A recent decision from the Eastern District of Louisiana provides a mixed bag for pipeline companies or others whose operations involve canals. Significantly, the decision from Judge Milazzo holds that during the existence of a right-of-way/servitude, Louisiana servitude law imposes a continuing duty to prevent canals from expanding and widening over time, unless unambiguous contractual language allows otherwise.
Continue Reading Federal Court Finds A Continuing Duty Under Louisiana Law To Prevent The Erosion of Pipeline Canals
U.S. Supreme Court’s Decision Not to Take Certiorari in United States v. DeCoster is a Reminder to the Food and Drug Industries to be Mindful of the Park Doctrine
Earlier this year there was hope in the food and drug industries that the Supreme Court would revisit and possibly revise the Responsible Corporate Officer Doctrine, also known as the Park Doctrine, by granting certiorari to the Eighth Circuit’s decision in United States v. DeCoster. That hope was dashed in May when the Supreme Court declined, which left the Park Doctrine – with all of its ominous peril – the law of the land.
Continue Reading U.S. Supreme Court’s Decision Not to Take Certiorari in United States v. DeCoster is a Reminder to the Food and Drug Industries to be Mindful of the Park Doctrine
Dusky Gopher Frog’s Louisiana Critical Habitat Spawns U.S. Supreme Court Writ
A group of Louisiana landowners, Weyerhaeuser Company, and the Pacific Legal Foundation filed Petitions for Writs of Certiorari this month asking the U.S. Supreme Court to overturn the U.S. Fish and Wildlife Service’s (USFWS) decision to designate 1,544 acres of private land in St. Tammany Parish, Louisiana as critical habitat for the endangered dusky gopher frog.
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United States Fifth Circuit Confirms Remedies Available to Subrogated Insurer
On July 7, 2017, the United States Fifth Circuit Court of Appeal, in Associated International Insurance Company v. Scottsdale Insurance Company, held that, under Texas law, the subrogation clause of an insurance agreement allowed a subrogated insurer to seek reformation of a contract between its insured and a third party. In that appeal, the defendant’s primary and excess insurer settled a lawsuit. The excess insurer, Associated International Insurance Co., then sought reimbursement from Scottsdale, an insurer that had also issued a commercial umbrella policy to the insured defendant. Scottsdale argued Associated could not seek reimbursement because the property that had been at issue in the underlying suit was not listed on Scottsdale’s schedule of covered properties.
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Plaquemines Parish Amends Petition for Damages In Coastal Zone Management Act Litigation
The Parish of Plaquemines amended its petitions in two of the Coastal Zone Management Act (“CZMA”) cases on June 19, 2017. Prior to the amendment of the petitions, Judge Clement sustained Defendants’ Exceptions of Vagueness in the two cases, namely: The Parish of Plaquemines v. Rozel Operating Co., et al. and The Parish of Plaquemines v. Equitable Petroleum Corporation, et al. As a result, the Court signed Judgments ordering the Parish of Plaquemines to amend the petitions to “more specifically set forth the factual basis for their claims as to each defendant individually.”
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U.S. Fifth Circuit Greenlights Contribution Action for Purely Economic Damages Under Oil Pollution Act (OPA)
In Settoon Towing, L.L.C. v. Marquette Transportation Company, L.L.C., No. 16-30459 (5th Cir. Jun. 9, 2017), the United States Fifth Circuit Court of Appeals held for the first time that a Responsible Party under the Oil Pollution Act of 1990 (“OPA”) has a statutory claim for contribution to recover purely economic damages from a partially liable third party.
Settoon arose out of a February 2014 collision on the Mississippi River near Convent, Louisiana. A tug owned by Marquette collided with an oil-carrying barge owned by Settoon as the Marquette tug attempted to overtake the Settoon flotilla. As a result of the collision, approximately 750 barrels of light crude oil discharged into the river.
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Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code
In Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., the Louisiana Second Circuit upheld a trial court’s ruling that the holder of a security interest in mineral leases was solidarily liable for damages under the Louisiana Mineral Code stemming from its mineral lessees/mortgagors’ actions.[1] In the case, a landowner sued its mineral lessees for: (1) failure to provide a recordable act evidencing the expiration of a mineral lease under Mineral Code articles 206-209 and (2) failure to pay royalties under Mineral Code articles 137-140.[2]
Continue Reading Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code
Louisiana Second Circuit Provides Clarity on Production in Paying Quantities and Affirms Lease Cancellation Under Mineral Code Article 140 for Failure to Pay Royalties
On June 2, 2017 the Louisiana Second Circuit Court of Appeal affirmed a trial court’s judgment cancelling a mineral lease under Mineral Code article 140 and provided further clarity on a production in paying quantities analysis under Louisiana Mineral Code article 124.[1] The dispute in Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., arose from a 2004 mineral lease covering nearly 1,400 acres in Sections 9, 10, 15, 16, and 21, Township 15 North, Range 15 West, in Caddo Parish.[2] The lease was granted by Gloria’s Ranch, L.L.C. (“Gloria’s Ranch”) to Tauren Exploration, Inc. (“Tauren”) and contained a three year primary term as well as a horizontal and vertical Pugh clause.[3] Tauren subsequently assigned a 49% interest in the lease to Cubic Energy, Inc. (“Cubic”).[4]
Continue Reading Louisiana Second Circuit Provides Clarity on Production in Paying Quantities and Affirms Lease Cancellation Under Mineral Code Article 140 for Failure to Pay Royalties
U.S. Fifth Circuit Adopts Broad Definition of “Good Faith” for Louisiana Environmental Whistleblower Claims
On June 1, 2017, the United States Fifth Circuit Court of Appeals in Borcik v. Crosby Tugs, L.L.C. applied a broad definition of the intent required of a plaintiff under the Louisiana Environmental Whistleblower Act. In doing so, both the Fifth Circuit and the Louisiana Supreme Court apply a more plaintiff friendly standard to claims of environmental whistleblowers.
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United States Supreme Court Limits Forums Available to Railroad Workers
The United States Supreme Court, in BNSF Railway Co. v. Tyrrell (May 30, 2017), declined to allow a personal injury plaintiff to sue a railroad company in a state in which the railroad does business but is not incorporated or headquartered. In BNSF Railway Co., two plaintiffs brought suit for injuries in Montana “although the injured workers did not reside in Montana, nor were they injured there.” The plaintiffs claimed that the Federal Employers’ Liability Act (“FELA”), which allows railroad workers to sue their employers for personal injuries, created a jurisdictional exception to recent cases that held that a corporation may be sued only in a state that has a connection to the injury or in the state in which the corporation is incorporated or maintains its headquarters, absent exceptional circumstances.
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