Smith v. Urban Oil & Gas Group L L C

CourtDistrict Court, W.D. Louisiana
DecidedApril 12, 2022
Docket2:21-cv-04402
StatusUnknown

This text of Smith v. Urban Oil & Gas Group L L C (Smith v. Urban Oil & Gas Group L L C) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Urban Oil & Gas Group L L C, (W.D. La. 2022).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA LAKE CHARLES DIVISION

MAXWELL SMITH ET AL CASE NO. 2:21-CV-04402

VERSUS JUDGE JAMES D. CAIN, JR.

URBAN OIL & GAS GROUP L L C ET AL MAGISTRATE JUDGE KAY

MEMORANDUM RULING

Before the Court is “Defendants’ Motion to Dismiss” (Doc. 4), wherein Defendants, Urban Oil & Gas Group, LLC, Urban Oil and Gas Partners A, LP, Urban Fund I, LP, Urban Fund I GP, LLC, Urban Oil and Gas Partners A-1, LP, Urban Fund D-1, LP, Urban Fund IV, LP, and Urban Fund IV GP, LLC move to dismiss Plaintiffs Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted. BACKGROUND Plaintiffs allege the following in their Complaint. On February 28, 2021, fourteen- year-old Zalee Day-Smith was on top of an oil tank when the tank suddenly exploded.1 Zalee died as a result of the explosion.2 Plaintiff, Maxwell Smith was Zalee’s natural father and Plaintiff Lenora Day was Zalee’s natural mother.3 Plaintiff Mattisun Miner was Zalee’s natural sister and Plaintiff TDS, a minor, was Zalee’s twin brother.4

1 Complaint, ¶ 4. 2 Id. ¶ 5. 3 Id. ¶ ¶ 27–28. 4 Id. ¶ ¶ 29–30. The oil tank that exploded was part of a battery of tanks (“Battery”) which was connected to certain nearby wells.5 According to the Louisiana Department of Natural Resources (“LDNR”), Defendant, Urban Oil & Gas Group, LLC is the listed operator of

Bear Field, and Defendant Urban Oil & Gas Group, LLC has been the listed operator since July 2012.6 On February 8, 2021, the Battery and its associated wells were transferred from Defendants, Urban Fund I, LP, Urban Oil and Gas Partners A, LP, and Urban Oil and Gas Partners A-1, LP, to Defendants Urban Fund IV, LP and Urban Fund D-1, LP.7 Plaintiffs allege that all Defendants had some degree of control over the Battery

when the incident occurred.8 Plaintiff also allege that there was a dangerous amount of flammable gas and liquid in the tank, and Defendants failed to take proper precautions to monitor the tank and its levels of flammable contents prior to it exploding.9 Plaintiffs assert wrongful death, survival, and bystander causes of action and allege that Defendants were grossly negligent in (1) causing the tank to explode on February 28,

2021,10 and/or (2) failing to maintain any fencing, gates, or warnings that would have kept the public safe.11 Plaintiffs also allege that Defendant are (1) liable for Plaintiffs’ damages because the Defendants’ premises constituted an attractive nuisance,12 and/or (2)

5 Id. ¶ 6. 6 Id. ¶ 7. 7 Id. ¶ 8. 8 Id. ¶ 10. 9 Id. ¶ 11. 10 Id. ¶ ¶ 11–13. 11 Id. ¶ ¶ 15–20. 12 Id. ¶ ¶ 21–23. Defendants are absolutely liable for Plaintiffs’ damages because Defendants engaged in an ultrahazardous activity.13 RULE 12(b)(6) STANDARD

Federal Rule of Civil Procedure 12(b)(6) allows dismissal of a complaint when it fails to state a claim upon which relief can be granted. The test for determining the sufficiency of a complaint under Rule 12(b)(6) is that “a complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Hitt v. City of Pasadena,

561 F.2d 606, 608 (5th Cir. 1977) (per curium) citing Conley v. Gibson, 355 U.S. 41, 45- 46, 78 S.Ct. 99 (1957). Subsumed within the rigorous standard of the Conley test is the requirement that the plaintiff’s complaint be stated with enough clarity to enable a court or an opposing party to determine whether a claim is sufficiently alleged. Elliot v. Foufas, 867 F.2d 877, 880

(5th Cir. 1989). The plaintiff’s complaint is to be construed in a light most favorable to plaintiff, and the allegations contained therein are to be taken as true. Oppenheimer v. Prudential Securities, Inc., 94 F.3d 189, 194 (5th Cir. 1996). In other words, a motion to dismiss an action for failure to state a claim “admits the facts alleged in the complaint, but challenges plaintiff’s rights to relief based upon those facts.” Tel-Phonic Servs., Inc. v. TBS

Int’l, Inc., 975 F.2d 1134, 1137 (5th Cir. 1992).

13 Id. ¶ ¶ 24–26. “In order to avoid dismissal for failure to state a claim, a plaintiff must plead specific facts, not mere conclusory allegations . . .” Guidry v. Bank of LaPlace, 954 F.2d 278, 281 (5th Cir. 1992). “Legal conclusions masquerading as factual conclusions will not suffice

to prevent a motion to dismiss.” Blackburn v. City of Marshall, 42 F.3d 925, 931 (5th Cir. 1995). “[T]he complaint must contain either direct allegations on every material point necessary to sustain a recovery . . . or contain allegations from which an inference fairly may be drawn that evidence on these material points will be introduced at trial.” Campbell v. City of San Antonio, 43 F.3d 973, 975 (5th Cir. 1995).

Under Rule 8 of the Federal Rules of Civil Procedure, the pleading standard does not require a complaint to contain “detailed factual allegations,” but it “demands more than an unadorned, the defendant-unlawfully-harmed-me accusation.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955 (2007). A complaint that offers “labels and conclusions” or “a formulaic recitation of the elements of a cause of action will not do.”

Id. Nor does a complaint suffice if it tenders “naked assertion[s]” devoid of “further factual enhancement.” Id., at 557, 127 S.Ct. 1955. To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to “state a claim to relief that is plausible on its face.” Id., at 570, 127 S.Ct. 1955.

LAW AND ANALYSIS Defendants move to dismiss the Complaint for the following reasons: 1. Under Louisiana Revised Statute 9:2800.4(E), owners of oil and gas property are not liable to persons who unlawfully enter upon their property, for any injury or death occurring on the property, unless the injury or death is caused by the owner’s intentional act or gross negligence.

2. Plaintiffs have not alleged the elements of gross negligence and have failed to explain why Zalee was on top of the oil tank and/or Plaintiffs admit that the tank was ignited by an unknown cause.

3. Plaintiffs have not alleged the elements for attractive nuisance under Louisiana law or alleged sufficient facts to state a claim for relief under that theory.

4. Plaintiffs have not alleged a plausible claim of absolute liability for ultrahazardous activity because they have failed to allege that oil equates to toxic gas, and the storage of oil has never been deemed ultrahazardous.

5.

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Related

Campbell v. City of San Antonio
43 F.3d 973 (Fifth Circuit, 1995)
Oppenheimer v. Prudential Securities Inc.
94 F.3d 189 (Fifth Circuit, 1996)
Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Robert J. Guidry v. Bank of Laplace, Etc.
954 F.2d 278 (Fifth Circuit, 1992)
Jimmy Blackburn v. Marshall City Of
42 F.3d 925 (Fifth Circuit, 1995)
Patterson v. Recreation and Park Commission
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Lejeune v. Rayne Branch Hosp.
556 So. 2d 559 (Supreme Court of Louisiana, 1990)
Wall v. Kelly Oil & Gas Company, Inc.
27 So. 3d 1071 (Louisiana Court of Appeal, 2009)
Trahan v. McManus
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Roton v. Vernon E. Faulconer, Inc.
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Kent v. Gulf States Utilities Co.
418 So. 2d 493 (Supreme Court of Louisiana, 1982)
Banks v. Parish of Jefferson
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Ambrose v. New Orleans Police Amb. Serv.
639 So. 2d 216 (Supreme Court of Louisiana, 1994)
BARABAY PROP. HOLD. CORP. v. Boh Bros. Const. Co., LLC
991 So. 2d 74 (Louisiana Court of Appeal, 2008)
Walls v. American Optical Corp.
740 So. 2d 1262 (Supreme Court of Louisiana, 1999)
Plauche v. Consolidated Companies
105 So. 2d 269 (Supreme Court of Louisiana, 1958)

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Smith v. Urban Oil & Gas Group L L C, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-urban-oil-gas-group-l-l-c-lawd-2022.