Manuel v. Texas Gas Transmission Corp.

153 So. 2d 157, 19 Oil & Gas Rep. 581, 1963 La. App. LEXIS 1638
CourtLouisiana Court of Appeal
DecidedMay 14, 1963
DocketNo. 837
StatusPublished
Cited by7 cases

This text of 153 So. 2d 157 (Manuel v. Texas Gas Transmission 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
Manuel v. Texas Gas Transmission Corp., 153 So. 2d 157, 19 Oil & Gas Rep. 581, 1963 La. App. LEXIS 1638 (La. Ct. App. 1963).

Opinion

TATE, Judge.

By this suit the plaintiffs seek to recover damages resulting from the defendant’s construction of a pipeline. The damages were caused on a 41-acre tract belonging to the Evangeline Parish School Board and occupied by the plaintiffs pursuant to a rental agreement.

The defendant pipeline company (“Texas”) appeals from a trial court award, while the plaintiffs answer the appeal, requesting an increase.

The evidence shows that the school board executed a right of way agreement with Texas on August 30, 1960. The school board granted a pipeline right of way to Texas across an entire school board section of land, with the right to use an additional work area during the period of construction.

At the express request of the school board, as one of the conditions of the right of way agreement, a clause was included in the agreement by which Texas obligated itself “to pay for any damaged crops, fences, timber and other improvements” and also “to bargain and make all settlements with all tenants across whose land said pipe line traverses, for any and all damages to cultivated lands or woodlands, and damages to growing crops thereon, etc.” 1 [159]*159This suit is based upon the alleged obligation of Texas to pay damages by reason of this clause.

For many decades the school board had rented to various individuals specified tracts within the school board Section 16 in question. Such agreements were renewable each year upon the payment of annual rentals.

The plaintiff father had rented the present 41-acre tract since 1923, for instance. In fact, the plaintiff son had built his home on this tract in 1951 and had occupied it since. The plaintiffs, father and son, were joint “renters” of the tract in 1960 and 1961 (and thereafter).

The chief defense by Texas to this suit for damages is raised by its contention that these annual rental agreements (although confected by procedures valid prior to 1940) did not comply with statutory provisions enacted in 1940 and presently applicable, which require prior advertising and competitive leasing of public lands. LSA-R.S. 41:1211-41:1221.

We find this defense by Texas to be without merit. Although the plaintiffs may not have been “tenants” holding by reason of a valid lease, nevertheless the evidence shows that the school board had explicitly granted the right of way across the land to Texas, only upon the condition that Texas obligate itself to pay “any and all damages” caused by construction of the pipeline to “all tenants across whose land said pipeline traverses”- — with the express intention, which was agreed to by Texas’s agent who negotiated the pipeline right of way agreement, that the “tenants” referred to were the plaintiffs and the other “renters” (as termed in school board resolutions) who occupied the school board lands in Section 16 under annual rental agreements confected by simple resolution and without prior advertisement or bidding. This was, in fact, the only leasing procedure followed as to all lands within the section.

Thus the right of way agreement executed between the school board and Texas specifically intended, as an express consideration of the contract, to obligate Texas to pay the plaintiffs any and all damages caused them by reason of the construction of the pipeline across the school board lands rented by them. This stipulation pour autrui, or contract for the benefit of third persons, creates a valid obligation in favor of such third persons, which is enforceable by them. LSA-Civil Code Article 1890; First State Bank v. Burton, 225 La. 537, 73 So.2d 453. (Further, it strikes us that Texas, having accepted the benefits of the right of way agreement, cannot repudiate its obligation to pay the express consideration due from it in payment for such benefits received by it. Galiano v. Galiano, 213 La. 332, 34 So.2d 881.)

It is true that the present rental agreement between the plaintiffs and the school board may have been unenforceable between the parties for failing to comply with the statutory prerequisites of prior advertisement and competitive bids; for this and the other rental agreements relating to Section 16 were merely renewed each year by the school board by simple unadvertised resolution, in the procedure valid prior to 1940. See Ellis v. Acadia Parish School Board, 211 La. 29, 29 So.2d 461; noted at 8 La. Law Rev. 201-202, 1948. But the validity of these rental agreements is not an issue in the present proceedings, where the renters under them are enforcing their independent rights as the third party beneficiaries of a direct contractual obligation in their favor created by the stipulation pour autrui.

[160]*160 Damages

The trial court awarded the plaintiffs a total of $3960 damages, including: $3000, for the loss of crawfish in a 20-acre craw-fish lake which was destroyed by the construction of the pipeline; $660, for the cost of repairing certain damages resulting from the construction, such as releveling large mounds, repairing damages to a gate and irrigation canals and passageway, etc.; and $300, for the complete loss of the 1961 rice crop on land damaged by the construction project.

Alternative to its main defense, the defendant-appellant contends that this award is excessive. As earlier stated, by their answer to the appeal the plaintiffs-appellees pray for an increase.

The evidence shows that the pipeline construction crew came across the land commencing October 14, 1960, and that due to extremely heavy rains the heavy construction machinery considerably mailed both the right of way itself and the extra working area. Because of the bad weather and the apparent haste of Texas to complete the project, no clean-up crews were sent by Texas to repair the damages. Consequently, the levees of the plaintiffs’ tract were left cut and large mounds of dirt were left thrown up over the premises, etc. Also, the levees of a 20-acre crawfish lake had been cut where the pipeline right of way ■crossed a corner of the lake within the plaintiffs’ tract, leaving the water and the young crawfish to drain out over the neighboring lands.

1. Repair damages. The $660 repair damages are not seriously questioned by the defendant, and they are proved by the record. Although the plaintiffs produced persuasive reasons suggesting such repair items should be increased, we do not find any manifest error by the trial court in this award.

2. Crop loss. The defendant Texas ■claims, however, that it is not liable under ’the agreement for the net $300 damage caused to the 1961 rice crop. (This resulted from the disturbance of the top soil on the two-acre strip right of way across the plaintiffs’ rice field, which consequently produced a grossly insufficient yield of rice.) Since this loss was occasioned to the plaintiffs during the 1961 renewal of the 1960 lease, Texas claims it is not liable because it contracted to pay crop damages on August 27, 1960, during the 1960 term of the plaintiffs’ rental agreement.

However, Texas had specifically agreed to pay “any and all damages” caused to the plaintiffs by the construction of the pipeline over their tract. We find no error in the trial court’s award of $300 crop loss damage resulting from the pipeline construction, which is supported by the evidence.

3. Crawfish loss.

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Bluebook (online)
153 So. 2d 157, 19 Oil & Gas Rep. 581, 1963 La. App. LEXIS 1638, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manuel-v-texas-gas-transmission-corp-lactapp-1963.