Broussard v. Northcott Exploration Co., Inc.

481 So. 2d 125, 88 Oil & Gas Rep. 497, 1986 La. LEXIS 5484
CourtSupreme Court of Louisiana
DecidedJanuary 13, 1986
Docket85-C-1179
StatusPublished
Cited by31 cases

This text of 481 So. 2d 125 (Broussard v. Northcott Exploration Co., Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broussard v. Northcott Exploration Co., Inc., 481 So. 2d 125, 88 Oil & Gas Rep. 497, 1986 La. LEXIS 5484 (La. 1986).

Opinion

481 So.2d 125 (1986)

Minos BROUSSARD
v.
NORTHCOTT EXPLORATION COMPANY, INC.

No. 85-C-1179.

Supreme Court of Louisiana.

January 13, 1986.
Rehearing Denied February 20, 1986.

*126 Roger C. Sellers, Thompson & Sellers, Abbeville, for applicant.

Charles Sonnier, Sonnier & Hebert, Abbeville, for respondent.

BLANCHE, Justice.

Minos Broussard entered into a verbal predial farming lease with Euphemine S. Trahan and other landowners of a certain parcel of property in 1974. Broussard agreed to pay Trahan and the other landowners a one-fifth share of the soybean crop derived from the tract of land located in Vermillion Parish as consideration. Since the term of the lease was not stipulated, it was for the presumed period of one year as provided in LSA-C.C. art. 2687 (West 1985). In 1976 Northcott Exploration Co., Inc. entered into a mineral lease with the landowners which was subsequently recorded. Northcott began drilling operations in the Summer of 1977, a few months after Broussard had planted his crop for that year. As a result of Northcott's drilling operations, approximately 3.4 acres of the growing crops were destroyed. Broussard's need to provide turnrows further reduced the acreage available for cultivation. *127 Northcott also destroyed approximately 700 feet by 10 to 15 feet of soybeans when the need developed to run a flow line across the property. Broussard instituted this suit to recover the full value of his soybean crop destroyed by drilling operations in 1977. He also seeks to recover lost profits for the years 1978 and 1979 caused by his inability to cultivate the area where Northcott was conducting operations.

The trial court rendered judgment in favor of the plaintiff in the amount of $1,638.33. It concluded that the damage provision of the mineral lease created a stipulation pour autrui in favor of the plaintiff. The court of appeal reversed that finding. It also concluded that a lessee under a verbal, unrecorded lease cannot recover damages against one exercising his rights under a recorded mineral lease. Broussard v. Northcott Exploration Co., Inc., 469 So.2d 392 (La.App. 3rd Cir.1985).

Two issues are presented by this case for consideration:

1. Does the Damage Clause of the mineral lease create a stipulation pour autrui in favor of Minos Broussard?
2. Does the lessee of a predial estate who fails to record his lease have a cause of action under Civil Code art. 2315?

Stipulation Pour Autrui?

Mr. Broussard argues that the Damage Clause of the mineral lease contains a stipulation pour autrui enabling him to recover. The clause states that:

"The Lessee shall be responsible for all surface damages of the Lessor (emphasis added) caused by the Lessee's operations."

A stipulation pour autrui exists when some advantage to a third person is created as a condition or consideration of a communtative contract. LSA-C.C. art. 1890 (West 1973) [Current version at LSA-CC 1978 (West 1985)]. In order to determine if a stipulation exists, we must look to the intention of the parties at the time the mineral lease was negotiated. This can best be accomplished by comparing the standard damage clause found in the original version of the mineral lease to the modified version agreed to by the parties. The unmodified version of the Damage Clause read as follows:

"The Lessee shall be responsible for all damages to timber and growing crops of Lessor caused by Lessee's operations."

In negotiating the mineral lease the parties modified the phrase "for all damages to timber and growing crops" to read "for all surface damages." However, they did not modify the mineral lease to expand Northcott's liability beyond the "damages of the lessor." For this reason, we can easily distinguish Andrepont v. Acadia Drilling Co., 255 La. 347, 231 So.2d 347 (1969), and Hargroder v. Columbia Gulf Transmission Co., 290 So.2d 874 (La.1974).

In Andrepont, supra, the standard clause set forth above was modified by deleting the phrase "to timber and growing crops of Lessor." The resulting clause read: "The Lessee shall be responsible for all damages (emphasis added) caused by Lessee's operations." It did not restrict liability to the damages suffered by "the Lessor." The crop loss suffered by the farmer in Andrepont, supra, was clearly included within the "all damages" language allowing him to recover under the mineral lease. In Hargroder, supra, it was specified in the agreement that the defendant would pay for damages "which may arise to growing crops." In both cases the intent to pay for crop damage was beyond question.

For the reasons set forth above, the Court of Appeal was correct when it concluded that the mineral lease did not create a stipulation pour autrui in favor of Minos Broussard.

Recovery in Tort?

Plaintiff also asserts that the defendant is liable under LSA-C.C. 2315 (West 1985) for the full value of the crop which was destroyed when the well was erected in *128 1977, and for the loss of profits in 1978 and 1979 caused by the presence of Northcott's operations. He argues that the Public Records Doctrine was not intended to protect tortfeasors from liability. While we agree with that position, we do not agree that Northcott is a tortfeasor merely because he exercised his rights under the recorded mineral lease.[1]

While growing crops belong to the landowner, they are a component part of the tract of land. LSA-C.C. 465 (West 1985). Component parts of a tract of land are immovable property. LSA-C.C. 462 (West 1985). However, when the standing crops belong to a person other than the landowner, they become movables by anticipation. LSA-C.C. art. 474 (West 1985), and LSA-C.C. art. 491 (West 1985). As between Mr. Broussard and the landowners, the crops in question were movables by anticipation which were owned by Mr. Broussard. As to third persons such as Northcott, the crops remained immovable property owned by the landowner in the absence of any other recorded interest shown on the public records. The crops are "presumed to belong to the owner of the ground unless separate ownership is evidenced by an instrument filed for registry in the conveyance records of the parish where the immovable is located." LSA-C.C. art. 491 (West 1985). The fact that Northcott had actual knowledge that the crops belonged to Mr. Broussard is irrelevant. Comment (e) to LSA-C.C. art. 491 indicates that the presumption created by that article is conclusive since it can be defeated only by an instrument filed for registry. Furthermore, it has been held on numerous occasions that actual knowledge of separate ownership does not displace the operation of the Public Records Doctrine. LSA-R.S. 9:2771; Minter v. Union Cent. Life Ins. Co., 180 La. 38, 156 So. 167 (1934); and Meares v. Pioneer Prod. Corp., 382 So.2d 1009 (La.App. 3rd Cir.), writ denied 392 So.2d 667 (La.1980).

Since Northcott recorded its mineral lease, Minos Broussard's predial lease became subject to the superior rights acquired by Northcott. Among these rights is the right of Northcott to conduct drilling operations on the property. However, Northcott must exercise this right subject to the limitations discussed below.

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Bluebook (online)
481 So. 2d 125, 88 Oil & Gas Rep. 497, 1986 La. LEXIS 5484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broussard-v-northcott-exploration-co-inc-la-1986.