Huntsman International LLC v. Praxair, Inc.

201 So. 3d 899, 2015 La.App. 4 Cir. 0975, 2016 La. App. LEXIS 1652
CourtLouisiana Court of Appeal
DecidedSeptember 14, 2016
DocketNO. 2015-CA-0975
StatusPublished
Cited by4 cases

This text of 201 So. 3d 899 (Huntsman International LLC v. Praxair, 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
Huntsman International LLC v. Praxair, Inc., 201 So. 3d 899, 2015 La.App. 4 Cir. 0975, 2016 La. App. LEXIS 1652 (La. Ct. App. 2016).

Opinion

Judge Madeleine M. Landrieu

|! This litigation arises out of four gas supply agreements. Parties to the litigation are Huntsman International, L.L.C., Praxair, Inc. and Rubicon, L.L.C. Huntsman is a chemical manufacturer. It acquires industrial gases used to produce methylene-diphenyl diisocyanate (“MDI”) at its plant in Geismar, Louisiana. Rubicon operates Huntsman’s MDI plant. Huntsman owns 100% of the MDI products produced at the plant and directs the work of Rubicon. Praxair operates a plant adjacent to Huntsman’s MDI plant and supplies [903]*903certain gases to Huntsman’s MDI plant.1 Praxair contends that it supplies the gases to Rubicon pursuant to four gas supply agreements between Praxair and Rubicon or their predecessors in interest. Huntsman contends that although it is not a named party to the gas supply agreements, it can enforce the agreements as an assignee or successor in interest of a signatory, as the principal of a signatory agent and as a third party beneficiary.

| ^Huntsman and Rubicon filed suit against Praxair asserting claims of breach of contract, detrimental reliance and unjust enrichment, alleging that Praxair has failed to meet its obligations under the gas supply agreements to deliver gas supplies to Huntsman’s MDI plant. Praxair filed certain exceptions to the original and first amending and supplemental petitions. Some of these exceptions were denied, others were granted. As to those exceptions granted, the trial court allowed Huntsman and Rubicon leave to amend their petition to remove the grounds of the exceptions as per La. C.C.P. art. 934. Huntsman and Rubicon then filed a Second Amended and Supplemental Petition.2 Praxair responded with exceptions of no right of action as to Huntsman’s breach of contract claim and no cause of action as to both Huntsman’s and Rubicon’s claims of detrimental reliance and unjust enrichment.

In its exception of no right of action as to Huntsman’s breach of contract claim, Praxair argued that Huntsman failed to show that it is a party, to the gas supply agreements or that Rubicon acted as an agent of Huntsman in executing those agreements. In its exception of no cause of action as.to Huntsman’s detrimental reliance and unjust enrichment claims, Prax-air argued that those claims are based on the same alleged failures of Praxair to perform under the gas supply agreements, and Huntsman cannot cure its lack of standing by relabeling its contract claim under different headings.

|sOn June 25, 2015, the trial court granted Praxair’s exceptions as to Huntsman, dismissing Huntsman’s claims against Praxair, with prejudice.3 Huntsman has filed this appeal.

Huntsman first argues that the trial court erred by applying the wrong legal standard in ruling on Praxair’s exceptions of no right of action and no cause of action. This argument stems from the trial court’s reasons for judgment, which state:

In this very complicated case, Huntsman International, L.L.C. (“Huntsman”) faded to show that it is a party to the gas supply contract with Praxair, Inc., or that Rubicon, L.L.C. (“Rubicon”) acted as an agent of Huntsman in executing these contracts. Huntsman’s claims of unjust enrichment and detrimental reliance are dismissed for the same reasons. Since Rubicon was a signatory to the [904]*904contracts at issue, it can pursue its breach of contract claims, but no unjust enrichment or detrimental reliance.

Huntsman argues that the trial court erroneously shifted the burden of proof from Praxair to Huntsman to prove that it had a right of action for breach of contract. Huntsman correctly states that the exceptor, Praxair, had the burden of proving that Huntsman has no right of action for breach of contract against Praxair. See Hospitality Consultants, LLC v. Angeron, 2009-1738 (La.App. 4 Cir. 6/9/10), 41 So.3d 1236, 1240. We note, however, that the trial court’s statements to which Huntsman objects were made only in reasons for judgment. “Appeals are taken from the judgment, not the written reasons for judgment.” Greater New Orleans Expressway Com’n v. Olivier, 2002-2795, p. 3 (La. 11/18/03), 860 So.2d 422, 24. Thus, we review the judgment of the trial court with the understanding that the burden was on Praxair to prove the grounds of its exceptions.

Huntsman next argues that the trial court erred in granting Praxair’s exception of no right of action as to its breach of contract claim against Praxair. Huntsman acknowledges that either Rubicon or Rubicon’s predecessors in interest were signatories to the four gas supply agreements at issue and that it, Huntsman, was not.4 However, Huntsman argues that it presented factual allegations in its petition demonstrating that it has a right to enforce the contracts against Praxair on three independent bases: (1) as successor in interest/assignee of Rubicon and its predecessors in interest; (2) because Rubicon and its predecessors in interest acted as Huntsman’s agent in entering into the contracts and amendments; and (3) because Huntsman is a third party beneficiary of the contracts and their amendments (stipulation pour autrui). Huntsman argues that Praxair did not present evidence to refute these allegations.

“It is well settled that on consideration of an exception of no right of action the averments of fact in the pleading, must be taken as true in the absence of evidence to the contrary.” Board of Directors of Louisiana Recovery Dist. v. All Taxpayers, Property Owners, and Citizens of State of La, 529 So.2d 384, 386 (La.1988). La.C.C.P. art. 681 states “[e]xcept as otherwise provided by law, an action can be brought only by a person having a real and actual interest which he asserts.” “The function of an exception of no right of action is to determine whether the plaintiff belongs to the class of persons to whom the law grants the cause of action | ^asserted in the suit.” Reese v. State, Dept. of Public Safety & Corrections, 2003-1615 (La. 2/20/04), 866 So.2d 244, 246; See La. C.C.P. art. 927. “In examining an exception of no right of action, a court should focus on whether the particular plaintiff has a right to bring the suit while assuming that the petition states a valid cause of action for some person.” J-W Power Co. v. State ex rel. Dept. of Revenue & Taxation, 2010-1598 (La. 3/15/11), 59 So.3d 1234, 1239, citing Reese, 2003-1615, p. 3; 866 So.2d at 246. The exception of no right of action does not raise the question of the plaintiffs ability to prevail on the merits or the question of whether the defendant may have a valid defense. Touzet v. V.S.M. Seafood Services, Inc., 96-0225 (La.App. 4 Cir. 3/27/96), 672 So.2d 1011, 1012-1013.

On an exception of no right of action, the parties may introduce evidence [905]*905to support or controvert the exception. La. C.C.P. art. 931. As already discussed, the exceptor has the burden of proof. Hospitality Consultants, LLC v. Angeron, 2009-1738 (La.App. 4 Cir. 6/9/10), 41 So.3d 1236, 1240. The determination as to whether a plaintiff has a right to bring an action raises a question of law, which requires de novo review. Eagle Pipe and Supply Inc. v. Amerada Hess Corp., 2010-2267 (La. 10/25/11), 79 So.3d 246, 256.

According to the allegations of the petition, Huntsman owns a large chemical plant in Geismar, Louisiana, which manufactures methylene diphenyl diisocyanate (“MDI”), and is operated by Rubicon.

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201 So. 3d 899, 2015 La.App. 4 Cir. 0975, 2016 La. App. LEXIS 1652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huntsman-international-llc-v-praxair-inc-lactapp-2016.