Hackett v. Murphy Exploration & Production Co. USA

216 So. 3d 63, 16 La.App. 3 Cir. 707, 2017 WL 1002926, 2017 La. App. LEXIS 427
CourtLouisiana Court of Appeal
DecidedMarch 15, 2017
Docket16-707
StatusPublished

This text of 216 So. 3d 63 (Hackett v. Murphy Exploration & Production Co. USA) 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
Hackett v. Murphy Exploration & Production Co. USA, 216 So. 3d 63, 16 La.App. 3 Cir. 707, 2017 WL 1002926, 2017 La. App. LEXIS 427 (La. Ct. App. 2017).

Opinion

GREMILLION, Judge.

I ¡This dispute pits the defendant/appellant, Murphy Exploration & Production Company-USA, against the plaintiffs/ap-pellees, Robert Wayne Hackett and Kaye Breedlove Hackett.1 Murphy is appealing the $2,411,134.00 judgment granted in favor of the Hacketts. For the reasons that follow, we affirm as amended. However, we find that the trial court erred in its award of judicial interest, and remand the matter for the proper calculation of judicial interest.

FACTS AND PROCEDURAL HISTORY

This dispute has appeared before this court before. In Hackett v. Murphy Exploration & Prod. Co.-USA, 14-855 (La.App. 3 Cir. 2/4/15), 158 So.3d 222, a panel of this court reversed a partial summary judgment in favor of the Hacketts that recognized them as owners of certain property subject to an order establishing a mineral production unit, finding that there was an ambiguity in the deed by which their ancestor in title allegedly acquired the property in question, which lies beneath a roadway over which the Parish of Vermilion has a right of way. The facts as found by that panel regarding the chain of title are important:

The property in dispute was first acquired by Elmer Stansel from H.B. White in 1911. White sold to Stansel 125 acres “being bounded on the East by Isaac Lyons, and South and West by L. and H. Canal right-of-way, and North by an imaginary line parallel to the South boundary.” At the time, the southern boundary, described as the “Canal right-of-way,” shown by the survey maps, was the southern section line for Section 37.
In 1921 Stansel entered into an exchange with Isaac Lyons in which Stan-sel traded a triangle-shaped portion of his 125 acres acquired from White, lying in Section 36, for a triangle-shaped portion of Lyon’s land lying in Section 37. Before this exchange, both Stansel and Lyons granted a right-of-way to Vermilion Parish for the construction of a public road. The right-of-way ran along the | ¡.southernmost border of both properties, but was north of Section 37’s southern section line. Therefore, after the ex[66]*66change, Stansel’s property encompassed the public road right-of-way.
Immediately following the exchange with Lyons, Stansel sold his property to Homer Woods. The act of sale described two tracts, the first being the remaining property Stansel acquired from White, approximately 96 acres, “more or less,” and the second being the triangle acquired from Lyons in the exchange. It is from this document that the current dispute arises. Robert Hackett, plaintiff, has ultimately inherited any remaining property belonging to Stansel. Murphy, defendant, was granted an oil and gas leasehold intei’est for a unit that encompasses the property owned by Woods, now by Woods’ heirs, to whom Murphy has paid royalties. The Hacketts initiated this suit to establish them as owners of the land lying beneath the public road right-of-way and to collect the royalties from Murphy that would be due to them as owners.
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The act of sale described the two tracts as follows:
One certain tract of land lying and being situated in Vermilion Parish, Louisiana, on the West side of Rail Road right-of-way, containing Ninety-six (96) acres, more or less, lying in Section Thirty-seven (37), Township Eleven (11), South Range Two (2) West, bounded on the Northwest by L. & H. Canal righ[t]-of-way, on the Southwest by the Public Road, and on the East by the Rail Road right-of-way. Being the same property acquired from H.B. White.
2nd: One certain tract of land situated in the Parish of Vermilion, Louisiana, containing Twenty-five and 54/100 acres, being in the Lyon Grant in Section Thirty-seven (37) Township Eleven (11), South of Range Two (2) West, commencing on “West side of Gueydan-Crowley High-way and running along the North line of Canal right-of-way 20.74 chains; thence North 44.30 West 27.00 chains; thence South along the West side of Road right-of-way to point of beginning, being Lot “B” of plat attached to an Act of Exchange between Vendor and Isaac H. Lyons, less a strip of land along the Southwest line sold for Public Road to Vermilion Parish and also less a strip of land on the first tract hereinabove described sold for Public Road to Vermilion Parish, containing Four and 84/100 (4.84) acres.
(Emphasis added).
IsThe property in dispute is that described in the first paragraph above.

Hackett, 158 So.3d at 223-25. The ambiguity that precluded summary judgment is found in the “bounded by” language in the first paragraph and the “and also less” language in the second. Before the 1956 enactment of La.R.S. 9:2791, land descriptions that were described as being bounded by waterways, canals, roads, and the like were held to not include the vendor’s interest beneath those artificial boundaries. See Lamson Petroleum Co. v. Hallwood Petroleum, Inc., 99-1937 (La.App. 3 Cir. 5/10/00), 763 So.2d 40, writ denied, 00-2305 (La. 11/27/00), 775 So.2d 446. Applying this principle to the matter would favor the Hacketts’ claim, as the act of sale would thereby have not conveyed Stansel’s interest in the property beneath the roadway. However, this conflicted with the language excluding the roadway strip, because, as the court noted, a long series of Louisiana cases held that such acknowl-edgements of servitudes operate to convey ownership in such property subject to ser-vitudes. Hackett, 158 So.3d 222.

[67]*67Before the previous appeal was decided by this court, Murphy filed a peremptory exception in the trial court, in which it argued that the heirs of Woods must be joined in the suit under La.Code Civ.P. art. 641. The Hacketts opposed this exception on the grounds that the trial court had been divested of jurisdiction over the issue of the ownership of the property because of Murphy’s appeal of the partial summary judgment. They also argued that the exception was filed too late, because the trial court had already determined their ownership of the land. Lastly—and seemingly in contradiction of their second argument— the Hacketts argued that their action was solely for an accounting by the mineral producer. In December 2014, during the pendency of the previous appeal, the trial court | ¿overruled the exception as premature. In June 2015, after the Hackett decision, the trial court again overruled the exception.

Murphy then filed a “Third Party Petition” naming Woods’ heirs as defendants. This petition alleged that if Murphy owed the Hacketts the royalties in question, Woods’ heirs owed the return of those royalties to Murphy. Six of the ten heirs were served with the petition, but none answered it. This petition was filed without leave of court.

Murphy then filed an exception of prescription in which it argued that the Hack-etts’ claims are subject to liberative prescription of ten years; thus, any claim they had to royalties before 2002, ten years before their suit was filed, are barred. The trial court maintained this exception.

The Hacketts and Murphy entered into joint stipulations for trial purposes:

1.That the Hacketts claim ownership in the road, not all of which was included in the production unit;
2.

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Bluebook (online)
216 So. 3d 63, 16 La.App. 3 Cir. 707, 2017 WL 1002926, 2017 La. App. LEXIS 427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hackett-v-murphy-exploration-production-co-usa-lactapp-2017.