Pollock v. TALCO MIDSTREAM ASSETS, LTD.

70 So. 3d 835, 2011 La. App. LEXIS 582, 2011 WL 1880022
CourtLouisiana Court of Appeal
DecidedMay 18, 2011
Docket46,302-CA
StatusPublished
Cited by5 cases

This text of 70 So. 3d 835 (Pollock v. TALCO MIDSTREAM ASSETS, LTD.) 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
Pollock v. TALCO MIDSTREAM ASSETS, LTD., 70 So. 3d 835, 2011 La. App. LEXIS 582, 2011 WL 1880022 (La. Ct. App. 2011).

Opinion

MOORE, J.

| ,The defendant, Talco Midstream Assets Ltd. (“Talco”), a pipeline construction company, appeals a ruling denying its motion for new trial and the default judgment in which the trial court awarded the plaintiffs over $200,000 in damages. Talco seeks a remand for a new trial on the merits, or alternatively, a reduction in the damages awarded. For the following reasons, we affirm the judgment denying Tal-co’s motion for new trial, but modify the damage award.

Procedural History

Previously, in Pollock v. Talco Midstream Assets Ltd., 44,629 (La.App. 2 Cir. 9/23/09), 22 So.3d 1033, a panel from this court remanded this case for a hearing on Talco’s motion for a new trial, which the trial court had denied on grounds that the motion constituted a procedurally improper attempt to annul the judgment for an “ill practice” under C.C.P. art. 2004. The panel reversed the trial court, holding that the “ill practice” grounds for nullification could be considered in a motion for new trial, and it remanded the case to the trial court for a contradictory hearing.

The hearing was held on May 10, 2010, where the court took evidence and testimony and the parties filed post-trial briefs. On May 17, 2010, for reasons orally assigned, the trial court found no grounds for a new trial. Specifically, the court determined that a letter from plaintiffs’ counsel to Talco’s senior vice-president, which stated, “This matter has not been resolved. Please file your answer at this time,” was sufficient to put Talco on notice that the plaintiffs were moving forward with their lawsuit and the prior agreement not to take a default judgment without a 10-day notice fallowing Talco time to file an answer was no longer in effect. The court also found that the default judgment was not obtained .by fraud or ill practice resulting from this alleged “miscommuni-cation.”

Talco filed this appeal.

FACTS

The dispute arose out of Talco’s construction of a pipeline across Ms. Dorothy Pollock’s property. Ms. Pollock, age 92, lives in her own home on a 29.5-acre rectangular lot measuring 350' x 3665'. Two grandsons and a daughter, Shirley Loe, also own and reside in homes located on the property. Access to the homes is provided by a well-established (25 years), long gravel driveway several hundred yards long beginning from Blanchard-Furrh Road, crossing a land bridge, and ending at the homes of Ms. Pollock’s two grandsons, Mike and Matt Loe. The road forks off with driveways to Ms. Pollock’s home and her daughter’s home. An asphalt apron measuring 12 x 20 feet provides the transition from Blanchard-Furrh Road to the gravel drive.

Prior to construction of the pipeline, the land bridge consisted of a concrete culvert under the driveway located midway through the rectangular lot. The culvert was placed in that location 25 years ago to facilitate the natural drainage of the property in that area, which is part of the Cross Lake watershed.

In April or May of 2006, Talco began constructing a pipeline across Ms. Pollock’s property. According to the plaintiffs, Talco had no legal right of way over *839 the property and thus attempted to get Ms. Pollock to sign a |sright-of-way document in exchange for $8,789.53. Mrs. Pollock refused the offer (Talco contends that it had obtained the right-of-way from the mineral servitude owner). Talco continued to construct the pipeline on the property to completion. The plaintiffs filed this lawsuit on April 18, 2007, to enjoin construction of the pipeline, and for restoration of the property and damages.

Plaintiffs alleged that Talco destroyed the land bridge and replaced the concrete culvert with two smaller aluminum culverts that were inadequate to handle the water flow, and which subsequently washed out, causing the property to flood and become impassable for an extended period. They alleged that the heavy equipment used by Talco destroyed the asphalt apron, damaged the driveway and created large ruts in the property, further creating drainage problems.

After the petition was filed and service obtained, Talco’s senior vice-president, Mr. Allen Matysiak, contacted the Pollocks’ attorney, Thomas Wilson, requesting an extension of time to file an answer. He requested that the parties try to resolve the matter before proceeding further and promised he would facilitate further negotiations to reach a possible settlement. Wilson and Matysiak agreed to meet on May 14, 2007 to discuss a settlement. In return, Wilson sent a letter dated May 2, 2007, promising he would not take a default or any adverse action against Talco without first giving Talco 10 days’ advance written notice. Wilson was unable to attend the meeting, however, so he sent a second letter on May 14, 2007, to Matysiak assuring him that the prior agreement would remain in effect and |4he would take no adverse action without giving the 10-day notice.

The settlement conference was rescheduled for August 29, 2007. Matysiak did not appear at the meeting, but sent emissaries Victor Davis and Ted Lyles to meet with attorney Wilson. Wilson alleges that he offered to settle the matter for a sum that mostly represented the cost of repair and restoration of the property. He states that Davis told him that he had no authority to offer more than the amount previously offered to Mrs. Pollock.

Davis subsequently visited the property and called Wilson stating that he saw nothing to support the settlement demand. He offered to fix a leaky water line and the same monetary amount previously extended. No other meetings were held.

On October 19, 2007, with no agreement having been reached amidst the continuing problems on the property, Wilson sent Ma-tysiak a letter advising: “This matter has not been resolved. Please file your answer at this time.”

The central question in this case is whether the October 19, 2007, letter above effectively served as a 10-day written notice to Talco required by the agreement that it was at peril of a default judgment, or whether the letter constituted notice that the agreement to provide such notice was no longer in effect. Wilson contends that the letter was obviously meant to be a termination of the agreement to provide an extension of time afforded Talco. Conversely, Talco asserts that it believed counsel’s letter was simply an informal request to orchestrate a resolution, not a notice that the Pollocks were reviving the previously instituted suit. Talco further notes that two of | .fits representatives met with Pollock’s counsel following the October 19 letter and that additional proposals were made, although these allegations are disputed by Pollock. Talco also sent the following letter to Pollock’s attorney on *840 October 26, 2007, which it deemed an “answer” to the October 19 letter:

We do agree to come back and repair the water line one more time and reissue draft or a check for bonus as agreed between the landowner and Right-Of-Way agent. Please advise if this is acceptable.

On December 3, 2007, Wilson caused a preliminary default to be entered. On September 22, 2008, nearly 10 months later, the default judgment was confirmed, with the court rendering judgment against Talco in the amount of $201,900.00, plus interest and costs. A written judgment in accordance with the oral ruling was signed on September 80, 2008.

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Bluebook (online)
70 So. 3d 835, 2011 La. App. LEXIS 582, 2011 WL 1880022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pollock-v-talco-midstream-assets-ltd-lactapp-2011.