Nichols v. Whitney Oil & Gas, LLC

CourtDistrict Court, E.D. Louisiana
DecidedOctober 10, 2025
Docket2:25-cv-00533
StatusUnknown

This text of Nichols v. Whitney Oil & Gas, LLC (Nichols v. Whitney Oil & Gas, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nichols v. Whitney Oil & Gas, LLC, (E.D. La. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

KRISTIN NICHOLS, ET AL. CIVIL ACTION VERSUS CASE NO. 25-533 WHITNEY OIL & GAS, LLC, ET AL. SECTION: “G”(1)

ORDER AND REASONS This civil action was originally filed on January 23, 2025, in the Civil District Court for the Parish of Orleans by the surviving family members of Joshua Nichols, who died in an explosion involving a gas lift line in Garden Island Bay.1 Plaintiffs Kristin Nichols and Lauren O’Neill, on behalf of Mr. Nichols’s three minor children (collectively, “Plaintiffs”), assert claims under the Louisiana Wrongful Death and Survival Statutes and, alternatively, under the Jones Act.2 On March 18, 2025, Defendant Whitney Oil and Gas, LLC (“Whitney”) removed the action to this Court pursuant to 28 U.S.C. §§ 1452(a) and 1334, asserting federal jurisdiction on the basis that the claims are related to a pending bankruptcy proceeding.3 Before the Court is Plaintiffs’ Motion to Remand.4 For the reasons discussed in more detail below , the Court finds that it has jurisdiction over this matter under 28 § U.S.C. 1334(b). Additionally, mandatory abstention does not apply,

and permissive abstention is not appropriate in this case. Accordingly, having considered the motion, the memoranda in support and in opposition, the record, and the applicable law, the Court denies the motion.

1 Rec. Doc. 1-1. 2 Id. 3 Rec. Doc. 1. 4 Rec. Doc. 9. I. Background On October 25 and 26, 2023, certain named Defendants herein, Whitney and Trimont Energy (NOW), LLC (“Trimont (NOW)”), together with non-Defendants Trimont Energy (GIB), LLC (“Trimont (GIB)”) and Trimont Energy Limited, Inc. filed petitions for relief in the Bankruptcy Court for the Eastern District of Louisiana under Chapter 11 of Title 11 of the United

States Code (“Bankruptcy Code”).5 In the Chapter 11 bankruptcy cases, the debtors received approval to sell certain property of the debtors’ estates to interested purchasers pursuant to Sections 363 and 365 of the Bankruptcy Code. On May 29, 2024, the Bankruptcy Court approved the sale of certain property from Trimont (GIB) to a named Defendant in this matter, Spectrum AR, LLC (“Spectrum AR”).6 The sale included mineral leases, wells, facilities, and equipment related to the production and transportation of hydrocarbons located in the Garden Island Bay area (“GIB Assets”), as well as the assignment of related executory contracts to Spectrum AR.7 The Purchase and Sale Agreement (“PSA”) for the GIB Assets maintained and created mutual obligations.8 Under the PSA, Trimont (GIB) retained liability “to third parties for personal

injury or wrongful death to the extent attributable to Seller’s ownership and operation of the Assets prior to the Effective Time.”9 The PSA obligates Spectrum AR to indemnify Trimont (GIB) and its “agents, partners, … affiliates, subsidiaries, successors, and assigns” for losses relating to the

5 In re Whitney Oil & Gas LLC, No. 23-11873 (Bankr. E.D. La. Oct. 26, 2023) (Rec. Doc. 1); In re Trimont Energy (GIB) LLC, No. 23-11869 (Bankr. E.D. La. Oct. 25, 2023) (Rec. Doc. 1); In re Trimont Energy (NOW) LLC, No. 23-11868 (Bankr. E.D. La. Oct. 25, 2023) (Rec. Doc. 1); In re Trimont Energy Limited Inc., No. 23-11872 (Bankr. E.D. La. Oct. 26, 2023) (Rec. Doc. 1). 6 In re Whitney Oil & Gas LLC, No. 23-11873 (Bankr. E.D. La. May 29, 2024) (Rec. Doc. 281). 7 Id. 8 In re Whitney Oil & Gas LLC, No. 23-11873 (Bankr. E.D. La. May 29, 2024) (Rec. Doc. 281 at 26–99); Rec. Doc. 11-1. 9 Rec. Doc. 11-1 at 29. GIB Assets, to the extent a claim arose after effective date of the sale.10 Following the sale of the GIB Assets, on August 17, 2024, Joshua Nichols died in a pipeline explosion that occurred while he was investigating a gas lift line leak from aboard a vessel in the Garden Island Bay.11 On January 23, 2025, Plaintiffs filed a petition in the Civil District Court for the Parish of Orleans, State of Louisiana asserting claims “under the Louisiana Wrongful Death

Action, and the Louisiana Survival Action statutes.”12 Plaintiffs also stated, “[a]lternatively, this claim is maintained under the Jones Act (46 U.S.C. § 30104) and/or the general maritime law of the United States.”13 On March 18, 2025, Whitney removed the case to this Court.14 The Notice of Removal alleges that the case is removable pursuant to 28 U.S.C. §§ 1334 and 1452 because “[t]he State Court Action concerns and relates to a Chapter 11 case that was administered before Judge Meredith Grabill of the United States Bankruptcy Court for the Eastern District of Louisiana entitled In re Whitney Oil & Gas, LLC, No. 23-11873.”15 On April 17, 2025, Plaintiffs filed the instant Motion to Remand.16 On May 6, 2025,

Whitney, Trimont (NOW), Trimont Energy, LLC, DP Gulf Coast, LLC, and DP Louisiana, LLC (collectively, the “Whitney Defendants”) filed an opposition to the motion.17 The same day

10 Id. at 31. 11 Rec. Doc. 1-1 at 6. 12 Id. at 4. 13 Id. 14 Rec. Doc. 1. 15 Id. at 1–2. 16 Rec. Doc 9. 17 Rec. Doc. 10. Defendants Spectrum Energy Holdings, Inc. and Spectrum Energy Oil & Gas Holdings, LLC (collectively, the “Spectrum Defendants”) filed an opposition to the motion.18 On May 9, 2025, Plaintiffs filed a reply brief in further support of the motion.19 Following the filing of the Motion to Remand, Defendant Spectrum AR and another Spectrum entity, Spectrum OpCo, LLC, filed a Complaint for Exoneration from or Limitation of

Liability in the United States District Court for the Eastern District of Louisiana, Civil Action No. 25-1506. On July 25, 2025, the Court granted a motion approving the Limitation Petitioner’s ad interim stipulations, directing the issuance of notice, and restraining the prosecution of any other claims pending against the Limitation Petitioners.20 II. Parties’ Arguments A. Plaintiffs’ Arguments in Support of Remand Plaintiffs argue that this matter must be remanded for three reasons: (1) Whitney failed to meet its burden to prove that removal was proper; (2) the elements for mandatory abstention under 28 U.S.C. § 1334(c)(2) are satisfied; and (3) even if the elements for mandatory abstention are not met, the factors for permissive abstention and equitable remand weigh in favor of remand.21

First, Plaintiffs contend that Whitney failed to carry its removal burden.22 According to Plaintiffs, the notice of removal failed to explain how Plaintiffs’ claims are “related to” Whitney’s Chapter 11 bankruptcy case.23 Plaintiffs assert the conclusory allegation that “[t]he State Court

18 Rec. Doc. 11. 19 Rec. Doc. 14. 20 In re Spectrum AR, LLC, No. 25-1506 (E.D. La. Jul. 25, 2025) (Rec. Doc. 5). 21 Rec. Doc. 9 at 1. 22 Rec. Doc. 9-1 at 3. 23 Id. Action concerns and relates to a Chapter 11 case that was administered before Judge Meredith Grabill” is insufficient.24 Plaintiffs contend that Whitney has failed to explain how the outcome of this case could “alter the rights, obligations, and choices of action of the debtor” or “have an effect on the administration of the estate.”25 Second, Plaintiffs argue that the Court should remand the case under the mandatory

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