Mandalay Oil & Gas v. Energy Develop. Corp.

867 So. 2d 709, 2002 WL 1434422
CourtLouisiana Court of Appeal
DecidedJuly 3, 2002
Docket2001 CA 0993
StatusPublished
Cited by11 cases

This text of 867 So. 2d 709 (Mandalay Oil & Gas v. Energy Develop. Corp.) 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
Mandalay Oil & Gas v. Energy Develop. Corp., 867 So. 2d 709, 2002 WL 1434422 (La. Ct. App. 2002).

Opinion

867 So.2d 709 (2002)

MANDALAY OIL & GAS, L.L.C. and Voyager Petroleum, Inc.
v.
ENERGY DEVELOPMENT CORP., Michael X. St. Martin, Virginia Rayne St. Martin and Quality Environmental Processes, Inc.

No. 2001 CA 0993.

Court of Appeal of Louisiana, First Circuit.

July 3, 2002.

*710 Bernard F. Levy, Houma, Counsel for Plaintiffs-Appellees Mandalay Oil & Gas, L.L.C. and Voyager Petroleum, Inc.

David R. Richardson, James Barton, III, New Orleans, Raymond G. Hoffman, Jr., Metairie, Patrick W. Gray, Jamie D. Rhymes, Lafayette, Counsel for Defendant-Appellee Energy Development Corp.

A.J. Gray, III, Lake Charles, Timothy C. Ellender, Jr., Houma, Counsel for Defendants-Appellants Michael X. St. Martin, Virginia Rayne St. Martin, and Quality Environmental Processes, Inc.

Before: CARTER, C.J., PARRO and CLAIBORNE,[1] JJ.

CLAIBORNE, J.

This is an appeal from a judgment in a concursus proceeding. On appeal, appellants have filed a peremptory exception raising the issue of res judicata for the first time in this matter. For the reasons that follow, we remand this matter to the trial court for a determination of the issue of res judicata, but we retain jurisdiction of the appeal of the judgment on the merits pending disposition of the issue of res judicata.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

On September 14, 1998, Mandalay Oil & Gas, L.L.C. (Mandalay) and Voyager Petroleum, Inc. (Voyager) jointly filed this concursus proceeding against Michael X. St. Martin, Virginia Rayne St. Martin (the St. Martins), Quality Environmental Processes, Inc. (Quality), and Energy Development Corporation (EDC). Mandalay and Voyager initiated the proceeding to determine the proper parties entitled to the distribution of a portion of natural gas royalty proceeds attributable to production from two tracts of land—Concursus Tract 1 and Concursus Tract 2.

The pertinent tracts are contained within the KBR RA SUA unit of the Sunrise Field in Terrebonne Parish. In their joint pre-trial statement, the parties stipulated that Concursus Tract 1 lies within a section of the Sunrise Field known as the Protective Area. Concursus Tract 2 lies outside and to the northeast of the Protective Area. According to the petition, Mandalay leased the relevant tracts from the St. Martins and Quality (collectively, the St. Martin Group), while Voyager leased the same tracts from EDC. The St. Martin Group and EDC each claim the right to receive all of the royalty proceeds at issue.

EDC argues that it is entitled to all of the royalties because it is the owner of a mineral servitude covering the two concursus tracts and other contiguous lands. According to EDC, a single, large, contiguous servitude was conveyed to its predecessor-in-title pursuant to a mineral conveyance dated May 3, 1971. EDC further alleges that it has adequately maintained this servitude through operations and production either on the subject concursus tracts or on other contiguous lands contained within its servitude. Because the servitude is contiguous, EDC argues, maintenance of a part of the servitude constitutes maintenance of the whole in order to prevent extinguishment of the servitude through prescription for nonuse.

*711 The St. Martin Group, on the other hand, bases its claim to ownership of the mineral royalties on the St. Martins' ownership of the surface of the concursus tracts.[2] They also assert that EDC does not own any servitude affecting the concursus tracts. In support of this assertion, the St. Martin Group alleges that the 1971 mineral conveyance, upon which EDC bases its claim to a servitude, did not contain an adequate property description to put third parties on notice that a servitude would burden the concursus tracts. They further argue that any servitude EDC may have had in the concursus tracts has been extinguished by prescription of nonuse for a period of at least ten years. According to the St. Martin Group, EDC's servitude, if one existed, was not contiguous such that maintenance of a part of the servitude would constitute maintenance of the whole.

A trial on the merits was held in this matter in April of 2000, after which the judge took the matter under advisement. On September 29, 2000, the trial judge issued a written judgment declaring EDC to be the owner of all of the natural gas royalty proceeds attributable to production from the two concursus tracts. On October 16, 2000, the trial judge issued written findings of fact and reasons for judgment, in which he specifically found that the property description in the 1971 mineral conveyance was sufficient to put third parties on notice that a mineral servitude would burden the concursus tracts. The trial judge further found that EDC had established the existence of a single, large, contiguous servitude, which had been maintained sufficiently to avoid prescription. This appeal by the St. Martin Group followed.

In addition to its appeal of the trial court's decision on the merits, the St. Martin Group filed a peremptory exception in this court raising the issue of res judicata for the first time in this matter. The instant lawsuit is one of at least four suits between these parties concerning their respective claims to the mineral rights in the concursus tracts and other surrounding lands. The exception is based on a judgment rendered by the 24th Judicial District Court in the Parish of Jefferson in a suit filed by EDC against the St. Martin Group.

EDC filed the Jefferson Parish suit on July 7, 1997, prior to the commencement of the instant concursus proceeding in Terrebonne Parish by Mandalay and Voyager. In the Jefferson Parish suit, EDC sought a declaratory judgment recognizing it to be the owner of a mineral servitude in the Protective Area of the Sunrise Field in Terrebonne Parish.[3] EDC additionally sought a permanent injunction preventing the St. Martin Group from interfering with its right to the use and enjoyment of the servitude. The St. Martin Group reconvened, seeking declaratory and injunctive relief.

The Jefferson Parish suit went to trial in October of 1999. On December 17, 1999, the trial judge in that matter rendered a judgment against EDC and in favor of Quality.[4] In his judgment, the trial judge *712 specifically determined that the property description in the 1971 mineral conveyance was not adequate to put third parties on notice as to which properties were being encumbered. In addition, the trial judge found that any servitudes or mineral rights EDC may have had in the Protective Area were created by an instrument dated August 31, 1966, and had been extinguished by prescription of nonuse for ten years. Finally, the trial judge specifically stated in his written reasons for judgment that the area over which EDC claimed a servitude was not contiguous.

EDC filed a suspensive appeal of the Jefferson Parish judgment with the Louisiana Court of Appeal, Fifth Circuit. At the time the instant concursus proceeding went to trial in Terrebonne Parish, the Fifth Circuit had not yet ruled on that appeal.[5] The St. Martin Group and EDC advised the trial judge in Terrebonne Parish of the Jefferson Parish suit and the pending appeal, but no exception of any kind was filed. In addition to this oral notification of the trial court about the suit, EDC had previously submitted the signed Jefferson Parish judgment and written reasons as an attachment to a pre-trial memorandum filed by EDC.

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867 So. 2d 709, 2002 WL 1434422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mandalay-oil-gas-v-energy-develop-corp-lactapp-2002.