Reliance Trust v. Texas Gas Transmission Corp.

499 So. 2d 202, 1986 La. App. LEXIS 8015
CourtLouisiana Court of Appeal
DecidedOctober 29, 1986
Docket18124-CA
StatusPublished
Cited by6 cases

This text of 499 So. 2d 202 (Reliance Trust v. Texas Gas Transmission 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
Reliance Trust v. Texas Gas Transmission Corp., 499 So. 2d 202, 1986 La. App. LEXIS 8015 (La. Ct. App. 1986).

Opinion

499 So.2d 202 (1986)

RELIANCE TRUST, et al., Plaintiffs-Appellants,
v.
TEXAS GAS TRANSMISSION CORPORATION, et al., Defendants-Appellees.

No. 18124-CA.

Court of Appeal of Louisiana, Second Circuit.

October 29, 1986.

*203 Theus, Grisham, Davis & Leigh by J. Michael Hart, Monroe, for plaintiffs-appellants.

Jones, Walker, Waechter, Pointevent, Carrere & Denegre by Roy C. Cheatwood, Edward B. Poitevent, II, Nancy Scott Degan, New Orleans, for defendants-appellees.

Before FRED W. JONES, Jr., NORRIS and LINDSAY, JJ.

LINDSAY, Judge.

The plaintiffs, owners and assignees in interest of oil, gas and mineral leases in Union Parish, sued Texas Gas Transmission Corporation and West Monroe Gas Gathering Company for failure to pay for gas delivered to the defendants under the terms of gas purchase contracts. The plaintiffs also alleged that by failing to pay for the gas taken, the defendants committed the tort of conversion. Plaintiffs filed suit against both defendants in Union Parish. Texas Gas, a Delaware Corporation licensed to do business in Louisiana, has listed its principal business establishment in Orleans Parish. Texas Gas filed an exception of improper venue claiming that venue was proper in Orleans Parish under LSA-C.C.P. Art. 42. Defendant's exception was sustained by the trial court. The plaintiffs have appealed arguing they fall under several exceptions to the general venue article of LSA-C.C.P. Art. 42 and therefore venue was proper in Union Parish. *204 For the following reasons we affirm the trial court judgment.

FACTS

The plaintiffs are the owners and assignees in interest of oil, gas and mineral leases in Union Parish on which are located several wells producing natural gas. The plaintiffs entered into contractual agreements to deliver gas to West Monroe Gas for delivery to a pipeline operated by Texas Gas. Plaintiffs alleged that under the terms of the contract, Texas Gas was to pay a fixed price for the gas, but that in November, 1985 Texas Gas informed plaintiff that the price would be reduced and in January, 1986 Texas Gas informed plaintiffs that no payments would be made for gas taken during December, 1985.

Texas Gas asserted that under the terms of the contract, it had the right to take delivery of gas and pay for it on the twentieth day of the month following receipt of the gas or it could refuse to take delivery of the amount of gas specified in the contract, but pay for the quantity of gas not taken. Payment for the gas not taken is due on the sixtieth day of the contract year following the year in which gas was not taken. Texas Gas claims that due to economic conditions, a decision was made to decline receipt of gas under the terms of the contract and that plaintiffs were informed and asked not to deliver gas to the pipeline. Texas Gas claims that although plaintiffs were advised not to do so, they continued to deliver gas which was taken into the pipeline.

Texas Gas filed an exception of improper venue citing LSA-C.C.P. Art. 42(4) which provides that:

The general rules of venue are that an action against: ...
(4) A foreign corporation licensed to do business in this state shall be brought in the parish where its principal business establishment in the state is located, as designated in its application to do business in the state;....

Texas Gas included a copy of its license to do business in this state specifying that its principal business establishment and registered office is in Orleans Parish. Therefore Texas Gas argued that as a foreign corporation licensed to do business in Louisiana, venue was proper in Orleans Parish rather than in Union Parish. This exception was sustained by the trial court.

Plaintiffs applied for rehearing claiming that several exceptions to the general venue requirement of LSA-C.C.P. Art. 42(4) made the venue proper in Union Parish. Rehearing was denied by the trial court and the plaintiffs appealed.

Generally, suit must be filed in the parish in which the defendant is domiciled. However, there are several exceptions to this rule and LSA-C.C.P. Art. 43 provides:

The general rules of venue provided in Article 42 are subject to the exceptions provided in Articles 71 through 85 and otherwise provided by law.

Plaintiff claims that several of these exceptions make venue proper in Union Parish.

VENUE EXCEPTION FOR OFFENSES OR QUASI-OFFENSES

Plaintiffs allege that venue is proper in Union Parish under LSA-C.C.P. Art. 74 which provides:

An action for the recovery of damages for an offense or quasi offense may be brought in the parish where the wrongful conduct occurred, or in the parish where the damages were sustained. An action to enjoin the commission of an offense or quasi offense may be brought in the parish where the wrongful conduct occurred or may occur.
As used herein, the words "offense or quasi offense" include a nuisance and a violation of Article 667 of the Civil Code.

In its petition, plaintiffs allege that by taking gas without paying for it, Texas Gas has committed the tort of conversion which is defined as a distinct act of dominion wrongfully exerted over another's property in denial of or inconsistent with the owner's rights therein. Guidry v. Rubin, *205 425 So.2d 366 (La.App. 3rd Cir.1982); Miller v. Harvey, 408 So.2d 946 (La.App. 2d Cir.1981); Haymon v. Holliday, 405 So.2d 1304 (La.App. 3rd Cir.1981); Holland v. First National Bank of Crowley, 398 So.2d 186 (La.App. 3rd Cir.1981); Madden v. Madden, 353 So.2d 1079 (La.App. 2d Cir.1977); Martinez v. Therma-King Sales & Service Division, 346 So.2d 798 (La.App. 1st Cir.1977), writ denied 349 So.2d 884 (La.1977).

Conversion is a common law concept the most basic element of which is ownership or right to possession of the property at the time of conversion. In this case, the plaintiffs and Texas Gas had a contract for the sale of gas. LSA-C.C. Art. 2456 provides:

The sale is considered to be perfect between the parties, and the property is of right acquired to the purchaser with regard to the seller, as soon as there exists an agreement for the object and for the price thereof, although the object has not yet been delivered, nor the price paid.

The contract in this case was labeled "Gas Purchase Contract" and sets forth the terms of sale of a specific quantity of gas each month for a determinable price.

Therefore, because the parties had an agreement as to the amount of gas to be sold and the price to be paid, Texas Gas became the owner of that amount of gas, at least upon delivery, even though the price had not been paid. The delivery by plaintiffs of gas to Texas Gas was specifically intended to allow Texas Gas to become the owner thereof. Texas Gas was not assuming dominion and control over property of the plaintiffs, but of property which belonged to Texas Gas. The alleged breach of contract involves the failure of Texas Gas to pay for what was intentionally delivered to it as owner by plaintiffs. The alleged breach of contract does not lie in a wrongful assertion of dominion by defendant over plaintiff's property, but in a failure to pay for property which was sold.

It may be argued that the parties had a contract to sell as defined by LSA-C.C. Art. 2462. However, even if this were a contract to sell, we do not find that the actions of Texas Gas provide plaintiffs with the right to recover tort damages.

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