Frank v. Shell Oil Co.

828 F. Supp. 2d 835, 2011 U.S. Dist. LEXIS 125731, 2011 WL 5182781
CourtDistrict Court, E.D. Louisiana
DecidedOctober 31, 2011
DocketCivil Action No. 11-871
StatusPublished
Cited by18 cases

This text of 828 F. Supp. 2d 835 (Frank v. Shell Oil Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frank v. Shell Oil Co., 828 F. Supp. 2d 835, 2011 U.S. Dist. LEXIS 125731, 2011 WL 5182781 (E.D. La. 2011).

Opinion

ORDER & REASONS

ELDON E. FALLON, District Judge.

Before the Court are three motions: (1) defendants Shell Oil Company and Shell Chemical Company’s (collectively “Shell”) Motion to Dismiss Pursuant to Rule 12(b)(6) (R. Doc. 18); (2) Shell’s Motion to Strike Pursuant to Rule 12(f) (R. Doc. 19); and (3) defendants Travelers Insurance Company and The Travelers Indemnity Company’s (collectively “Travelers”) Motion to Apply the Court’s Ruling on the Motion to Dismiss and Motion to Strike to Travelers (R. Doc. 22). For the following reasons, Shell’s Motion to Dismiss is GRANTED IN PART and DENIED IN PART; Shell’s Motion to Strike is GRANTED IN PART and DENIED IN PART; and Travelers’ Motion is GRANTED.

I. BACKGROUND

This case arises from the illness and death of a spouse allegedly resulting from exposure to benzene in his workplace. The decedent spouse, Welman Frank, worked at the Shell Norco refinery from [840]*8401972 to 1973 as a contract worker and from 1973 to 2002 in the “Coke Unit” as a unit operator and later as a shift foreman. Defendant Shell was the alleged owner and operator of the Norco refinery. Defendant Travelers was the alleged insurer of Shell and Shell’s executive officers from 1972 to 1978.

During his employment at the Norco refinery, it is alleged that Mr. Frank was exposed to unsafe levels of benzene on a daily basis related to Shell’s role as a manufacturer and seller of benzene or benzene-containing products. It is further alleged that this exposure to benzene resulted in Mr. Frank’s development of Acute Lymphoblastic Leukemia (“ALL Leukemia”). Mr. Frank was diagnosed with ALL Leukemia in 2002, and died that same year.

On April 15, 2011, the surviving spouse of Mr. Frank, Plaintiff Lois Frank, filed suit in this Court, individually and on behalf of her husband against defendants Shell and Travelers. (R. Doc. 1). Plaintiff alleges her husband’s significant exposure to benzene and/or benzene-containing products was the result of the acts or omissions of Shell and Shell’s deceased executive officers, and such acts or omissions were a substantial, contributing cause in the development of Mr. Frank’s ALL Leukemia. Plaintiff further alleges Shell knew its employees were developing blood disorders and cancers at the Norco facility and conducted internal medical studies to verify these and other health hazards related to their benzene products. Plaintiff brings the following claims against the defendants: fraudulent concealment, negligence, strict products liability, former Article 2317 liability, concealment, misrepresentation, fraud, unjust enrichment, loss of consortium, loss of services, loss of affection, loss of nurture, and intentional tort. Plaintiff seeks both compensatory and exemplary damages. She also has requested trial by jury.

II. SHELL’S MOTION TO DISMISS

A. Summary of Memoranda

1. Shell’s Motion

Shell filed a Motion to Dismiss Pursuant to Rule 12(b)(6). (R. Doc. 18). Shell raises two bases for its Motion: (1) Plaintiffs claims are prescribed on the face of the Complaint, and (2) Plaintiffs claims are barred by the exclusive remedy provision of the Louisiana Workers’ Compensation Act (“LWCA”).

Turning first the prescription argument, Shell alleges that Plaintiffs claims are prescribed on the face of the Complaint because the claims prescribed one-year from the death of the decedent in 2002, yet Plaintiff did not file suit until 2011. Because these claims are prescribed facially, Shell contends Plaintiff bears a heavy burden of establishing this prescription has been suspended or interrupted and fails to carry this burden because there was constructive knowledge of the claims well before the year preceding the Complaint. Next, Shell alleges the one-year limitations period for Plaintiffs survival action is peremptive and cannot be interrupted or suspended.

With regard to Shell’s LWCA argument, it alleges that Plaintiffs claims are barred by the exclusive remedy provision because the intentional act exception is inapplicable.

2. Plaintiffs Response

Plaintiff filed a Response in opposition to Shell’s Motion. (R. Doc. 21). Plaintiff claims that prescription statutes are to be strictly construed against prescription, with the burden on Shell as the party raising the prescription issue. Plaintiff further claims that prescription was pre[841]*841vented from running under the doctrine of contra non valentem because Shell concealed the danger of working with benzene and Plaintiff did not reasonably know her husband’s cancer and death were caused by his benzene exposure until February 2011. With regard to peremption, Plaintiff claims because she raises fraud and misrepresentation claims against Shell, it is inapplicable.

With regard to Shell’s claims involving the LWCA, Plaintiff notes Mr. Frank was contract worker, and not an employee, of Shell from 1972-73, and thus, the LWCA does not apply to that time period. Further, Plaintiff claims that because Mr. Frank was an employee of Shell prior to the revision of LWCA which grants immunity to executive officers, Shell is liable in tort for the actions and omissions of its executive officers. Finally, Plaintiff argues that the LWCA does not apply to her claims because they fall within the intentional tort exception to the Act.

3. Shell’s Reply

Shell filed a Reply in further support of its Motion. (R. Doc. 33). Shell reiterates its prior argument that Plaintiffs claims are time-barred because Mr. Frank was diagnosed with cancer and died in 2002, more than eight years before the present suit was filed. Shell claims that the Complaint acknowledges the dangers of benzene exposure were publicly known and available since 1977. Shell also contends that Plaintiff fails to make any specific fraud claims which could toll the running of prescription.

With regard to the application of the LWCA, Shell argues that the intentional tort exception does not apply because the intentional tort allegations in Plaintiffs complaint are merely conclusory, and there exists no case law holding that exposure to benzene constitutes an intentional tort.

B. Law & Analysis

1. Standard of Review

When a court considers a motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6), “all well-pleaded facts are viewed in the light most favorable to the plaintiff, but plaintiffs must allege facts that support the elements of the cause of action in order to make out a valid claim.” City of Clinton v. Pilgrim’s Pride Corp., 632 F.3d 148, 152-53 (5th Cir.2010). “To avoid dismissal, a plaintiff must plead sufficient facts to ‘state a claim to relief that is plausible on its face.’ ” Gentilello v. Rege, 627 F.3d 540, 544 (5th Cir.2010) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)).

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828 F. Supp. 2d 835, 2011 U.S. Dist. LEXIS 125731, 2011 WL 5182781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-v-shell-oil-co-laed-2011.