Cockrell Oil & Gas Corp. v. Caldwell

942 So. 2d 88, 6 La.App. 3 Cir. 646, 2006 La. App. LEXIS 2350
CourtLouisiana Court of Appeal
DecidedNovember 2, 2006
Docket06-646
StatusPublished
Cited by1 cases

This text of 942 So. 2d 88 (Cockrell Oil & Gas Corp. v. Caldwell) 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
Cockrell Oil & Gas Corp. v. Caldwell, 942 So. 2d 88, 6 La.App. 3 Cir. 646, 2006 La. App. LEXIS 2350 (La. Ct. App. 2006).

Opinion

942 So.2d 88 (2006)

COCKRELL OIL & GAS CORPORATION
v.
Jack CALDWELL.

Nos. 06-646.

Court of Appeal of Louisiana, Third Circuit.

November 2, 2006.

*90 David M. Culpepper, Attorney at Law, New Orleans, LA, for Plaintiff/Appellant, Cockrell Oil & Gas Corporation.

James R. McClelland, Franklin, LA, for Plaintiff/Appellant, Cockrell Oil & Gas Corporation.

Vivian B. Guillory, Attorney at Law, Baton Rouge, LA, for Defendant/Appellee, Oyster Lease Damage Evaluation Board.

Brandon J. Taylor, Philip F. Cossich, Cossich, Sumich, & Parsiola, Belle Chasse, *91 LA, for Secondary Defendant/Appellant, Van Robin Clear Water Oysters, Inc.

Court composed of MICHAEL G. SULLIVAN, ELIZABETH A. PICKETT, and BILLY HOWARD EZELL, Judges.

SULLIVAN, Judge.

Cockrell Oil Corporation appeals an award of damages to Van Robin and Clear Water Oysters, Inc. by the Oyster Lease Damage Evaluation Board. Van Robin and Clear Water Oysters, Inc. appeal the Oyster Lease Damage Evaluation Board's failure to award interest on its damage award. For the following reasons, we amend and affirm as amended.

Facts

In June 2000, pursuant to the rules and regulations promulgated by the Oyster Lease Damage Evaluation Board (the Board), Cockrell Oil Corporation (Cockrell) requested an arbitration before the Board to establish any potential damage to oyster leases at and/or adjacent to the site of drilling activities it was preparing to begin in the Gulf of Mexico. In connection therewith, Cockrell had Oyster Lease 29122, which is owned by Van Robin and Clear Water Oysters, Inc. (Clear Water), surveyed by Maureen M. Mulino, Ph.D. A portion of Lease 29122 is adjacent to Oyster Lease 29148, the lease on which Cockrell's drilling activities were going to be conducted. After a hearing, the Board ordered Cockrell to deposit $20,000 to protect Clear Water's interests. Cockrell deposited that sum with the Board and commenced its drilling operations in October 2000.

Cockrell's drilling operations included the placement of a submersible drilling barge on Lease 29148 by means of tugs which moved the rig onto the location and positioned it on the bottom of the floor of the Gulf of Mexico by flooding ballast tanks. The rig and its accompanying tugs approached the well location from the southeast; the rig was sunk at the well along a southeast-northwest axis. The well location was composed of soft mud.

The drilling rig occupied approximately 0.4 acres in the southeast corner of Lease 29148. The water depth in the area was approximately ten to twelve feet. A storm displaced the rig, necessitating the removal of the rig from its original location, the placement of a 102' × 80' × 3' rock pad at the drill location, and replacement of the rig on the drill site on the pad. Drilling was completed in November 2000. Because the well was a dry hole, it was plugged and abandoned; no further operations were conducted by Cockrell.

Dr. Mulino conducted a post-drilling survey of Lease 29122 in February and March 2001. Noel Brodtmann surveyed Lease 29122 at the request of Clear Water in March 2001. A hearing was then held before the Board to determine what, if any, damages Clear Water's lease actually sustained as a result of Cockrell's drilling activities. The Board concluded that the drilling activities damaged Clear Water's lease and awarded it $174,270. Cockrell filed an appeal with the Secretary of Natural Resources which reversed the Board's decision. In his reversal of the Board's decision, the Secretary stated that the evidence did not establish that Cockrell's drilling activities damaged oysters on Clear Water's lease. Pursuant to procedures established by the Board, Clear Water requested that the Board reverse the Secretary's reversal of its decision. The Board members unanimously voted to reverse the Secretary's decision.

Cockrell and Clear Water then sought judicial review of the Board's decision. The two matters were consolidated by the trial court. After remanding the matter to the Board for written reasons, findings of *92 facts, and conclusions of law, the trial court upheld the actions of the Board and affirmed its decision. The trial court did not address Clear Water's request for legal interest. Cockrell appealed, seeking reversal of the Board's decision; Clear Water appealed, seeking an award of legal interest.

Assignments of Error

Cockrell assigns the following errors:

1) The trial court erred in affirming the Board's Arbitration Decision because the Board's findings of causation were arbitrary, capricious, contrary to law, inherently self-contradictory, and lacking in competent evidentiary support.
2) The trial court erred in affirming the Board's award of damages to Clear Water where the Board's award of damages was contrary to law and unsupported by competent evidence.
3) The trial court erred in affirming the Board's Arbitration Decision because it contravened §§ 955.G and 956.(3) of the Administrative Procedure Act and violated Cockrell's rights to substantive procedural due process by secretly basing its damage award on information never officially noticed and never disclosed to Cockrell until over three years after the final damage determination in favor of Robin and Clearwater.

Clear Water assigns as error the Board and trial court's failure to award interest on the damage award.

Standard of Review

The "manifest error-clearly wrong" standard of review applies to the factual findings of an administrative body. Alexander v. Pellerin Marble & Granite, 93-1698 (La.1/14/94), 630 So.2d 706. Therefore, we cannot set aside the Board's findings of fact, unless we find that they are clearly wrong in light of the entire record. Id. To reverse the Board's decision, we must determine that its conclusions were clearly wrong or clearly without evidentiary support. Benjamin v. Hous. Auth. of New Orleans, 04-1058 (La.12/1/04), 893 So.2d 1. This includes expert opinions. The Board's evaluation of expert testimony should not be overturned unless the stated reasons of the expert are patently unsound. Zimko v. Amer. Cyanamid, 03-658 (La.App. 4 Cir. 6/8/05), 905 So.2d 465, writ denied, 05-2102 (La.3/17/06), 925 So.2d 538.

Discussion

Causation

Cockrell argues that Clear Water failed to carry its burden of proof in establishing that its drilling activities damaged its lease. Clear Water had to prove that Cockrell's drilling activities were a cause-in-fact of damage to its lease. Lasyone v. Kan. City S.R.R., 00-2628 (La.4/3/01), 786 So.2d 682. Cockrell's drilling activities were a cause-in-fact of Clear Water's alleged damage if they were a "substantial factor" in bringing about the damage. Dixie Drive It Yourself Sys. New Orleans Co. v. Am. Beverage Co., 242 La. 471, 482, 137 So.2d 298, 302 (1962). A party's actions are a substantial factor in causing damage if the damage would not have occurred without it. Id. If Clear Water's oysters were damaged irrespective of Cockrell's drilling activities, the drilling was not a cause-in-fact of Clear Water's damages. Id. Determination of cause-in-fact is a factual determination to be made by the fact finder. Bonin v. Ferrellgas, Inc., 03-3024 (La.7/2/04), 877 So.2d 89.

To prevail, Clear Water had to prove that Cockrell's drilling activities damaged its lease by a preponderance of the evidence. Direct or circumstantial evidence *93

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Related

Robin v. COCKRELL OIL & GAS CORPORATION
942 So. 2d 96 (Louisiana Court of Appeal, 2006)

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Bluebook (online)
942 So. 2d 88, 6 La.App. 3 Cir. 646, 2006 La. App. LEXIS 2350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cockrell-oil-gas-corp-v-caldwell-lactapp-2006.