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218 So. 3d 1045
La. Ct. App.
2017
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Background

  • Plaintiffs Quality Environmental Processes, Inc. and Michael and Virginia St. Martin sued multiple defendants (now only IP Petroleum remains) seeking mineral royalties from production on the IP Pet. PPCO No. 1 well covering periods from June 29, 1997 until the well was plugged; $817,464.29 represents royalties paid to Phillips and Noble before April 1, 2001.
  • Plaintiffs previously settled with Phillips (2001) and Noble Energy (2005); those settlements conveyed mineral interests to the plaintiffs but contained provisions the trial court and parties disputed as to whether they conveyed rights to royalties accruing before April 1, 2001.
  • The Louisiana Supreme Court in Quality I (2014) held plaintiffs did not acquire mineral rights from a 1992 purchase, but remanded to consider royalty issues stemming from after-acquired rights from the 2001 and 2005 settlements.
  • After years of litigation and procedural skirmishing (including a formal dismissal for abandonment later vacated), IP Petroleum moved for partial summary judgment (Aug. 29, 2014) seeking dismissal with prejudice of plaintiffs’ claims to the $817,464.29 in royalties paid before April 1, 2001.
  • The trial court granted the partial summary judgment (April 8, 2015), certified it final under La. C.C.P. art. 1915(B), and this appeal followed; the court concluded neither the 2001 nor 2005 settlements conveyed rights to pre-April 1, 2001 royalties.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
1. Whether the trial court erred in vacating its prior formal abandonment dismissal Plaintiffs: dismissal for abandonment should stand; court improperly vacated it IP: formal discovery served April 5, 2012 interrupted abandonment, so vacatur proper Held: Vacatur proper — IP’s formal discovery interrupted abandonment period under La. C.C.P. art. 561
2. Whether IP’s Aug. 29, 2014 partial summary judgment was untimely under the 2005 pre-trial order Plaintiffs: deadlines in pre-trial order made IP’s motion untimely IP: scheduled trial never occurred; pre-trial deadlines became moot pending new scheduling; IP’s motion timely Held: Denial of plaintiffs’ motion to dismiss was correct — pre-trial deadlines were effectively moot and court did not abuse discretion
3. Whether summary judgment dismissing claims to royalties paid before Apr. 1, 2001 was proper Plaintiffs: settlement documents and circumstances create triable issue that after-acquired rights include pre-April 1, 2001 royalties IP: Quality I and the 2001/2005 settlement instruments do not convey royalties accruing before April 1, 2001; no genuine issue of material fact Held: Affirmed — no genuine issue of material fact; neither settlement conveyed rights to royalties attributable to production before April 1, 2001, so summary judgment for IP granted

Key Cases Cited

  • Quality Environmental Processes, Inc. v. I.P. Petroleum Co., Inc., 144 So.3d 1011 (La. 2014) (supreme court decision resolving title issues and remanding royalty questions)
  • R.J. Messinger, Inc. v. Rosenblum, 894 So.2d 1113 (La. 2005) (factors for certifying partial judgment final under La. C.C.P. art. 1915(B))
  • Louisiana Dept. of Transp. & Dev. v. Oilfield Heavy Haulers, L.L.C., 79 So.3d 978 (La. 2011) (construction and purpose of La. C.C.P. art. 561 abandonment doctrine)
  • Van ex rel. White v. Davis, 808 So.2d 478 (La. App. 1 Cir.) (discussion of final judgment and partial adjudication principles)
  • Hines v. Garrett, 876 So.2d 764 (La. 2004) (standard for summary judgment review)
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Case Details

Case Name: Quality Environmental Processes, Inc. v. Energy Development Corp.
Court Name: Louisiana Court of Appeal
Date Published: Apr 12, 2017
Citations: 218 So. 3d 1045; 2017 La. App. LEXIS 627; 2016 La.App. 1 Cir. 0171; 2016 CA 0171, 2016 CA 0172
Docket Number: 2016 CA 0171, 2016 CA 0172
Court Abbreviation: La. Ct. App.
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    Quality Environmental Processes, Inc. v. Energy Development Corp., 218 So. 3d 1045