McCoy v. Arkansas Natural Gas Co.

165 So. 632, 184 La. 101, 1936 La. LEXIS 1045
CourtSupreme Court of Louisiana
DecidedJanuary 6, 1936
DocketNo. 33342.
StatusPublished
Cited by37 cases

This text of 165 So. 632 (McCoy v. Arkansas Natural Gas Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCoy v. Arkansas Natural Gas Co., 165 So. 632, 184 La. 101, 1936 La. LEXIS 1045 (La. 1936).

Opinion

FOURNET, Justice.

This is a suit by landowners against a lessee of certain other neighboring lands, within a radius of one mile from their property, to recover damages said to have been sustained as a result of the defendant’s negligent and deliberate acts in permitting valuable gas .deposits under plaintiffs’ lands to escape through a well and crater located on the lands which defendant leased and cratered by its negligent and willful acts.

The parties plaintiffs and defendant in this case are the same, with the exception of J. Hemp Brown and Martin E. Flemlcr (whose claims it is conceded by their counsel are barred by prescription), as those in the case of J. A. McCoy et al. v. Arkansas Natural Gas Co., 175 La. 487, 143 So. 383, 85 A.L.R. 1147. In that case we affirmed the. judgment of the lower court sustáining exceptions of no cause and no right of action filed by the defendant

‘ Within one year from the date the judgment became final, plaintiffs filed the present suit, making substantially the same allegations of fact as they did in the first Suit, with the-exception that the negligence complained of was alleged to be willful and intentional on the part of defendant and re-urged their claim of $400,000 for damages to the structure of their lands and for loss of gas, etc., but reduced the amount of their claim therefor to $393,187.50. They made the additional allegation that the market values of their lands and of the servitudes, which formed component parts thereof, were damaged to the extent of $300 per acre (2,019 acres), or a total of $605,-700, which they pleaded in the alternative they were entitled to recover in the event that their main demand be rejected.

The defendant again filed exceptions of no cause and no right of action to plaintiff’s petition, and later entered pleas of prescription and res adjudicata. The trial judge maintained these exceptions and pleas, and the plaintiffs have appealed.

Exceptions of no cause and no right of action must be decided on the face of plaintiffs’ petition, and every well-pleaded fact therein contained must, for the purpose of the exceptions, be taken as true, and must be1 overruled if the plaintiff is entitled to some relief under the allegations of his petition. Thompson v. General Accident Fire & Life Assur. Corporation, 155 La. 31, 98 So. 746; Davis v. Arkansas Southern R. Co., 117 La. 320, 41 So. 587; Doullut v, McManus, 37 La.Ann. 800; Hillard v. Taylor, 114 La. 883, 884, 38 So. 594; Central Improvement & Contracting Co. v. Grasser Co., 119 La. 263, 264, 44 So. 10.

“Every act whatever of man that causes damages to another, obliges him by whose fault it happened to repair it” Article 2315, Rev.Civ.Code.

*105 In the instant case the plaintiffs’ petition contains allegations of willful and intentional fault and gross negligence on the part of defendant, specifically charging that the defendant willfully and intentionally used secondhand casing which had deteriorated from use and age, and which defendant knew was not of sufficient strength to withstand the tremendous pressure which it knew existed in the Rich-’land gas field, and, with full knowledge of that fact, deliberately used the defective casing without having it tested as required by the laws of this state; that immediately. after the well was completed gas began to escape from the ground about the casing, clearly indicating that something was radically wrong, and that there was great danger of the well going out of control unless immediate steps were taken to prevent it, but that, in spite of, and with full knowledge of, these unmistakable warnings of impending danger, the defendant willfully and intentionally failed to take any action to prevent the explosion which occurred on February 1st, 1928, and caused the gas to flow with full force and uncontrolled into the air; that defendant willfully and intentionally employed drillers whom it knew to be grossly incompetent and inexperienced in handling drilling operations in the Richland field, and that the agents and employees in charge of the drilling of this well were drunk when said well went out of control; that the defendant was repeatedly requested by plaintiffs, and ordered by the conservation commission of Louisiana, to stop the uncontrolled flow of gas from this crater, but failed and refused to do so, notwithstanding the fact that by the use of proper methods and competent men the well could have been easily controlled within thirty days, and that defendant willfully and intentionally and adamantly refused to employ competent help, and permitted the uncontrolled flow of gas to continue until March, 1931, when, under compulsion by the conservation commission of Louisiana, proper methods were started, and the well was finally brought under control on April 10, 1931. Plaintiffs prayed for damages for the loss of gas from under their lands, and, in the alternative, for damages to the value of their lands and servitudes.

Our attention has been called by counsel for defendant to the fact that under the jurisprudence of this state it is well settled that the right to explore one’s lands for oil or gas is a real right, and the unlawful trespass on such lands for the purpose of extracting gas or oil therefrom gives rise to an action for damages, measured by the gas or oil captured or reduced to possession. But the drilling on lands of others, and thereby taking or causing gas to escape from one’s property or gas field does not give rise to an action for damages, although, if such gas is not reduced to possession or use and merely allowed to wastefully escape, such action may be the subject of injunctive relief.

A review of the cases on that subject-matter shows that damages were not allowed because of the uncertain and speculative nature of the loss complained of. One of the reasons which we assigned in this case when it was previously before us for sustaining the exceptions of no cause and no *107 right of action was that “the loss complained of was, manifestly, more a matter of uncertainty and speculation than of fact or estimate.” And we said further in the course of our opinion, 175 La. 487, at page 498, 143 So. 383, 386, 85 A.L.R. 1147, that:

“It is conceivable * * * that a case might be presented where a landowner would be entitled to damages for loss or impairment of his oil or gas rights by some fault of a neighbor on his own land. But * * * the loss sustained by the complaining neighbor would have to be measurable, approximately, if not exactly, in money. An illustration of a case where such damages could he estimated would be one where the market value of the plaintiff’s land or mineral rights is impaired by the fault of his neighbor. ” (Italics ours.)

Plaintiffs’ main demand in the case at bar being substantially the same as that in the previous case, we must therefore, in so far as it is concerned, maintain the exception of no cause of action.

But in their alternative plea plaintiffs did allege as a fact that the market values of their lands and servitudes or mineral rights had been impaired as a result of defendant’s alleged acts to the extent of $300 per acre, and we are therefore of the opinion that such allegations are sufficient to set forth a cause of action, and plaintiffs should be given their day in court to prove the same, if they can.

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Bluebook (online)
165 So. 632, 184 La. 101, 1936 La. LEXIS 1045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccoy-v-arkansas-natural-gas-co-la-1936.