PHAC Services, Inc. v. Seaways Intern., Inc.

393 So. 2d 117
CourtLouisiana Court of Appeal
DecidedNovember 10, 1980
Docket13245, 13246
StatusPublished
Cited by5 cases

This text of 393 So. 2d 117 (PHAC Services, Inc. v. Seaways Intern., 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
PHAC Services, Inc. v. Seaways Intern., Inc., 393 So. 2d 117 (La. Ct. App. 1980).

Opinion

393 So.2d 117 (1980)

P. H. A. C. SERVICES, INC.
v.
SEAWAYS INTERNATIONAL, INC., Pennzoil Company and Pennzoil Producing Company.
ACOUSTICAL SPRAY INSULATORS, INC.
v.
PENNZOIL COMPANY et al.

Nos. 13245, 13246.

Court of Appeal of Louisiana, First Circuit.

November 10, 1980.
Rehearing Denied January 26, 1981.

*118 Silas B. Cooper, Jr., Abbeville, for plaintiff.

John W. Hutchison, Lafayette, for Pennzoil Co. and Pennzoil Producing Co.

*119 Duncan M. Smith, Jr., Lafayette, for Seaways Intern.

Michael J. McNulty, Jr., Franklin, for plaintiff.

Donald G. Cave, Baton Rouge, for Acoustical Spray Insulators.

Amos H. Davis, Lafayette, for defendants.

Before EDWARDS, LEAR and WATKINS, JJ.

WATKINS, Judge.

These two consolidated cases arose out of the construction of a three story living quarters unit (unit) for an offshore drilling platform. Defendant-appellant, Pennzoil Company and Pennzoil Producing Company (Pennzoil), entered into a contract with defendant, Seaways International, Inc. (Seaways) for the construction of this unit.[1] Plaintiffs-appellees, P.H.A.C. Services, Inc. (PHAC) and Acoustical Spray Insulators, Inc. (Acoustical) subcontracted with Seaways to provide certain labor, materials and supplies in connection with the construction of the unit. PHAC, pursuant to its subcontract, provided labor and materials for the installation of plumbing, heating and air conditioning which was incorporated into the unit. Acoustical, pursuant to its subcontract, provided labor and materials for the installation of acoustical material in and on the said unit. Both PHAC and Acoustical submitted invoices and demands for payment to Seaways and neither was paid. Seaways was apparently not able to pay plaintiffs, for financial reasons. Subsequent to the default in payment by Seaways, both of the plaintiffs-appellees filed lien affidavits in the public records of St. Mary Parish. At the time the lien affidavits were filed the unit was located in St. Mary Parish where it remained until some time after these suits were filed. Pennzoil subsequently moved the unit which it owned to an offshore drilling platform located in the Gulf of Mexico off the Coast of Texas.

Appellant, Pennzoil, filed exceptions of no cause and no right of action, and an exception of lack of jurisdiction over the subject matter, which latter exception was filed after the trial court ruled on the first two exceptions. After hearing on the exceptions of no cause and no right of action, the trial court ruled that plaintiffs-appellees had no cause of action under LSA-R.S. 9:4801 et seq., and LSA-R.S. 9:4502 et seq., but found that the appellees did allege a cause of action under LSA-R.S. 9:4861 et seq. The effect of the trial court's ruling that appellees' petitions stated a cause of action, was to overrule or dismiss the exceptions of no cause and no right of action in their entirety. See P.H.A.C. Services, Inc. v. Seaways International, Inc., et al., 393 So.2d 115 (La.App. 1st Cir. 1980) and Acoustical Spray Insulators v. Pennzoil Company et al., 393 So.2d 117 (La.App. 1st Cir. 1980).

After trial on the merits the court rendered judgment in favor of appellees and against Seaways and Pennzoil for the amounts claimed, and recognized liens against the unit in favor of appellees under LSA-R.S. 9:4861 et seq., and awarded plaintiffs attorneys fees. Pennzoil appealed. Seaways did not appeal. Acoustical did not appeal, nor did it answer the appeal. PHAC answered the appeal seeking a money judgment against Pennzoil, which it was awarded by the lower court, and seeking recognition of a lien against the unit under LSA-R.S. 9:4801 et seq. and/or LSA-R.S. 9:4502 et seq.

LSA-R.S. 9:4861

The trial court held that under R.S. 9:4861 plaintiffs have a privilege on the unit in the construction of which plaintiffs had furnished labor and supplies. The trial court reasoned that since the statute imposes a privilege on "structures" and "appurtenances", and the unit fits within the definitions of structures and appurtenances, that a privilege on the unit does in fact exist under R.S. 9:4861.

*120 The critical question in this aspect of the case is not what items of property are burdened with the privilege, but rather was the labor and supplies furnished by plaintiffs the kind for which the subject statute entitles plaintiffs to a privilege. The latter portion of the statute to which the trial court refers beginning "Any person who does any trucking, towing ...", in setting forth the various items that when furnished entitled the person furnishing them to a privilege, does not include specifically "structures" or "appurtenances". These two specific words are only used in the portion of the statute declaring the types of property to which the privileges attach. The trial court's reasoning, therefore, does not support its conclusion.

That portion of R.S. 9:4861 which describes the various types of property on which the privilege is granted provides that there is a privilege on "... the lease whereon the same are located...." This language is indicative of the legislative intent to limit the privilege to those situations where the drilling or operations are identified with a particular lease or leases. This construction is supported by the provisions of R.S. 9:4862 which section sets forth the requirements for filing the Notice of the privilege and declares that the notice must be filed within ninety days, "... from the last date of the delivery of such fuel, drilling rigs, ... equipment, material or supplies to the well or wells ..." (emphasis ours).

A further indication of the legislative intent to limit the privilege granted in R.S. 9:4861 to those situations where the drilling or operations are identified with a particular lease or leases is the fact that the various types of property on which the privilege is imposed are listed in the conjunctive and the listing in both instances begins with the "... oil or gas produced from the well or wells, and the proceeds thereof inuring to the working interest therein, and on the oil, gas or water well or wells and the lease whereon the same are located...." If it was the legislative intent to grant the privilege to furnishers of labor, materials and supplies in the construction of an essential part of an offshore drilling platform not yet connected with the drilling or operations of any particular well or wells on a particular lease or leases, we believe the legislature would have listed the various types of property disjunctively, thereby indicating its intent to grant the privilege even if the drilling rig or platform was not at the time of the furnishing located on a particular lease or leases for the purpose of drilling a well or wells.

The Continental Casualty cases (Continental Casualty Company v. Associated Pipe and Supply Company, 310 F.Supp. 1207 (E.D.La.1969), 447 F.2d 1041 (C.A. 5th Cir. 1971), while not binding on us, differ significantly in that the gas gathering pipeline served particular wells located on certain particular leases.

For the foregoing reasons we are compelled to find that no lien or privilege was created under the provisions of R.S. 9:4861 et seq. in favor of PHAC and Acoustical.

LSA-R.S. 9:4801

We now must consider whether a lien was created in favor of PHAC and Acoustical under the provisions of R.S. 9:4801 et seq.

LSA-R.S. 9:4801 provides, in part:

"A.

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Bluebook (online)
393 So. 2d 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phac-services-inc-v-seaways-intern-inc-lactapp-1980.