Regions Bank v. Questar Exploration & Production Corp.

184 So. 3d 260, 2016 La. App. LEXIS 36, 2016 WL 154852
CourtLouisiana Court of Appeal
DecidedJanuary 13, 2016
DocketNo. 50,211-CA
StatusPublished
Cited by4 cases

This text of 184 So. 3d 260 (Regions Bank v. Questar Exploration & Production Corp.) 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
Regions Bank v. Questar Exploration & Production Corp., 184 So. 3d 260, 2016 La. App. LEXIS 36, 2016 WL 154852 (La. Ct. App. 2016).

Opinion

BROWN, Chief Judge.

' ^Plaintiffs filed this lawsuit initially to put defendant in default for the failure to reasonably develop certain mineral leases and then amended the suit seeking a judicial declaration of termination of the leases by operation of the law pursuant to La. C.C. art. 2679. Both parties filed cross motions for summary judgment on the question of whether, article 2679, which provides that the term of a lease may not exceed 99 years, was applicable to these mineral leases. The trial court concluded that La. C.C. art. 2679 was inapplicable to these leases and granted defendant’s MSJ and denied plaintiffs’ MSJ. Plaintiffs have appealed.

Facts and Procedural Background

At issue are three mineral leases executed in 1907 by W.P. Stiles, plaintiffs’ prede[262]*262cessor in title, in favor of M.L.. Benedum, J.S. Glenn and L.L. Thomas (the “Stiles Leases”). The Stiles Leases covered approximately 3214 acres in northwestern Gaddo Parish (the “Property”). Each lease was granted: .

for a term of ten years from date hereof and as much longer thereafter as gas or oil is found or produced in paying quantities ... (Emphasis added).

On January 15, 1908, the Stiles Leases were assigned to J.C. Trees Oil Company, Inc. (“Trees Oil”), an operating arm of Joseph C. Trees and Michael L. Benedum, an. oil and gas exploration partnership of the early 20th century.

In 1920, Trees Oil sold the mineral rights under the Stiles Leases along with other lease acreage to Standard Oil Company (“Standard”), the predecessor of defendant, Exxon Mobil Corporation (“Exxon”). Since the ^acquisition of the Stiles Leases in 1920, Standard, and subsequently Exxon, has continued to operate the Stiles Leases.

There are several hundred active shallow wells on the leases. In 2007, this matter was originally brought as an action for failure to reasonably develop the leases at a depth below 6,000 feet. In particular, plaintiffs, asked for cancellation and release of a portion of the leases below 6,000 feet." Plaintiffs are Regions. Bank, L. Frank Moore and Don Jones, Co-Trustees of the Trust Created under the Last Will and Testament of Annie Lowe Stiles; and Regions Bank, Trustee for the Trust Created under the Last Will and Testament of Edward P. Stiles (hereinafter “plaintiffs” or “Stiles' Trusts”). Initially defendants were Questar Exploration. & Production Corp., Centerpoint Energy Gas Transmission Co., and Exxon Mobil Corp. Plaintiffs dismissed their claims against Questar and Centerpoint, leaving Exxon as the sole defendant.

In 2013, plaintiffs filed an amended and restated petition in which they asserted as “Count I” that the leases had terminated by operation of La. C.C. art. 2679, which states that a lease may not exceed 99 years. Plaintiffs reasserted as “Count II” the alternative claim for failure to reason-ábly develop the leases below 6,000 feet.

Plaintiffs moved for summary judgment on Count I. Exxon filed a cross-motion for summary judgment on the same issue. Exxon also filed an exception of nonjoin-der, arguing that unspecified assignees and sublessees of interests in the Stiles Leases should be joined in the action. Plaintiffs opposed- the exception on grounds that Exxon had not notified them in | ¡^writing of its assignments and subleases as required by La. R.S. 31:132, which precluded the necessity of demand on the sublessees or assignees.

At the December 1, 2014, hearing, without relying on any extraneous evidence, the court denied the Stiles Trusts’ motion for summary judgment and granted Exxon’s cross-motion, finding La. C.C. art. 2679 to be inapplicable to mineral leases. A ruling, on Exxon’s exception of non-join-der was deferred/passed by agreement. Judgment'in accordance with the court’s ruling was signed on December 17, 2014. Plaintiffs thereafter filed a writ with this Court based on the non-finality of the judgment, which disposed of the 99-year lease termination issue but not plaintiffs’ failure to develop claim.

This Court denied supervisory writs, stating that the 99-year lease termination ruling was a “final judgment” subject to appeal. Plaintiffs thereafter timely moved to commence this devolutive appeal. In response, Exxon filed a “Pre-Lodging Motion to Dismiss Plaintiffs’ Appeal.” This Court issued an order finding the case to be non-appealable as it was not certified [263]*263under La. C.C.P. art. 1915(B), but afforded the Stiles Trusts the opportunity to seek such certification. Following receipt of the trial court’s certification order, this Court ruled that the procedural defect was cured and allowed the appeal to proceed.

Discussion

Exxon’s Motion to Dismiss the Appeal

In its appellate brief, Exxon disputes the validity of plaintiffs’ appeal, asserting that the trial court’s certification of the judgment came after the |4trial court had been divested of jurisdiction to rule on any issues of certification related to. the judgment. Further, if this Court finds that the trial court had jurisdiction to .certify the judgment, Exxon maintains that this certification was not warranted and that there were no “expressed” reasons given by the trial court. According to Exxon, there is no justification for the certification because a ruling' from' this Court as to the issue on appeal will not dispose of other matters pending in the trial court and will affect the rights 'of parties not joined in the present suit.

C.C.P. art. 1915(B)(1) provides that:

When a court renders a partial judgment or partial summary judgment or sustains an exception in part, as to one or more- but less than, all of the claims, •demands, issues, or theories against a party, whether in an original demand, reconventional demand, cross-claim, third-party claim, or intervention, the judgment shall not constitute a final judgment unless it is designated as a final judgment by the court after an express, determination that there is no just reason for delay.

Exxon questions the timing of the certification orders claiming that -the appeal divested the trial court of jurisdiction to issue the certification, citing La. C.C.P. art. 2088(A). Neither the courts nor the legislature has put. a. time limit on when certification can- be done. In fact, this Court afforded the trial court in this, case the opportunity to determine whether the partial summary judgment should be certified.for appeal.

In Quality Paint Hardware and Marine Supply, Inc. v. Crescent Coating and Services, Inc., 13-129, (La.App. 5th Cir.08/27/13), 123 So.3d 780, 784, the Fifth Circuit held:

First, the record before this Court does not contain a written judgment dismissing Max Welders. When a trial judge has - failed >, to- produce a written and ■signed final judgment, no | ¡¡appeal from that- judgment may be taken. La. C.C.P. art. 1911. A minute entry and an oral judgment that has not been reduced to writing and signed by the trial judge are. insufficient to divest the trial court of jurisdiction and grant jurisdiction to the appellate court. State v. Beaudoin, 06-88 (La.App. 5th Cir.06/29/06), 939 So.2d 428 (citing La. C.C.P. art. 2088). Thus, without a written judgment signed by the trial judge, no appeal from that judgment may be taken. - •

Likewise, in the case herein, this court found that the initial appeal was not reviewable because there was no certification pursuant to C.C.P. art. 1915(B).

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Bluebook (online)
184 So. 3d 260, 2016 La. App. LEXIS 36, 2016 WL 154852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regions-bank-v-questar-exploration-production-corp-lactapp-2016.