On January 27, 2023, the Louisiana Supreme Court issued a ruling involving claims for negligent infliction of emotional distress (“NIED”) absent physical damage. In Spencer v. Valero Refining Meraux, LLC, 2022-00469 (La. 1/27/23), — So. 3d –, the Court reversed several lower court decisions that awarded the plaintiffs damages for NIED absent physical
Mark R. Deethardt
Louisiana First Circuit Applies Subsequent Purchaser Doctrine to Property Transfer Involving Closely Held LLC
The subsequent purchaser doctrine has been litigated extensively in Louisiana legacy cases involving claims for oilfield remediation. The doctrine provides that a current landowner has no standing to bring a lawsuit for property damage that occurred prior to its acquisition absent a valid assignment from the prior landowner of the personal right to sue. However, until now, no appellate court had addressed whether the doctrine barred a claim brought by a closely held or family-owned company who acquired the property in an intra-family transfer. In Louisiana Wetlands, LLC v. Energen Resources Corporation, 2021-0290 (La. App. 1 Cir. 10/4/21), 2021 WL 4548529, —So. 3d—, the Louisiana First Circuit answered this question in the affirmative, holding that the subsequent purchaser doctrine applies to property transfers from family members to a company which they also own.
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Louisiana First Circuit Reaffirms Prescription and Subsequent Purchaser Principles
In Lexington Land Development, L.L.C. v. Chevron Pipelines Company, et al., 2020-0622 (La. App. 1 Cir. 5/25/21), 2021 WL 2102932, —So. 3d—, the Louisiana First Circuit recently reaffirmed well-settled principles regarding prescription and the subsequent purchaser doctrine in Louisiana legacy cases.
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Second Remand Order in Coastal Zone Management Cases Pending Before Fifth Circuit
In May 2018, oil and gas industry defendants removed a docket of 42 cases alleging violations of Louisiana’s coastal zone management laws to federal court in the Eastern and Western Districts of Louisiana (“CZM cases”). One year later, the Eastern District granted motions to remand filed by Plaquemines Parish and the State of Louisiana in Parish of Plaquemines v. Riverwood Production Company, et al. (“Riverwood”), No. 18-5217, 2019 WL 2271118 (E.D. La. May 28, 2019). The Western District recently joined the Eastern District and granted similar remand motions filed by Cameron Parish and the State of Louisiana in Parish of Cameron, et al. v. Auster Oil & Gas Incorporated, et al. (“Auster”), No. 18-677, 2019 WL 4734394 (W.D. La. Sept. 26, 2019), —F. Supp. 3d—. Although there are procedural differences between Riverwood and Auster, both district courts found no federal officer or federal question jurisdiction over the CZM cases. The Fifth Circuit is poised to resolve these jurisdictional issues in the upcoming year. …
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Fifth Circuit Opens Door to Removal Following Involuntary Dismissal of Non-Diverse Defendant
When is a case removable to federal court? The general rule is that removability is determined at the time a case is filed. One exception is the so-called “voluntary-involuntary” rule, which permits removal only when the plaintiff’s voluntary action in state court creates federal jurisdiction. The textbook example is the voluntary dismissal of a non-diverse defendant who settled with the plaintiff. The textbook counterexample is when the non-diverse defendant is dismissed via contested motion—an involuntary dismissal. In Hoyt v. The Lane Construction Corporation, 927 F.3d 287 (5th Cir. 2019), the Fifth Circuit blurred the line between these categories and expanded the cases that can be removed to federal court.…
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