Nellie Pierce v. Atlantic Richfield Company

Louisiana Court of Appeal·Decided March 19, 2014·No. CA-0013-1103·Unknown

Opinion

STATE OF LOUISIANA

COURT OF APPEAL, THIRD CIRCUIT

CA 13-1103

NELLIE PIERCE, ET AL. VERSUS ATLANTIC RICHFIELD COMPANY, ET AL.

**********

APPEAL FROM THE

FIFTEENTH JUDICIAL DISTRICT COURT PARISH OF VERMILION, NO. 88702 HONORABLE EDWARD D. RUBIN, DISTRICT JUDGE

**********

JOHN E. CONERY

JUDGE

**********

Court composed of J. David Painter, Phyllis M. Keaty, and John E. Conery, Judges.

CHEVRON’S MOTION TO STRIKE GRANTED; PLAINTIFFS’ MOTION TO STRIKE RENDERED MOOT; PLAINTIFFS’ REQUEST TO SUPPLEMENT THE RECORD ON APPEAL DENIED; MAY 2, 2013 AND MAY 8, 2013 JUDGMENTS AFFIRMED.

Warren A. Perrin Perrin, Landry, deLaunay, Dartez & Ouellet 251 La Rue France Lafayette, Louisiana 70508 (337) 237-8500 COUNSEL FOR PLAINTIFFS/APPELLANTS:

Nellie Pierce Russie Tiller David Pierce Pierce Enterprises, Inc.

Stuart H. Smith Michael G. Stag Sean S. Cassidy John Leonard Fontenot, Jr. Smith Stag, LLC 365 Canal Street, Suite 2850 New Orleans, Louisiana 70130 (504) 593-9600 COUNSEL FOR PLAINTIFFS/APPELLANTS:

Nellie Pierce Russie Tiller David Pierce Pierce Enterprises, Inc.

Ralph Shelton Hubbard, III Céleste D. Elliot Rachel A. Clark Anne E. Briard 601 Poydras Street, Suite 2775 New Orleans, Louisiana 70130 (504) 568-1990 COUNSEL FOR DEFENDANT/APPELLEE:

United States Fidelity & Guaranty Company

Michael E. Parker Allen & Gooch Post Office Box 81129 Lafayette, Louisiana 70598-1129 (337) 291-1350 COUNSEL FOR DEFENDANT/APPELLEE:

United States Fire Insuarance Company

John K. Nieset James A. Holmes P. Ryan Plummer Christovich & Kearney, LLP 601 Poydras Street, Suite 2300 New Orleans, Louisiana 70130 (504) 561-5700 COUNSEL FOR DEFENDANT/APPELLEE:

Hartford Accident & Indemnity Co.

George B. Hall, Jr. Katie W. Myers Phelps Dunbar LLP 365 Canal Street, Suite 2000 New Orleans, Louisiana 70130-6534 (504) 566-1311 COUNSEL FOR DEFENDANT/APPELLEE:

Great American Insurance Company of New York

Paul J. Hebert William H. L. Kaufman Valerie V. Guidry Ottinger Hebert, LLC Post Office Drawer 52606 Lafayette, Louisiana 70505-2606 (337) 232-2606 COUNSEL FOR DEFENDANT/APPELLEE:

Henry Production Co., Inc.

Michael R. Phillips Louis M. Grossman Brittany B. Salup Shannon A. Shelton Kean Miller LLP 909 Poydras Street, Suite 3600 New Orleans, Louisiana 70112 (504) 585-3050 COUNSEL FOR DEFENDANT/APPELLEE:

Chevron U.S.A. Inc.

Carl D. Rosenblum Alida C. Hainkel Lauren C. Mastio Jones Walker LLP 201 St. Charles Avenue, 49th Floor New Orleans, Louisiana 70170 (504) 582-8296 COUNSEL FOR DEFENDANT/AMICUS BRIEF IN SUPPORT OF TRIAL COURT’S RULING:

McMoRan Exploration Company

CONERY, Judge.

Nellie Marceaux Pierce (“Mrs. Pierce”), Russie Tiller Pierce and David Pierce, collectively the “Pierce Children”, and Pierce Enterprises, Inc. (“Pierce Enterprises”), collectively the “Pierce Plaintiffs,” appeal the trial court’s May 2, 2013 judgment granting United States Fidelity & Guaranty Company (“USF&G”), Hartford Accident & Indemnity Company (“Hartford”), Great American Insurance Company of New York, f/k/a American National Fire Insurance Company (“Great American”), and United States Fire Insurance Company’s (“US Fire”), collectively the “Insurer Defendants,” exceptions of no right of action dismissing the entirety of the Pierce Plaintiffs’ case against the named defendants.

The Pierce Plaintiffs also appeal the trial court’s separate May 8, 2013 judgment which also granted, for the same reasons, the exception of no right of action filed on behalf of Henry Production Company, Inc. (“Henry”), and adopted by Chevron U.S.A., Inc. 1 (“Chevron”), and also dismissed the Pierce Plaintiffs’ claims against Henry and Chevron with prejudice. For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY The Pierce Plaintiffs originally filed suit on May 29, 2009. The original petition was followed by three supplemental and amending petitions, the last of which was filed on January 27, 2012. The Pierce Plaintiffs claimed that their land in Vermilion Parish was contaminated by a number of defendants in a variety of

ways, which were all related to actions or inactions connected to oil and gas 1 Chevron filed a number of exceptions which included the dilatory exceptions of improper cumulation, vagueness and ambiguity, as well as the peremptory exception of no cause of action for depositor/depositary liability, punitive damages, and fraud. Out of an abundance of caution, Chevron also adopted the exceptions filed by the other defendants which included the peremptory exception of no right of action that is the subject of this appeal.

operations. The allegations in the Pierce Plaintiffs’ petitions involved three areas of the property. To attempt to avoid confusion, the three areas of property are referred to in the Pierce Plaintiffs’ “Second Supplemental and Restated Petition” as “(1) the Larry Landry dump (“the waste dump site”); (2) the ARCO production area; and (3) the Southland pipeyard.[2]”

The Pierce Plaintiffs specifically alleged that defendant, Home Industry Disposal Company, Inc. (“HIDCO”), was responsible for damage to the Larry Landry dump, hereinafter referred to as the waste dump site. In the mid-1970s, HIDCO began operating on the waste dump site pursuant to a verbal agreement with the longtime owner, Mr. Casey Pierce (“Mr. Pierce”). Mr. Pierce, ancestor in title to the Pierce Children, acquired the property at issue through a credit deed in 1944. HIDCO began using the site for disposing of domestic waste, but ultimately began to also dispose of waste related to oil and gas operations. It is undisputed that HIDCO ceased operations at the waste dump site in 1979.

After Mr. Pierce passed away in 1998, a “Judgment of Possession” was signed on August 19, 1998, giving ownership of the waste dump site to the Pierce Children only.3 On February 24, 2011, the Pierce Children sold the waste dump site to HIDCO via “Cash Sale.” Plaintiffs’ counsel maintained at oral argument that the “Cash Sale” document reserved the Pierce Children’s claim for property damage against potential insurers of HIDCO. However, no reservation of rights is contained within the four corners of the February 24, 2011 “Cash Sale” document.

2 The Pierce Plaintiffs have settled their claims with Atlantic Richfield (“ARCO”), which is the defendant who allegedly contaminated the area designated as “the ARCO Production area.” ARCO has been dismissed from the lawsuit.

3 It is undisputed that neither Mrs. Nellie Marceaux Pierce nor Pierce Enterprises inherited or owned any of the property that is the subject of this lawsuit. The only plaintiffs who have an interest in the property are the Pierce Children, Russie Tiller Pierce, and David Pierce. The judgments in question and the appeal, however, were taken on behalf of all “Pierce Plaintiffs.”

HIDCO remains a defendant in the lawsuit despite what has been termed by counsel for the Pierce Plaintiffs as a “Compromise Receipt and Release Agreement” (“Agreement”) between the Pierce Plaintiffs and HIDCO. According to counsel for the Pierce Plaintiffs, the terms of the Agreement purport to specifically reserve the Pierce Plaintiffs’ rights against HIDCO and its insurers, in this case the Insurer Defendants, “with respect to any and all insured actions and inactions.”

The Pierce Plaintiffs, subsequent to oral argument before this court, requested that the Agreement be submitted into the record on appeal. The Pierce Plaintiffs admitted in their briefing in support of the request that the Agreement was not admitted into evidence at the hearing before the trial court. This court’s review of the transcript of the hearing held by the trial court on April 8, 2013, also confirmed that the Agreement was not admitted into evidence. Therefore, the Pierce Plaintiffs’ request to supplement the record with the Agreement is denied by this court as “[a]ppellate courts are courts of record and may not review evidence that is not in the appellate record, or receive new evidence.” Denoux v. Vessel Mgmt. Servs., Inc., 07-2143, p. 6 (La. 5/21/08), 983 So.2d 84, 88.

Free access — add to your briefcase to read the full text and ask questions with AI

Nellie Pierce v. Atlantic Richfield Company, (La. Ct. App. 2014).

Nellie Pierce v. Atlantic Richfield Company (Nellie Pierce v. Atlantic Richfield Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Holly & Smith v. St. Helena Cong. Facility
943 So. 2d 1037 (Supreme Court of Louisiana, 2006)
Hood v. Cotter
5 So. 3d 819 (Supreme Court of Louisiana, 2008)
Reese v. STATE DEPT. OF PUBLIC SAFETY
866 So. 2d 244 (Supreme Court of Louisiana, 2004)
Descant v. Adm'rs of Tulane Educ. Fund
639 So. 2d 246 (Supreme Court of Louisiana, 1994)
Marsh Engineering Inc. v. Parker
883 So. 2d 1119 (Louisiana Court of Appeal, 2004)
Turner v. Busby
883 So. 2d 412 (Supreme Court of Louisiana, 2004)
Badeaux v. Southwest Computer Bureau, Inc.
929 So. 2d 1211 (Supreme Court of Louisiana, 2006)
Denoux v. Vessel Management Services, Inc.
983 So. 2d 84 (Supreme Court of Louisiana, 2008)
J. L. Philips & Co. v. Barber
91 So. 293 (Supreme Court of Louisiana, 1922)