PETERS, J.
The plaintiffs in this property damage claim, Vincent Charles Bundrick and Cajun Pride, Inc., appeal the trial court's grant of summary judgments in favor of four of the defendants, Four Star Oil and Gas Company, Chevron U.S.A. Inc., Great Southern Oil & Gas Company, Inc., and BP America Production Company, dismissing their claims against these defendants. For the following reasons, we affirm the trial court judgment in all respects.
The facts are not in dispute. Mr. Bundrick and Cajun Pride, Inc. (hereinafter collectively referred to as "the plaintiffs") own interests in seven tracts of immovable property located in St. Martin Parish, Louisiana. All seven tracts at issue have been the subject of oil and gas production in the past and are located in what is referred to as the Anse le Butte Field. On March 9, 2006, Mr. Bundrick and Cajun Pride filed a suit for damages against twelve named defendants,
In addition to property damages and general damages for mental anguish, distress, annoyance, discomfort and inconvenience, diminution in property value, and stigma, the plaintiffs sought punitive damages pursuant to former La.Civ.Code art. 2315.3,
Despite the fact that the record before us is voluminous, only four of the twelve defendants are involved in this appeal: Four Star Oil and Gas Company, Chevron U.S.A., Inc., Great Southern Oil & Gas Company, Inc., and BP America Production Company (hereinafter referred collectively as "the defendants"). The trial court heard argument on the motions and granted judgment on April 23, 2014. The trial court then executed a written judgment corresponding to its oral reasons for judgment on May 13, 2014,
In their appeal, the plaintiffs assert twelve assignments of error:
It is well settled that "[a]ppellate review of the granting of a motion for summary judgment is de novo, using the identical criteria that govern the trial court's consideration of whether summary judgment is appropriate." Smitko v. Gulf S. Shrimp, Inc., 11-2566, p. 7 (La.7/2/12), 94 So.3d 750, 755. Summary judgment proceedings are "favored" and "designed to secure the just, speedy, and inexpensive determination of every action, except those disallowed by Article 969." La.Code Civ.P. art. 966(A)(2). Additionally, "[a]fter adequate discovery or after a case is set for trial, a motion which shows that there is no genuine issue as to material fact and that the mover is entitled to judgment as a matter of law shall be granted." La.Code Civ.P. art. 966(C)(1).
When the summary judgment hearing began, the parties stipulated that the plaintiffs acquired the immovable property after the expiration of the mineral leases at issue and that they did so without obtaining an assignment of their predecessor-in-interest's rights to proceed against the responsible parties for contamination to the land. Without a genuine issue of material fact, the only issue before the trial court was whether the defendants were entitled to judgment as a matter of law. In granting the defendants summary judgment relief and dismissing them from the litigation, the trial court found that the subsequent purchaser rule precluded any right of action by the plaintiffs against the defendants.
The supreme court performed an extensive analysis of the subsequent purchaser rule in Eagle Pipe and Supply, Inc. v. Amerada Hess Corp., 10-2267, 10-2272, 10-2275, 10-2279, 10-2289 (La. 10/25/11), 79 So.3d 246, a case dealing with surface leases and relied on by the trial court in the case before us. The supreme court described the subsequent purchaser rule as:
Id. at 256-57.
The supreme court then performed an exhaustive review of the law pertaining to property rights and obligations as they apply to the subsequent purchaser rule, and reviewed the jurisprudence on the subject. In doing so, the supreme court concluded that damage to property results in damage to a property owner's right of enjoyment in the property, which is a right of ownership and, thus, a real right in the property. Therefore, the tortfeasor owes an obligation to the owner of the property and that obligation affords the owner a right to demand a performance from the tortfeasor, that of the payment of damages. The supreme court further concluded, however, that the right to sue is a personal right and, thus, is only enforceable by the property owner against the tortfeasor. Should the property pass to a subsequent owner, that owner has no right to sue the tortfeasor for the previously inflicted damage absent an assignment or subrogation of the prior owner's personal right to sue for that damage.
Despite reaching this conclusion, the supreme court noted that the Eagle Pipe dispute dealt specifically with surface leases and stated that it "express[ed] no opinion as to the applicability of our holding to fact situations involving mineral leases or obligations arising out of the Mineral Code." Id. at 281, n. 80.
This reference to the Louisiana Mineral Code is obviously a reference to La.R.S. 31:16, which provides:
In Frank C. Minvielle, L.L.C. v. IMC Global Operations, Inc., 380 F.Supp.2d 755, 774-775 (W.D.La.2004), the federal district court reviewed the jurisprudence and the Mineral Code and categorized a mineral right as being "a limited personal servitude," which creates real rights in favor of the mineral lessee that protects the lessee's rights to the same extent as that of the property owner, which are protected against the world. However, the court pointed out that while the right of the mineral lessee is akin to a real right, the right of the mineral lessor is personal. Thus, the court concluded, a subsequent purchaser has no standing to raise the prior owner's cause of action against the mineral lessee absent "some form of privity of contract, assignment of rights, or [as] the beneficiary of a stipulation pour autri." Id. at 776.
In the recent case of Duck v. Hunt Oil Co., 13-628 (La.App. 3 Cir. 3/5/14), 134 So.3d 114,
Id. at 119.
However, in the recent case of Global Marketing Solutions, LLC v. Blue Mill Farms, Inc., 13-2132 (La.App. 1 Cir. 9/9/14), 153 So.3d 1209, the first circuit reached an opposite result. In that case, a subsequent landowner sought damages for contamination to its property arising from oil and gas activities conducted by previous mineral lessees, and the trial court denied the mineral lessees' motion for summary judgment and exceptions of no right of action. The trial court's judgment was based on the first circuit's holding in Marin v. Exxon Mobil Corp., 08-1724 (La. App. 1 Cir. 9/30/09), 2009 WL 7004332 (unpublished opinion),
Upon remand, the trial court granted summary judgment in favor of the mineral-lessee defendants and dismissed the plaintiff's claims with prejudice. Global Mktg., 153 So.3d 1209. The matter then returned to the first circuit on appeal, and in interpreting Eagle Pipe, the first circuit stated:
Id. at 1215.
We agree with the first circuit that the supreme court's instruction to the trial court in Global Marketing is a recognition that the subsequent purchaser rule applies in matters involving mineral leases. See Boone v. Conoco Phillips Co., 13-1196 (La. App. 3 Cir. 5/7/14), 139 So.3d 1047. Accordingly, we find no merit in Bundrick's first, sixth, and tenth assignments of error.
In its remaining assignments of error, Bundrick basically argues that it has a cause of action for the remediation of its contaminated property pursuant to Article 11 of the Louisiana Mineral Code, because mineral rights are real rights and, as such, pass with the property to a subsequent purchaser without the need for specific assignment or subrogation. We find no merit in this argument.
As previously held, despite the language of La.R.S. 31:16 stating that mineral rights are real rights, that status is reserved to the mineral lessee and not the mineral lessor.
Louisiana Revised Statutes 31:11(A) provides that:
Those rights consist of both parties acting in good faith; the mineral lessor delivering the property and doing nothing to disrupt the mineral lessees' actions pursuant to the mineral lease; and the mineral lessee acting as a reasonably prudent operator in furthering his plans under the lease. Although the Mineral Code focuses on transactions involving the lessee's interest, it is generally silent with regard to transactions involving the lessor's interest. However, it does state, "To the extent of the interest acquired, an assignee or sublessee acquires the rights and powers of the lessee and becomes responsible directly to the original lessor for performance of the lessee's obligations." La.R.S. 31:128. There is no corresponding statute pertaining to a subsequent owner's obligations towards the lessee, original or otherwise.
In Global Marketing, 153 So.3d at 1216, the first circuit, in addressing a similar argument, stated:
Accordingly, we find no merit in Bundrick's remaining assignments of error.
For the foregoing reasons, we affirm the trial court's grant of summary judgment in all respects. We assess all costs of this appeal to Vincent Charles Bundrick and Cajun Pride, Inc.