Cv Land, LLC v. Millers Lake, LLC

Louisiana Court of Appeal·Decided November 2, 2023·No. CA-0023-0069·Unknown

Opinion

STATE OF LOUISIANA

COURT OF APPEAL, THIRD CIRCUIT

23-69

CV LAND, LLC VERSUS MILLERS LAKE, LLC

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APPEAL FROM THE

THIRTEENTH JUDICIAL DISTRICT COURT PARISH OF EVANGELINE, NO. 79,250-A HONORABLE MARCUS L. FONTENOT, DISTRICT JUDGE

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WILBUR L. STILES

JUDGE

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Court composed of Candyce G. Perret, Jonathan W. Perry, and Wilbur L. Stiles, Judges.

REVERSED AND REMANDED.

Alan K. Breaud Timothy W. Basden Breaud & Meyers Post Office Box 51365 Lafayette, LA 70505 (337) 266-2200 COUNSEL FOR PLAINTIFF/APPELLANT:

CV Land, LLC

Jeffrey K. Coreil Katelyn E. Bayhi Neuner Pate 1001 West Pinhook Road, Suite 200 Lafayette, LA 70503 (337) 237-7000 COUNSEL FOR DEFENDANT/APPELLEE:

Miller’s Lake, LLC

STILES, Judge.

Plaintiff CV Land, LLC (CV Land) sought damages and an injunction associated with its claim for access to the natural flow of running water from adjacent property owner, Defendant Miller’s Lake, LLC (Miller’s Lake). The trial court sustained Miller’s Lake’s exception of no right of action and dismissed CV Land’s claims. CV Land appeals. For the following reasons, we reverse and remand.

FACTUAL AND PROCEDURAL HISTORY This matter, which questions CV Land’s right to advance its claims pertaining to riparian rights, stems from the creation of Miller’s Lake (the Lake), an approximately 3,000-acre1 reservoir in Evangeline Parish. The record establishes that J.B. “Gus” Miller (Mr. Miller) was the former owner of the larger property at issue in this case. Although the record offers no detail as to Mr. Miller’s initial acquisition of the property, it demonstrates that, as early as the 1920s, he sought to capture water from naturally occurring Bayou Nezpique, as well as other tributaries, to flood his property for irrigation purposes.

Mr. Miller did so with the development of a levee system on his own property but ultimately extended that project onto adjoining property owned by John LaHaye. A 1933 contract filed into the Evangeline Parish land records reflects that the two men “formed a partnership between them in the operation, mainten[an]ce, and profit of the Lake commonly known as the ‘Gus Miller Lake,’ in the Parish of Evangeline[.]” The agreement reflects the partners’ cost, maintenance, and profit sharing arrangements. The agreement further provides:

That the water of said lake being used commercially as a Gravity Irrigation project it is agreed and understood that the Contractors hereto

1 The petition and witness testimony suggest that the Lake covers between 3,040 to 3,200 acres.

and their assigns, at their option shall enjoy first preference on the water of said lake for Irrigating Rice lands respectively belonging to either.

The resulting levee system was improved over the years and, at the time of the underlying proceedings, features a dam, several spillways, and discharge pipes. The Lake is charged by Bayou Nezpique, various smaller tributaries, rainwater, and by waters supplied by watershed structures constructed by the Parish.

Following Mr. Miller’s death in 1944, his heirs were placed into possession of the totality of the subject property that same year. The heirs, as co-owners, subsequently partitioned the acreage into two tracts and transferred each to family- held corporations, the defendant, Miller’s Lake, LLC, and Leslie Ardoin, Inc. The Lake, along with its dam and levee system, is contained within the Miller’s Lake tract.

In 2016, CV Land purchased its 1,014-acre tract from Leslie Ardoin, Inc. The CV Land tract is adjacent to the Lake’s western levee and spillway. While CV Land sought to negotiate water access rights at the time of the purchase, Leslie Ardoin, Inc. refused the term.2 The resulting sale recognized that “[t]he parties hereto jointly acknowledge that Miller’s Lake, LLC has a 100 foot ‘working servitude’ along the levee of Miller’s Lake in the event that the levee should need repair.”

In 2021, CV Land filed the Petition for Enforcement of Natural Servitude, Injunction, and Damages instituting this matter against Miller’s Lake, the operator of the Lake. By its petition, CV Land explains that, prior to the Lake’s construction, the surrounding land drained naturally into Bayou Nezpique. CV Land alleges, however, that the flow of water is now diverted by the Lake’s dam and that “little, if

2 Miller’s Lake asserts that, in doing so, Leslie Ardoin, Inc., recognized Miller’s Lake’s right of reservoir.

any water flows in Bayou Nezpique where it crosses the riparian property owned by CV Land.” CV Land asserts that it demanded that Miller’s Lake restore the natural flow of water to Bayou Nezpique so that CV Land could use the water for agricultural irrigation. Miller’s Lake rejected the demand and sought payment before returning the flow of water.

CV Land maintains that such a demand for payment is contrary to the public nature of running water. Further, as the owner of an adjacent riparian estate, CV Land enjoys the right to use naturally flowing water of Bayou Nezpique for irrigation purposes. CV Land acknowledges that Miller’s Lake has the right to make use of the naturally flowing waters of Bayou Nezpique as it runs over its own land pursuant to La.Civ.Code art. 658. It maintains, however, that Miller’s Lake may not capture that flowing water and sell it to downstream riparian landowners. Louisiana Revised Statutes 38:218 instead requires Miller’s Lake to “return the water to its natural course before it leaves [its] estate without any undue retardation of the flow of water outside of [its] enclosure thereby injuring an adjacent estate.” CV Land argues that, since Miller’s Lake has failed to do so, its operation of the Lake’s dam violates “the natural servitude which exists in favor of CV Land, a downstream riparian estate which borders Bayou Nezpique.”

CV Land maintains that Miller’s Lake’s “unlawful capture and diversion of the natural flow of water in Bayou Nezpique” has damaged “CV Land by reducing the lease value of the land and unlawfully limiting the kinds of agricultural and commercial uses to which the land would be suitable if the natural flow of water was not impeded.” CV Land seeks a judgment that Miller’s Lake has breached and violated CV Land’s servitude rights and caused damage to CV Land by its actions; a permanent injunction, enjoining Miller’s Lake from impeding the natural flow of

water in Bayou Nezpique; and an order directing Miller’s Lake to immediately restore the natural flow of water in Bayou Nezpique, without charge or cost to CV Land; and damages “reasonable under the premises, including damages for lost revenues due to reduced lease value, lost opportunity to develop its land, reduction in value due to the unlawful diversion of the natural flow of Bayou Nezpique, and all other damages under the premises, to be proven at Trial.”

Miller’s Lake responded to the petition with an exception of no right of action, alleging that 1) Mr. Miller, as the original owner of the CV Land tract, voluntarily alienated and/or renounced the property’s downstream riparian rights in the early 1900’s; 2) Leslie Ardoin, Inc. did not assign CV Land any right of action against Mr. Miller’s successors in the 2016 Act of Sale as required by the subsequent purchaser doctrine as expressed in Eagle Pipe & Supply, Inc. v. Amerada Hess Corp., 10-2267 (La. 10/25/11), 79 So.3d 246; 3) CV Land and its predecessor in title, Leslie Ardoin, Inc., renounced and/or waived any claims against Miller’s Lake, Inc. by its acknowledgement and agreement to a “working servitude” for the levee system in favor of Miller’s Lake; and 4) acquisitive prescription.

Following a hearing, at which the parties presented testimony surrounding the history of the subject property as well as documentary evidence, the trial court maintained the exception of no right of action, reasoning that:

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