Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power, LLC

CourtLouisiana Court of Appeal
DecidedMay 17, 2022
Docket2021CA0679
StatusUnknown

This text of Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power, LLC (Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power, LLC) 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
Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power, LLC, (La. Ct. App. 2022).

Opinion

STATE OF LOUISIANA COURT OF APPEAL FIRST CIRCUIT

2021 CA 0679

SAULSBURY INDUSTRIES, INC. VERSUS

CABOT CORPORATION AND CLECO POWER, LLC

MAY 17 anon Judgment Rendered: 1 20a Ce J |} On Appeal from the Cv) vf } Sixteenth Judicial District Court of LAN / In and for the Parish of St. Mary ee State of Louisiana No. 133910

The Honorable Anthony Thibodeaux, Judge Presiding

% ok ok ok ok John M. Madison, III Attorneys for Plaintiff/Appellant, Baton Rouge, Louisiana Saulsbury Industries, Inc. Russel J. Cremaldi James B. Supple Franklin, Louisiana David L. Guerry Attorneys for Defendant/Appellee, Albert Dale Clary Cabot Corporation J. Weston Clark Baton Rouge, Louisiana R. Gray Sexton Attorneys for Defendant/Appellee, Blane A. Wilson Cleco Power, LLC Blair Naquin Green Alesia M. Ardoin Baton Rouge, Louisiana OK OK Ok ok

BEFORE: WHIPPLE, C.J., PENZATO, AND HESTER, JJ. PENZATO, J.

Saulsbury Industries, Inc. appeals a judgment granting exceptions raising the objection of lis pendens in favor of Cleco Power, Inc. and Cabot Corporation and dismissing Saulsbury’s claims against these parties without prejudice. For the following reasons, we reverse the portion of the trial court’s judgment granting the exception of lis pendens in favor of Cabot and remand the matter to the trial court for further proceedings. We affirm the portion of the judgment granting the exception of lis pendens in favor of Cleco.

FACTS AND PROCEDURAL HISTORY

In 2017, Cleco and Cabot contracted with Saulsbury to serve as the prime contractor on a project to construct and develop a 50-mega-watt renewable energy waste heat power plant and emissions control system at Cabot’s carbon black manufacturing facility in Franklin, St. Mary Parish, Louisiana. Delays began early- on in the project, which Saulsbury attributed to Cabot and Cleco and, conversely, Cleco and Cabot attributed to Saulsbury. By late 2018, Cleco and Cabot issued a “Notice to Demobilize” to Saulsbury, effectively terminating Saulsbury from the project.

Cleco filed suit against Saulsbury in October 2018, seeking delay damages for Saulsbury’s alleged breach of its “material obligations” under the contract. According to the petition, Saulsbury failed to timely complete various milestones set forth in the project schedule. Cleco further alleged that it “incurred damages in supplementing Saulsbury’s workforce” on site due to safety incidents and resulting personnel restrictions. Cleco filed suit in the 9th Judicial District, Rapides Parish, where it executed the contract at issue. See La. C.C.P. art. 76.1.

Nine months later, in July 2019, Saulsbury filed suit against Cleco and Cabot concerning the construction project and sought damages from both defendants for

breach of contract, amounts due on open account, and unjust enrichment/quantum meruit.' Saulsbury also sought judgment declaring that its termination by Cleco and Cabot was “termination for convenience” under Section 10.1 of parties’ “Special Conditions” contractual agreement. Finally, Saulsbury sought “[r]ecognition and enforcement of its privilege upon and against the property upon which its work was performed” pursuant to the Louisiana Private Works Act.

According to the petition, Saulsbury filed a statement and amended statement of claim and privilege on September 5, 2018 and April 17, 2019, respectively, in St. Mary Parish against Cabot’s immovable property located there. It also filed a statement and amended statement of claim and privilege on December 5, 2018 and April 17, 2019, respectively, in St. Mary Parish against Cleco’s leasehold interest. All statements of claim and privilege were attached to and became a part of Saulsbury’s petition. See La. C.C.P. art. 853.

Saulsbury’s suit was filed in the 16th Judicial District, St. Mary Parish. In its petition, Saulsbury asserted that venue is proper in St. Mary Parish because a substantial portion of the events or omissions that are the subject of its suit occurred there. It also alleged that venue is proper in St. Mary Parish “under the provisions of the Louisiana Private Works Act, La. R.S. 9:4201, et seq.”

Cleco filed an exception of lis pendens in Saulsbury’s St. Mary Parish proceeding in August 2020, alleging that its suit in Rapides Parish was the first filed suit and that Saulsbury’s St. Mary Parish suit against it should be dismissed, since the suit involves the same parties, in the same capacities, and the same transaction or occurrence, i.e., the construction of the power plant and emissions control system and related contract dispute.

Cabot moved to intervene in Cleco’s suit and filed its own exception of lis

pendens, adopting and incorporating by reference the arguments made in Cleco’s

' It appears that, before filing in St. Mary Parish, Saulsbury filed a suit against Cleco and Cabot in federal court, which was subsequently remanded as to Cleco and dismissed against Cabot. exception of lis pendens as well as Cleco’s evidence in support. Cabot offered no additional argument and failed to address the fact that, at the time it was named in Saulsbury’s St. Mary Parish suit, it was not a party to Cleco’s Rapides Parish proceeding.

Saulsbury set forth several arguments in opposition to the exceptions, including that venue is mandatory in St. Mary Parish under the Private Works Act, as the parish where Cabot’s property and Cleco’s leasehold interest are located. Saulsbury also argued that the Rapides Parish court lacked jurisdiction over the subject matter and the parties because Cabot, a party needed for just adjudication pursuant to La. C.C.P. art. 641, was not joined as a party in the proceeding initiated there by Cleco. Saulsbury asserted that lis pendens only applies when the court where the first suit was filed has valid jurisdiction over the subject matter and the parties. Since Cabot and Cleco were both named together for the first time in its suit, Saulsbury maintained that the St. Mary Parish court was the first to acquire jurisdiction and was, consequently, the “first filed” suit for purposes of lis pendens. Finally, Saulsbury argued that Cabot’s exception should be denied, because it filed “independent” claims against Cabot in St. Mary Parish before Cabot intervened in Cleco’s suit. At the time the St. Mary suit was filed, there were no pending claims between Saulsbury and Cabot.

A trial on the exceptions was held in St. Mary Parish on October 16, 2020. The trial court granted the exceptions asserted by Cleco and Cabot and dismissed Saulsbury’s claims against both defendants without prejudice. The court concluded that Saulsbury’s St. Mary Parish suit concerns the same transaction and occurrence at issue in Cleco’s first filed suit in Rapides Parish. It further noted that Cabot, incorrectly identified as Cleco, was allowed to intervene in the Rapides Parish

proceeding and that both suits involve the same parties — Saulsbury, Cleco, and Cabot. A written judgment in conformity with the court’s ruling was signed on November 23, 2020.

The instant appeal followed. Saulsbury asserts that the trial court erred by: (1) granting Cabot’s exception of lis pendens when there was no state court suit pending between Saulsbury and Cabot when Saulsbury filed suit against Cabot in St. Mary Parish; (2) granting Cleco’s exception where the Rapides Parish court lacked jurisdiction because the suit failed to join Cabot, a party needed for just adjudication; and (3) granting the exceptions of lis pendens because Saulsbury was required to file suit in St. Mary Parish to preserve and enforce its claims under the Private Works Act.

EXCEPTION OF LIS PENDENS AND STANDARD OF REVIEW

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Saulsbury Industries, Inc. v. Cabot Corporation and Cleco Power, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saulsbury-industries-inc-v-cabot-corporation-and-cleco-power-llc-lactapp-2022.