in Re Mantle Oil & Gas, LLC

426 S.W.3d 182, 183 Oil & Gas Rep. 364, 2012 WL 5323584, 2012 Tex. App. LEXIS 8898
CourtCourt of Appeals of Texas
DecidedOctober 25, 2012
Docket01-12-00437-CV
StatusPublished
Cited by11 cases

This text of 426 S.W.3d 182 (in Re Mantle Oil & Gas, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
in Re Mantle Oil & Gas, LLC, 426 S.W.3d 182, 183 Oil & Gas Rep. 364, 2012 WL 5323584, 2012 Tex. App. LEXIS 8898 (Tex. Ct. App. 2012).

Opinion

OPINION

EVELYN V. KEYES, Justice.

Relator, Mantle Oil & Gas, LLC (“Mantle Oil”), petitioned for writ of mandamus seeking to vacate the trial court’s order denying its motion to dismiss on grounds of forum non conveniens filed against the real parties in interest, Peggy Alcee, Geraldine Davis, Courtney Jarvis, Stanley Keys, Hilda McBride, LeShanda McBride, Perry McTou, Douglas Miles, Hally Moliese, Connie Moton-Diop, Charlie Mo-ton, Margie Moton, Lionel Moton, Alex Williams, Che Williams, Eric Williams, Haven Williams, Geraldine Worley, Joseph Worley, Michael Worley, Terry Worley, Wilfred Worley, and Mary Anne Worley (collectively, “the Alcee plaintiffs”). 1

We conditionally grant the petition for writ of mandamus.

Background

Mantle Oil, a Texas limited liability company with its company headquarters located in Friendswood, Texas, is involved in oil and gas exploration and operates the Du-gas & Leblanc Co., Ltd. No. 1 Well (“the Well”) in Assumption Parish, Louisiana. *186 On August 11, 2010, during completion operations conducted by Cajun Well Services, Inc. (“Cajun Well”), a Louisiana-based contractor hired by Mantle Oil, the Well blew out at the surface, causing the release of salt water, hydrocarbons, and formation materials. Mantle Oil contends that a blowout preventer, installed by Cajun Well, failed and caused the blowout. Eleven days later, on August 22, 2010, the Well “naturally bridged over,” and the release of materials from the Well stopped.

Shortly after the blowout, over 4,000 Louisiana residents and landowners (“the Louisiana-suit plaintiffs”) filed four separate lawsuits against Cajun Well and Mantle Oil in Louisiana state court. The Louisiana court ultimately consolidated these lawsuits. The Louisiana-suit plaintiffs alleged that, as a result of the blowout, officials shut down a nearby highway, which forced local residents and “general traffic” to “travel an approximate 8 mile, one-way detour” oh “curvy, substandard highways” until the Well was shut in, approximately sixteen days after the blowout. The Louisiana-suit plaintiffs also alleged that property owners in the area “have been denied use of their property as a result of the oil release,” that some of the plaintiffs “were exposed to hazardous fumes causing physical injuries as a result of the sued upon incident,” and that “[t]he plume of vapor migrated onto some of the [plaintiffs’] property, not only causing physical injuries to the [plaintiffs’] personal health but also creating a nuisance and creating fear on the part of the [plaintiffs] to go outside[,] thus depriving them the full use of their property.”

The Louisiana-suit plaintiffs alleged, among other things, that Cajun Well and Mantle Oil negligently and recklessly failed to properly inspect and monitor the construction of the Well, to contain leaks, to properly construct and operate the Well, to conduct proper and regular testing of the Well, and to adequately warn them of the dangers of the Well. The Louisiana-suit plaintiffs sought compensatory damages and other “appropriate relief,” including the remediation of affected property.

On August 11, 2011, exactly one year after the blowout, Peggy Alcee, a resident of Assumption Parish, Louisiana, sued Mantle Oil in Galveston County and asserted claims for private nuisance, trespass, negligence, and gross negligence (“the Galveston County suit”). Alcee alleged that “[t]his case is governed by both Texas and Louisiana law,” although she did not specify which parts of the suit were governed by Texas law, and she sought economic and compensatory damages, punitive damages, “[m]edical monitoring as allowed by the laws of the state of Louisiana,” attorney’s fees, costs, and interest. The next day, Alcee amended her petition, and twenty-two other residents of Assumption Parish joined as plaintiffs, asserted the same claims as in the original petition, and sought class certification. 2 The Alcee plaintiffs alleged that Mantle Oil failed to maintain the Well, failed to operate the Well in a safe manner, and failed to follow its own procedures to prevent a release of harmful substances from the Well.

Mantle Oil answered the Galveston County suit and simultaneously moved to dismiss on the basis of forum non conve-niens, arguing that Louisiana was an adequate alternate forum, especially given that a suit arising out of the blowout was *187 already pending in Louisiana state court. Mantle Oil argued that because (1) all of the Alcee plaintiffs were Louisiana residents, (2) the blowout occurred in Louisiana and affected Louisiana real property, (3) Cajun Well, the contractor working on completing the Well at the time of the blowout, was a Louisiana company, and (4) a majority of the fact witnesses were Louisiana residents and thus were beyond the reach of compulsory process in Texas, it was far more convenient for the suit to be heard in Louisiana than in Galveston County, notwithstanding Mantle Oil’s company headquarters in Friendswood.

In response, the Alcee plaintiffs highlighted the facts that Mantle Oil is a Texas company and that it made all decisions regarding the Well from its Texas headquarters, that it consulted with Texas-based companies to clean up the surrounding property after the blowout, and that they “will be treated in the greater Houston area for all exposure suffered from the release of toxic chemicals.” The Alcee plaintiffs also argued that Louisiana was not an adequate alternate forum because their claims would be barred under Louisiana’s statute of limitations, they sought damages for medical monitoring, which were not being sought by the Louisiana-suit plaintiffs in the already-pending consolidated Louisiana suit, and they also sought punitive damages, which were unrecoverable under these circumstances in Louisiana.

The trial court agreed with the Alcee plaintiffs and denied Mantle Oil’s motion to dismiss for forum non conveniens. This mandamus proceeding followed.

Mandamus Standard of Review

Mandamus relief is appropriate to remedy an improper denial of a motion to dismiss for forum non conveniens. In re Omega Protein, Inc., 288 S.W.3d 17, 19-20 (Tex.App.-Houston [1st Dist.] 2009, orig. proceeding) (citing In re Pirelli Tire, L.L.C., 247 S.W.3d 670, 679 (Tex.2007)); see also In re ENSCO Offshore Int’l Co., 311 S.W.3d 921, 923 (Tex.2010) (per curiam) (“An appeal is not adequate when a motion to dismiss on forum non conveniens grounds is erroneously denied, so mandamus relief is available if it is otherwise warranted.”). We review a trial court’s ruling on a motion to dismiss for forum non conveniens for an abuse of discretion. See In re ENSCO, 311 S.W.3d at 923; In re Gen. Elec. Co., 271 S.W.3d 681, 685 (Tex.2008). A trial court commits a clear abuse of discretion when its action is “so arbitrary and unreasonable as to amount to a clear and prejudicial error of law.”

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426 S.W.3d 182, 183 Oil & Gas Rep. 364, 2012 WL 5323584, 2012 Tex. App. LEXIS 8898, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mantle-oil-gas-llc-texapp-2012.