In re Harvey Term Litigation

872 So. 2d 1214, 2004 La.App. 4 Cir. 0005, 2004 La. App. LEXIS 1116, 2004 WL 943875
CourtLouisiana Court of Appeal
DecidedApril 7, 2004
DocketNo. 2004-C-0005
StatusPublished
Cited by2 cases

This text of 872 So. 2d 1214 (In re Harvey Term Litigation) 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
In re Harvey Term Litigation, 872 So. 2d 1214, 2004 La.App. 4 Cir. 0005, 2004 La. App. LEXIS 1116, 2004 WL 943875 (La. Ct. App. 2004).

Opinion

hDENNIS R. BAGNERIS SR., Judge.

Applicants, Joseph Grefer, Camile Gre-fer, Rose Marie Grefer Haase and Henry Grefer (the “Grefers”) seek review from the overruling of their exception of no cause of action as to the plaintiffs’ claim for punitive damages.

FACTS

The Grefers own a tract of a property located in Harvey, Louisiana that is in part the subject of this putative class action proceeding. The petition, as amended, alleges that the named plaintiffs and the members of the putative class action suffered damages as a result of oilfield pipe cleaning operations conducted on property owned by the Grefers and leased to entities who performed the cleaning operations. The Grefers property became contaminated by naturally occurring radioactive materials as a result of the pipe cleaning operations. The Grefers previously sued entities responsible for the contamination of their property and were awarded a substantial judgment.

The Grefers filed a series of exceptions to the Master Supplemental and Amending Class Action Petition. The Special Master recommended that the Grefers’ exception of no cause of action as to the punitive damage claim be denied. The Grefer’s timely filed an exception to the Special Masters recommendation. | ¡/The district court subsequently adopted the report and recommendation, overruling the Grefers’ exception.

DISCUSSION

Exemplary, or punitive damages, were authorized by the legislature in 1984 for injuries that were caused by “the defendant’s wanton or reckless disregard for public safety in the storage, handling, or transportation of hazardous or toxic substances.” La. C.C. art. 2315.3. The article was repealed by Acts 1996, 1st Ex. Sess., No. 2, § 1, effective April 16, 1996. The repeal was given prospective application only.

Because Article 2315.3 is an exception to the general public policy in Louisiana against punitive damages, it is to be strictly construed. Dumas v. Angus Chemical Co., 728 So.2d 434, 440 (La.App. 2 Cir. 12/9/98); Galjour v. General American Tank Car Corp., 769 F.Supp. 953, (E.D.La.1991). Accordingly, the “storage, handling, or transportation” language in article 2315.3 is to be narrowly interpreted. Dumas v. Angus Chemical Co, 728 So.2d at 440. In Prestenbach v. Louisiana Power and Light Co. Inc., 592 So.2d 499 (La.App. 5 Cir. 12/30/91), writ granted and judgment amended on other grounds, 594 So.2d 882 (La.1992), the court found that storage refers to the safe keeping of goods in a depository, handling means to deal with, act on, or dispose of, and transportation means to transfer or convey from one place to another.

The allegations contained in the petition relative to punitive damages are as follows:

[1216]*1216II.
Defendants are liable, jointly, severally, and in solido, to plaintiffs and the class they represent, for the full amount of damages suffered by them, including exemplary damages, with legal interest from the date of judicial demand until paid and all costs of these proceedings, for the following: ...
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From at least 1997, when the Grefer’s [sic] filed a lawsuit against ITCO, ALPHA, TUBULAR, and the Oil Companies, the Grefer’s [sic], ITCO, and ALPHA knew of the foregoing phenomenon and knew that components of pipe scale posed a serious health risk to humans, but did not inform the public in general, and the plaintiffs in particular, of this hazard.
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. XVI.
During the period of the effective dates of Civil Code Article 2315.8, Defendants were guilty of willful, wanton and reckless disregard for public safety in the storage, handling and transportation of toxic, hazardous, and/or radioactive substances, entitling plaintiffs to recover exemplary damages in addition to their compensatory damages.

The Grefers allege that the plaintiffs have failed to plead facts which if proven could establish a cause of action under now repealed article 2315.3. The function of an exception of no cause of action is to test the legal sufficiency of the petition by determining whether the law affords a remedy on the facts alleged in the petition. Everything on Wheels Subaru, Inc. v. Subaru South, Inc., 616 So.2d 1234, 1235 (La.1993). The court must accept the well-pleaded allegations of fact as true, and the issue at trial is whether, on the face of the petition, the petitioner is legally entitled to the relief sought. Id. The cause of action, as used in the peremptory exception, means the operative facts which give rise to the plaintiffs right judicially to assert the action against the defendant. Everything on Wheels Subaru, Inc., 616 So.2d at 1238. In developing this definition, the Supreme Court relied on Hope v. Madison, 192 La. 593, 188 So. 711, 715 (1939):

A cause of action is an act on the part of a defendant which gives rise to a plaintiffs cause of complaint; “the existence of those facts which give a party a right to judicial interference in his behalf’; “the situation or state of facts which entitles a party to sustain an action.” “When used with reference to the pleadings by which the cause of action is alleged, the phrase signifies the facts upon which the 14plaintiff s right to sue is based, and upon which the defendant’s duty has arisen, coupled with the facts which constitute the latter’s wrong.” Quotations from 2 Words and Phrases, First Series, Cause of Action, p. 1017.

Everything on Wheels Subaru, Inc., 616 So.2d at 1242, n. 4 (Emphasis in original omitted).

Because Louisiana uses fact pleading, to withstand this exception, the petition must set forth the material facts upon which the cause of action is based. It is insufficient for a petition to simply state legal or factual conclusions without setting forth the facts which support the conclusions. Montalvo v. Sondes, 93-2813, p. 6 (La.5/23/94); 637 So.2d 127, 131.

The Grefers contend that the allegations of the petition are so lacking in specificity and so conclusory and vague that they fail to state a cause of action under former article 2315.3 against the Grefers. Indeed, [1217]*1217the petition makes no factual allegations as to how the Grefers handled, stored and transported the toxic, hazardous, and/or radioactive substances. The petition simply tracks the language of the statute and fails to suggest any facts relative to the actions of the Grefers which could give rise to the application of the statute.

In plaintiffs’ brief in opposition to the Grefers’ application, they suggest that the allegation that the Grefers owned land which was contaminated and which they knew was contaminated is sufficient to allege a cause of action under former article 2315.3. In support, plaintiffs loosely reference this court’s decisions in the Gentilly tank car case. Specifically, plaintiffs offer the disposition of CSX Transportation’s motion for summary judgment and its eventual liability for punitive damages as on point. In this regard, plaintiffs assert that CSX’s liability stemmed from the fact that CSX was the owner of the tracks and property on which the burning tank car sat. In point of fact, this court never intimated that CSX’s status as owner was relevant to a determination of the punitive damages issue.

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872 So. 2d 1214, 2004 La.App. 4 Cir. 0005, 2004 La. App. LEXIS 1116, 2004 WL 943875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-harvey-term-litigation-lactapp-2004.