ENERGY MANAGEMENT CORP.; Tеllus Operating Group, LLC, Plaintiffs-Appellants, v. CITY OF SHREVEPORT, Defendant-Appellee.
No. 05-30551.
United States Court of Appeals, Fifth Circuit.
Oct. 6, 2006.
467 F.3d 471
Before BARKSDALE, STEWART and CLEMENT, Circuit Judges.
There, the plaintiff brought a third-party counterclaim against Bank One, alleging breach of a loan commitment. Although plaintiff did not plead a written, signed credit agreement in his counterclaim, we affirmed a summary judgment, relying on the fact that “the alleged credit agreement attached to the third party claim is not signed by Dengel and his wife as required by
EPCO has not conceded that its claim is based on an oral representation of Chase or on an unsigned agreement. Consistent with its pleadings, EPCO may be able to show that its acceptance was in the form necessary to satisfy the Credit Agreement Statute, either by submitting proof that its agreement with Chase was in a written, signed document or proof that it submitted its acceptance of Chase‘s offer electronically and that the two parties had agreed to conduct business electronically. Neither of these factual scenarios is foreclosed by the face of EPCO‘s pleadings, so dismissal at this early stage was improper.6
B.
Although we have the authority to grant judgment in favor of a party who did not move for summary judgment in the district court, we should do so only where “(1) there is no genuine issue of material fact and (2) the opposing party has had a full opportunity to (a) brief the legal issues and (b) develop a record.” Robinson v. Aetna Life Ins. Co., 443 F.3d 389, 396 (5th Cir.2006). Chase submitted additional evidentiary material through an affidavit attached to its reply memorandum in support of its motion to dismiss. EPCO did not have a chance to respond to that material or to challenge it by submitting contrary evidence.7 We therefore deem it prudent to remand these issues to the district court, which may require full briefing or receive additional evidence.
The summary judgment is REVERSED, and this matter is REMANDED for further proceedings.
CARL E. STEWART, Circuit Judge:
Plaintiff-Appellant Energy Management Corporation (“EMC“) appeals the district court‘s judgment on remand declaring City of Shreveport (“Shreveport“) Ordinance 221 “invalid” rather than “preempted.” EMC also challenges the district court‘s refusal to award damages, attorney‘s fees and costs. For the following reasons, we reverse and remand the judgment of the district court regarding the declaratory judgment language, holding that the prior panel intended Ordinance 221 be preempted by state law. We affirm the district court‘s refusal to award dаmages and attorney‘s fees and we remand the issue of allocation of costs to the district court for further consideration.
I. FACTUAL AND PROCEDURAL BACKGROUND
Cross Lake, the focal point of this litigation, is the main source of water for Shreveport, Louisiana. Energy Mgmt. Corp. v. City of Shreveport (Energy Mgmt. I), 397 F.3d 297, 299 (5th Cir.2005). In 1910, the Louisiana legislature authorized the transfer of Cross Lake to Shreveport but the state reserved all minerals and mineral rights, as well as the right to drill and operate wells. Id. Then, in 1959, Louisiana established the Louisiana Office of Conservation (“LOC“) as the exclusive authority to grant drilling permits; under
In 1997, EMC brought this diversity suit, alleging that Shreveport had no authority to regulate drilling around Cross Lake. Energy Mgmt. I, 397 F.3d at 300. In that prior appeal, this court concluded, “[T]he City of Shreveport‘s Ordinance 221 is preempted by state law and is
On remand, the district court requested briefing from the parties regarding appropriate declaratory judgment language and any additional relief for EMC. Subsequently, the district court entered the judgment as follows: “Ordinance 221 is hereby DECLARED invalid to the extent that it purports to prohibit the drilling of oil and gas wells in an area within the state of Louisiana.” Energy Mgmt. Corp. v. City of Shreveport, No. 97-2408 (W.D.La. May 5, 2005) (order granting declaratory judgment). Thе district court did not track the language of the prior panel in Energy Management I, which stated that the ordinance was preempted by state law. Moreover, the district court found that EMC was not entitled to additional relief. The court stated:
Under Louisiana laws and legal principles, oil, gas and other minerals are fugacious matter and are subject to capture. The damages complained of and testified to by EMC experts are based on the value of lost production. The sought after minerals are still in place and subject to capture. They are not “lost.”
Id. The court also stated, without exрlanation, that EMC was not entitled to attorney‘s fees but made no comment regarding EMC‘s entitlement to costs. See id. Because it argues that Shreveport is actively interpreting3 the language of the district court as invalidating only the 1,000 feet provision and continuing to enforce the remainder of the ordinance, EMC appeals the district court‘s ruling.
II. DISCUSSION
A. The District Court‘s Interpretation of the Declaratory Judgment Language
1. Standard of Review
This court has a limited scope of review after remand. Volk v. Gonzalez, 262 F.3d 528, 533 (5th Cir.2001). “On a second appeal following remand, the only issue for consideration is whether the court below reached its final decree in due pursuance of [this court‘s] previous opinion and mandate.” Id. (alteration in original) (quoting Burroughs v. FFP Operating Partners, 70 F.3d 31, 33 (5th Cir.1995)). We can consider a prior opinion to determine what was actually intended, but we will not reconsider issues already decided by the earlier panel. Burroughs, 70 F.3d at 33.
2. Analysis
Before we reach the merits of this appeal, we first address Shreveport‘s claim that EMC lacks standing to contest the entirety of the ordinance and that an opinion issued by this court declaring the ordinance entirely preempted would be
This court has previously determined that EMC has the necessary standing; therefore, our holding today turns solely on our determination of whether the prior panel intended that Louisiana law preempt Ordinance 221 and, if so, whether the declaratory judgment language of the district court reflects that intent. EMC contends that the Energy Management I panel found Ordinance 221 preempted in whole; however, the language of the district court‘s opinion does not reflect this conclusion. EMC is concerned that this overly narrow language could lеad to the enforcement of provisions that do not prohibit drilling but, nevertheless, restrict related activities because the present judgment implies that Shreveport retains the ability to enforce costly and unnecessary requirements not required by Louisiana for the drilling of oil and gas wells within the state. In contrast, Shreveport argues that the only right exclusively statutorily reserved to the LOC is the oversight of drilling and, therefore, Ordinance 221 is not invalid in its additional respects; it asserts that the district court tracked the limiting language of this court‘s Energy Management I decision.
Our duty is to review this case considering whether the court below effected the mаndate of the first panel. Volk, 262 F.3d at 533. Our reading of the Energy Management I panel opinion clearly indicates that the court evaluated the various regulatory aspects of the ordinance and ultimately determined that Ordinance 221 was preempted in its entirety. Therefore, Shreveport‘s claims on this matter are unsupported by the prior opinion. A closer look at Energy Management I is not only instructive, but also dispositive. The prior panel stated:
“Local power is not pre-empted unless it was the clear and manifest purpose of the legislature to do so, or the exercise of dual authority is repugnant to a legislative objеctive; if there is no express provision mandating pre-emption, the courts will determine the legislative intent by examining the pervasiveness of the state regulatory scheme, the need for state uniformity, and the danger of conflict between the enforcement of local laws and the administration of the state program.” Palermo Land Co. v. Planning Comm‘n of Calcasieu Parish, 561 So.2d 482, 497 (La.1990). In this case there is no express provision mandating pre-emption. However, all other inquiries lead to the conclusion that local regulation of oil and gas drilling activities is preempted by comprehensive state regulation of oil and gas activities under the LOC. Rеgulations by the state of oil and gas drilling activity through the LOC are clearly pervasive addressing every phase of the oil and gas exploration process from exploration and prospecting to cleanup of abandoned oilfield waste sites .... In every case which has been brought to our attention involving a challenge to the authority of the LOC, its far-reaching authority has been upheld.
397 F.3d at 303. The opinion‘s reference not just to drilling but to drilling “activities,” as well as its statement that the regulations address “every phase of the ... process,” supports our interpretation that the prior panel‘s language effectuated the preemption of Ordinance 221 in its entirety. Furthermore, in support of its determination, the prior panel highlighted Louisiana cases upholding the “far-reaching” authority of the LOC, cases which addressed not only drilling5 but also other aspects of the drilling process, including post-drilling disposal.6
Thereafter, the prior panel relied on Louisiana Attorney General (“AG“) opinions to support its holding. According to the panel, the Louisiana AG “has consistently concluded that attempts at local regulation of drilling operations are preempted by state law.” Id.7 Onе of the opinions addressed whether a local governing body could require permits from oil and gas operators for the use of local roads.
The prior panel also examined
[The statute] provides that “[n]o other agency or political subdivision of the state shall have the authority, and they are hereby exprеssly forbidden, to prohibit or in any way interfere with the drilling of a well or test well in search of minerals by the holder of such permit.”
Energy Mgmt. I, 397 F.3d at 304 (quoting
The holding of the prior opinion is clear, in fact, the prior panel leads off by unequivoсally stating in the introductory paragraph, “[We] find that Ordinance 221 is preempted by Louisiana‘s comprehensive regulation of oil and gas drilling.” Perhaps, as counsel for Shreveport argued, the ambiguity in this case lies in the concluding paragraph of the opinion. There, the court stated that the ordinance is “preempted by state law and is invalid to the extent that it purports to prohibit the drilling of oil and gas wells in an area within the state of Louisiana.” Energy Mgmt. I, 397 F.3d at 305 (emphasis added). We agree that this language (i.e., “invalid to the extent that ...“), when read out of context and not in conjunction with the entire opiniоn, is seemingly limiting; as we have explained, however, we do not agree that it was intended by the prior panel to be construed as such.
Therefore, we find the following three aspects of Energy Management I instructive and supportive of our conclusion that Ordinance 221 is preempted in its entirety: (1) the express language of Energy Management I does not suggest the ordinance was intended to be invalid only to the limited extent urged by Shreveport; (2) the cases and the AG opinions on which the prior panel relied relate to more than drilling and therefore suggest to us that Energy Management I addressed aspects of the ordinance beyond drilling prohibition in the 1,000 feet zone, contrary to Shreveport‘s argument; (3)
B. The District Court‘s Determination regarding Damages
1. Standard of Review
We review legal conclusions underlying an award of damages de novo. Nat‘l Hispanic Circus, Inc. v. Rex Trucking, Inc., 414 F.3d 546, 552 (5th Cir.2005). “If the district court committed no legal error, we review its factual findings for clear error.” Id.
2. Analysis
The district court declined to award damages on the basis that the oil and gas underlying the 1,000 feet zone is not “lost.” In dismissing EMC‘s damages claim, the district court cited the rule of capture, which governs the ownership rights of landowners over thе natural resources underlying their land. See
EMC claims that the rule of capture is inapplicable to this case, and that it is entitled to damages under state law аnd/or
Our analysis reveals that the enactment of Ordinance 221 was rationally related to Shreveрort‘s interest in protecting its water supply. The state of Louisiana gave Shreveport the authority in Act 31 of 1910 to adopt ordinances to protect its water supply; further, the preamble to Ordinance 221 specifically states that Shreveport is empowered to protect its water and
We hold the district court did not err in denying the award of damages to EMC upon either ground contended in its brief. Though the district court relied on the rule of capture as support for this determination, we conclude that the overriding reason the denial of damages is proper is because EMC‘s takings claim is time-barred and its due process claim fails on the merits; neither state nor federal law provide a present path for recovery. Finding no basis to award damages to EMC, we do not entertain EMC‘s pre-and post-judgment interest request.
C. The District Court‘s Determination Regarding Awarding Attorney‘s Fees
1. Standard of Review
The district court has broad discretion to award attorney‘s fees, and an appellate court has only a limited opportunity to “appreciate the complexity of trying any given case and the level of professional skill needed to prosecute it.” Hopwood v. Texas, 236 F.3d 256, 277 (5th Cir.2000). Accordingly, we review the factual findings supporting a district court‘s grant or denial of attorney‘s fees for clear error and the conclusions of law underlying the award are reviewed de novo. Volk, 262 F.3d at 534; see also CenterPoint Energy Houston Elec. LLC v. Harris County Toll Road Auth., 436 F.3d 541 n. 17 (5th Cir.2006).
2. Analysis
The district court did not explain why it refused to award attorney‘s fees to EMC. EMC claims that it is entitled to attorney‘s fee under
We find unpersuasive EMC‘s reasoning that if we find Ordinance 221 preempted, then EMC must be the “prevailing party” for purposes of
Nonetheless, EMC directs this court to Williams v. Hanover Housing Authority, 113 F.3d 1294, 1297-98 (1st Cir.1997), for the proposition that an award of attorney‘s fees under
D. The District Court‘s Determination Regarding Awarding Costs
1. Standard of Review
A district court has wide discretion whether to award costs to the prevailing party. Brazos Valley Coal. of Life, Inc. v. City of Bryan, Tex., 421 F.3d 314, 327 (5th Cir.2005); Medina v. Ramsey Steel Co., Inc., 238 F.3d 674, 686 (5th Cir.2001). The court, however, recognizes a “strong presumption” that the district court will likely do so. Salley v. E.I. DuPont de Nemours & Co., 966 F.2d 1011, 1017 (5th Cir.1992). “We review for abuse of discretion, but if the court does nоt award costs to the prevailing party, we require the district court to state its reasons.” Id.
2. Analysis
The district court in this case did not award costs to EMC and it did not state its reasons; in fact, the court did not even mention costs in its judgment. EMC argues that it is the “prevailing party” under
III. CONCLUSION
Quoting the language of the Energy Management I panel, “[i]n summary, we conclude that the City of Shreveport‘s Ordinance 221 is preempted by state law.” 397 F.3d at 306. Accordingly, we VACATE the district court‘s declaratory
