Chesapeake Operating, Inc. v. Richardson

884 So. 2d 1263, 2004 La.App. 3 Cir. 345
CourtLouisiana Court of Appeal
DecidedOctober 13, 2004
Docket04-345
StatusPublished
Cited by2 cases

This text of 884 So. 2d 1263 (Chesapeake Operating, Inc. v. Richardson) 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
Chesapeake Operating, Inc. v. Richardson, 884 So. 2d 1263, 2004 La.App. 3 Cir. 345 (La. Ct. App. 2004).

Opinion

884 So.2d 1263 (2004)

CHESAPEAKE OPERATING, Inc.
v.
Robert RICHARDSON, et ux.

No. 04-345.

Court of Appeal of Louisiana, Third Circuit.

October 13, 2004.

Patrick S. Ottinger, Herman E. Garner, Jr., Ottinger Hebert, L.L.C., Lafayette, LA, for Appellee, Chesapeake Operating, Inc.

Guy E. Wall, Wall & Bullington, L.L.C., New Orleans, LA, for Appellants, Robert Richardson, et al.

*1264 Court composed of SYLVIA R. COOKS, MARC T. AMY, and JOHN B. SCOFIELD,[*] Judges.

COOKS, Judge.

STATEMENT OF THE FACTS

On December 20, 1996, Robert Richardson entered into an oil and gas lease with Chesapeake Operating, Inc. covering 1,121.96 acres in the Austin Chalk trend in Vernon, Rapides and Allen parishes. The lease paid $150.00 per acre for a primary term of five years provided there was production on the property. In the absence of production, the lease terminated on December 20, 1997, unless Chesapeake paid a monthly rental of $50.00 per acre. There was no production on the property during 1997. On December 20, 1997 the lease expired and no rental payment was made by Chesapeake. Gary Dunlap, land manager for Chesapeake, explained Chesapeake's decision to delay payment: "[A]ll rentals were under review, based upon the location of the acreage. And we delayed until the last minute, based upon that review." He also testified the "wells drilled in the south end of the trend in Louisiana, also on the north, and also on the east and west, had proved the limits of the trend to be smaller than we expected." Because the trend was smaller than expected Chesapeake did not want to lease unproductive acreage. Once Chesapeake completed the review, it decided to continue the lease for the price of $50.00 per acre and sometime after the expiration date, tendered the full amount of the rental to Mr. Richardson. By letter dated January 28, 1998, Mr. Richardson rejected the late payment and demanded Chesapeake release the acreage.

On February 27, 1998, Chesapeake filed a petition for Declaratory Judgment asking that the lease be declared in full force and effect. Chesapeake alleged, and continues to allege on appeal, its failure to make timely rental payments were the result of a "good faith mistake," "inadvertence and oversight" in the administration of its leases. Richardson filed a reconventional demand for damages under La.R.S 31:206 and 207. In July and August, 1998, Chesapeake finally furnished a release of the property and dismissed the principal demand. Mr. Richardson, however, did not dismiss his reconventional demand for damages. Chesapeake filed a motion in limine to prohibit Mr. Richardson from presenting the testimony of Guy Ellison, an expert in oil and gas leasing in the Austin Chalk trend, and a motion for partial summary judgment. The trial court granted Chesapeake's motion for partial summary judgment and motion in limine. The trial court reviewed Mr. Ellison's affidavit and deposition and found "[o]nly two of the underlying reasons are facts ....[t]he other underlying factors are opinions, the basis of which is unknown." He further stated:

Article 702, et seq, of the Louisiana Code of Evidence requires that the expert demonstrate the testability of the expert's technique and methodology used to form the basis of his opinion is generally accepted in the scientific community. There were no facts showing what other wells were producing in the general area nor what other tracts were leased in close proximity of this area by unnamed competitors.
The court finds the testimony of the expert as provided to this court does not rise to the level of reliability required by *1265 Daubert and Article 702 of the Louisiana code of evidence.
For these reasons, the motion in limine and the motion for summary judgment are granted.

Mr. Richardson appeals the trial court ruling.[**] For the reasons assigned below, we reverse the decision of the trial court and remand for trial on the merits.

LAW AND DISCUSSION

Motion in Limine

Louisiana Code of Evidence Article 702 provides, in relevant part:

If scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a witness qualified as an expert by knowledge, skill, experience, training, or education, may testify thereto in the form of an opinion or otherwise.

Federal Rule of Evidence Article 702 contains identical language and was interpreted in Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469. 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993). Daubert dealt with the admissibility of testimony by an expert witness linking a prescription drug with birth defeats.

Prior to revisions to the Federal Code of Evidence, under Frye v. United States, 293 F. 1013 (1923), "expert opinion based on a scientific technique [was] inadmissible unless the technique is `generally accepted' as reliable in the relevant scientific community." Daubert, 509 U.S. at 584, 113 S.Ct. at 2792. Daubert rejected the "general acceptance" standard in favor of a more flexible approach. Citing Federal Rule of Evidence Article 702, the Court stated:

Nothing in the text of this Rule establishes "general acceptance" as an absolute prerequisite to admissibility. Nor does respondent present any clear indication that Rule 702 or the Rules as a whole were intended to incorporate a "general acceptance" standard. The drafting history makes no mention of Frye, and a rigid "general acceptance" requirement would be at odds with the "liberal thrust" of the Federal Rules and their "general approach of relaxing the traditional barriers to `opinion' testimony." Beech Aircraft Corp. v. Rainey, 488 U.S., at 169, 109 S.Ct. at 450 (citing Rules 701 to 705). Daubert, 113 S.Ct. at 2794.

Comments under Louisiana Code of Evidence Article 702, indicate Louisiana, by adopting the federal language, also intended to "[provide] a more positive approach to the reception of expert testimony than that afforded by former R.S. 15:463 et seq." Under the current article in Louisiana, the "criterion is whether the particular specialized knowledge would `assist the trier of fact to understand the evidence or to determine a fact in issue,' not whether the question in issue involves `knowledge obtained only by means of special training or experience,' as provided in former R.S. 15:464." La.Code Evid. art. 702 cmt. a.

Applying the principles in Daubert and Louisiana Code of Evidence Article 702, we find the trial court erred in excluding the testimony of Guy Ellison. The trial court also erred in granting the motion to strike Mr. Ellison's supplemental affidavit and exhibits which were submitted to Mr. Richardson's motion for reconsideration of the partial summary judgment. Mr. Ellison, as a recognized expert in the oil and *1266

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884 So. 2d 1263, 2004 La.App. 3 Cir. 345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chesapeake-operating-inc-v-richardson-lactapp-2004.