Venoco LLC v. Plains Pipeline LP

CourtDistrict Court, C.D. California
DecidedJuly 26, 2022
Docket2:16-cv-02988
StatusUnknown

This text of Venoco LLC v. Plains Pipeline LP (Venoco LLC v. Plains Pipeline LP) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Venoco LLC v. Plains Pipeline LP, (C.D. Cal. 2022).

Opinion

Case 2:16-cv-02988-PSG-JEM Document 224 Filed 07/26/22 Page 1 of 10 Page ID #:2419 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA JS-6 CIVIL MINUTES - GENERAL Case No. CV 16-2988 PSG (JEMx) Date July 26, 2022 Title Venoco LLC v. Plains Pipeline LP Present: The Honorable Philip S. Gutierrez, United States District Judge Wendy Hernandez Not Reported Deputy Clerk Court Reporter Attorneys Present for Plaintiff(s): Attorneys Present for Defendant(s): Not Present Not Present Proceedings (In Chambers): The Court GRANTS Venoco’s motion to remand. Before the Court is a motion to remand filed by Plaintiff Venoco, LLC (“Venoco”). See generally Dkt. # 216 (“Mot.”). Defendants Plains Pipeline, L.P.; Plains All American Pipeline, L.P.; Plains GP Holdings, L.P.; Plains AAP, L.P.; Plains All American GP LLC; and PAA GP LLC (collectively, “Plains”) opposed. See generally Dkt. # 220 (“Opp.”). Venoco replied. See generally Dkt. # 222 (“Reply”). The Court finds this matter appropriate for decision without oral argument. See Fed. R. Civ. P. 78; L.R. 7-15. After considering the moving, opposing, and reply papers, the Court GRANTS the motion and REMANDS this case to Santa Barbara County Superior Court. I. Background This case arises out of the May 2015 rupture of Line 901, Plains’ oil pipeline located off the coast of Santa Barbara County, California. Second Amended Complaint, Dkt. # 78 (“SAC”), ¶¶ 1, 18. The rupture resulted in the deposit of more than 140,000 gallons of crude oil onto the California coastline. Id. ¶¶ 18, 20. Line 901 was shut down and has not since resumed operations. Id. ¶ 21; see also Mot. 1:9. Prior to the oil spill, Venoco relied on Line 901 to transport crude oil produced at its offshore “Holly” platform to onshore contactors. SAC ¶¶ 10–11. The spill left Venoco unable to produce or sell crude oil from the Holly platform. Id. ¶ 14. In 2016, Venoco sued Plains in Santa Barbara County Superior Court, and Plains removed the case to this Court, invoking the Court’s federal question and supplemental jurisdiction. See generally Dkts. # 1, 1-1. The Court granted in part and denied in part Plains’ first motion to dismiss, allowing Venoco’s negligence, willful misconduct, and negligent interference with prospective economic advantage claims to proceed. See generally Dkt. # 71 (“MTD I Order”). The Court dismissed with leave to amend Venoco’s claims under the federal CV-90 (10/08) CIVIL MINUTES - GENERAL Page 1 of 10 Case 2:16-cv-02988-PSG-JEM Document 224 Filed 07/26/22 Page 2 of 10 Page ID #:2420 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES - GENERAL Case No. CV 16-2988 PSG (JEMx) Date July 26, 2022 Title Venoco LLC v. Plains Pipeline LP Oil Pollution Act of 1990 (“OPA”) and California Lempert-Keene-Seastrand Oil Spill Prevention and Response Act (“OSPRA”) as well as Venoco’s claims for intentional interference with contractual and prospective economic advantage. See generally id. In early 2017, the Court granted in part and denied in part Plains’ second motion to dismiss, dismissing Plaintiff’s OPA and OSPRA claims without leave to amend and otherwise denying the motion (the “2017 Order”). See generally Dkt. # 100 (“MTD II Order”). After dismissing the sole federal claim that provided the basis for federal question jurisdiction, the Court exercised its discretion to retain supplemental jurisdiction over the remaining state law claims. See id. at 7–9. In 2019, Plains moved for judgment on the pleadings as to each of Venoco’s remaining claims on the grounds that Plains, as a public utility, did not owe Venoco a duty of care to prevent harm from the discontinuation of Line 901. See generally Dkt. # 152. The Court granted the motion, finding that California’s public utility rule barred Venoco’s claims, and entered judgment in Plains’ favor. See generally Dkts. # 181, 184.1 The Ninth Circuit affirmed the dismissal of Venoco’s OPA and OSPRA claims, found that the Court did not abuse its discretion by retaining supplemental jurisdiction over the remaining state law claims,2 and affirmed the dismissal of Venoco’s state law claims based on California’s public utility rule. Venoco, LLC v. Plains Pipeline, L.P. (Venoco I), 814 F. App’x 318, 319–21 (9th Cir. 2020). In November 2020, a California Court of Appeal rejected this Court’s and the Ninth Circuit’s interpretation of California law, concluding that the public utility rule does not shield Plains from liability for injuries caused by the Line 901 oil spill. See State Lands Comm’n v. Plains Pipeline, L.P. (State Lands), 57 Cal. App. 5th 582, 586–88 (2020). In that case, the California State Lands Commission (the “Commission”) claimed that Plains’ negligent maintenance of Line 901 and the disruption of the flow of oil following the 2015 spill (1) deprived the State of royalty income from leasing offshore lands to Venoco to operate the Holly platform and (2) damaged the Commission’s property. Id. at 584–85. The Commission brought 1 The Court entered judgment on May 9, 2019. See generally Dkt. # 184. At the time, nearly two months of fact discovery and five months of expert discovery remained. See generally Dkt. # 163. 2 The Ninth Circuit did not address the factors of judicial economy, convenience, fairness, or comity but found that this Court “was ‘in the best position to judge the extent of resources invested’” and properly exercised its discretion in doing so. 814 F. App’x at 320 (quoting Schneider v. TRW, Inc., 938 F.2d 986, 993–94 (9th Cir. 1991)). CV-90 (10/08) CIVIL MINUTES - GENERAL Page 2 of 10 Case 2:16-cv-02988-PSG-JEM Document 224 Filed 07/26/22 Page 3 of 10 Page ID #:2421 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES - GENERAL Case No. CV 16-2988 PSG (JEMx) Date July 26, 2022 Title Venoco LLC v. Plains Pipeline LP many of the same claims against Plains as did Venoco, including claims for negligence, willful misconduct, and negligent interference with prospective economic advantage. See id. at 585. The Court of Appeal reversed the trial court’s dismissal of the Commission’s claims, finding that Plains was not exempt from liability under the public utility rule because it does not provide an essential service to the general public. Id. at 586–88. The following month, Venoco moved to set aside the judgment in this case and to reopen the case pursuant to Federal Rule of Civil Procedure 60(b)(6), arguing that State Lands constituted an intervening change in controlling law. See generally Dkt. # 204. The Court denied the motion, finding that the divided State Lands decision did not clearly and authoritatively change the governing law and that the interest in finality outweighed Venoco’s interest in relitigating its claims. See generally Dkt. # 209. The Ninth Circuit disagreed. In April 2022, it reversed this Court’s denial of Venoco’s motion to set aside the judgment and remanded with directions to reopen the case. Venoco, LLC v. Plains Pipeline, L.P. (Venoco II), No. 21-55193, 2022 WL 1090947, at *1–3 (9th Cir. Apr. 12, 2022). The Ninth Circuit held that State Lands constituted an intervening change of law for purposes of Rule 60(b)(6) and found that, considering the relevant factors, “Venoco demonstrated extraordinary circumstances warranting Rule 60(b)(6) relief.” Id. The Ninth Circuit particularly highlighted the “close connection” between the two cases, noting that “State Lands involved the same oil spill, the same legal doctrine, [] the same defendant,” and “virtually identical facts” as this case. See id. at *2–3 (citation omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United Mine Workers of America v. Gibbs
383 U.S. 715 (Supreme Court, 1966)
Carnegie-Mellon University v. Cohill
484 U.S. 343 (Supreme Court, 1988)
George Acri v. Varian Associates, Inc.
114 F.3d 999 (Ninth Circuit, 1997)
Millar v. Bay Area Rapid Transit District
236 F. Supp. 2d 1110 (N.D. California, 2002)
Danner v. Himmelfarb
858 F.2d 515 (Ninth Circuit, 1988)
Schneider v. TRW, Inc.
938 F.2d 986 (Ninth Circuit, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
Venoco LLC v. Plains Pipeline LP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/venoco-llc-v-plains-pipeline-lp-cacd-2022.