The Sweet Lake Land and Oil Company, LLC v. Oleum Operating Company, L.C.

Louisiana Court of Appeal·Decided December 7, 2022·No. CA-0021-0169·Unknown

Opinion

STATE OF LOUISIANA COURT OF APPEAL, THIRD CIRCUIT

21-169

THE SWEET LAKE LAND AND OIL COMPANY, LLC

VERSUS

OLEUM OPERATING COMPANY, L.C., ET AL.

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ON REMAND FROM THE LOUISIANA SUPREME COURT

APPEAL FROM THE FOURTEENTH JUDICIAL DISTRICT COURT PARISH OF CALCASIEU, NO. 2010-1272 HONORABLE DAVID RITCHIE, DISTRICT JUDGE

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JOHN E. CONERY JUDGE

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Court composed of Elizabeth A. Pickett, John E. Conery, and Candyce G. Perret, Judges.

REVERSED IN PART; AFFIRMED AS AMENDED AND RENDERED. REMANDED.

Pickett, J., concurs in the result. Guy E. Wall Paul E. Bullington Jonathan R. Cook Sara M. Lewis Wall, Bullington & Cook, LLC 540 Elmwood Park Boulevard Harahan, Louisiana 70123 (504) 736-0347 COUNSEL FOR PLAINTIFF/APPELLEE: The Sweet Lake Land and Oil Company, LLC

Alan J. Berteau R. Benn Vincent, Jr. Matthew B. Smith Hattie V. Guidry James Patrick Dore Kean Miller, LLP Post Office Box 3513 Baton Rouge, Louisiana 70821 (225) 387-0999 COUNSEL FOR DEFENDANTS/APPELLANTS: Sohio Petroleum Company BP Exploration & Oil, Inc. BP Products North America, Inc.

Kelly B. Becker Trinity A. Morale Liskow & Lewis 701 Poydras Street, Suite 5000 New Orleans, Louisiana 70139 (504) 581-7979 COUNSEL FOR DEFENDANTS/APPELLANTS: Sohio Petroleum Company BP Exploration & Oil, Inc. BP Products North America, Inc.

Paul Matthew Jones Brian W. Capell Liskow & Lewis Post Office Box 52008 Lafayette, Louisiana 70505 (337) 232-7424 COUNSEL FOR DEFENDANTS/APPELLEES: AKSM, L.C. Oleum Operating Company, L.C. Thomas E. Balhoff Judith R. E. Atkinson Carlton Jones, III Roedell Parsons Koch Blache Balhoff & McCollister 8440 Jefferson Hwy. Suite 301 Baton Rouge, Louisiana 70809-7652 (225) 929-7033 HEARING OFFICERS FOR: Louisiana Department of Natural Resources

Guillermo A. Iturralde Hearing Officer Louisiana Department of Natural Resources Office of General Counsel Post Office Box 94396 Baton Rouge, Louisiana 70804 (225) 342-2710

F. Jonathan Rice John W. Adams Louisiana Department of Natural Resources, Office of Conservation Post Office Box 94275 Baton Rouge, Louisiana 70804 CONERY, Judge.

FACTS AND PROCEDURAL HISTORY

As discussed at length in this panel’s initial consideration of this matter,

Plaintiff Sweet Lake Land and Oil Company, LLC (Sweet Lake) filed this legacy

oilfield litigation matter against British Petroleum corporate entities (BP) along with

various other oilfield operators in 2010. See Sweet Lake Land & Oil Co., LLC v.

Oleum Operating Co., L.C., 21-169 (La.App. 3 Cir. 12/1/21), _ So.3d _.1 Sweet

Lake advanced tort and contract claims against the defendants and pursued

regulatory remediation from BP in particular. Sweet Lake proceeded to trial against

remaining defendants BP, Oleum Operating Company, L.C. (Oleum), and AKSM

(AKSM) in 2015. The jury rejected Sweet Lake’s claim for private damages against

any of the operators and found BP to be solely responsible for environmental damage

on the property.2 The trial court referred the matter to the Louisiana Department of

Natural Resources (LDNR) for development of a most feasible remediation plan

pursuant to La.R.S. 30:29 (also referred to as Act 312). The trial court in turn issued

an interim award of fees and costs pursuant to La.R.S. 30:29(E). On initial review,

a majority of the panel affirmed those costs and fees. Id.

BP sought review from the Louisiana Supreme Court on the entirety of this

court’s opinion, including that portion of the opinion affirming the trial court’s

award of $5,330,479.11 in attorney fees, expert fees and costs. BP challenged the

1 2021 WL 5630004. 2 After Sweet Lake appealed the dismissal of Oleum and AKSM, a panel of this court found that the jury erred in rejecting the breach of contract claims against the two operators. See Sweet Lake Land & Oil Co., LLC v. Oleum Operating Co., L.C., 16-429 (La.App. 3 Cir. 3/8/17), _ So.3d _ (2017 WL 914767), writ denied, 17-1107 (La. 10/27/17), 228 So.3d 1224. The trial court thereafter conducted a trial on damages and found Oleum and AKSM liable for more than $12 million. That aspect of the Judgment has never been the subject of this appeal. award insofar as it encompassed fees and costs that Sweet Lake incurred pursuing

not only the remediation claim against BP, but also fees and costs Sweet Lake

incurred in pursuing claims against succeeding oilfield operators, including AKSM

and Oleum, for non-regulatory remedies outside of La.R.S. 30:29. BP further

questioned this court’s affirmation of the trial court’s judgment to the extent it cast

BP liable in solido for the attorney fees, expert fees, and costs and interest thereon

with those succeeding oilfield operators.

The supreme court granted BP’s writ application in part and remanded the

matter to this court for determination and further consideration as follows:

Writ granted in part. We remand to the court of appeal to determine what costs and fees were attributable to “producing that portion of the evidence that directly relates to the establishment of environmental damage.” La.R.S. 30:29(E). We also remand to the court of appeal to reconsider the finding of solidary liability, when the attorney fees and costs were expressly authorized by statute against one defendant, but not by the others.

Sweet Lake Land & Oil Co., LLC v. Oleum Operating Co., L.C., 22-00497, p. 1 (La.

9/20/22), 345 So.3d 1022, 1023. 3 After considering each directive, we reverse the

trial court’s judgment of July 28, 2020 in part as it relates to costs and fees and affirm

the judgment as recast.

3 Sweet Lake states in its brief on remand that the supreme court did not “reverse” this court’s earlier ruling, but merely remanded for reconsideration. It cites jurisprudence supporting its position that this court can reaffirm its prior holding on reconsideration. Citing Weatherly v. Fonseca & Assocs., LLC, 11-1323 (La.App. 3 Cir. 06/06/12), 92 So.3d 1206, writ denied, 12-1577 (La. 10/12/12), 98 So.2d 875; State, Dep’t of Transp. & Dev. v. Lemaire, 99-953 (La.App. 3 Cir. 3/7/01), 787 So.2d 1015, writ denied, 01-0948 (La. 6/1/01), 793 So.2d 194.

Sweet Lake’s effort in this regard, however, merely points to a distinction without a difference for purposes of this court’s review. Rather, we undertake the “determination” and the “reconsideration” ordered by the supreme court without favor or disfavor toward this court’s earlier ruling.

2 DISCUSSION

Louisiana Revised Statutes 30:29(E)

The supreme court’s initial direction on remand focuses entirely on costs and

fees awardable under La.R.S. 30:29(E), which provides:

(1) In any civil action in which a party is responsible for damages or payments for the evaluation or remediation of environmental damage, a party providing evidence, in whole or in part, upon which the judgment is based shall be entitled to recover from the party or parties admitting responsibility or the party or parties found legally responsible by the court, in addition to any other amounts to which the party may be entitled, all costs attributable to producing that portion of the evidence that directly relates to the establishment of environmental damage, including, but not limited to, expert witness fees, environmental evaluation, investigation, and testing, the cost of developing a plan of remediation, and reasonable attorney fees in the trial court and the department.

(Emphasis added.) The supreme court thus directs this court to determine the costs

and fees with an eye toward those attributable to the limited purpose of establishing

“environmental damage,” a defined term within La.R.S. 30:29.4

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