Boudreaux v. Axiall Corp

District Court, W.D. Louisiana·Decided October 7, 2021·No. 2:18-cv-00956·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA LAKE CHARLES DIVISION ______________________________________________________________________________

ROBERT LEE BOUDREAUX, ET AL. CIVIL ACTION NO. 18-0956

VERSUS JUDGE DONALD E. WALTER

AXIALL CORP., ET AL. MAGISTRATE JUDGE KAY ______________________________________________________________________________

MEMORANDUM RULING

Before the Court is a Motion to Dismiss Pursuant to Federal Rule of Civil Procedure 12(b)(6), or in the Alternative, a More Definite Statement Pursuant to Federal Rule of Civil Procedure 12(e) filed by Boeing Aircraft Holding Company f/k/a Boeing Petroleum Services, Inc. (“BPS”). See Record Document 164.1 Third-Party Plaintiffs, Eagle US 2 LLC, Axiall Corporation, and Axiall, LLC (collectively “Eagle/Axiall”) oppose the motion. See Record Document 176. For the reasons assigned herein, the motion is DENIED. BACKGROUND INFORMATION

This motion relates to the third-party litigation in the above-captioned matter filed by Eagle/Axiall against BPS and other Third-Party Defendants, including Parsons Government Services Inc., Gilbane Building Company, and Gilbane Inc. (“Parsons-Gilbane”). The Court has previously provided a detailed recitation of the procedural and factual history associated with

1 Eagle/Axiall object to the motion as untimely because it was not filed within 21 days of service as required by Rule 12(a)(1)(A). See Record Document 176 at 16-18. The Court notes that Eagle/Axiall could have moved for a default judgment pursuant to Rule 55. While a defendant should file a responsive pleading or motion to dismiss within the time provided by Rule 12, the deterrence for failing to do so is the threat of a default judgment. Rule 12(b)(7) states that a motion asserting one of the enumerated defenses must be made before a responsive pleading, which BPS has done. The Court will proceed in evaluating BPS’s motion. this case in its ruling on Parsons-Gilbane’s motion to dismiss. See Record Document 243. As such, the Court will not repeat itself in this ruling. With regard to BPS, the following information is alleged in Eagle/Axiall’s Second Supplemental and Amended Third-Party Complaint (herein “Complaint”). See Record Document 103. Eagle/Axiall allege that BPS was the primary contractor for decommissioning

the SPR site and returning the Sulphur Mines back to private control. See id. at ¶¶ 41-42. Eagle/Axiall state that BPS also provided contract management services of the SPR site for the Department of Energy pursuant to contracts that were similar to the SPR contracts by which Parsons-Gilbane were bound. See id. at ¶ 43. It is alleged that BPS constructed and operated the SPR site negligently and in breach of contractual obligations to perform work in a workmanlike manner by introducing microbial agents into the brine caverns resulting in microbiologically influenced corrosion, which ultimately led to the pipeline leaks upon the land of the Plaintiffs in the underlying litigation. See id. at ¶ 45. Eagle/Axiall allege that during the decommissioning of the SPR site BPS chose to use

untreated surface water from the Sabine River Diversion Canal rather than purchasing brine water for use in effectuating a drawdown of crude oil levels at the SPR site. See id. at ¶¶ 46-47. Eagle/Axiall assert that the untreated raw water was left inside the cavern until the site was reacquired by PPG2 a year later. See id. at ¶ 48. The abandonment of the untreated raw water in the cavern is alleged to have allowed sulfate-reducing bacteria to proliferate and exacerbate the corrosion experienced in the caverns and brine pipelines. See id. at ¶ 49. This environmental threat of the use of untreated water was allegedly known to the federal contractors and to BPS, but was not communicated or reasonably known to Eagle/Axiall or PPG. See id. at ¶ 50.

2 On January 22, 2013, PPG sold certain pipelines to Eagle, which are the subject of the underlying litigation. See Record Document 103 at ¶ 5; Record Document 103-3. Eagle/Axiall have raised claims against BPS under theories of negligence, strict liability pursuant to the pre-1996 version of Louisiana Civil Code article 667 and Louisiana Civil Code article 2317, breach of contract, and indemnity. See id. at ¶¶ 112-142. BPS argues that Eagle/Axiall’s claims are untimely, fail to establish sufficient fact or viable legal theories, and fail as a matter of law because it is immune from liability as a government contractor. See

Record Document 164-1 at 13-14. Alternatively, BPS requests that the Court require Eagle/Axiall to provide a more definite statement of their claims pursuant to Federal Rule of Civil Procedure 12(e). See id. at 14. LAW AND ANALYSIS

I. Federal Rule of Civil Procedure 12(b)(6)

Rule 8(a)(2) of the Federal Rules of Civil Procedure governs the requirements for pleadings that state a claim for relief, requiring that a pleading contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” The standard for the adequacy of complaints under Rule 8(a)(2) changed from the old, more plaintiff-friendly “no set of facts” standard to a “plausibility” standard found in Bell Atlantic v. Twombly and its progeny. Twombly, 550 U.S. 544, 127 S.Ct. 1955 (2007). Under this standard, “factual allegations must be enough to raise a right to relief above the speculative level ... on the assumption that all the allegations in the complaint are true (even if doubtful in fact).” Id. at 555-556, 127 S.Ct. at 1965. If a pleading only contains “labels and conclusions” and “formulaic recitation of the elements of a cause of action,” the pleading does not meet the standards of Rule 8(a)(2). Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 1949 (2009) (citation omitted). Courts do not have to accept legal conclusions as facts. See id. “Motions to dismiss under Rule 12(b)(6) are rarely granted and generally disfavored.” Rodriguez v. Rutter, 310 F. App’x 623, 626 (5th Cir. 2009) (citing Collins v. Morgan Stanley Dean Witter, 224 F.3d 496, 498 (5th Cir. 2000)). However, courts considering a motion to dismiss under Rule 12(b)(6) are only obligated to allow those complaints that are facially plausible under the Iqbal and Twombly standard to survive such a motion. See Iqbal, 556 U.S. at 678-679, 129 S.Ct. at 1949-1950. In deciding a Rule 12(b)(6) motion to dismiss, a court generally “may not go outside the

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