In Re Marriage of Kuntz

929 So. 2d 75, 2006 WL 710957
CourtLouisiana Court of Appeal
DecidedFebruary 1, 2006
Docket2005-CA-0172
StatusPublished
Cited by3 cases

This text of 929 So. 2d 75 (In Re Marriage of Kuntz) 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 Marriage of Kuntz, 929 So. 2d 75, 2006 WL 710957 (La. Ct. App. 2006).

Opinion

929 So.2d 75 (2006)

In re The Texas Matter of The MARRIAGE OF Vesta L. KUNTZ and Hal M. Kuntz and
In The Interest of Vesta M. Kuntz, Minor Child.

No. 2005-CA-0172.

Court of Appeal of Louisiana, Fourth Circuit.

February 1, 2006.

*76 Carl D. Rosenblum, Alida C. Hainkel, Jones Walker Waechter Poitevent Carrere & Denegre, New Orleans, LA, for Appellant.

Robert A. Vosbein, Mark R. Beebe, Ronald J. Sholes, Robert N. Markle, Adams and Reese LLP, New Orleans, LA, for Appellee.

(Court composed of Judge JAMES F. McKAY III, Judge MICHAEL E. KIRBY, Judge TERRI F. LOVE).

TERRI F. LOVE, Judge.

The issue in this case is whether certain documents, withheld by McMoran Oil and Gas L.L.C. are subject to discovery. The trial court ordered the production of the documents and this appeal followed. We find that the trial court did not abuse its discretion in ordering production of the documents. Therefore, we affirm the judgment of the trial court.

FACTS AND PROCEDURAL HISTORY

Appellee, Vesta Kuntz ("Vesta") sought to compel discovery from nonparty-appellant, McMoran Oil and Gas L.L.C., McMoran Exploration Co., Freeport McMoRan Sulphur, Inc., and McMoRan Offshore Exploration Co. (collectively, "MOXY").

By way of background, Vesta was married to Hal Kuntz ("Hal") for almost sixteen years, from October 1983 to June 1999 when they divorced. They reached a court approved Agreement Incident to Divorce ("AID") in order to divide their property. The AID contains the following pertinent language:

Husband by virtue of employment or as a partner of CLK may earn additional interests in oil and gas leases and properties, which Husband may acquire by assignment from McMoran Offshore Exploration Co. ("MOXY") or its successors or predecessors in the future. All such interests which have not been assigned by MOXY shall be the property of Husband, except Wife will have the right to 25% of all overriding royalty interests, if any, from MOXY assigned to Husband after the date of the divorce that results from projects on which CLK forwarded letters of recommendation to MOXY to drill during the marriage.

MOXY is an independent oil and gas company engaged in the exploration, development and production of oil and gas. Under a prior contract MOXY retained CLK Company, L.L.C. ("CLK") as a geological and geophysical consultant.[1] CLK evaluated oil and gas prospects for MOXY. After the evaluation, CLK would send MOXY a Letter of Recommendation ("LOR") detailing its findings and recommending whether MOXY should drill in the area or not. The consulting agreement between MOXY and CLK provided that the data and information belonged exclusively to MOXY and Hal was obligated to maintain confidentiality of the data and the written consent of the CLK board was required to disclose the information to third parties.

In her post divorce proceedings, Vesta sought production of the LORs from Hal. *77 Vesta argued that Hal was depriving her of funds owed under the AID. The Texas Supreme Court held that Hall did not have physical possession and control of the LORs so Hal was not required to produce the documents. In re Hal G. Kuntz, 124 S.W.3d 179, 47 Tex. Supp. Ct. J. 168 (2003) Thus, Vesta filed suit against MOXY in Louisiana to obtain the documents. Vesta issued notices of depositions and subpoenas duces tecum to MOXY requesting the following:

1) Letters of recommendation produced by CLK Company, L.L.C. for any blocks on which assignment has been made to Hal G. Kuntz since June 30, 1999. This includes, but is not limited to, letters of recommendation for those properties listed on Exhibit A to this Notice. Any information referencing depth, reserve estimates or the names of specific formations may be redacted.
2) Letters of recommendation produced by CLK Company, L.L.C. for any blocks covered by the Texaco Exploration Agreement, dated effective January 1, 2000 between McMoRan Offshore Exploration Co. and Texaco. Any information referencing depth, reserve estimates or the names of specific formations may be redacted.
3) Letters of recommendation produced by CLK Company, L.L.C. for any blocks covered by the Asset Purchase Agreement between SOI Financing and Shell Offshore, Inc. and McMoran Oil and Gas, L.L.C. dated effective December 1, 1999. Any information referencing depth, reserve estimates or the names of specific formations may be redacted.
4) The Asset Purchase Agreement dated effective December 1, 1999, between SOI Financing and Shell Offshore, Inc. and McMoRan Oil and Gas, L.L.C., and internal and external communications relating to, referencing or evidencing the analysis, negotiations, and evolution of this agreement, including any letters of recommendation on any properties proposed to be included in the sale package, any drafts of the eventual agreement, correspondence concerning the initiation and negotiation of the agreement, including but not limited to electronic correspondence, both internal and external, memoranda, notes of conversations and all other forms of communication, written and oral, external to McMoRan or internal, but not including any information concerning reserve estimates or economic projections, all of which may be redacted from otherwise relevant documents.
5) The Texaco Exploration Agreement dated effective January 1, 2000, between McMoRan Offshore Exploration Co. and Texaco, and all internal and external communications relating to, referencing or evidencing the analysis, negotiations, and evolution of this agreement, including any letters of recommendation on any properties proposed to be included as subjects of the agreement, any drafts of the eventual agreement, correspondence concerning the initiation and negotiation of the agreement, including but not limited to electronic correspondence, both internal and external, memoranda, notes of conversations and all other forms of correspondence, written and oral, external to McMoRan or internal, but not including any information concerning reserve estimates or economic projections, all of which may be redacted from otherwise relevant documents.

MOXY complied with the request but produced redacted responses excluding LOR's sent after the Kuntz's divorce, the geological and geographical location and any expired LOR. As such, Vesta filed a motion to compel the documents and MOXY in turn moved for a protective order *78 and order to quash the subpoenas duces tecum contending that Vesta sought information that is a privileged trade secret under La.Code Evid. Art. 513. The trial court ordered MOXY to produce the documents as requested but pursuant to the Texas confidentiality agreement. An appeal followed.

STANDARD OF REVIEW

A trial court has broad discretion in handling discovery matters and an appellate court should not upset such a ruling absent an abuse of discretion. King v. Phelps Dunbar, XXXX-XXXX (La.App. 4 Cir. 4/2/03), 844 So.2d 1012.

SCOPE OF DISCOVERY

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Related

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100 So. 3d 896 (Louisiana Court of Appeal, 2012)
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In Re Marriage of Kuntz
998 So. 2d 120 (Louisiana Court of Appeal, 2008)

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Bluebook (online)
929 So. 2d 75, 2006 WL 710957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-kuntz-lactapp-2006.