Southern Coil Tubing, Inc. v. Oracle Gas, LLC

Louisiana Court of Appeal·Decided December 13, 2017·No. CA-0017-0473·Unknown

Opinion

STATE OF LOUISIANA COURT OF APPEAL, THIRD CIRCUIT

17-473

SOUTHERN COIL TUBING, INC.

VERSUS

ORACLE GAS, LLC, ET AL.

**********

APPEAL FROM THE FIFTEENTH JUDICIAL DISTRICT COURT PARISH OF LAFAYETTE, NO. C-20154852 HONORABLE EDWARD D. RUBIN, DISTRICT JUDGE

MARC T. AMY JUDGE

Court composed of Marc T. Amy, Shannon J. Gremillion, and Phyllis M. Keaty, Judges.

REVERSED IN PART.

Daniel C. Hughes 126 Heymann Boulevard Lafayette, LA 70503 (337) 237-6566 COUNSEL FOR DEFENDANTS/APPELLANTS: Delphi Oil, Inc. Robert E. Brooks

L. Lane Roy Brown Sims, PC 600 Jefferson Street, Suite 800 Lafayette, LA 70501 (337) 484-1240 COUNSEL FOR PLAINTIFF/APPELLEE: Southern Coil Tubing, Inc. AMY, Judge.

This appeal arises out of a claim brought by the plaintiff for a sum allegedly

due on an open account and for which the plaintiff also asserted a claim under the

Louisiana Unfair Trade Practices Act. The trial court rendered judgment in favor

of the plaintiff for $51,000.00 plus legal interest against all three defendants. Two

of the defendants appeal. For the following reasons, we reverse in part.

Factual and Procedural Background

The plaintiff, Southern Coil Tubing, Inc., is a company located in Lafayette,

Louisiana. The plaintiff’s brief to this court described the type of service work

performed by the company as “involv[ing] the use of expensive and highly

specialized equipment being brought to existing producing [oil] wells for the

purposes of taking certain measures . . . to cause the well to become unclogged and

produce additional minerals from the existing well.” As owner of all stock in

Southern Coil Tubing, Inc., Mr. Carl Guidroz testified before the trial court on

behalf of the plaintiff company regarding the events surrounding this dispute.

Mr. Guidroz explained that in the summer of 2014, he received a phone call

from Robert Brooks, who “was soliciting some service work” on an oil well in

Laurel, Mississippi, and told him “[t]hat the well was for Burke’s [ 1 ] Energy”

(hereinafter “Burke’s”). Mr. Guidroz indicated that the coil tubing unit owned by

the plaintiff company “was designated and designed strictly for offshore. It can be

done for land, it’s just a little cumbersome. Takes a little more transportation and

trucks to get there.” Therefore, Mr. Guidroz testified that he suggested that Mr.

Brooks use a local company in Mississippi, because doing so would be quicker,

1 The variations “Burks” and “Burkes” appear in the record and in the briefs to this court. We will use the spelling “Burke’s” as it is consistent with the transcript. more convenient, and less expensive. Mr. Guidroz explained that, in response,

“[Mr. Brooks] said he would provide the trucks and also the crane to complete the

service. He would provide all the transportation and the cost of the crane to take

the unit from Lafayette to location and return.” Testifying on behalf of the

defense, Mr. Brooks recalled that, in their initial discussions, Mr. Guidroz

estimated that the cost would be “between eleven thousand and fifteen thousand

five hundred per day” and that the job “would take about a day.” The record

includes no indication that these discussions were reduced to writing.

Mr. Brooks said that, because he would be traveling via airplane and

unreachable by telephone on the day that the job was to be completed, he had

signed a check in advance and “instructed the drilling supervisor on the rig that

when Mr. Guidroz’s hands presented a bill, they were to write the check for the

amount[,] which [he] was anticipating to be thirty thousand plus or minus maybe a

little more.” Mr. Guidroz testified that, upon completing the job, the plaintiff

received an Oracle Gas, LLC check2 for the invoice total of $51,000.00 with “R.E.

Brooks” as the signature and dated August 6, 2014, explaining: “[The check] was

provided . . . by the supervisor on location . . . and was given to [the plaintiff’s]

supervisor for payment of the services rendered.” However, Mr. Guidroz said that

“after depositing the check,” he received notice from the bank “that those funds

were refused and there was a stop payment on that particular check.” In response,

Mr. Brooks explained that he was responsible for issuing the stop payment order

upon learning that the check had been written in the amount of $51,000.00. He

2 The plaintiff’s brief states that Mr. “Guidroz did not understand why an Oracle Gas check was being used[.]” Mr. Guidroz testified on behalf of the plaintiff that he “[does not] know where Oracle comes into play. The only place [he] saw [Oracle] was on the check.”

2 clarified that he issued the order because he had anticipated that the invoice total

would be between $30,000.00 and $35,000.00, not $51,000.00.

Mr. Guidroz set forth the plaintiff’s reasons for the alleged discrepancy

between the invoice price and what Mr. Brooks believed to be the quoted price.

First, Mr. Guidroz testified that Mr. Brooks ultimately supplied only “[o]ne of

three” trucks required for transporting the equipment and that “[t]he truck that

showed up on lot to pick up the equipment was a [Delphi] [D]rilling truck.” Mr.

Guidroz explained that, when he notified Mr. Brooks that more trucks were

needed, “[Mr. Brooks] asked [the plaintiff] to provide the transportation and [Mr.

Brooks] would pay for it no problem[.]” Thereafter, Mr. Guidroz said that the

plaintiff hired and paid a third-party to supply the remaining two trucks.

Additionally, after the equipment made it to the job site and the project

began, Mr. Guidroz stated that nitrogen services were required to perform the job.

Mr. Guidroz testified that, when he explained this to Mr. Brooks, “[Mr. Brooks]

asked [Mr. Guidroz] to provide [nitrogen services] and out of Louisiana[,]” despite

Mr. Guidroz’s recommendation to use a local Laurel company instead. As with the

transportation company, the plaintiff paid the third-party nitrogen company. With

regard to both the third-party transportation and nitrogen services, the record

contains no indication that these conversations were reduced to writing.

Further, Mr. Guidroz explained that, even though he and Mr. Brooks had

discussed the approximate cost and length of time for the job in their initial

conversations, “[n]one of the perimeters were provided . . . If some of the

perimeters for the log in data would have been provided, [he] could have made a

better estimate. But, just a cold call . . . It’s speculation.” Mr. Guidroz testified

that he explained to Mr. Brooks that “[the job] could be one to two days” and that

3 the plaintiff’s employees “don’t know, not until [they] actually get on location and

see what the conditions are.”

After the stop payment order, Mr. Guidroz and Mr. Brooks attempted to

settle the dispute, but an agreement was never reached. Mr. Guidroz testified that

he subsequently determined that Mr. Brooks had connections with both Oracle

Gas, LLC (“Oracle”) and Delphi Oil, Inc. (“Delphi”).3 Ultimately, the plaintiff

brought a suit on open account against Mr. Brooks, Oracle, and Delphi. Burke’s

was not included as a defendant. The plaintiff also filed an amended and

supplemental petition to add an additional cause of action under the Louisiana

Unfair Trade Practices Act.4

Following a hearing at which Mr. Guidroz and Mr. Brooks testified, the trial

Free access — add to your briefcase to read the full text and ask questions with AI

Southern Coil Tubing, Inc. v. Oracle Gas, LLC, (La. Ct. App. 2017).

Southern Coil Tubing, Inc. v. Oracle Gas, LLC (Southern Coil Tubing, Inc. v. Oracle Gas, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Touchard v. Williams
617 So. 2d 885 (Supreme Court of Louisiana, 1993)
Stobart v. State Through DOTD
617 So. 2d 880 (Supreme Court of Louisiana, 1993)
Sun Drilling Products Corp. v. Rayborn
798 So. 2d 1141 (Louisiana Court of Appeal, 2001)
Tracy Ray Lomont v. Michelle Myer-Bennett and Xyz Insurance Company
172 So. 3d 620 (Supreme Court of Louisiana, 2015)
Ogea v. Merritt
130 So. 3d 888 (Supreme Court of Louisiana, 2013)
Quality Environmental Processes, Inc. v. I.P. Petroleum Co.
144 So. 3d 1011 (Louisiana Court of Appeal, 2014)
Kelley Blue Book Co. v. Louisiana Motor Vehicle Commission
216 So. 3d 49 (Supreme Court of Louisiana, 2017)
Provosty v. ARC Construction, LLC
204 So. 3d 623 (Louisiana Court of Appeal, 2016)