MJ Farms, Ltd. v. Exxon Mobil Corp.

998 So. 2d 16, 2008 WL 2811534
CourtSupreme Court of Louisiana
DecidedSeptember 19, 2008
Docket2007-CA-2371
StatusPublished
Cited by205 cases

This text of 998 So. 2d 16 (MJ Farms, Ltd. v. Exxon Mobil Corp.) 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
MJ Farms, Ltd. v. Exxon Mobil Corp., 998 So. 2d 16, 2008 WL 2811534 (La. 2008).

Opinion

998 So.2d 16 (2008)

M.J. FARMS, LTD.
v.
EXXON MOBIL CORPORATION, et al.

No. 2007-CA-2371.

Supreme Court of Louisiana.

July 1, 2008.
Order on Rehearing September 19, 2008.

*19 James D. Caldwell, Attorney General, Ryan Michael Seidemann, Megan Kathleen Terrell, Assistant Attorneys General; Liskow & Lewis, PLC, Katherine Miller Determan, Robert Beattie McNeal, Carey Lyon Menasco, Anundra Martin Dillon, Mark LeRay McNamara, New Orleans; Krebs, Farley & Pelleteri, Matthew Joseph Farley, Elizabeth S. Sconzert, Thomas Matthew Beh, New Orleans; Gordon, Arata, McCollam, Duplantis & Egan, Sara Emily Mouledoux, Loulan Joseph Pitre, Jr., New Orleans, Matthew Joseph Randazzo, III, Lafayette, Aimee Williams Hebert, *20 Abaigeal Lynn Van Deerlin, Michelle Chavonne Purchner, New Orleans, for Appellant.

Dupuy & Didier, Marc Dupuy, Jr., Marksville; Bice, Palermo & Veron, John Michael Veron, Alonzo P. Wilson, Lake Charles; Blanchard, Walker, O'Quin, & Roberts, William Timothy Allen, III, Paul M. Adkins, Shreveport; Davidson, Meaux, Sonnier & McGelligott, James J. Davidson, III, Christopher Joseph Piasecki, Lafayette; Mangham & Associates, L.L.C., Michael R. Mangham, Lafayette; Smith, Taliaferrro, Purvis & Boothe, Virgil Russell Purvis, Jr., Jonesville; Wall & Bullington, Guy Earl Wall, Paul Edward Bullington, Jonathan Robert Cook, New Orleans, for Appellee.

Alex L. Andrus, III, and James T. Guglielmo, Opelousas, for Four Rivers Exploration, Inc., Amicus Curiae.

G. William Jarman and Linda Sarradet Akchin, Baton Rouge, for Louisiana Oil and Gas Association and Louisiana Med-Continent Oil and Gas Association, Amicus Curiae.

Thomas Martin McNamara, Patrick Wise Gray and Amy Elizabeth Allums Lee, for Shell Oil Co., Amicus Curiae.

KNOLL, Justice.[*]

This matter arises from the plaintiff's constitutional challenge to Act 312 of 2006 ("Act 312"), a legislative enactment related to litigation claiming environmental damages arising from oilfield operations. The case is before us on direct appeal from a judgment by the district court declaring 2006 La. Acts 312, unconstitutional on the grounds that it violated La. Const. art. V, § 16 (divestiture of the district courts of original jurisdiction), the Fifth Amendment of the United States Constitution (the deprivation of a landowner of his property without due process), and La. Const. art. I, § 4 (divestiture of the landowner's right to acquire, own, control, use, enjoy, protect and dispose of private property). After reviewing the record, 2006 La. Acts 312, and the constitutional provisions at issue, we conclude the district court erred in finding Act 312 of 2006 unconstitutional. Accordingly, we reverse the judgment of the district court, and remand this matter to the district court for further proceedings consistent with the views expressed herein.

FACTS AND PROCEDURAL HISTORY

In 2005, M.J. Farms, Ltd. ("M.J. Farms") purchased approximately 42,000 acres located in Catahoula and Avoyelles Parishes.[1] M.J. Farms' purchase was made subject to various mineral reservations and pre-existing oil and gas leases. M.J. Farms was strictly a surface owner, having no mineral rights to the purchased property.

On April 25, 2006, M.J. Farms filed the present suit against numerous defendants,[2] including Exxon Mobil Corporation ("Exxon"), Wagner Oil Company ("Wagner") and Benedict Corporation ("Benedict"). Essentially, M.J. Farms alleged defendants caused environmental damages to *21 the property when they conducted oil and gas exploration and production activities, causing the surface, subsurface, ground waters and subsurface aquifers to be contaminated with oil, grease, radioactive materials, toxic heavy metals and other hazardous chemicals. M.J. Farms asserted multiple causes of action: breach of contract, negligence, strict liability, trespass, nuisance, and unjust enrichment. M.J. Farms further particularized a claim for restoration of its property as provided in La.Rev.Stat. § 31:22,[3] La. Civ.Code art. 2683 (duty of the lessee to return the thing in the same condition), and La. Civ.Code art. 2692 (duty to repair the damage for excessive use). M.J. Farms sought damages for the costs of containment, clean-up, remediation and restoration of the surface to its original condition, exemplary damages under La. Civ.Code art. 2315.3,[4] as well as costs of the action and attorneys' fees, and for the loss of civil fruits (such as loss of income due to crops losses).

While this suit was pending, the Louisiana Legislature passed Act 312. Act 312 amended and reenacted La.Rev.Stat. §§ 30:82(6) (defining "producing oilfield site" or "exploration and production site"), 89.1 (providing for credits for judgments or compromises for the remediation of oilfield sites and exploration and production sites) and 2015.1(B), (C)(1), (2), and (4), (D), (E)(1), (F)(2), (H), (I), and (K) (provisions applicable to the remediation of usable ground water) and enacted La. Rev. Stat §§ 30:29 (providing procedures for the remediation of oilfield sites and exploration and production sites), 29.1 (providing for landowner notification of environmental testing), and 2015.1(L) (reiterating that the provisions for the remediation of usable ground water is inapplicable to oilfield sites or exploration and production sites).

Act 312 became effective on June 8, 2006. Section 3 of the Act 312 contains a clause, providing that the Act "shall not apply to any case in which the court on or before March 27, 2006, has issued or signed an order setting the case for trial, regardless of whether such trial setting is continued." M.J. Farms filed the present suit prior to the effective date of Act 312, but after March 27, 2006. Thus, as of March 27, 2006, there was no order yet signed setting the present case for trial.

Thereafter, Wagner and several other defendants filed a "Motion to Enforce Stay Provision of Act 312 or Alternatively to Extend Time in Which to File Responsive Pleadings." Defendants argued M.J. Farms failed to provide proper notice to both LDNR and the Attorney General. Therefore, they requested the trial court to stay the proceedings until 30 days after the Attorney General has been notified as provided by Section 1 of Act 312 of 2006, codified under La.Rev.Stat. § 30:29(B).

Additionally, Exxon and some other defendants concurrently filed exceptions of prematurity, asserting M.J. Farms failed to exhaust its administrative remedies *22 under Act 312, which requires plaintiff to give notice of its claims to LDNR and the Louisiana Department of Environmental Quality ("LDEQ"). Accordingly, defendants requested the case be dismissed or stayed pending referral to the above-mentioned agencies for review and determination.[5]

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