Placid Oil Co. v. Williams (In re Placid Oil Co.)

463 B.R. 803, 2012 Bankr. LEXIS 1229
CourtUnited States Bankruptcy Court, N.D. Texas
DecidedJanuary 18, 2012
DocketBankruptcy No. 86-33419-SGJ-11; Adversary No. 09-03356-SGJ
StatusPublished
Cited by10 cases

This text of 463 B.R. 803 (Placid Oil Co. v. Williams (In re Placid Oil Co.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Placid Oil Co. v. Williams (In re Placid Oil Co.), 463 B.R. 803, 2012 Bankr. LEXIS 1229 (Tex. 2012).

Opinion

[806]*806 REVISED MEMORANDUM OPINION AND ORDER; (1) GRANTING MOTION FOR SUMMARY JUDGMENT OF REORGANIZED DEBTOR PLACID OIL COMPANY [DE #26]; AND (2) DENYING MOTION FOR SUMMARY JUDGMENT OF POST-CONFIRMATION TORT CLAIMANTS [DE# 29]

STACEY G.C. JERNIGAN, Bankruptcy Judge.

Before this court are cross motions for summary judgment, responses, and supporting documentary evidence in the above-referenced adversary proceeding (the “Adversary Proceeding”).1

Placid Oil Company (“Placid” or “Reorganized Debtor”), the Plaintiff in this Adversary Proceeding, was in a Chapter 11 bankruptcy case in the mid-1980s. Placid filed this Adversary Proceeding, approximately two decades after confirmation of a Chapter 11 plan and closure of its bankruptcy case, in order to determine whether certain tort claims that have been asserted in a Louisiana state court, post-confirmation, by Jimmy Williams, Sr., Jimmy Williams, Jr., Dalton Glen Williams, Jeanette Williams Shows, and Gwendolyn Williams Peacock, individually and on behalf of the deceased, Myra Williams (collectively, the “Post-Confirmation Tort Claimants,” “Williams Defendants,” or “Defendants”), were discharged by the Confirmation Order in Placid’s chapter 11 case.

On March 21, 2011, this Adversary Proceeding seemed to be concluded, when this court entered a Memorandum Opinion and Order: (1) Granting Motion for Summary Judgment of Reorganized Debtor Placid Oil Company; and (2) Denying Motion for Summary Judgment of PosWConfirmation Tort Claimants [DE # # 58 & 59] (the “Original Opinion”). Then, on June 8, 2011, Placid filed a Motion to Reopen Summary Judgment Record and to Alter or Amend Memorandum Opinion (the “Motion to Reopen”) [DE # 78]. The Motion to Reopen was filed due to certain late-discovered errors that were contained in an “Agreement of Counsel Regarding Assumed Facts for Adversary Proceeding 09-3356” and submitted to the court as part of the original summary judgment record. Specifically, these late-discovered errors had to do with the number of post-confirmation, asbestos-related claims that have been brought over the last several [807]*807decades against Placid. On July 27, 2011, the Court entered its Order Reopening Summary Judgment Record and Setting Filing Deadlines [DE #81] (the “Order Reopening Record”). The Order Reopening Record allowed for the filing of a “Revised Agreement of Counsel Regarding Assumed Facts for Adversary Proceeding 09-3356” (the “Revised Agreement”)2 as well as additional briefing by both Placid and the Williams Defendants, but only as to issues raised by the changes to the assumed facts. After considering the Revised Agreement filed on August 18, 2011 at Docket Entry # 86 (along with the Gary Affidavit in support), as well as the additional briefing,3 the court has concluded that the revised facts do not impact the ultimate ruling contained in the Original Opinion, but, that certain revisions to the Original Opinion are, nonetheless, necessary. For the reasons set forth below: (1) Placid’s MSJ is granted; and (2) the Post-Confirmation Tort Claimants’ MSJ is denied. This Revised Memorandum Opinion and Order is issued pursuant to Federal Rule of Bankruptcy Procedure 7056.

I. UNDISPUTED MATERIAL FACTS4

A. The Placid Bankruptcy Case

Placid is an oil and gas company that was, at least at the time of its bankruptcy filing, headquartered in Dallas, Texas. In connection with its business, Placid formerly owned and operated a large natural gas field and processing facility in Black Lake, Natchitoches Parish, Louisiana (the “Black Lake Facility”).

In the mid-1980s, the price of oil dropped precipitously, and Placid was unable to continue paying its debts. In order to prevent a threatened foreclosure, Placid commenced the above-referenced bankruptcy ease (the “Bankruptcy Case”). On November 19, 1986, the court entered an Order Setting Bar Date [DE # 1184 in the Bankruptcy Case], which set January 31, 1987 as the bar date for potential creditors of Placid to file claims.5 On three occasions (i.e., on January 2, 1987, January 9, 1987, and January 16, 1987), a Notice of Bar Date was published in the Wall Street Journal, a newspaper of national circula[808]*808tion that was available in Louisiana.6

During the course of the Bankruptcy-Case (specifically, in June 1988), Placid sold the Black Lake Facility to NERCO Oil and Gas, Inc., pursuant to a Bankruptcy Code section 363 sale order, in order to eventually fund a plan of reorganization.7 Three months later, on September 30, 1988, Placid confirmed its Fourth Amended Plan of Reorganization (the “Plan”). The Order confirming the Debtor’s Plan (the “Confirmation Order”) provided that all claims against Placid that arose on or before September 30, 1988 (i.e., the confirmation date), were forever discharged except for the Reorganized Debtor’s obligations under the Plan (the “Discharge”).8 The Confirmation Order also prohibited claimants from pursuing the Reorganized Debtor to enforce any claims that fell within the scope of the Discharge (the “Discharge Injunction”).9 It has been agreed, for purposes of this Adversary Proceeding that, pre-confirmation, no asbestos-related claims had ever been filed against Placid.10

B. The Claims of the Post-Confirmation Tort Claimants

The Posi^Confirmation Tort Claimants are the surviving widower (age 69) and four adult offspring (in their 30’s and 40’s) of Mrs. Myra Williams (“Mrs. Williams”). The Post-Confirmation Tort Claimants allege that they have suffered damages due to the death of Mrs. Williams, on August 9, 2003, allegedly caused by Mrs. Williams’ exposure to asbestos dust and fibers when she handled and laundered the allegedly asbestos-laden clothing of her husband, Jimmy Williams, Sr. (“Mr. Williams”). Mr. Williams was employed at the Black Lake Facility, first by Placid, between 1966 and 1988, and then by NERCO and other subsequent owners of the Black Lake Facility, from 1988 to 1995. Thus, Mr. Williams worked at the Black Lake Facility for almost 30 years (1966-1995). In the course of performing his work, the parties agree that Mr. Williams was occupationally exposed to large quantities of asbestos-containing insulation products that were utilized and/or handled by, or in the close proximity of, Mr. Williams.11 Mr. Williams’ initial job for Placid was a switcher.12 When he was a switcher, he worked with steam coils on certain flow lines and each of them was covered with insulation containing asbestos.13 Also, certain heaters within the work area had insulation in them.14 Mr. Williams later became a compressor operator and then a chief operator.15 When he was a compressor operator, he worked with turbochargers, engines, and compressors that had insulation on them.16 Mr. Williams later [809]*809became a member of a maintenance crew (repairing anything that broke throughout the plant).17 Mr.

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Bluebook (online)
463 B.R. 803, 2012 Bankr. LEXIS 1229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/placid-oil-co-v-williams-in-re-placid-oil-co-txnb-2012.