Alomang v. Freeport-McMoRan, Inc.

811 So. 2d 98, 2002 WL 321902
CourtLouisiana Court of Appeal
DecidedFebruary 20, 2002
Docket2000-CA-2099
StatusPublished
Cited by2 cases

This text of 811 So. 2d 98 (Alomang v. Freeport-McMoRan, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alomang v. Freeport-McMoRan, Inc., 811 So. 2d 98, 2002 WL 321902 (La. Ct. App. 2002).

Opinion

811 So.2d 98 (2002)

Yosefa ALOMANG, On Behalf of Herself and All Others Similarly Situated,
v.
FREEPORT-McMORAN, INC., and Freeport-McMoran Copper and Gold, Inc.

No. 2000-CA-2099.

Court of Appeal of Louisiana, Fourth Circuit.

February 20, 2002.

*99 Joseph M. Bruno, David S. Scalia, Anthony D. Irpino, Bruno & Bruno, and Martin E. Regan, Jr., Regan & Associates, New Orleans, LA, for Plaintiffs/Appellants.

John C. Reynolds, M. Richard Schroeder, Virginia W. Gundlach, Alida C. Hainkel, Jones, Walker, Waechter, Poitevent, Carrere & Denegre, L.L.P., and John S. Keller, New Orleans, LA, for Defendants/Appellees.

Court composed of Judge JOAN BERNARD ARMSTRONG, Judge PATRICIA RIVET MURRAY, and Judge DAVID S. GORBATY.

GORBATY, Judge.

Plaintiffs appeal a judgment dismissing their claims, with prejudice, pursuant to defendants' (Freeport-McMoRan, Inc., and Freeport-McMoRan Copper & Gold, Inc.) Exception of No Cause of Action.[1] For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY:

Yosefa Alomang, a citizen of the Republic of Indonesia, filed this lawsuit on her behalf and others similarly situated, alleging numerous acts and/or omissions by two Louisiana corporations, Freeport-McMoRan, Inc. (FMI), and Freeport-McMoRan Copper & Gold, Inc. (FMC & G).[2] In their first petition, plaintiffs alleged foreign environmental violations, international human rights violations and cultural genocide. Plaintiffs thereafter amended their petition to add allegations that the claims raised in their original petition were the result of decisions made by Freeport-McMoran, Inc., and FMC & G, in their corporate headquarters in New Orleans. The trial court granted defendants' exception of lack of subject matter jurisdiction. This Court reversed and remanded, finding that plaintiffs' allegations also included personal injury damages that were subject to the trial court's subject matter jurisdiction. Alomang v. Freeport-McMoran, Inc., 97-1349 (La.App. 4 Cir. 3/4/98), 718 *100 So.2d 971, writ denied 98-1352 (La.7/2/98), 724 So.2d 734.

Following remand, plaintiffs filed a second amended petition adding four named plaintiffs. Defendants' exception of no right of action was granted because the petition did not establish the right of the named plaintiffs to assert a cause of action for wrongful death. That judgment was not appealed and is now final.

Also following the remand, plaintiffs were granted leave to file an amended petition with instructions from the trial court to "plead facts, as necessary under Louisiana law, to assert claims for personal injury with sufficient detail to place defendants on notice of the facts sought to be proven."

Plaintiffs thereafter filed a third supplemental and amending petition in which they alleged that a contract of work was entered into between Freeport Minerals Company, an Indonesian corporation, and the government of the Republic of Indonesia that obligated Freeport Minerals to the citizens of Indonesia via a stipulation pour autri contained in the contract. The petition further alleged that FMC & G, as the successor to Freeport Minerals, is the alter ego of Freeport Minerals and, is therefore responsible for Freeport Mineral's negligent and/or intentional acts and breaches of the 1967 contract. Defendants filed numerous exceptions, including exceptions of no cause of action and lack of subject matter jurisdiction. The latter exception was withdrawn. Plaintiffs are now before this Court appealing the judgment granting defendants' exception of no cause of action, dismissing plaintiffs' claims, with prejudice.

DISCUSSION:

This Court recently restated the function of an exception of no cause of action and addressed the standards for evaluating the exception:

The function of an exception of no cause of action is to test the legal sufficiency of the petition by determining whether the law affords a remedy on the facts alleged in the pleading. Darville v. Texaco, Inc., 447 So.2d 473 (La.1984). No evidence may be introduced to support or controvert the objection that the petition fails to state a cause of action. La.Code Civ. Proc. art. 931. Therefore, the court reviews the petition and accepts well pleaded allegations of fact as true, and the issue at the trial of the exception is whether, on the face of the petition, the plaintiff is legally entitled to the relief sought. Hero Lands Co. v. Texaco, Inc., 310 So.2d 93 (La.1975); Kuebler v. Martin, 578 So.2d 113 (La. 1991).

Guidry v. First Nat'l Bank of Commerce, 98-2383, pp. 2-3 (La.App.3/1/00), 755 So.2d 1033, 1035-36, citing Everything on Wheels Subaru, Inc. v. Subaru South, Inc., 616 So.2d 1234, 1235 (La.1993). The Court further explained that "the nonmoving party must be given the benefit of all reasonable inferences, and the exceptor has the burden of showing that no cause of action exists on the facts alleged." Guidry, citing City of New Orleans v. Bd. Of Directors of La. State Museum, 98-1170, p. 9 (La.3/2/99), 739 So.2d 748, 755.

Plaintiffs claim that their third amending petition, and all previously filed petitions state several causes of action. Specifically, the latest filed petition states a cause of action against FMC & G under an alter ego theory of liability. Paragraph XI of the Third Supplemental and Amending Petition alleges:

At all times herein, the defendant FREEPORT McMoRan COPPER & GOLD, INC., was and is the principal shareholder (81.28%) and the alter-ego of P.T. FREEPORT INDONESIA *101 COMPANY in that all of the activities of P.T. FREEPORT INDONESIA COMPANY were and are directed solely by FREEPORT McMoRan COPPER & GOLD, INC. from its corporate headquarters within the Parish of Orleans, and as such FREEPORT McMoRan COPPER & GOLD, INC. is responsible for all of the negligent and/or intentional acts of P.T. FREEPORT INDONESIA COMPANY.

Plaintiffs allege that the above statement is not a "mere conclusion of law," but is an allegation of fact sufficient to state a cause of action that FMC & G is liable as the real party causing plaintiffs' injuries. They seek to attach liability to FMC & G by proving that FMC & G directed all of the activities of PTFI. They also seek to "pierce the corporate veil," by proving that FMC & G is the alter ego of PTFI, and, therefore, should be held liable for the acts and/or omissions of PTFI. Plaintiffs argue that they are not making a general statement, but are alleging specific acts and/or omissions sufficient to state a cause of action, including, negligent or intentional arming of the Indonesian military to cause injury to plaintiff, environmental torts, intentional breach of contract, and fraud.

The following circumstances must be proven to support a finding that one corporation is the alter ego of another: 1) commingling of corporate and shareholder funds; 2) failure to follow statutory formalities required for incorporation and for the transaction of corporate affairs; 3) under capitalization; 4) failure to provide separate bank accounts and bookkeeping records; and 5) failure to hold regular shareholder or director meetings. Rock v. ATPIC Trucking Co., Inc., 98-1420, p. 9 (La.App. 1 Cir. 6/25/99), 739 So.2d 874, 880. Plaintiffs' petition does not allege that any of the above-enumerated conditions exist, and, therefore, their petition is woefully deficient.

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Bluebook (online)
811 So. 2d 98, 2002 WL 321902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alomang-v-freeport-mcmoran-inc-lactapp-2002.