Taylor v. David New Operating Co., Inc.

619 So. 2d 1251, 127 Oil & Gas Rep. 540, 1993 La. App. LEXIS 2065, 1993 WL 188985
CourtLouisiana Court of Appeal
DecidedJune 2, 1993
Docket92-997
StatusPublished
Cited by12 cases

This text of 619 So. 2d 1251 (Taylor v. David New Operating Co., Inc.) 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
Taylor v. David New Operating Co., Inc., 619 So. 2d 1251, 127 Oil & Gas Rep. 540, 1993 La. App. LEXIS 2065, 1993 WL 188985 (La. Ct. App. 1993).

Opinion

619 So.2d 1251 (1993)

John M. TAYLOR, et al., Plaintiff-Appellant,
v.
DAVID NEW OPERATING COMPANY, INC., Defendant-Appellee.

No. 92-997.

Court of Appeal of Louisiana, Third Circuit.

June 2, 1993.

Mark Barker Oliver, Lafayette, George F. Griffing, Jonesville, for John M. Taylor.

Joseph Wilson, Jena, for David New Operating Co.

Before DOMENGEAUX, C.J., and YELVERTON and SAUNDERS, JJ.

SAUNDERS, Judge.

This is an appeal by John Marvin Taylor, Jr. and Frank Scott Taylor, plaintiffs and appellants herein, from the trial court's grant of an exception of prescription in favor of defendant and appellee, David New Operating Company, Inc. (David). *1252 The issue before this court is whether the trial court erred in sustaining appellee's exception of prescription in this action by the Taylors for an accounting for oil production sold from the unit by the unit operator.

FACTS

The trial court set forth the relevant facts in his reasons for judgment, as follows:

"This action was brought by the Petitioners on March 22, 1991, alleging a cause of action against the Defendant as the unit operator of a well known as the J.H. Allen Number 1 Well, Serial Number 163956 in Section 27, Township 7 North, Range 3 East, LaSalle Parish, Louisiana. Petitioners ground their action in the principles of quasi-contract and demand an accounting and to recover the value of proceeds of the unit production allocable to their land in Unit 71B.
"The land the Taylors own together with the appurtenant mineral rights is situated in Section 40, Township 7 North, Range 3 East, LaSalle Parish, Louisiana. The Commissioner of Conservation for the State of Louisiana issued Order Number 24 on October 22, 1940, and Order Number 24-D on July 3, 1942, which established Unit Number 71B in the Nebo-Hemphill Field, LaSalle Parish, Louisiana. The Taylors own 22.85 acres of Unit 71B.
"On June 7, 1979, E.C. Wentworth and Wedon Smith doing business as Smith-Wentworth, drilled a well known as the J.H. Allen Number 1 Well described above. The well was situated in Unit Number 71B, but on a tract owned by parties other than the petitioners. The well was completed on August 30, 1979, and went into production shortly thereafter. It is alleged Smith-Wentworth operated the well from the date it was put into production until July, 1983, when defendant assumed the function of operator and has continuously operated the well to the present.
"Commissioner of Conservation Order Number 781-F dated January 1, 1986, established Unit 71B for the Wilcox F. Zone in the Nebo-Hemphill Field. The J.H. Allen Well Number 1 is situated within Unit 71B and is producing from the unitized sand. The Taylors have shared in production from the J.H. Allen Number 1 Well in the ratio that their land unit bears to the entire area covered by the unit from the time period commencing May 31, 1986, through the present. The petitioners allege that they are entitled to share in the production from the J.H. Allen Number 1 Well from the date of first production to May 31, 1986. It is against this factual background that the Defendant has filed a Peremptory Exception of Prescription alleging that any action the Taylors may have against it is grounded not in contract (allowing a ten year prescriptive period) but in tort (allowing but one year to file the action.)"

We find that the trial court erred in granting the defendant's exception of prescription and, thus, we reverse.

EXCEPTION OF PRESCRIPTION

David filed an exception of prescription alleging that the Taylors' cause of action sounded in tort, specifically conversion, and was prescribed by one (1) year liberative prescription. David contends that the Taylors' cause of action arose in 1979, when production began and royalties were allegedly first owed the Taylors. This lawsuit was not filed until 1991.

LSA-C.C. art. 3499 states:
Unless otherwise provided by legislation, a personal action is subject to a liberative prescription of ten years.

In reviewing the grant of an exception of prescription, the character of the action given by the plaintiff in his pleadings, determines the prescription applicable to it. See Northcott Exploration Co. v. W.R. Grace & Co., 430 So.2d 1077 (La. App.3d Cir.1983); Starns v. Emmons, 538 So.2d 275 (La.1989).

"The nature of a cause of action must be determined before it can be decided *1253 which prescriptive term is applicable. State Department of Highways v. City of Pineville, 403 So.2d 49, 54 (La.1981)."

Hampton v. Hibernia Nat. Bank, 598 So.2d 502, 503 (La.App.2d Cir.1992).

The nature of an obligation in Louisiana, for the purpose of determining the applicable prescriptive period, is either contractual, quasi-contractual, delictual, quasi-delictual or legal. See Dean v. Hercules, Incorporated, 328 So.2d 69, 72 (La.1976).

LSA-C.C. art. 1757 states:

Obligations arise from contracts and other declarations of will. They also arise directly from the law, regardless of a declaration of will, in instances such as wrongful acts, the management of the affairs of another, unjust enrichment and other acts or facts.

The Taylors' petition, in pertinent part, states as follows:

5.
"On information and belief, Defendant, David New Operating Co., Inc. has been operator of the above referenced well since July, 1983.
6.
Pursuant to the pooling and allocation requirements of Orders No. 24 and 24-D, Plaintiffs are entitled to share in the production from the J.H. Allen No. 1 Well, and have, in fact, been sharing in same from May 31, 1986, to the present, pursuant to Order No. 781-F, issued by the Commissioner of Conservation.
7.
The J.H. Allen No. 1 Well went into production in 1979 after completion on August 30, 1979, and Plaintiffs are entitled to an accounting of said production allocable to Plaintiffs' land in Unit 71B in the ratio that the Plaintiffs' land in said unit bears to the full area of said unit, from the date Defendant became operator of the above referenced well to May 31, 1986, and Defendant is indebted unto Plaintiffs in a sum equal to the value of that production.
WHEREFORE, Plaintiffs, John Marvin Taylor, Jr. and Frank Scott Taylor, pray that a copy of this Petition be served upon the registered agent for service of process for David New Operating Company, Inc., and after due proceedings hereon, that there be:
(1) Judgment in favor of Plaintiffs and against Defendant ordering Defendant to render an accounting to Plaintiffs for all oil and gas produced allocable to Plaintiffs' lands in Unit 71B in the ratio that the Plaintiffs' land in said unit bears to the full area of said unit, from date Defendant became operator of the J.H. Allen No. 1 Well to May 31, 1986 (the date Ashland Oil, Inc. ceased payment of oil runs and filed a concursus proceeding); and,
(2) Judgment in favor of Plaintiffs and against Defendant in an amount equal to the value of all oil and gas produced allocable to Plaintiffs' lands in Unit 71B from date Defendant became operator of the J.H. Allen No. 1 Well to May 31, 1986, together with legal interest from date due until paid, reasonable attorney fees and all costs of this proceeding."

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Cite This Page — Counsel Stack

Bluebook (online)
619 So. 2d 1251, 127 Oil & Gas Rep. 540, 1993 La. App. LEXIS 2065, 1993 WL 188985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-david-new-operating-co-inc-lactapp-1993.