Wagoner v. CHEVRON USA INC.
2010 La. App. LEXIS 1601
| La. Ct. App. | 2010Background
- Wagoner family purchased 193-acre Lake St. John property in 2004; contamination from oil/gas operations discovered post-purchase.
- Property transfers before 2004 retained mineral rights and were not accompanied by express assignment of pre-acquisition damage claims.
- Various defendants operated on the property from 1945 onward under mineral surface entitlements; Chevron was original lessee, with successors Merit's and Devon’s involvement.
- Trial court dismissed most claims as no right of action or other exceptions; plaintiffs appealed and trial court rulings were partially reversed on rehearing.
- Louisiana Court of Appeal held that plaintiffs have a right of action against Chevron, Merit, and Devon for pre-acquisition damages, and remanded for further proceedings; other exceptions upheld.
- Opinion on rehearing affirmed the separation of claims: no right of action for civil fruits, storage, or punitive damages; Act 312 issue deemed procedural.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Right of action for pre-acquisition damages against lessees | Wagoners rely on Magnolia Coal Terminal to attach damages right to property | Subsequent purchaser doctrine blocks pre-acquisition claims; no express assignment | Right of action exists against Chevron, Merit & Devon for pre-acquisition damages |
| Whether mineral leases create third-party beneficiary rights | Magnolia creates beneficiary rights; wagoners may sue as third party beneficiaries | No language in leases confers third-party beneficiary status | No third-party beneficiary rights found; Magnolia distinguishable on facts |
| Civil fruits or storage as basis for damages | Economic benefit from storage constitutes civil fruits | No production-derived fruit; no revenue source | No civil fruits or storage-based damages; no action sustainment |
| Act 312 (La. R.S. 30:29) creates right of action for landowners | Statute examples grant landowner remedial rights | Act 312 is procedural and does not create rights | Act 312 does not create a new substantive right; no right of action created |
Key Cases Cited
- Magnolia Coal Terminal v. Phillips Oil Co., 576 So. 2d 475 (La. 1991) (right to restoration attaches to property as a property right under a mineral lease)
- Lejeune Bros., Inc. v. Goodrich Petroleum Co., L.L.C., 981 So. 2d 23 (La. App. 3d Cir. 2007) (pre-acquisition damages; personal right does not run with land absent express conveyance)
- Eagle Pipe and Supply, Inc. v. Amerada Hess Corp., 47 So. 3d 428 (La. App. 4th Cir. 2010) (rehearing upheld that landowners may sue for contamination; injury to property persists beyond purchase)
- Marin v. Exxon Mobil Corp., 48 So. 3d 234 (La. 2010) (discussion of whether subsequent purchaser has right to sue; prescriptive issues noted)