State v. Louisiana Land & Exploration Co.
110 So. 3d 1038
La.2013Background
- State and Vermilion Parish School Board filed damages suit for polluted property in Vermilion Parish (East White Lake Field) arising from oilfield operations under a 1935 lease and a 1994 surface lease.
- Plaintiffs asserted multiple contract and tort claims, seeking remediation, land value diminution, and various damages including punitive and stigma damages.
- Defendants include Chevron USA Inc. (successor to Union Oil Co. of California) and others; Unocal admitted environmental damage and liability under La. R.S. 30:29 (Act 312).
- Act 312 (La. R.S. 30:29) creates a procedure where remediation damages are deposited into the court’s registry to fund a court-approved most feasible remediation plan, with the court retaining oversight.
- Procedural posture: trial court granted partial summary judgment limiting remediation damages; court of appeal reversed; this Court granted writs to interpret Act 312 and whether Chevron should be dismissed.
- This Opinion affirms the appellate reversal on remediation-damages interpretation and on Chevron’s summary-judgment dismissal, and remands for further proceedings consistent with the ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Scope of damages under Act 312 | Landowners entitled to excess remediation damages | Remediation damages capped to fund plan; no excess without contractual provision | Act 312 permits excess remediation damages only with an express contract provision |
| Chevron's status as successor to Unocal | Chevron may be liable as successor to Unocal | Chevron separate from Unocal; insufficient discovery to prove successor status | There is a genuine issue of material fact on Chevron's successor-in-interest status; summary judgment not warranted |
Key Cases Cited
- Corbello v. Iowa Production, 850 So.2d 686 (La. 2003) (remediation framework; statutory timing and public-interest remediation)
- M.J. Farms, Ltd. v. Exxon Mobil Corp., 998 So.2d 16 (La. 2008) (Act 312 procedural; landowner remedies preserved; six components of statute)
- Marin v. Exxon Mobil Corp., 48 So.3d 234 (La. 2010) (remediation standards; Castex/Marin interpretation of damages)
- Terrebonne Parish School Bd. v. Castex Energy, Inc., 893 So.2d 789 (La. 2005) (implied restoration duty under mineral code; wear and tear standard)
- Roman Catholic Church of Archdiocese of New Orleans v. Louisiana Gas Service Co., 618 So.2d 874 (La. 1993) (measure of damage; restoration vs. diminution; restoration costs vs. value)
- Hornsby v. Bayou Jack Logging, 902 So.2d 361 (La. 2005) (restoration damages vs. property value when cost is disproportionate)