Jurisich v. Louisiana Southern Oil & Gas Co.

284 So. 2d 173
CourtLouisiana Court of Appeal
DecidedMay 31, 1973
Docket4973
StatusPublished
Cited by13 cases

This text of 284 So. 2d 173 (Jurisich v. Louisiana Southern Oil & Gas Co.) 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
Jurisich v. Louisiana Southern Oil & Gas Co., 284 So. 2d 173 (La. Ct. App. 1973).

Opinion

284 So.2d 173 (1973)

John JURISICH and Frank S. Slavich
v.
LOUISIANA SOUTHERN OIL & GAS CO. et al.
Joseph JURISICH
v.
LOUISIANA SOUTHERN OIL & GAS CO., et al.

No. 4973.

Court of Appeal of Louisiana, Fourth Circuit.

May 31, 1973.

*174 Richard Dowling and Robert Zibilich, New Orleans, for plaintiffs-appellees.

Lemle, Kelleher, Kohlmeyer, Matthews & Schumacher, Albert Hanemann, Jr., New Orleans, for defendants-appellants.

*175 Jones, Walker, Waechter, Poitevent, Carrere & Denegre, Claude Vasser, New Orleans, for defendants-appellees.

PER CURIAM.

These two consolidated cases involve claims by owners of oyster leases for damages to their oyster beds allegedly caused by negligent dredging operations. In Suit No. 4972 John Jurisich and Frank Slavich sued an oil Company, Louisiana Southern Oil & Gas Co., and its dredging contractor, J. Ray McDermott & Co., for damages caused on two oyster leases, located in Lake Machias in St. Bernard Parish and identified as L-18,002 and L-14,550 on the annexed sketch, which is a composite of several exhibits. McDermott filed a third party demand seeking indemnity from the co-defendant. The trial court rendered a judgment against Louisiana Southern and dismissed McDermott. The oil company appealed, and plaintiffs answered the appeal seeking an increase in the award.

In Suit No. 4973 Joseph Jurisich (John Jurisich's father) sued the same defendants for damages on three leases in the Lake of Second Trees—Mulatto Bayou area. The trial court found damage on one lease only (identified as L-17,692 on the annexed sketch) and awarded judgment against McDermott, further denying that defendant's third party demand for indemnification. McDermott appealed, and plaintiff answered the appeal seeking an increase in the award.

The dredging operations took place in late October, 1965. The three oyster leases at issue on this appeal were granted by the State of Louisiana as follows:

1. L-14,550, containing 47 acres, dated June 3, 1957.

2. L-17,692, containing 3 acres, dated October 26, 1964.

3. L-18,002, containing 100 acres, dated September 23, 1965.

Louisiana Southern held an oil, gas and mineral lease granted by the State of Louisiana on March 19, 1964, covering the beds and bottoms of all bodies of water in the area, including the water bottoms covered by the oyster leases. The lease was

". . . for the purpose of exploring by any method, including but not limited to, geophysical and geological exploration for formations or structures and prospecting and drilling for, mining and producing sulphur, potash, oil gas and any other liquid or gaseous hydrocarbon minerals, storing minerals and fluids, laying pipe lines, dredging canals, building roads, bridges, docks, tanks, power stations, telephone and electric transmission lines and other structures and facilities, including houses for employees necessary or convenient for the purpose of conducting the aforesaid operations,. . ." (Emphasis supplied)

Louisiana Southern chose the drilling site in Lake Machias indicated by the circled letter "W" on the attached sketch and intended to float a submersible drilling rig to the location. Although the site was accessible by water about three feet deep, the rig required vertical clearance of at least eight feet. Some dredging was therefore necessary before the rig could be floated to the drilling site.

Irion Bordelon, executive vice-president of the company, consulted a geologist who specialized in water bottoms to assist in selecting a route to the location which would require the least amount of dredging while also avoiding or minimizing damage to oyster beds. The geologist plotted the locations of existing oyster leases and visited the area with Bordelon, where they spoke to John Jurisich in July, 1965. The fisherman pointed out advantages of various routes (which would largely avoid his father's leases) and agreed to meet with them, but heard nothing further until the dredging began on October 19, 1965.

Bordelon and the geologist testified that they selected, as the most reasonable under *176 the circumstances, a route beginning at an existing canal to the northeast, going through Mulatto Bayou into the eastern end of Lake of Second Trees, then south through a cut known as Jurisich Bayou into Lake Machias.[1] On this route it was necessary to dredge across or near each lease involved in this litigation.

As to the process of route selection, Bordelon testified that they considered two alternatives. Use of the first alternative route, across Lake Machias from the south, which was almost entirely covered by oyster leases, would have produced "unreal" oyster damages both from dredging and from silting, since there were no banks on which to deposit the spoil. A second alternative route to the east of the selected route was across two canals from Mulatto Bayou to the cut into Lake Machias. Bordelon testified that the water was extremely shallow and that the owners of the adjoining land claimed the entire area as land susceptible of private ownership rather than navigable waters under the dominion of the State. Therefore, since the legal status was uncertain and the parties who claimed ownership of these shallow water areas prohibited dredging, Bordelon decided against this second alternative route.

When the selection was completed, Bordelon employed a surveyor to plot the selected route. The survey showed the route adjacent to the banks, with the notation "All spoil to be distributed on the bank" and with oblong markings indicating the bank on which the spoil was to be deposited. Bordelon then employed a dredging contractor to dredge the channel along the surveyed route.

Louisiana Southern contends that the duty owed by a mineral lessee to an oyster lessee of coextensive property is to exercise its rights under the mineral lease so as not to negligently or unduly cause damage to others. Inasmuch as some dredging across oyster beds was required in order to float the rig to the drilling site by any route, Louisiana Southern contends that it fulfilled any duty it owed to the oyster lessees in the area by selecting a route which encountered the fewest existing oyster leases, by having the route surveyed, and by employing a reputable dredging contractor to dredge along this route. Essentially, the company argues that while it damaged some oyster beds, it was not liable to the oyster lessees unless it breached its obligation to minimize damages by conducting its operations prudently and cautiously.

Since we conclude from the evidence that some damage was caused by negligence and some damage resulted from activities prudently conducted with proper precautions, we must initially face the issue of whether the enterpriser is responsible for damages which result from its non-negligent activities. If so, then it would not be necessary to distinguish negligent from non-negligent damages. The court would simply measure and assess total damages.

The Supreme Court considered the rights and duties of the respective owners of coexisting oyster and mineral leases in Doucet v. Texas Co., 205 La. 312, 17 So.2d 340 (1944). That case has been cited in almost every subsequent Federal and State case in which this conflict of interest has arisen.

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Bluebook (online)
284 So. 2d 173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jurisich-v-louisiana-southern-oil-gas-co-lactapp-1973.