Olympia Minerals, LLC v. HS Resources, Inc.

162 So. 3d 674, 13 La.App. 3 Cir. 110, 2015 La. App. LEXIS 645, 2015 WL 1446929
CourtLouisiana Court of Appeal
DecidedApril 1, 2015
DocketNo. 13-110
StatusPublished
Cited by1 cases

This text of 162 So. 3d 674 (Olympia Minerals, LLC v. HS Resources, Inc.) 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
Olympia Minerals, LLC v. HS Resources, Inc., 162 So. 3d 674, 13 La.App. 3 Cir. 110, 2015 La. App. LEXIS 645, 2015 WL 1446929 (La. Ct. App. 2015).

Opinion

CONERY, Judge.

_JjThis case was initially before this court on an appeal filed on behalf of Aspect Resources, LLC (Aspect Resources) and the intervenor, Aspect Energy, LLC (Aspect Energy), seeking to reverse the ruling of the district court in favor of Olympia Minerals, LLC and Olympia Minerals Leasing, LLC (collectively, Olympia)1 for breach of the August 1, 2000 contract designated as the North Starks Project Agreement (NSPA). Among other obligations, the trial court found the NSPA obligated HSR2 and Aspect Resources to conduct a 3-D seismic survey of the lands described in the NSPA, lease fifteen percent of the mineral interests covered therein, and turn over all seismic data, including “field tapes” and “raw data” to the then mineral interest owner, El Paso. The main object of the contract was for the exploration and development and eventual sale of oil and gas in paying quantities in everyone’s best interest. Olympia subsequently acquired the interests of El Paso. The trial court awarded damages for breach of the NSPA and ordered Aspect Resources and Aspect Energy to turn over the raw data or “field tapes” from the seismic survey in question to Olympia.

On appeal, this court affirmed in part and reversed in part, reversing only the trial court’s award to Olympia of $7,120,140.00 for the loss of royalties. Olympia Minerals, LLC v. HS Resources, Inc., 13-110 (La.App.3 Cir. 8/21/13), 123 So.3d 281.3

All parties sought review in the supreme court, with the exception of those companies who were original plaintiffs with Olympia, referred to by this court and the supreme court as the “working interest owners” (WIOs).4 In Olympia Minerals, LLC v. HS Resources, Inc., 13-2637/13-2717 (La.10/15/14) (unpublished opinion), the Louisiana Supreme Court affirmed in part, amended in part, and remanded to this court for “re-evaluation of the recon-ventional demands” and instructed:5

[678]*678Aspect Resources brought reconven-tional demands against Olympia (formerly El Paso), alleging that because the agreement maintained ownership of seismic data with Aspect Resources, El Paso/Olympia and others not party to the agreement are liable for exceeding the permissible use of that data under a license incorporated into the larger agreement. The district court ruled that because of Aspect Resources’ failure to fulfill the terms of the agreement, the agreement was judicially dissolved and there was no license restriction imposed on El Paso/Olympia and the others who allegedly used the data. The court of appeal affirmed for the same reasons. Central to the reasoning of both lower courts was their ruling that Aspect Resources had breached an obligation to sublease mineral interests. However, we have found that Aspect Resources was not required by the agreement to sublease. Therefore, because the court of appeal, when adopting the reasoning of the district court essentially pretermitted reaching the merits of Aspect Resources’ arguments, we remand this matter to the court of appeal to review the correctness of the dismissal of the reconventional demands, and as that court then |sdeems necessary and appropriate, the court may reach the merits of the reconventional demands, consistent with the rulings in this opinion.

Id. at 45-46.

The supreme court further instructed that, if necessary, this court was in the alternative to “remand to the district court if additional evidence is required.” Id. at 42. Following this instruction, in Footnote 17, the supreme court stated:

Parenthetically, we note that litigants who were not party to the agreement are also potentially liable as targets of Aspect Resources’ reconventional demands. Those litigants have been put on notice of this court’s granting of discretionary review, but none of those litigants has filed a brief in opposition to Aspect Resources’ request for reinstatement of the reconventional demands.

Id. at n. 17.

In its opinion, the supreme court discussed Aspect Resources’ reconventional demands against Olympia and the WIOs:

Aspect Resources has sought review of the district court’s dismissal of recon-ventional demands brought against El Paso, now Olympia, and against the working interest owners, not parties to the contract but seeking damages against Aspect Resources under a theory of being third party beneficiaries. Aspect Resources’ reconventional demands are premised on the alleged misappropriation of seismic data contrary to the terms of the license agreement and in violation of the Louisiana Uniform Trade Secrets Act and/or the Louisiana Unfair Trade Practices Act.

Id. at 41.

Thus, on remand, the supreme court asked us to consider all of the reconven-tional demands, “as [the third circuit] then deems necessary and appropriate.” Id. at 42.

In response to the supreme court’s remand, we ordered additional briefing from the parties and fixed the case for oral argument, held on January 28, 2015. This court received briefing by both sides on the issues relating to Aspect ^Resources’ reconventional demands. This court also received briefing jointly submitted by Olympia and the WIOs urging consideration of their peremptory exception of no right of action as against Aspect Resources and their peremptory exception of prescription as against Aspect Energy. The WIOs, who were non-parties to the NSPA, [679]*679were made defendants in the reconventional demand filed by Aspect Resources primarily alleging violations of the Louisiana Uniform Trade Secrets Act (LUTSA).6

Prior to ruling on the merits of Aspect Resources’ reconventional demand and Aspect Energy’s intervention, we have been asked by Olympia and the WIOs to “consider and grant their peremptory exception of no right of action [as to Aspect Resources] and prescription [as to Aspect Energy].”

For the following reasons, this court grants the peremptory exception of no right of action as to Aspect Resources and the peremptory exception of prescription as to Aspect Energy, originally jointly filed by Olympia and the WIOs in the district court, and dismisses all claims of Aspect Resources and Aspect Energy, with prejudice at their costs.

SUPPLEMENTAL FACTS AND PROCEDURAL HISTORY OF THE PEREMPTORY EXCEPTIONS

On August 9, 2011, just prior to the bench trial in this case, Olympia and the WIOs jointly filed a peremptory exception of no right of action as to Aspect Resources and a peremptory exception of prescription as to Aspect Energy. Aspect | r,Resources filed a response to the exception of no right of action, and Aspect Energy responded to the exception of prescription.

The trial court heard arguments on both exceptions from opposing counsel, but deferred the exceptions to the trial on the merits, stating:

The Court states for the record that he did a little review of the law and the record last night. When I previously said that a court on its own can recognize the exception of prescription, the Court was mistaken because the Court cannot. [But] the prescription has been submitted to the Court, it has been supplied as, the language the code uses. And the Court can rule on it at the appropriate time.

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Bluebook (online)
162 So. 3d 674, 13 La.App. 3 Cir. 110, 2015 La. App. LEXIS 645, 2015 WL 1446929, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olympia-minerals-llc-v-hs-resources-inc-lactapp-2015.