Hogan Exploration v. Monroe Engineer. Assoc.

430 So. 2d 696
CourtLouisiana Court of Appeal
DecidedMarch 28, 1983
Docket15233-CA
StatusPublished
Cited by11 cases

This text of 430 So. 2d 696 (Hogan Exploration v. Monroe Engineer. Assoc.) 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
Hogan Exploration v. Monroe Engineer. Assoc., 430 So. 2d 696 (La. Ct. App. 1983).

Opinion

430 So.2d 696 (1983)

HOGAN EXPLORATION, INC., Plaintiff-Appellee,
v.
MONROE ENGINEERING ASSOCIATES, INC., and David Dumas, Defendant-Appellant.

No. 15233-CA.

Court of Appeal of Louisiana, Second Circuit.

March 28, 1983.

*698 McKeithen, Wear, Ryland & Woodard by Russell A. Woodard, Columbia, for plaintiff-appellee.

Michael S. Ingram, Monroe, for defendant-appellant.

Before PRICE, SEXTON and NORRIS, JJ.

NORRIS, Judge.

David M. Dumas and Monroe Engineering Associates, Inc. appeal an adverse, in solido judgment for damages for breach of a professional services contract.

In November, 1980, Hogan Exploration, Inc. (hereinafter referred to as "Hogan") contracted with David M. Dumas and Monroe Engineering Associates, Inc., Dumas' Company,[1] (hereinafter referred to as "Monroe Engineering") for the purpose of staking and preparing a plat for a proposed gas well site in Caldwell Parish, Louisiana. Monroe Engineering accepted the employment and was furnished with adequate information by Hogan to enable it to stake the well site for the proposed well to be known as the "Crown Zellerbach A-1" Well, located in the Southwest ¼ of the Southeast ¼, Section 4, Township 12 North, Range 2 East, Caldwell Parish, Louisiana. One Monroe Engineering employee headed the crew that staked the well site and another Monroe Engineering employee prepared the plat which was signed by Dumas, a civil engineer and registered land surveyor, certifying that the location as represented on the plat had been staked even though he had never been to the well site. This certified plat was then forwarded to Hogan.

Subsequently, Hogan retained Hogan Drilling Co., Inc. to drill the well at the staked site. Drilling was completed in approximately two days in February, 1981; and on February 10, 1981, Robert F. Meredith, III, a petroleum engineer who is President of Hogan, discovered that the well had been staked and drilled in the wrong quarter *699 section on property which Hogan did not have leased.

After Meredith discovered the error, he immediately contacted Monroe Engineering to put them on notice of the error, contacted the surface and mineral owners of the tract on which the well had actually been drilled in an effort to obtain the requisite leases, and contacted the mineral owners of the property where the proposed Crown Zellerbach well was to have been drilled seeking an extension of time on which to drill the proposed well to avoid losing that lease. Because the unwanted well provided Hogan with no additional information on the viability of its original prospect sought to be tested on the land of Crown Zellerbach where the well had been intended, Hogan had to obtain from Crown Zellerbach an extension of its original farm out agreement and had to duplicate all of its efforts in connection with the drilling of the originally intended Crown Zellerbach well. It was also necessary that the originally intended well be relocated from its proposed site to comply with the 2000 foot spacing requirements of the Department of Conservation. This relocation was directly caused by the erroneous placement of the first well.

In the meantime, Monroe Engineering and Dumas verified and admitted their error in staking the wrong location.

Hogan was successful in securing a lease on the property where the well was actually drilled and renamed the unwanted well "Manville 774 No. 1." After much consideration, Hogan decided to complete the well, outfitting it for the production of oil and gas. Although the log information on the well indicated that the well was a "marginal well," Hogan determined to complete the well in an effort to obtain royalties to minimize the mineral owners' loss and in hopes of mitigating damages generally. However, according to the evidence, the well, in fact, is much less productive than anticipated, will continue to be costly to produce and will not recoup Hogan's completion and workover costs, much less its initial drilling costs.

Thus, Hogan filed suit to recover the cost of drilling the unwanted well, costs incurred in obtaining leases, extensions, and amendments, surface damages and loss of good will and confidence.

In brief reasons for judgment, the trial court found Hogan's action to be founded in contract, found the facts alleged by Hogan to be true and awarded damages against Monroe Engineering and Dumas, in solido, as follows:

1.    Drilling costs                           $32,000.00
2.    Clean up costs                             2,700.00
3.    Lease cost                                   266.18
4.    Recording fees                               106.00
5.    Permit costs                                 125.00
6.    Surface damages                              725.00
7.    Survey fee                                   350.00
8.    Reimbursement for Robert
      Meredith's time                            2,500.00
9.    Reinbursement for Richard
      Keller's time                                400.00
10.   Lost reputation, humiliation
      and embarrassment                          5,000.00
                                               __________
                                   TOTAL       $44,172.18

It is from the judgment signed in accordance with these reasons that Monroe Engineering and Dumas appeal contending that the trial court erred:

(1) ... in ruling that the appellants were liable to appellee for damages;
(2) ... in finding that appellee had sustained any damage; and
(3) ... in awarding damages to appellee when it failed to meet the required burden of proof of all but three (3) items of damages.

Monroe Engineering and Dumas do not deny that serious error was made by the staking of the well site at the wrong location. However, they initially contend that by securing leases from the mineral and surface owners of the property where the well was erroneously drilled, Hogan waived and/or ratified the surveying error.

In Tiger Well Service v. Kimball Production Co., 343 So.2d 1153 (La.App. 3d Cir. 1977), the general rule regarding the obligations of one who undertakes the performance of contracts for work or services is stated:

*700 It is generally held that under the cited articles every contract for work or services carries an implied obligation on the part of the contractor that he will perform in a good workmanlike manner in default of which he must respond in damages for the losses that may ensue. In Hebert v. Pierrotti, 205 So.2d 888 (La. App. 3d Cir.1968) we stated:
As a general rule, there is implied in every contract for work or services that the work will be performed in a skillful, careful, diligent and good workmanlike manner. LSA-C.C. arts. 1930 and 2769; Wolfe v. LeVasseur-Hinson Construction Company, 147 So.2d 747 (La.App. 2d Cir.1962); Hunter v. Mayfield, 106 So.2d 330 (La.App. 2d Cir. 1958); Rotolo v. Stewart, 127 So.2d 24 (La.App. 1st Cir.1961); Rathe v. Maher, 184 So.2d 256 (La.App. 1st Cir.1966); 17A C.J.S. Contracts § 329, p. 292; 17 Am.Jur.2d, Contracts Sec. 371, p. 814.

Consequently, the relevant inquiry in this case becomes whether the engineer performed the services with the same degree of skill and care exercised by others in the same profession in the same general area. Proof of failure to perform commensurate with these standards ordinarily rests with the plaintiff. The rules applicable to the liability of architects, physicians and other professionals apply to engineers. See

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