TERREBONNE SCHOOL BD. v. Southdown, Inc.

887 So. 2d 8, 2004 WL 1562995
CourtLouisiana Court of Appeal
DecidedJuly 14, 2004
Docket2003 CA 0402
StatusPublished
Cited by2 cases

This text of 887 So. 2d 8 (TERREBONNE SCHOOL BD. v. Southdown, 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
TERREBONNE SCHOOL BD. v. Southdown, Inc., 887 So. 2d 8, 2004 WL 1562995 (La. Ct. App. 2004).

Opinion

887 So.2d 8 (2004)

TERREBONNE PARISH SCHOOL BOARD
v.
SOUTHDOWN, INC., Shell Oil Company, Davis Oil Company, Union Oil Company of California, Burlington Resources Oil & Gas Company & Mobil Exploration & Producing North America, Inc.

No. 2003 CA 0402.

Court of Appeal of Louisiana, First Circuit.

July 14, 2004.

*9 Joseph G. Jevic, III, Houma, for Plaintiff-Appellant Terrebonne Parish School Board.

James R. Swanson, Samuel A. Giberga, Joseph C. Peiffer, New Orleans, for Defendant-Appellee Cemex, Inc. as successor in interest to Southdown, Inc.

David N. Schell, Jr., New Orleans, for Defendant-Appellee Louisiana Land & Exploration Company.

Robert B. McNeal, New Orleans, for Defendant-Appellee Mobil Exploration & Producing North America, Inc.

Elizabeth S. Wheeler, New Orleans, for Defendant-Appellee Shell Oil Company.

Etienne C. Lapeyre, New Orleans, for Defendant-Appellee Davis Oil Company.

Before: PETTIGREW, DOWNING, and McCLENDON, JJ.

PETTIGREW, J.

Plaintiff school board filed suit and alleged that defendant oil companies engaged in a continuous course of conduct through oil and gas operations, drilling, and/or pipeline activities that has damaged and continues to damage its property. Peremptory exceptions raising objections of prescription were later filed on behalf of several defendants that resulted in the dismissal of said parties. Similar exceptions were thereafter filed on behalf of the remaining defendants that resulted in judgments dismissing of the school board's remaining claims. From these judgments, the school board has appealed.

FACTS

This is a suit filed by the Terrebonne Parish School Board ("TPSB") seeking full restoration of its property and/or monetary damages in tort and contract as a result of the erosion and diminishment of a Section 16 tract leased to various oil companies. The TPSB alleges in its Petition For Damages that it is, and has been since the early 1800s, the owner of all of Section 16, Township 18 South, Range 16 East, Terrebonne Parish, Louisiana ("the TPSB property").[1] Said property is comprised primarily of coastal marshlands. Since that time, the TPSB has administered these and other public trust lands for the benefit of public education in the parish through the granting of mineral leases, trapping leases, and pipeline and canal *10 servitudes. Said oil companies included Shell Oil Company ("Shell"), Davis Oil Company ("Davis Oil"), Union Oil Company of California ("Union Oil"), Louisiana Land and Exploration Company ("L.L. & E."), and Mobil Exploration and Producing North America, Inc. ("Mobil") and/or their predecessors in title.

The TPSB became aware that the section sixteen marshlands under its management had been damaged due to erosion from canals and exploration activities undertaken by individual oil and gas firms in connection with agreements made at various times over the past forty years.

COMMENCEMENT OF THE LITIGATION

In an attempt to rectify the damage to its property, the TPSB filed suit in the 32nd Judicial District Court on September 29, 1999, naming various oil companies as defendants. Defendants named therein were Southdown, Shell, Davis Oil, Burlington Resources Oil & Gas Company[2], Mobil, and Union Oil. The TPSB alleged that in conducting oil and gas exploration activities, the aforementioned defendants had "dredged access canals, constructed well locations, developed production facilities, and/or constructed pipelines and/or constructed reserve and/or disposal pits on the [TPSB] property." The TPSB claimed that the said "defendants have breached their servitude, right-of-ways, and/or mineral leases by failing to restore the [TPSB] property as near as possible to its original condition." The TPSB further claimed that this "continuing failure [by defendants] to restore the [TPSB] property has caused and continues to cause severe ecological damage ... by altering and/or destroying the natural hydrology of the [marsh] located in Section 16, in addition to causing loss of acreage due to continuing erosion."

Claiming that the aforementioned damage had been a gradual and continuing process, the TPSB relied on the doctrine of contra non valentem, and alleged that it did not know and could not have known until within the last year that the failure of the defendants to restore its property was continuing to cause damage, thereby giving rise to a breach of contract claim.

In addition, or in the alternative, the TPSB alleged that the willful and Intentional failure on the part of defendants to abate the continuing erosion coupled with defendants' failure to restore the property to its original condition constituted continuing tortious conduct for which the defendants were liable in solido, making each defendant liable to repair the resulting damage. The TPSB further alleged that the failure by each defendant to remove the access canals dredged, placed, constructed, or erected on its property was a continuing trespass that had caused unreasonable property damage and further constituted a continuing trespass that has precluded the tolling of prescription.

The TPSB prayed for judgment in its favor against defendants for full restoration of its property, or for damages for breach of contract, or for damages for committing a continuous trespass, and for all costs of these proceedings.

ACTION OF THE TRIAL COURT

TPSB later compromised its claims against Union Oil, and through an order *11 signed April 24, 2001, TPSB's claims against Union Oil were dismissed with prejudice.

On February 22, 2002, the trial court heard arguments on peremptory exceptions raising the objection of prescription that were urged on behalf of Davis and Shell. The trial court later rendered judgment granting said exceptions and dismissing TPSB's claims against these two defendants on March 7, 2002. On April 5, 2002, the trial court heard arguments on peremptory exceptions urged by Southdown and L.L. & E. together with a motion for summary judgment and peremptory exception as to prescription filed on behalf of Mobil. The trial court later rendered judgment granting said motion for summary judgment and maintaining said exceptions, thereby dismissing TPSB's claims against these remaining defendants on April 16, 2002. The April 16, 2002 judgment further designated that it and the judgment of March 7, 2002, were final and appealable as both effectively dismissed the claims against all defendants.

TPSB filed a petition for a devolutive appeal on April 30, 2002.

ISSUES ON APPEAL

In connection with its appeal in this matter, the TPSB presents the following issues for review and consideration by this court:

1. Whether the district court erred in dismissing [TPSB's] suit on summary judgment on the grounds that plaintiff's claims have prescribed; and
2. Whether the district court erred in holding that Louisiana's constitutional prohibition of prescription running against damage claims to State owned lands did not apply.

STANDARD OF REVIEW

The Louisiana Constitution of 1974 provides that the appellate jurisdiction of the courts of appeal extends to both law and facts. La. Const., art. V, § 10(B). A court of appeal may not overturn a judgment of a trial court absent an error of law or a factual finding that is manifestly erroneous or clearly wrong. See Stobart v. State, Department of Transportation and Development, 617 So.2d 880, 882, n. 2 (La.1993).

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887 So. 2d 8, 2004 WL 1562995, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terrebonne-school-bd-v-southdown-inc-lactapp-2004.