Rule 12(b)(1) motion for deference to the
primary concurrent jurisdiction of the
Louisiana Office of Conservation and the
Louisiana Department of Environmental
Quality;

* Rule 12(b)(1) and/or Rule 12(b)(6) motion
to dismiss premature claims;
° Rule 12(e) motion for more definitive

statement:

. Rule 12(b\3) motion to dismiss for im-
proper venue;

App. 101

¢ Motion for compliance with Rule 20 and
21 regarding improper joinder (moot);

. Rule 12(b)(6) motion to dismiss on
grounds of prescription;

¢ Rule 12(b)(7) motion to dismiss for fail-
ure to join necessary parties;

- Motion to strike section five of the affi-
davit of Finis Cowan and the affidavit of
Juliet D. Cowan

IT IS FURTHER ORDERED that the following
motions are GRANTED:

e Rule 12(b)(6) motion to dismiss (con-
verted to a motion for summary judg-
ment) for failure to state a contractual
claim due to lack of standing;

¢ Rule 12(b)(6) motion to dismiss (con-
verted to a motion for summary judg-
ment) for failure to state a tort claim due
to lack of standing;

¢ Rule 12(b)(6) motion to dismiss for fail-
ure to state a claim for mental anguish
damages (unopposed);

¢ Rule 12(b)(6) motion to dismiss punitive
damage claim outside the period of 1984
to 1996.

¢ Rule 12(b)(6) motion to dismiss for fail-
ure to state a claim for attorney's fees
(unopposed )

App. 102

Considering that the rulings granting the motions
for summary judgment for failure to state contractual
and tort claims due to lack of standing dispose of all
claims, IT IS ORDERED that the Clerk take note
that this Judgment effectively dismisses all of plain-
tiffs’ claims.

Signed at Lafayette, Louisiana on October 19,
2004.

/s/ M E Methvin
Mildred E. Methvin
United States Magistrate Judge
800 Lafayette St., Suite 3500
Lafayette, Louisiana 70501
(337) 593-5140 (phone)

593-5155 (fax)

App. 103

28 U.S.C.A. § 1332 Diversity of citizenship; amount
in controversy; costs

(a) The district courts shall have original jurisdic-
tion of all civil actions where the matter in contro-
versy exceeds the sum or value of $75,000, exclusive
of interest and costs, and is between —

(1) citizens of different States;

(2) citizens of a State and citizens or subjects of
a foreign state;
(3) citizens of different States and in which citi-

zens or subjects of a foreign state are additional
parties; and

(4) a foreign state, defined in section 1603(a) of
this title, as plaintiff and citizens of a State or of
different States.

For the purposes of this section, section 1335, and
section 1441, an alien admitted to the United States
for permanent residence shall be deemed a citizen of
the State in which such alien is domiciled.

(b) Except when express provision therefor is other-
wise made in a statute of the United States, where
the plaintiff who files the case originally in the Fed-
eral courts is finally adjudged to be entitled to recover
less than the sum or value of $75,000, computed with-
out regard to any setoff or counterclaim to which the
defendant may be adjudged to be entitled, and exclu-
sive of interest and costs, the district court may deny
costs to the plaintiff and, in addition, may impose

costs on the plaintiff.

App. 104

(c) For the purposes of this section and section 1441
of this title —

(1) a corporation shall be deemed to be a citizen
of any State by which it has been incorporated
and of the State where it has its principal place
of business, except that in any direct action
against the insurer of a policy or contract of
liability insurance, whether incorporated or unin-
corporated, to which action the insured is not
joined as a party-defendant, such insurer shall be
deemed a citizen of the State of which the in-
sured is a citizen, as well as of any State by
which the insurer has been incorporated and of
the State where it has its principal place of
business; and

(2) the legal representative of the estate of a
decedent shall be deemed to be a citizen only of
the same State as the decedent, and the legal
representative of an infant or incompetent shall
be deemed to be a citizen only of the same State
as the infant or incompetent.

(d)(1) In this subsection —

(A) the term “class” means all of the class mem-
bers in a class action;

(B) the term “class action” means any civil
action filed under rule 23 of the Federal Rules of
Civil Procedure or similar State statute or rule of
judicial procedure authorizing an action to he
brought by 1 or more representative persons as a
class action;

App. 105

(C) the term “class certification order” means
an order issued by a court approving the treat-
ment of some or all aspects of a civil action as a
class action; and

(D) the term “class members” means the per-
sons (named or unnamed) who fall within the
definition of the proposed or certified class in a
class action.

(2) The district courts shall have original jurisdiction
of any civil action in which the matter in controversy
exceeds the sum or value of $5,000,000, exclusive of
interest and costs, and is a class action in which —

(A) any member of a class of plaintiffs is a citi-
zen of a State different from any defendant;

(B) any member of a class of plaintiffs is a
foreign state or a citizen or subject of a foreign
state and any defendant is a citizen of a State; or

(C) any member of a class of plaintiffs is a
citizen of a State and any defendant is a foreign
state or a citizen or subject of a foreign state.

(3) A district court may, in the interests of justice
and looking at the totality of the circumstances, de-
cline to exercise jurisdiction under paragraph (2) over
a class action in which greater than one-third but less
than two-thirds of the members of all proposed plain-
tiff classes in the aggregate and the primary defen.
dants are citizens of the State in which the action was
originally filed based on consideration of —

(A) whether the claims asserted involve mat-
ters of national or interstate interest:

App. 106

(B) whether the claims asserted will be gov-
erned by laws of the State in which the action
was originally filed or by the laws of other States;

(C) whether the class action has been pleaded
in a manner that seeks to avoid Federal juris-
diction;

(D) whether the action was brought in a forum
with a distinct nexus with the class members, the
alleged harm, or the defendants;

(E) whether the number of citizens of the State
in which the action was originally filed in all pro-
posed plaintiff classes in the aggregate is sub-
stantially larger than the number of citizens from
any other State, and the citizenship of the other
members of the proposed class is dispersed
among a substantial number of States; and

(F) whether, during the 3-year period preceding
the filing of that class action, 1 or more other
class actions asserting the same or similar claims
on behalf of the same or other persons have been

filed.

(4) A district court shall decline to exercise juris-
diction under paragraph (2)

(A)(i) over a class action in which —

(I) greater than two-thirds of the members
of all proposed plaintiff classes in the aggre-
gate are citizens of the State in which the
action was originally filed;

(II) at least 1 defendant is a defendant

(5)
any

App. 107

(aa) from whom significant relief is
sought by members of the plaintiff class;

(bb) whose alleged conduct forms a
significant basis for the claims asserted
by the proposed plaintiff class; and

(cc) who is a citizen of the State in
which the action was originally filed;

and

(III) principal injuries resulting from the
alleged conduct or any related conduct of
each defendant were incurred in the State in
which the action was originally filed; and

(ii) during the 3-year period preceding the fil-
ing of that class action, no other class action has
been filed asserting the same or similar factual
allegations against any of the defendants on be-
half of the same or other persons; or

(B) two-thirds or more of the members of all
proposed plaintiff classes in the aggregate, and
the primary defendants, are citizens of the State
in which the action was originally filed.

Paragraphs (2) through (4) shall not apply to
class action in which -

(A) the primary defendants are States, State
officials, or other governmental! entities against
whom the district court may be foreclosed from
ordering relief; or

(B) the number of members of all proposed
plaintiff classes in the aggregate is less than 100.

App. 108

(6) In any class action, the claims of the individual
class members shall be aggregated to determine
whether the matter in controversy exceeds the sum
or value of $5,000,000, exclusive of interest and costs.

(7) Citizenship of the members of the proposed
plaintiff classes shall be determined for purposes of
paragraphs (2) through (6) as of the date of filing of
the complaint or amended complaint, or, if the case
stated by the initial pleading is not subject to Federal
jurisdiction, as of the date of service by plaintiffs of
an amended pleading, motion, or other paper, indi-
cating the existence of Federal jurisdiction.

(8) This subsection shall apply to any class action
before or after the entry of a class certification order
by the court with respect to that action.

(9) Paragraph (2) shall not apply to any class action
that solely involves a claim

(A) concerning a covered security as defined
under 16(f)(3) of the Securities Act of 1933 (15
U.S.C. 78p(f)(3)) and section 28(f)5)(E) of the
Securities Exchange Act of 1934 (15 U.S.C
T&8bb(f)(5)(B)):

(3B) that relates to the internal affairs or gov-
ernance of a corporation or other form of business
enterprise and that arises under or by virtue of

So in original. Reference to “16(f%3)" probably should be
preceded by “section”

Soin onginal. Probably should be “77(px3y

App. 109

the laws of the State in which such corporation or
business enterprise is incorporated or organized;
or

(C) that relates to the rights, duties (including
fiduciary duties), and obligations relating to or
created by or pursuant to any security (as defined
under section 2(a)(1) of the Securities Act of 1933
(15 U.S.C. 77b(a)(1)) and the regulations issued
thereunder).

(10) For purposes of this subsection and section
1453, an unincorporated association shall be deemed
to be a citizen of the State where it has its principal
place of business and the State under whose laws it is
organized.

(11)(A) For purposes of this subsection and section
1453, a mass action shall be deemed to be a class ac-
tion removable under paragraphs (2) through (10) if it
otherwise meets the provisions of those paragraphs.

(B)Gi) As used in subparagraph (A), the term “mass
action” means any civil action (except a civil action
within the scope of section 1711(2)) in which mone-
tary relief claims of 100 or more persons are proposed
to be tried jointly on the ground that the plaintiffs’
claims involve common questions of law or fact,
except that jurisdiction shall exist only over those
plaintiffs whose claims in a mass action satisfy the
jurisdictional amount requirements under subsection
(a).

(ii) As used in subparagraph (A), the term “mass

action” shall not include any civil action in which

App. 110

(I) all of the claims in the action arise from an
event or occurrence in the State in which the
action was filed, and that allegedly resulted in
injuries in that State or in States contiguous to
that State;

(II) the claims are joined upon motion of a
defendant;

(III) all of the claims in the action are asserted
on behalf of the general public (and not on behalf
of individual claimants or members of a pur-
ported class) pursuant to a State statute specif-
ically authorizing such action; or

(IV) the claims have been consolidated or coor-
dinated solely for pretrial proceedings.

(C)(i) Any action(s) removed to Federal court pur-
suant to this subsection shall not thereafter be trans-
ferred to any other court pursuant to section 1407, or
the rules promulgated thereunder, unless a majority
of the plaintiffs in the action request transfer pursu-
ant to section 1407.

(ii)

This subparagraph will not apply —

(I) to cases certified pursuant to rule 23 of the
Federal Rules of Civil Procedure; or

(ii) if plaintiffs propose that the action proceed
as a class action pursuant to rule 23 of the
Federal Rules of Civil Procedure.

App. 111

(D) The limitations periods on any claims asserted
in a mass action that is removed to Federal court pur-
suant to this subsection shall be deemed tolled during
the period that the action is pending in Federal court.

(e) The word “States”, as used in this section, in-
cludes the Territories, the District of Columbia, and
the Commonwealth of Puerto Rico.

App. 112

28 U.S.C.A. § 1441. Actions removable generally

(a) Except as otherwise expressly provided by Act of
Congress, any civil action brought in a State court of
which the district courts of the United States have
original jurisdiction, may be removed by the defen-
dant or the defendants, to the district court of the
United States for the district and division embracing
the place where such action is pending. For purposes
of removal under this chapter, the citizenship of de-
fendants sued under fictitious names shall be dis-
regarded.

(b) Any civil action of which the district courts have
original jurisdiction founded on a claim or right
arising under the Constitution, treaties or laws of the
United States shall be removable without regard to
the citizenship or residence of the parties. Any other
such action shall be removable only if none of the par-
tics in interest properly joined and served as defen-
dants is a citizen of the State in which such action is
brought.

(c) Whenever a separate and independent claim or
cause of action within the jurisdiction conferred by
section 1331 of this title 1s joined with one or more
otherwise non-removable claims or causes of action,
the entire case may be removed and the district court
may determine all issues therein, or, in its discretion,
may remand all matters in which State law predomi-
nates.

(d) Any civil action brought in a State court against
° > }

a foreign state as defined in section 1603(a) of this

App. 113

title may be removed by the foreign state to the dis-
trict court of the United States for the district and
division embracing the place where such action is
pending. Upon removal the action shall be tried by
the court without jury. Where removal is based upon
this subsection, the time limitations of section
1446(b) of this chapter may be enlarged at any time
for cause shown.

(e)(1) Notwithstanding the provisions of subsection
(b) of this section, a defendant in a civil action in a
State court may remove the action to the district
court of the United States for the district and division
embracing the place where the action is pending if —

(A) the action could have been brought in a
United States district court under section 1369 of
this title; or

(B) the defendant is a party to an action which
is or could have been brought, in whole or in part,
under section 1369 in a United States district
court and arises from the same accident as the
action in State court, even if the action to be
removed could not have been brought in a district
court as an original matter.

The removal of an action under this subsection shall
be made in accordance with section 1446 of this title,
except that a notice of removal] may also be filed be-
fore trial of the action in State court within 30 days
after the date on which the defendant first becomes a
party to an action under section 1369 in a United
States district court that arises from the same

App. 114

accident as the action in State court, or at a later
time with leave of the district court.

(2) Whenever an action is removed under this sub-
section and the district court to which it is removed or
transferred under section 1407(j) has made a liability
determination requiring further proceedings as to
damages, the district court shall remand the action to
the State court from which it had been removed for
the determination of damages, unless the court finds
that, for the convenience of parties and witnesses and
in the interest of justice, the action should be re-
tained for the determination of damages.

(3) Any remand under paragraph (2) shall not be
effective until 60 days after the district court has
issued an order determining liability and has certified
its intention to remand the removed action for the
determination of damages. An appeal with respect to
the liability determination of the district court may
be taken during that 60-day period to the court of
appeals with appellate jurisdiction over the district
court. In the event a party files such an appeal, the
remand shall not be effective until the appeal has
been finally disposed of. Once the remand has become
effective, the liahility determination shall not be sub-
ject to further review by appeal or otherwise.

(4) Any decision under this subsection concerning
remand for the determination of damages shall not be
reviewable by appeal or otherwise.

(5) An action removed under this subsection shall

be deemed to be an action under section 1369 and an

App. 115

action in which jurisdiction is based on section 1369
of this title for purposes of this section and sections
1407, 1697, and 1785 of this title.

(6) Nothing in this subsection shall restrict the
authority of the district court to transfer or dismiss
an action on the ground of inconvenient forum.

(f) The court to which a civil action is removed un-
der this section is not precluded from hearing and
determining any claim in such civil action because
the State court from which such civil action is re-
moved did not have junsdiction over that claim.

App. 116

LSA-R.S. 30:29 Remediation of oilfield sites and
exploration and production sites

A. The legislature hereby finds and declares that
Article [X, Section 1 of the Constitution of Louisiana
mandates that the natural resources and the environ-
ment of the state, including ground water, are to be
protected, conserved, and replenished insofar as poss-
ible and consistent with the health, safety, and wel-
fare of the people and further mandates that the
legislature enact laws to implement this policy. It is
the duty of the legislature to set forth procedures to
ensure that damage to the environment is remediated
to a standard that protects the public interest. To this
end, this Section provides the procedure for judicial
resolution of claims for environmental damage to
property arising from activities subject to the juris-
diction of the Department of Natural Resources, office
of conservation. The provisions of this Section shall
be implemented upon receipt of timely notice as
required by Paragraph (B)(1) of this Section. The
provisions of this Section shall not be construed to
impede or limit provisions under private contracts
imposing remediation obligations in excess of the
requirements of the department or limit the right of a
party to a private contract to enforce any contract
provision in a court of proper jurisdiction.

B. (1) Notwithstanding any law to the contrary,
immediately upon the filing or amendment of any liti-
gation or pleading making a judicial demand arising
from or alleging environmental damage, the provi-
sions of this Section shall apply and the party filing

App. 117

same shall provide timely notice to the state of
Louisiana through the Department of Natural Re-
sources, commissioner of conservation and the attor-
ney general. The litigation shall be stayed with
respect to any such judicial demand until thirty days
after such notice is issued and return receipt is filed
with the court.

(2) The department or the attorney general, in ac-
cordance with their areas of constitutional and statu-
tory authority and regulations adopted pursuant
thereto, shall have the right to intervene in such liti-
gation in accordance with the Louisiana Code of Civil
Procedure. Nothing in this Section shall diminish the
authority of the department or the attorney general
to independently bring any civil or administrative
enforcement action. Nor shall anything in this Sec-
tion preclude the department from independently re-
sponding in a timely manner to an inquiry or request
by a landowner for investigation.

(3) Any judgment or order in any litigation to which
this Section applies shall be without prejudice to any
independent civil or administrative action by the de-
partment or the attorney general regarding any envi-
ronmental damage alleged therein. No such judgment
or order in such litigation may bar the department or
the attorney general pursuant to R.S. 13:4231 et seq.,
or otherwise from pursuing any independent civil or
administrative action regarding environmental dam-
age alleged therein, regardless of whether the depart-
ment or the attorney general has intervened.

App. 118

(4) No judgment or order shall be rendered granting
any relief in such litigation to which this Section
applies, nor shall the litigation be dismissed, until
timely notice is received by the state of Louisiana as
set forth in this Subsection.

C. (1) If at any time during the proceeding a party
admits liability for environmental damage or the
finder of fact determines that environmental damage
exists and determines the party or parties who
caused the damage or who are otherwise legally re-
sponsible therefor, the court shall order the party or
parties who admit responsibility or whom the court
finds legally responsible for the damage to develop a
plan or submittal for the evaluation or remediation to
applicable standards of the contamination that re-
sulted in the environmental damage. The court shall
order that the plan be developed and submitted to the
department and the court within a time that the
court determines is reasonable and shall allow the
plaintiff or any other party at least thirty days from
the date each plan or submittal was made to the
department and the court to review the plan or sub-
mittal and provide to the department and the court a
plan, comment, or input in response thereto. The
department shall consider any plan, comment, or
response provided timely by any party. The depart-
ment shall submit to the court a schedule of esti-
mated costs for review of the plans or submittals of
the parties by the department and the court shall
require the party admitting responsibility or the
party found legally responsible by the court to deposit

App. 119

in the registry of the court sufficient funds to pay the
cost of the department’s review of the plans or sub-
mittals. Any plan or submittal shall include an
estimation of cost to implement the plan.

(2) Within sixty days from the last day on which any
party may provide the department with a plan, com-
ment, or response to a plan as provided in Paragraph
(C)(1) of this Section, the department shall conduct a
public hearing on the plan or plans submitted. Within
sixty days of the conclusion of the hearing, the
department shall approve or structure a plan based
on the evidence submitted which the department
determines to be the most feasible plan to evaluate or
remediate the environmental damage and protect the
health, safety, and welfare of the people. The depart-
ment shall issue written reasons for the plan it
approves or structures. On motion of the department,
for good cause shown, the court may grant the depart-
ment additional time, not to exceed sixty days, within
which to either conduct the hearing or approve a plan
with reasons.

(3) The department shall use and apply the appli-
cable standards in approving or structuring a plan
that the department determines to be the most feasi-
ble plan to evaluate or remediate the environmental
damage.

(4) The plan approved by the department for sub-
mission to the court shall not be considered to be an

adjudication subject to appellate review pursuant to
R.S. 49:964 or R.S. 30:12.

App. 120

(5) The court shall adopt the plan approved by the
department, unless a party proves by a preponder-
ance of the evidence that another plan is a more feasi-
ble plan to adequately protect the environment and
the public health, safety, and welfare. The court shall
enter a judgment adopting a plan with written
reasons assigned. Upon adoption of a plan, the court
shall order the party or parties admitting responsi-
bility or the party or parties found legally responsible
by the court to fund the implementation of the plan.

(6)(a) Any judgment adopting a plan of evaluation
or remediation pursuant to this Section and ordering
the party or parties admitting responsibility or the
party or parties found legally responsible by the court
to deposit funds for the implementation thereof into
the registry of the court pursuant to this Section shall
be considered a final judgment pursuant to the Code
of Civil Procedure Article 2081 et seq., for purposes of
appeal.

(b) Any appeal under this Section shall be a de novo
review and shall be heard with preference and on an
expedited basis.

(c) The appellate court may affirm the trial court’s
adoption of a plan or may adopt a feasible plan in
conformity with this Section and shall issue written
reasons for its decision.

D. (1) Whether or not the department or the attor-
ney general intervenes, and except as provided in
Subsection H of this Section, all damages or pay-

ments in any civil action, including interest thereon,

App. 121

awarded for the evaluation or remediation of environ-
mental damage shall be paid exclusively into the
registry of the court in an interest-bearing account
with the interest accruing to the account for clean up.

(2) The court may allow any funds to be paid into
the registry of the court to be paid in increments as
necessary to fund the evaluation or remediation and
implementation of any plan or submittal adopted by
the court. In any instance in which the court allows
the funds to be paid in increments, whether or not an
appeal is taken, the court shall require the posting of
a bond for the implementation of the plan in such
amount as provided by and in accordance with the
procedures set forth for the posting of suspensive
appeal bonds. Any such bond shall be valid through
completion of the remediation.

(3) The court shall issue such orders as may be
necessary to ensure that any such funds are actually
expended in a manner consistent with the adopted
plan for the evaluation or remediation of the environ-
mental damage for which the award or payment is
made.

(4) The court shall retain jurisdiction over the funds
deposited and the party or parties admitting respon-
sibility or the party or parties found legally respon-
sible by the court until such time as the evaluation or
remediation is completed. If the court finds the
amount of the initial deposit insufficient to complete
the evaluation or remediation, the court shall, on the
motion of any party or on its own motion, order the

App. 122

party or parties admitting responsibility or found
legaliy responsible by the court to deposit additional
funds into the registry of the court. Upon completion
of the evaluation or remediation, the court shall order
any funds remaining in the registry of the court to be
returned to the depositor. The department and the
parties shall notify the court of the completion of any
evaluation or remediation.

FE. (1) In any civil action in which a party is re-
sponsible for damages or payments for the evaluation
or remediation of environmental damage, a party
providing evidence, in whole or in part, upon which
the judgment is based shall be entitled to recover
from the party or parties admitting responsibility or
the party or parties found legally responsible by the
court, in addition to any other amounts to which the
party may be entitled, all costs attributable to
producing that portion of the evidence that directly
relates to the establishment of environmental dam-
age, including, but not limited to, expert witness fees,
environmental evaluation, investigation, and testing,
the cost of developing a plan of remediation, and rea-
sonable attorney fees incurred in the trial court and
the department.

(2) In any civil action in which the department or
the attorney general, or their employees, are parties
or witnesses, provide evidence, or otherwise contri
bute to the determination of responsibility for evalua-
tion or remediation, or the approval of a plan of
remediation, the department or attorney general

shall be entitled to recover from the party or parties

App. 123

admitting responsibility or the party or parties found
legally responsible by the court all costs thercof,
including but not limited to investigation, evaluation,
and review costs; expert witness fees; and reasonable
attorney fees.

F. The court and the department shall retain over-
sight to ensure compliance with the plan. The party
or parties admitting responsibility or the party or
parties found legally responsible by the court shall
file progress reports periodically as the court or the
department may require.

G. The provisions of this Section are intended to en-
sure evaluation or remediation of environmental
damage. If the court finds that no environmental
damage exists, the court may dismiss the department
or attorney general from the litigation without
prejudice.

H. This Section shall not preclude an owner of land
from pursuing a judicial remedy or receiving a ju-
dicial award for private claims suffered as a result of
environmental damage, except as otherwise provided
in this Section. Nor shall it preclude a judgment
ordering damages for or implementation of additional
remediation in excess of the requirements of the plan
adopted by the court pursuant to this Section as may
he required in accordance with the terms of an ex-
press contractual provision. Any award granted in
connection with the judgment for additional remedi-

ation is not required to be paid tnto the registry of the
court. This Section shall not be interpreted to create

App. 124

any cause of action or to impose additional implied
obligations under the mineral code or arising out of a
mineral lease.

I. For the purposes of this Section, the following
terms shall have the following meanings:

(1) “Environmental damage” shall mean any actual
or potential impact, damage, or injury to environ-
mental media caused by contamination resulting
from activities associated with oilfield sites or explo-
ration and production sites. Environmental media
shall include but not be limited to soil, surface water,
ground water, or sediment.

(2) “Evaluation or remediation” shall include but
not be limited to investigation, testing, monitoring,
containment, prevention, or abatement.

(3) “Feasible Plan” means the most reasonable plan
which addresses environmental damage tn conformity
with the requirements of Louisiana Constitution Arti-
cle IX, Section 1 to protect the environment, public
health, safety and welfare, and is in compliance with
the specific relevant and applicable standards and
regulations promulgated by a state agency in accor-
dance with the Administrative Procedure Act in effect
at the time of clean up to remediate contamination
resulting from oilfield or exploration and production
operations or waste.

(4) “Oilfield site” or “exploration and = production
(E&P) site” means any location or any portion thereof
on which oil or gas exploration, development, or

App. 125

production activities have occurred, including wells,
equipment, tanks, flow lines or impoundments used
for the purposes of the drilling, workover, produc-
tion, primary separation, disposal, transportation or
storage of E&P wastes, crude oil and natural gas
processing, transportation or storage of a common
production stream of crude oil, natural gas, coal seam
natural gas, or geothermal energy prior to a custody
transfer or a sales point. In general, this definition
would apply to all exploration and production opera-
tions located on the same lease, unit or field.

(5) “Timely notice” means written notice sent by
certified mail, return receipt requested. Such notice
shall include a copy of the petition and any other
filing in such litigation.

J.(1) In the event that any settlement is reached in
a case subject to the provisions of this Section, the
settlement shall be subject to approval by the court.
The department and the attorney general shall be
given notice once the parties have reached a settle-
ment in principle. The department shall then have no
less than thirty days to review that settlement and
comment to the court before the court certifies the
settlement. If after a contradictory hearing the court
requires remediation, the court shall not certify or
approve any settlement until an amount of money
sufficient to fund such remediation is deposited into
the registry of the court. No funding of a settlement
shall occur until the requirements of this Section
have been satisfied. However, the court shall have the
discretion to waive the requirements of this Section if

App. 126

the settlement reached is for a minimal amount and
is not dispositive of the entire litigation.

(2) In the event a settlement is agreed to between
the parties in a case in which the department or the
attorney general has intervened, such agency shall be
entitled to recover from the settling defendants all
costs, including investigation, evaluation, and review

costs; expert witness fees; and reasonable attorney
fees.

K. The provisions of this Section shall not apply to a
judicial demanc that prior to the effective date of this
Section has been resolved through compromise
agreement and settlement of claims, or by judgment
on the merits that has become final and definitive.

CREDIT(S)
Added by Acts 2006, No. 312, § 1, eff. June 8, 2006.
NOTICE; APPLICATION --ACTS 2006, NO. 312

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386017_1159%3A1. Public record. Not legal advice.
