State of Louisiana, Ex Rel. Kenneth James Guilbeau v. BEPCO, L.P., BOPCO, L.P., Chisolm Trail Ventures, L.P. and Hess Corporation, A Delaware Corporation

CourtLouisiana Court of Appeal
DecidedSeptember 20, 2021
Docket2020CA0429, 2020CA0732
StatusUnknown

This text of State of Louisiana, Ex Rel. Kenneth James Guilbeau v. BEPCO, L.P., BOPCO, L.P., Chisolm Trail Ventures, L.P. and Hess Corporation, A Delaware Corporation (State of Louisiana, Ex Rel. Kenneth James Guilbeau v. BEPCO, L.P., BOPCO, L.P., Chisolm Trail Ventures, L.P. and Hess Corporation, A Delaware Corporation) 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.

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State of Louisiana, Ex Rel. Kenneth James Guilbeau v. BEPCO, L.P., BOPCO, L.P., Chisolm Trail Ventures, L.P. and Hess Corporation, A Delaware Corporation, (La. Ct. App. 2021).

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

NUMBER 2020 CA 0429 c/ w

NUMBER 2020 CA 0732

STATE OF LOUISIANA, EX REL. KENNETH JAMES GUILBEAU VERSUS

BEPCO, L.P., BOPCO, L.P., CHISOLM TRAIL VENTURES, L.P.,

AND HESS CORPORATION, A DELAWARE CORPORATION

Judgment Rendered: SEP 202021

Appealed from the Nineteenth Judicial District Court In and for the Parish of East Baton Rouge State of Louisiana Suit Number C661526

Honorable Donald R. Johnson, Presiding

Victor L. Marcello Counsel for Plaintiff/Appellant Donald T. Carmouche State of Louisiana ex rel. John H. Carmouche Kenneth James Guilbeau William R. Coenen, III Brian T. Carmouche Todd J. Wimberley Ross J. Donnes D. Adele Owen Baton Rouge, LA

and

Jerold Edward Knoll, Sr. Marksville, LA

Jonathan A. Hunter Counsel for Defendant/ Appellee Robert B. McNeal Hess Corporation Elizabeth S. Wheeler Kelly Brechtel Becker Erin E. Bambrick New Orleans, LA Loulan J. Pitre, Jr. Counsel for Defendant/Appellee Aimee Williams Hebert Chisolm Trail Ventures, L.P., Jane A. Jackson BEPCO, L.P. and BOPCO, L.P. Rebecca M. Guidry New Orleans, LA

Michael P. Cash Houston, TX

Jamie D. Rhymes Hunter A. Chauvin Lafayette, LA

BEFORE: GUIDRY, McCLENDON, AND LANIER, JJ. kn• 4iL" % f 21P 6' taxwl/(, O nz 11Ci 1E'9csm t

2 GUIDRY, J.

Plaintiff, State of Louisiana ex rel. Kenneth James Guilbeau, appeals from a

trial court judgment sustaining the peremptory exception raising the objection of res judicata and a trial court judgment sustaining the peremptory exception raising the objection of prescription. Each judgment dismissed all claims against defendant, Hess Corporation, with prejudice. For the reasons that follow, we reverse the

judgments of the trial court and remand this matter with instructions for further proceedings.

FACTS AND PROCEDURAL HISTORY

Guilbeau, Justin Dale Tureau, and Ritchie Grocer Company own contiguous tracts of land in Avoyelles Parish. On July 23, 2013, these three landowners filed a

petition for damages in the Twelfth Judicial District Court, naming Hess as a defendant' and alleging that their property had been contaminated or otherwise damaged by defendant' s oil and gas exploration and production activities. Plaintiffs

sought damages for defendant' s tortious conduct. The suit was thereafter removed

to U.S. District Court for the Western District and severed into three separate actions. On August 22, 2016, the U.S. District Court dismissed Guilbeau' s suit (Guilbeau I) after finding that Guilbeau lacked a right of action under applicable Louisiana law to bring such claims for pre- acquisition damage to property. Thereafter, on August 31, 2016 and September 27, 2016, Guilbeau sent letters to the Commissioner of Conservation stating that he had conducted an

environmental assessment of the property, which revealed numerous, serious

violations of Statewide Order 29- B. As such, Guilbeau stated that pursuant to La.

R.S. 30: 16, the letter served as formal notice of regulatory violations under La. R.S.

The petition also named BEPCO, L.P., BOPCO, L.P., Goldsberry Operating Company, Inc., and 2 H Incorporated as defendants. However, they are not at issue in the instant appeal. 3 30: 14, and that if the commissioner did not take action within ten days, he would sue

the responsible parties for injunctive and other appropriate relief.

When the Commissioner failed to take any action on Guilbeau' s notice of

violations, Guilbeau filed a petition for damages against Hess on May 9, 2017, in the Twelfth Judicial District Court, naming the plaintiff as the State of Louisiana ex rel. Guilbeau. Guilbeau asserted claims for injunctive relief and remediation under

La. R.S. 30: 16 for the same contamination that was the subject of Guilbeau I. The

case was removed to the U. S. District Court for the Western District but was

subsequently voluntarily dismissed by Guilbeau ( Guilbeau II).

Thereafter, on September 15, 2017, Guilbeau filed the instant action in the

Nineteenth Judicial District Court, again naming State of Louisiana ex rel. Guilbeau as the plaintiff and Hess as a defendant. The allegations contained in the instant suit

are virtually identical to those contained in Guilbeau II. Particularly, Guilbeau

asserted that the defendants are violating Statewide Order 29-B and other regulations

and orders of the Louisiana Department of Natural Resources and Office of

Conservation by failing to remediate the Guilbeau property to the standards set forth in Statewide Order 29- B. Guilbeau alleged that under La. R.S. 30: 16, any violations, whether past or present, are deemed ongoing violations until the law has been complied with. Guilbeau asserted that he is a " person in interest" adversely affected by these violations and as such, sought a mandatory and prohibitive injunction

ordering defendants to remediate the contamination on his property to a level that complies with applicable regulations and restraining defendants from further

violating or threatening to violate the applicable regulations.

On September 20, 2019, Hess filed a peremptory exception raising the objections of res judicata and prescription. With regard to res judicata, Hess

asserted that the facts alleged in the instant lawsuit were already alleged and dismissed with prejudice in 2016. Hess asserted that the August 2016 judgment

11 dismissing Guilbeau' s claims is valid, final and conclusive between the same parties at issue in the instant suit. Further, Hess asserted that the factual allegations in the

instant suit are identical to those alleged in the 2013 suit, and that there is no reason

that Guilbeau could not have asserted his current cause of action in that initial suit.

With regard to prescription, Hess asserted that, assuming La. R.S. 30: 16

permits Guilbeau to file suit to remedy historical violations that occurred decades ago, Guilbeau' s claims are prescribed. Hess asserted that operations by Hess' s predecessors ceased in 1971 and that Guilbeau had actual knowledge of alleged

regulatory violations and resulting damage no later than July 23, 2013, when Guilbeau filed Guilbeau I. Hess asserted that suits under La. R.S. 30: 16 are subject

to a liberative prescriptive period of one year. In support of its assertion, Hess argued

that in determining the applicable prescriptive period for the breach of a legal obligation, Louisiana courts look to the closest analogous situation provided for in the Civil Code. Hess analogized actions arising under environmental statutes to tort

claims and as such, a one- year prescriptive period should apply.

Guilbeau opposed the exceptions, asserting that as to res judicata there was

no identity of parties because Guilbeau is not appearing in the same capacity as in the prior actions. With regard to prescription, Guilbeau asserted that claims under La. R.S. 30: 14 are imprescriptible and further, that a violation that has not been remedied remains a violation.

Following a hearing on the exceptions on December 16, 2019, the trial court

signed a judgment on January 15, 2020, sustaining the peremptory exception raising the objection of prescription and dismissing all claims against Hess with prejudice.

The trial court signed a judgment on the same date sustaining the exception raising the objection of res judicata and dismissing all claims against Hess with prejudice.

On March 2, 2020, Guilbeau filed a motion for devolutive appeal from the trial

court' s judgment on prescription. On July 21, 2020, Guilbeau filed a motion for

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State of Louisiana, Ex Rel. Kenneth James Guilbeau v. BEPCO, L.P., BOPCO, L.P., Chisolm Trail Ventures, L.P. and Hess Corporation, A Delaware Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-louisiana-ex-rel-kenneth-james-guilbeau-v-bepco-lp-bopco-lactapp-2021.