Town of Bolton v. Chevron Oil Co.

919 So. 2d 1101, 2005 WL 1805043
CourtCourt of Appeals of Mississippi
DecidedAugust 2, 2005
Docket2004-CA-00865-COA, 2004-CA-00867-COA
StatusPublished
Cited by13 cases

This text of 919 So. 2d 1101 (Town of Bolton v. Chevron Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Town of Bolton v. Chevron Oil Co., 919 So. 2d 1101, 2005 WL 1805043 (Mich. Ct. App. 2005).

Opinion

919 So.2d 1101 (2005)

The TOWN OF BOLTON, Mississippi, Appellant
v.
CHEVRON OIL COMPANY, Chevron Texaco Corporation and J.R. Pounds, Inc., Appellees.
Mary George W. McMullan and Hilda McRaney, Appellants
v.
Chevron Oil Company, Chevron Texaco Corporation and J.R. Pounds, Inc., Appellees.

Nos. 2004-CA-00865-COA, 2004-CA-00867-COA.

Court of Appeals of Mississippi.

August 2, 2005.

*1102 A. Michael Espy, John Leonard Walker, William Walker, Jackson, Michael G. Stag, attorneys for appellants.

Robert O. Allen, Brookhaven, Reuben V. Anderson, Jane E. Tucker, Michael B. Wallace, Jackson, Jesse Lee Howell, attorneys for appellees.

Before BRIDGES, P.J., CHANDLER and ISHEE, JJ.

CHANDLER, J., for the Court.

¶ 1. This appeal concerns the dismissal by the Circuit Court for the Second Judicial District of Hinds County of two complaints filed by landowners asserting common *1103 law and other theories of recovery for oil field contamination in or near the Town of Bolton. The circuit court dismissed the complaints without prejudice upon a finding that the landowners had failed to exhaust administrative remedies before the Mississippi State Oil and Gas Board. The landowners appeal, and argue that the complaints should have withstood dismissal because (1) the Oil and Gas Board lacks jurisdiction; (2) the regulations of the Oil and Gas Board provide inadequate remedies for the common law claims; (3) the pursuit of an administrative remedy would result in irreparable harm; and (4) the dispositive questions are of law and do not require the expertise of the Oil and Gas Board. The landowners alternatively argue that, if this Court finds that some of their claims overlap with the jurisdiction of the Oil and Gas Board, their remaining claims should be stayed pending the Board's resolution of the matters within its jurisdiction.

¶ 2. We find that, pursuant to Chevron U.S.A. Inc. v. Smith, 844 So.2d 1145 (Miss. 2002), the landowners were required to exhaust the available remedies before the Oil and Gas Board before seeking relief in the circuit court. We further find that the circuit court should have stayed McMullan and McRaney's common law claims for money damages pending their exhaustion of remedies before the Oil and Gas Board. Therefore, we reverse and remand in part for the circuit court to vacate the dismissal of McMullan and McRaney's common law claims for monetary damages and for the entry of an order staying these claims pending final resolution by the Oil and Gas Board. We affirm the dismissal of McMullan and McRaney's other claims and of the Town's claims.

FACTS

¶ 3. On December 31, 2002, the Town of Bolton filed a complaint in the Circuit Court for the Second Judicial District of Hinds County. On the same day, Mary George W. McMullan and Hilda McRaney filed an almost identical complaint in the same circuit court. The complaints alleged that defendants Chevron Oil Company, Chevron Texaco Corporation, and J.R. Pounds, Inc. (hereinafter, "Chevron") had conducted oil and/or gas exploration and production operations in the Bolton field pursuant to leases from the Town, McMullan, and McRaney (the landowners). The complaints alleged that, during Chevron's operations on or near the landowners' property, Chevron had caused the landowners' property to become contaminated with radioactive scales, residues, precipitates, saltwater, oil, grease, heavy metals, technologically enhanced naturally occurring radioactive materials (TENORM), and other harmful and hazardous substances from oil and gas production activities and equipment.

¶ 4. The landowners asserted various theories of recovery against Chevron for harm caused by the contamination, including the tort theories of negligence, intentional tort, strict liability and res ipsa loquitor. The landowners also alleged that, by contaminating the property, Chevron had breached its lease agreements with the landowners. The landowners further alleged that Chevron had wilfully concealed the harmful effects of TENORM from the landowners, the public, and regulatory authorities, which amounted to fraud, fraudulent concealment, and fraudulent misrepresentation. For Chevron's wilful and wanton failure to warn of the harm caused by TENORM, failure to inspect the property for the presence of TENORM, and failure to comply with applicable regulations, the landowners demanded punitive damages. The landowners also averred that Chevron's acts had unjustly enriched Chevron with the money *1104 it had saved by violating applicable regulations.

¶ 5. Additionally, the landowners alleged that Chevron's acts created a created a public and private nuisance, constituted a nuisance per se due to Chevron's creation of illegal dumps, and constituted waste under the common law and waste as defined by Mississippi Code Annotated section 53-1-3 and section 53-3-3 and certain regulations of the Oil and Gas Board. The landowners also alleged that Chevron's acts violated applicable statutes and regulations and, therefore, constituted negligence per se. For these harms, the landowners "reserv[ed] the right to seek recovery of damages necessary to recover all costs associated with a full and complete remediation and clean-up of Plaintiffs' property and all other damages suffered as a result of Defendant's acts and omissions following an administrative hearing with the appropriate agency" or, alternatively, sought a declaratory judgment "establishing Chevron's liability for all costs of site investigation, monitoring, abatement and cleanup of Defendant's releases of radioactive materials and other harmful and hazardous substances. . . ." The landowners expressly denied that they sought money damages for cleanup of their property.

¶ 6. Instead, the landowners requested money damages for complete loss or diminution of property value, loss of business opportunities for use of the property, administrative costs, engineering and testing costs, attorneys' fees, wrongful savings and profits realized by Chevron, and punitive damages. The Town of Bolton requested additional damages for "loss of critical citizen services caused by loss of use" of its property. The landowners also sought injunctive relief preventing Chevron from causing further contamination.

¶ 7. Chevron moved to dismiss the complaints pursuant to Mississippi Rules of Civil Procedure 12(b)(1) and 12(b)(6) on the ground that the plaintiffs had failed to exhaust their remedies before the Oil and Gas Board. The circuit court granted Chevron's motions and dismissed both complaints without prejudice for failure to exhaust administrative remedies. The landowners separately perfected appeals. This Court has consolidated the appeals of the Town of Bolton and McMullan and McRaney. See M.R.A.P. 3(b).

LAW AND ANALYSIS

¶ 8. For clarity, we address the issues on appeal under a single heading:

I. WHETHER THE TRIAL COURT ERRED BY FINDING THAT THE TOWN'S CLAIMS SHOULD BE DISMISSED FOR FAILURE TO EXHAUST AVAILABLE ADMINISTRATIVE REMEDIES BEFORE THE OIL AND GAS BOARD.

A. The Exhaustion Requirement.

¶ 9. The appeal of the circuit court's dismissal of the landowners' claims for failure to exhaust administrative remedies presents a jurisdictional question. Miss. Employment Sec. Comm'n v. Culberston, 832 So.2d 519, 523(¶ 7) (Miss.2002). This Court reviews jurisdictional issues de novo. Jones v. Billy, 798 So.2d 1238, 1239(¶ 2) (Miss.2001). For purposes of this appeal, we regard all of the allegations made in the complaints as true. Lang v. Bay St. Louis/Waveland Sch. Dist.,

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