Hunt v. Stacy

632 So. 2d 872, 1994 WL 51731
CourtLouisiana Court of Appeal
DecidedFebruary 23, 1994
Docket25578-CA
StatusPublished
Cited by4 cases

This text of 632 So. 2d 872 (Hunt v. Stacy) 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
Hunt v. Stacy, 632 So. 2d 872, 1994 WL 51731 (La. Ct. App. 1994).

Opinion

632 So.2d 872 (1994)

Marie Wimbish HUNT, et al., Plaintiffs-Appellants,
v.
R.A. STACY and Moses Ascher, Defendants-Appellees.

No. 25578-CA.

Court of Appeal of Louisiana, Second Circuit.

February 23, 1994.

*873 Newell & Newell by David M. Newell, Homer, for appellants.

Greene, Ayres & Mayo by Robert K. Mayo, Shreveport, for appellees, Naomi Goodman, Robert Ascher and Margaret Ascher Beach.

Pugh, Pugh & Pugh by Robert G. Pugh, Shreveport, for appellees, R.A. Stacy and Alice Stacy.

Before MARVIN, LINDSAY and STEWART, JJ.

STEWART, Judge.

Plaintiffs, Marie Wimbish Hunt, Hazel Hunt MacFedries, and Marsha Hunt Veinott, filed suit against defendants, R.A. Stacy and Moses Ascher, to cancel certain oil, gas, and mineral leases and assignments thereof. Plaintiffs sought cancellation of the leases, alleging that defendants failed to explore and develop the leased property. The trial court sustained defendants' exceptions of want of amicable demand and prematurity. Plaintiffs, the landowners, appeal.

Facts

In 1938, plaintiffs' antecedents executed four leases which covered approximately 112 acres in Claiborne Parish. In each lease, the landowner leased to Johnnie W. Adkins his or her undivided interest in oil, gas, and mineral rights to the following land: (1) the Southwest Quarter of the Southwest Quarter, Section 8, (2) the East half of the Southeast Quarter of the Southeast Quarter, Section 7, and (3) the West half of the Northwest Quarter of Section 5, all in Township 23 North, Range 8 West. A couple of months later, Adkins assigned the four leases to Skelly Oil Company. In 1943, Skelly Oil Company assigned its interests in Sections 7 and 8 to defendants' antecedents, Moses Ascher and R.A. Stacy. Skelly Oil retained its interests in Section 5. Apparently, Getty Oil Company succeeded Skelly Oil Company as Adkins' assignee.

In 1984, plaintiffs' attorney, Mr. Newell, communicated with Getty Oil and with Stacy's attorney, Mr. Shuey, via several letters, regarding these leases. Among the letters was one dated July 12, 1984 (admitted into evidence as H-5) in which Mr. Newell noted that there was no production on Sections 5 and 7, although a well was located in Section 8. This letter referred to itself as "a formal placing in default and notification of breach of the contract", and demanded "a release of the leased premises situated in Section 5, 7, and 8 or any parts thereof which tracts are not currently within a producing unit." In another letter, dated September 28, 1984 (admitted into evidence as H-7), Newell again formally placed Stacy "in default for failure to further develop the leased premises", and indicated that plaintiffs would take legal action if they did not receive a formal release of the acreage in Section 7 within ten days.

*874 In September 1984, Getty Oil Company assigned to plaintiffs its remaining leasehold interest in Section 5. By letter dated October 29, 1984 (admitted into evidence as H-9), Newell notified Shuey of the assignment from Getty Oil and stated:

Enclosed is a copy of an assignment from Getty Oil following a suit that I filed against them. They have assigned their interest in Sections 5 and 7. The intent was to protect your interest in Section 8, which was held within a unit. My clients have no plans to further pursue the matter.

In 1989, Newell sent Stacy a letter, dated October 27, 1989 (H-10), in which he referred to the July 12, 1984 request for release of various tracts and stated that,

Since no steps were taken in accordance with the lease contract, for further development, we are considering the lease contract to have terminated and to at this point no longer be in effect.

On October 30, 1989, plaintiffs filed suit against defendants seeking cancellation of the leases. Defendants filed dilatory exceptions of prematurity, want of amicable demand, and nonjoinder of necessary parties. Defendants also filed a peremptory exception of nonjoinder of indispensable parties.

Action by the Trial Court

At the hearing on the exceptions, the parties stipulated that the only issue before the trial court was that of failure or lack of amicable demand sufficient to initiate the instant lawsuit. Plaintiffs' counsel noted the existence of other issues in the suit which would be handled at a later time. Plaintiffs' counsel also introduced into evidence the 1984 Getty Oil assignment to plaintiffs of part of the original leasehold interest (Section 5) and asserted this was a document which "raises an issue of who owns the lease". Thus, the record is not clear whether the stipulation includes the issue of "who owns the lease", i.e., it is unclear whether, at the hearing, plaintiffs' counsel considered this a sub-issue of the question of sufficient amicable demand.

The trial court found, in essence, that H-9, in which Mr. Newell stated that the plaintiffs had no plans to further pursue the matter, superceded letters H-7 and H-5. The trial court found that the failure of the lessee's obligation to reasonably develop and explore the leased premises is a passive breach and, therefore, requires a placement in default prior to filing the lawsuit. In its reasons for judgment, the trial court states that H-5 cannot be an amicable demand because H-9 states that plaintiffs would not pursue the matter further. The trial court concluded that plaintiffs had made no amicable demand upon defendants and that the instant suit is therefore premature. Accordingly, the trial court sustained defendants' exceptions of want of amicable demand and prematurity, and dismissed plaintiffs' suit. Plaintiffs, the landowners, appeal.

Discussion

Appellants' first assignment of error is that the trial court erred in determining that the failure of the lessee's obligation is a "passive breach". Appellants correctly note that, in general, the Louisiana Civil Code provisions for putting in default are applicable to mineral leases under LSA-R.S. 31:135. Appellants then argue that putting the obligor in default is not a prerequisite to filing suit. Comment (d), LSA-C.C. art. 1989. The essence of appellants' argument on this assignment is that the distinction between passive and active breaches was abrogated in 1984 when the Civil Code was revised. Therefore, according to appellants, there is neither a requirement for defining whether the breach is active or passive, nor a requirement for putting in default prior to the filing of the lawsuit, except in accord with the lease contract.

Do passive breaches still exist?

When the language of the law is susceptible of different meanings, it must be interpreted as having the meaning that best conforms to the purpose of the law. LSA-C.C. art. 10. Laws on the same subject matter must be interpreted in reference to each other. LSA-C.C. art. 13. In the instant context, Civil Code article 1989 is the more general, and R.S. 31:135 the more specific, of the two. LSA-R.S. 31:135 reads as follows:

*875 § 135. Rules of default applicable except as specified
The provisions of the Louisiana Civil Code concerning putting in default are applicable to mineral leases subject to the following modifications.

LSA-C.C. art. 1989 provides that:

Damages for delay in the performance of an obligation are owed from the time the obligor is put in default.
Other damages are owed from the time the obligor has failed to perform.

Neither LSA-R.S. 31:135 nor LSA-C.C. art.

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Cite This Page — Counsel Stack

Bluebook (online)
632 So. 2d 872, 1994 WL 51731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-v-stacy-lactapp-1994.