Griffin v. BSFI WESTERN E & P, INC.

812 So. 2d 726, 2002 WL 227078
CourtLouisiana Court of Appeal
DecidedFebruary 15, 2002
Docket2000 CA 2122
StatusPublished
Cited by19 cases

This text of 812 So. 2d 726 (Griffin v. BSFI WESTERN E & P, INC.) 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
Griffin v. BSFI WESTERN E & P, INC., 812 So. 2d 726, 2002 WL 227078 (La. Ct. App. 2002).

Opinion

812 So.2d 726 (2002)

Robert H. GRIFFIN, Linda Griffin, Eugene W. Russell, Sheila Russell and Russell Resources, Inc.
v.
BSFI WESTERN E & P, INC., Joseph P. Brantley, IV and Southfork Investments, Inc.

No. 2000 CA 2122.

Court of Appeal of Louisiana, First Circuit.

February 15, 2002.

*729 James J. Bolner, Jr., New Orleans, Counsel for Plaintiffs—Appellants Robert H. Griffin, et al.

John C. Anderson, Baton Rouge, Kyle Schonekas, Patrick S. McGoey, New Orleans, Counsel for Defendants—Appellees BSFI Western E & P, Inc., Joseph P. Brantley, IV and Southfork Investments, Inc.

Before: FITZSIMMONS, KLINE, and LANIER [1] JJ.

FITZSIMMONS, J.

On June 17, 1996, plaintiffs, Robert Griffin and Eugene Russell, filed suit in state court against defendants, BSFI Western E & P, Inc. (BSFI) and Joseph P. Brantley IV. The petition alleged claims of breaches of fiduciary duty, detrimental reliance, and willful misconduct or gross negligence arising from misrepresentations concerning a purported sale or assignment of plaintiffs' interests in an oil and gas field. In October of 1996, plaintiffs, among others, filed a suit in federal court asserting claims that arose from the same general transaction and nucleus of operative facts. In January of 1999, a federal magistrate judge issued an order, reasons, and judgment, which dismissed all remaining counts of the federal complaint. On June 15, 1999, plaintiffs filed an amended petition in state court. The amended petition added the additional parties from the federal suit: Linda A. Griffin, Sheila Russell, and Russell Resources, Inc. (Russell Resources) as plaintiffs; and Southfork Investments, Inc. (Southfork) as a defendant. The amended petition substantially fleshed out the factual allegations, including a description of an operating agreement entered into by various parties, including Mr. Brantley, BSFI, and plaintiffs. The operating agreement covered leases and third party contracts taken in the name of either BSFI or Southfork "for the benefit of the working interest participants ...." The working interest participants included Mr. Griffin, Southfork, and Russell Resources. In the amended petition, plaintiffs asserted claims of breach of contract, unfair trade practices, fraud, unjust enrichment, and gross negligence.

On September 27, 1999, defendants filed a peremptory exception raising the objection of res judicata as to the claims asserted *730 in the amended petition. The objection of res judicata was submitted on briefs. By judgment dated May 16, 2000, and subsequently designated a final judgment, the state court sustained the exception and dismissed, with prejudice, all claims alleged in the amended petition. Plaintiffs appealed. We reverse, and remand the case to the district court.

LEGAL PRECEPTS APPLICABLE TO RES JUDICATA

"When a state court is required to determine the preclusive effects of a judgment rendered by a federal court exercising federal question jurisdiction, it is the federal law of res judicata that must be applied." Reeder v. Succession of Palmer, 623 So.2d 1268, 1271 (La.1993), cert. denied, 510 U.S. 1165, 114 S.Ct. 1191, 127 L.Ed.2d 541 (1994). "Under federal precepts, `claim preclusion' or `true res judicata' treats a judgment, once rendered, as the full measure of relief to be accorded between the same parties on the same `claim' or `cause of action.'" Id. The rule of "claim preclusion" requires that

the effect of a judgment extends to the litigation of all issues relevant to the same claim between the same parties, whether or not raised at trial. The aim of claim preclusion is thus to avoid multiple suits on identical entitlements or obligations between the same parties, accompanied, as they would be, by the redetermination of identical issues of duty and breach.
Claim preclusion will therefore apply to bar a subsequent action on res judicata principles where parties or their privies have previously litigated the same claim to a valid final judgment. (Citations omitted.)

Id.

To decide whether the litigated "claims" or "cause of actions" are the same, the court must look to the "common nucleus of operative fact" underlying the claims. Reeder, 623 So.2d at 1271-72. Additionally,

[t]he plaintiff is required to bring forward his state theories in the federal action in order to make it possible to resolve the entire controversy in a single lawsuit. The federal district court, exercising its discretion, may decline jurisdiction of some or all of the plaintiff's state law claims if the court finds that the objectives of judicial economy, convenience and fairness to litigants, as well as other factors, will be served better thereby. (Citation omitted.)

Reeder, 623 So.2d at 1274.[2]

"The doctrine of res judicata is stricti juris; any doubt concerning application of the principle of res judicata must be resolved against its application." Kelty v. Brumfield, 93-1142, (La.2/25/94), 633 So.2d 1210, 1215. Each of the essential elements must be present and "established beyond all question." Id. "While res judicata is a useful tool, it should not be used as a scythe applied mechanically to mow down claims where the party asserting *731 the claim is not at fault for the lack of adjudication of that claim in the first suit." Terrebonne Fuel & Lube, Inc. v. Placid Refining Company, 95-0654, p. 19 (La.1/16/96), 666 So.2d 624, 635.

To establish res judicata, a prior judgment must be a final judgment on the merits. See Steve D. Thompson Trucking, Inc. v. Dorsey Trailers, Inc., 870 F.2d 1044, 1045 (5th Cir.1989). However, not all final judgments are judgments on the merits. Federal Rule of Civil Procedure 41(b) states as follows: "Unless the court in its order for dismissal otherwise specifies, a dismissal under this subsection and any dismissal not provided for in this rule, other than a dismissal for lack of jurisdiction, for improper venue, or for failure to join a party under Rule 19, operates as an adjudication upon the merits." Although Rule 41 would be a simple rule for determination of whether a judgment is one on the merits, the United States Supreme Court has not used the Rule 41(b) definition as a universal definition of a claim preclusive judgment. Semtek International Incorporated v. Lockheed Martin Corporation, 531 U.S. 497, 121 S.Ct. 1021, 1025-27, 149 L.Ed.2d 32 (2001). "The original connotation of an `on the merits' adjudication is one that actually `pass[es] directly on the substance of [a particular] claim' before the court." Semtek International Incorporated, 121 S.Ct. at 1025, quoting Restatement (Second) of Judgments § 19, Comment a, at 161 (1980). "Inherent in the concept of res judicata is the principle that a party had the opportunity to raise the claim in the first adjudication." Terrebonne Fuel & Lube, 95-0654 at p. 16, 666 So.2d at 634. However, but for the listed exceptions, Rule 41 makes no distinction between rulings on the substantive merits or rulings on the procedural merits, such as summary dismissal based on limitation statutes. Thus, a Rule 41(b) federal judgment "on the merits," which acts as a bar to re-filing in another federal court, should not automatically bar filing of the same suit in a state court system.

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Bluebook (online)
812 So. 2d 726, 2002 WL 227078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/griffin-v-bsfi-western-e-p-inc-lactapp-2002.