Bundrick v. Anadarko Petroleum Corp.
159 So. 3d 1137
| La. Ct. App. | 2015Background
- Plaintiffs Vincent Charles Bundrick and Cajun Pride, Inc. own seven St. Martin Parish tracts previously subject to oil/gas production; they sued twelve former operators for contamination after purchasing the land post-lease expiry without assignment of predecessors’ claims.
- Plaintiffs alleged negligence, strict liability, nuisance, trespass, breach of mineral-lease restoration obligations, sought remediation, property damages, and punitive damages.
- Four defendants (Four Star, Chevron U.S.A., Great Southern Oil & Gas, BP America) moved for summary judgment; the trial court granted dismissal based on the subsequent-purchaser rule.
- Parties stipulated plaintiffs bought after lease expirations and received no assignment/subrogation of predecessor owners’ claims; thus the sole issue was legal.
- Plaintiffs argued they (as subsequent owners) possess a real right under the Mineral Code (esp. Art. 11 / La.R.S. 31:16) to seek remediation that runs with the land; defendants argued the right to sue is a personal right retained by the owner at the time of injury, barring subsequent purchasers without assignment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Applicability of the subsequent-purchaser rule to contamination from prior mineral leases | Bundrick: subsequent owner has remediation/property claim (real right) under Mineral Code; no assignment needed | Defendants: Eagle Pipe rule bars subsequent purchasers from suing for pre-purchase damage absent assignment/subrogation | Court: subsequent-purchaser rule applies; summary judgment for defendants affirmed |
| Is the right to recover for pre-purchase property damage a real right that passes with title? | Bundrick: Mineral rights are "real rights" so remediation claims attach to property and pass to new owner | Defendants: Mineral-code protections apply to lessee’s real rights, not to transfer a prior owner’s personal cause of action | Court: right to sue is personal; Mineral Code does not convert prior owner’s suit into a real right that transfers to purchaser |
| Do Mineral Code provisions (La.R.S. 31:11, 31:16, art. 11) create remedies for subsequent owners to force remediation by prior lessees? | Bundrick: Mineral Code imposes obligations owed to surface owners that survive sale and allow remediation claims by successors | Defendants: Code governs contemporaneous relations; it does not create an assign-free cause of action for successors | Court: Mineral Code contemplates contemporaneous rights/obligations; it does not overcome the subsequent-purchaser rule |
| Does Eagle Pipe leave open an exception for mineral leases? | Bundrick: Eagle Pipe reserved opinion on mineral-lease situations; thus subsequent-purchaser rule might not apply | Defendants: Subsequent-purchaser rule as interpreted in Eagle Pipe applies to mineral leases per later appellate and supervisory rulings | Court: Eagle Pipe’s principle applies to mineral-lease contamination; no merit to claimed exception |
Key Cases Cited
- Eagle Pipe and Supply, Inc. v. Amerada Hess Corp., 79 So.3d 246 (La. 2011) (articulates subsequent-purchaser rule: right to sue for prior damage is personal and does not transfer absent assignment)
- Marin v. Exxon Mobil Corp., 48 So.3d 234 (La. 2010) (discusses whether recovery for damage is a property right; court later limited by Eagle Pipe)
- Frank C. Minvielle, L.L.C. v. IMC Global Operations, Inc., 380 F.Supp.2d 755 (W.D. La. 2004) (treats mineral rights as limited personal servitudes; subsequent purchaser lacks standing absent privity/assignment)
- Duck v. Hunt Oil Co., 134 So.3d 114 (La. App. 3 Cir. 2014) (panel held mineral-lease facts could differ from Eagle Pipe and found privity via stipulation pour autrui)
- Global Marketing Solutions, LLC v. Blue Mill Farms, Inc., 153 So.3d 1209 (La. App. 1 Cir. 2014) (applies Eagle Pipe to mineral-lease contamination and affirms that the personal right to sue does not transfer to a subsequent purchaser)