Poole v. Winwell, Inc.

381 So. 2d 926, 1980 La. App. LEXIS 3615
CourtLouisiana Court of Appeal
DecidedMarch 5, 1980
Docket7484
StatusPublished
Cited by7 cases

This text of 381 So. 2d 926 (Poole v. Winwell, 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
Poole v. Winwell, Inc., 381 So. 2d 926, 1980 La. App. LEXIS 3615 (La. Ct. App. 1980).

Opinion

381 So.2d 926 (1980)

Freddie POOLE, Plaintiff-Appellant,
v.
WINWELL, INC., et al., Defendants-Appellees.

No. 7484.

Court of Appeal of Louisiana, Third Circuit.

March 5, 1980.

George Griffing, Jonesville, for plaintiff-appellant.

Smith, Taliaferro, Seibert, Boothe & Purvis by Leo Boothe, Jonesville, for defendants-appellees.

*927 Before CULPEPPER, GUIDRY and DOUCET, JJ.

GUIDRY, Judge.

Plaintiff, Freddie Poole, owner of a forty-three acre tract of land in Catahoula Parish, seeks the cancellation of two surface leases affecting 5.5 acres of said tract and/or damages for the overflow of salt water from the lessees' oil collecting facility onto both leased and adjacent non-leased portions of the tract. Made defendants in this suit are the lessees who own undivided interests in the two surface leases: Winwell, Inc., C. S. McCain, Jr., and the Succession of Douglas Whitaker. The defendant-lessees acquired the two surface leases from plaintiff's ancestor in title, Rex G. Poole: one on December 23, 1962, covering 2.5 acres; and the other on August 21, 1963, covering 3 acres contiguous with the other leased premises. Defendant's objective in leasing the property was to establish and maintain an oil and gas gathering facility thereon and this is specifically permitted under the terms of the leases. The term of said leases is so long as there is production from wells located in Sections 9, 16 or 41, Township 9 North, Range 6 EAst, Catahoula Parish, Louisiana. Winwell, Inc. operates the oil collection site on said leased property which consists of a tank battery, a salt water disposal well, and a salt water disposal pit. The oil currently collected is pumped from wells on land other than plaintiff's, but located within the above mentioned sections.

Plaintiff alleges that defendants breached their engagements under the August 21, 1963 lease agreement by allowing salt water and/or oil to escape and damage his property. Further, plaintiff asserts that both lease instruments are null and void because they contain potestative conditions, are indefinite as to duration, and are unsupported by serious or adequate consideration. Defendants denied plaintiff's allegations and filed an exception of prescription asserting that all damages alleged in plaintiff's petition, if any, occurred more than one year prior to the filing of the suit. The trial judge sustained the exception of prescription of one year as to plaintiff's damage claim. The trial court also held the leases to be valid and denied plaintiff's demand for their cancellation. From this judgment plaintiff appeals.

The primary issues for our consideration are whether plaintiff's claim for damages is barred by the liberative prescription of one year and whether the trial court erred in holding the leases valid and denying their dissolution.

PRESCRIPTION

In order to determine whether in the instant case plaintiff's action for damages is barred by a prescriptive period of one year, it is necessary to examine the grounds on which his action is based. The nature of the obligation breached determines the applicable prescriptive period. LSA-C.C. Art. 3531; Dean v. Hercules, Incorporated, 328 So.2d 69 (La.1976).

The decision of the trial court apparently was founded on the conclusion that plaintiff's petition sounded in tort and since all damage[1] to the property occurred more than one year prior to the institution of suit[2], the action had prescribed under Civil Code Article 3536.

Our examination of the petition convinces us that the trial court erred in considering the action as one in tort. We conclude that the suit is one sounding in *928 contract and that the one year prescriptive period of Article 3536 does not apply.[3]

In Federal Insurance Co. v. Insurance Co. of No. Amer., 262 La. 509, 263 So.2d 871 (1972), the Supreme Court reiterated established guidelines in determining the appropriate prescriptive period in circumstances as are found in the instant case:

"It has been recognized by this Court on numerous occasions that when a party has been damaged by the conduct of another arising out of a contractual relationship, the former may have two remedies, a suit in contract, or an action in tort, and that he may elect to recover his damages in either of the two actions. In such cases, the prescription applicable is determined by the character which plaintiff gives his pleadings and the form of his action. American Heating & Plumbing Co., Inc. v. West End Country Club, 171 La. 482, 131 So. 466 (1930); Kramer v. Freeman, 198 La. 244, 3 So.2d 609 (1941); LaFleur v. Brown, 223 La. 976, 67 So.2d 556 (1953); and Importsales, Inc. v. Lindeman, 231 La. 663, 92 So.2d 574 (1957)."

In plaintiff's petition, he cites in paragraph 9 a provision from the lease executed on August 21, 1963, which provides as follows:

"Lessee further agrees to keep these premises in good condition, and to conduct and operate its facilities thereupon in such a manner so as not to interfer (sic) with lessor's use and enjoyment of the adjoining property owned by him."

In paragraphs 10 and 11, plaintiff asserts that the defendants breached the above cited lease provision by allowing salt water and/or oil to escape causing damage to plaintiff's land which he particularly alleges as permanent damage suffered by the land, trees, and fences.

Although plaintiff did seek to argue the applicability of a continuing tort theory to the case, it is manifestly clear that the damages plaintiff seeks arise ex contractu, i. e., from the violation of the lease contract executed on August 21, 1963, as set forth in his petition. Accordingly, as plaintiff's claim is not barred by prescription of one year, we now consider the question of what damages are due.

Plaintiff alleges in his petition that his land was damaged in the amount of $15,000.00 because of the salt water and/or oil spill-over: $5,000.00 damage to leased premises; $10,000.00 damage to non-leased land. Testimony and evidence adduced at trial evidently convinced the trial judge, as we are likewise convinced, that plaintiff's land in fact was damaged by salt run-off caused by the oil collection operation conducted on the leased premises by defendants. The salt run-off left the property directly adjacent to the leased premises barren and unsuitable for the growth of vegetation or the grazing of animals. However, as the trial judge was of the opinion that plaintiff's claim for damages had prescribed, the trial court made no determination as to the extent of damage to plaintiff's property.

In determining an award for damages, we will consider only damage to the property that lies outside the leased premises. We do so because the lease is still ongoing, for reasons discussed infra, and the defendant-lessees have apparently made good faith efforts to keep the leased premises in good condition in light of the purpose for which it is employed. Defendant-lessees have filled in two of the original three salt water disposal pits and apparently intend to make further on-site rehabilitation efforts; therefore, the determination of damages to the leased property is inappropriate and, in any event, premature at this time.

Plaintiff utilizes the 37.5 acres outside of the leased premises by renting same for the grazing of livestock. As to plaintiff's property adjacent to the leased premises that was damaged, the evidence in the *929

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Bluebook (online)
381 So. 2d 926, 1980 La. App. LEXIS 3615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/poole-v-winwell-inc-lactapp-1980.