GREMILLION, Judge.
This dispute pits the defendant/appellant, Murphy Exploration & Production Company-USA, against the plaintiffs/appellees, Robert Wayne Hackett and Kaye Breedlove Hackett.
This dispute has appeared before this court before. In Hackett v. Murphy Exploration & Prod. Co.-USA, 14-855 (La.App. 3 Cir. 2/4/15), 158 So.3d 222, a panel of this court reversed a partial summary judgment in favor of the Hacketts that recognized them as owners of certain property subject to an order establishing a mineral production unit, finding that there was an ambiguity in the deed by which their ancestor in title allegedly acquired the property in question, which lies beneath a roadway over which the Parish of Vermilion has a right of way. The facts as found by that panel regarding the chain of title are important:
Hackett, 158 So.3d at 223-25. The ambiguity that precluded summary judgment is found in the "bounded by" language in the first paragraph and the "and also less" language in the second. Before the 1956 enactment of La.R.S. 9:2791, land descriptions that were described as being bounded by waterways, canals, roads, and the like were held to not include the vendor's interest beneath those artificial boundaries. See Lamson Petroleum Co. v. Hallwood Petroleum, Inc., 99-1937 (La.App. 3 Cir. 5/10/00), 763 So.2d 40, writ denied, 00-2305 (La. 11/27/00), 775 So.2d 446. Applying this principle to the matter would favor the Hacketts' claim, as the act of sale would thereby have not conveyed Stansel's interest in the property beneath the roadway. However, this conflicted with the language excluding the roadway strip, because, as the court noted, a long series of Louisiana cases held that such acknowledgements of servitudes operate to convey ownership in such property subject to servitudes. Hackett, 158 So.3d 222.
Murphy then filed a "Third Party Petition" naming Woods' heirs as defendants. This petition alleged that if Murphy owed the Hacketts the royalties in question, Woods' heirs owed the return of those royalties to Murphy. Six of the ten heirs were served with the petition, but none answered it. This petition was filed without leave of court.
Murphy then filed an exception of prescription in which it argued that the Hacketts' claims are subject to liberative prescription of ten years; thus, any claim they had to royalties before 2002, ten years before their suit was filed, are barred. The trial court maintained this exception.
The Hacketts and Murphy entered into joint stipulations for trial purposes:
Lastly, the parties stipulated to the amounts that might be owed the Hacketts under various scenarios, ranging between $1,660,480 and $3,209,633.
Following trial on the merits, the trial court ruled that the property belonged to the Hacketts and that the 2010 agreement between them and Grand Anse nullified their 2004 agreement. The trial court, in a judgment signed on March 8, 2016, awarded the Hacketts mineral royalties of $2,411,134
Murphy assigns the following as errors:
The Hacketts assert that the following constitute errors of the trial court:
Louisiana Code of Civil Procedure Article 641 provides:
Murphy asserts that Woods' heirs must be joined in the matter pursuant to the language of Article 641. We agree. The judgment in this matter provided in pertinent part:
The Hacketts rightly counter that Murphy itself made Woods' heirs parties to the suit. This rendered the exception moot. Accordingly, this assignment of error lacks merit.
Murphy's second assignment of error posits that the trial court erred in finding that Stansel retained ownership of the roadbed. This court has already held that the 1921 conveyance between Stansel and Woods was ambiguous. Hackett, 158 So.3d 222. Accordingly, the trial court was tasked with the unenviable exercise of determining the intent of the parties to a 1921 contract. The trial court was aided by the introduction of extrinsic evidence that included documents whereby Stansel procured the property in question in 1911 and the judgment of possession whereby Woods' heirs succeeded to property in the area. The judgment of possession also provided that the property was bounded by the public road on the southwest. As explained by the Hacketts' expert, Mr. Leonard J. Chauvin, Jr., a civil engineer and land surveyor, and as instructed by the Lamson case, the roadway that sits atop the property was that described in the first paragraph of the description in the Stansel/Woods act of sale ("bounded.... on the Southwest by the Public Road...."), would not have been conveyed in the sale. Accordingly, as paradoxical as it may seem, the land beneath the road was not conveyed by Stansel. This assignment of error lacks merit.
Murphy's third assignment of error addresses the damages awarded the Hacketts. Specifically, Murphy asserts that the trial court erred in finding that the 2010 Grand Anse/Hackett agreement nullified the 2004 Grand Anse/Hackett agreement. Murphy argues that under the case of Eagle Pipe and Supply, Inc. v. Amerada Hess Corp., 10-2267, 10-2272, 10-2279, 10-2289 (La. 10/25/11), 79 So.3d 246, the rights asserted during the existence of the agreement between the Hacketts and Grand Anse are personal to Grand Anse and cannot be conveyed to the Hacketts except by assignment. We disagree.
In Eagle Pipe, the plaintiffs were landowners who acquired property and sued various defendants for contamination that occurred before they purchased the property. The court noted that the right to sue over property damages arises when the property was damaged, not when the damage was discovered. The right arose in tort and was a personal right. It only existed as long as the landowner owns the property and is not conferred absent an assignment or subrogation from him.
In Eagle Pipe, the act of sale included the following, "[the sellers] do by these presents sell, transfer and deliver, with full guarantee of title and free from all encumbrances, and with full subrogation to all their rights and action of warranty against previous owners." Id. at 281. The court found that this language was "not an express assignment of personal rights to the new owner." Id. Rather, this language addressed warranty of title to the property. In this matter, the 2010 Grand Anse/Hackett
The agreement then reiterated that it was effective as of November 11, 2004.
Murphy argues that giving retroactive effect to this provision is prohibited by King v. Strohe, 95-656 (La.App. 3 Cir. 5/8/96), 673 So.2d 1329. In King, the heirs of Mr. Strohe decided to effect an exchange under which two tracts would be created. One tract would belong to Mrs. King, Mr. Strohe's sister, and the other to his remaining heirs and his wife. All parties reserved their mineral rights. At some point later, minerals were discovered, and Mrs. King and the remaining Strohe heirs executed leases. In 1981, sixteen years after the exchange, prospectors obtained leases from the other Strohe heirs, but not from Mrs. King. Production began in 1984, but the operator of the well treated Mrs. King as though her mineral servitude had prescribed.
In 1988, another group discovered that Mrs. King may have a valid interest in the property's minerals and convinced Mrs. King to execute a lease of her interests retroactive to 1984. They then commenced an action to account for and reimburse Mrs. King's interests under La.R.S. 30:10(A)(3). The unit operator argued that the statute did not apply because of the retroactive lease Mrs. King executed. Relying upon La.Civ.Code art. 1839
The Hacketts counter that Murphy did not rely upon the 2004 sale, so it is not shielded by the public records doctrine. Louisiana Civil Code Article 3338 codifies the public records doctrine.
The public records doctrine holds that a third party may rely upon "the absence from the public records of those interests that are required to be recorded." Cimarex Energy Co. v. Mauboules, 09-1170, p. 20 (La. 4/9/10), 40 So.3d 931, 944.
We find the public records doctrine inapplicable to this proceeding. In 1997, when Murphy took over as operator of the unit, the 2004 sale from the Hacketts to Grand Anse had not been confected. The Hacketts did not assert their claims against Murphy until they filed suit in 2012, after the 2010 contract abrogated or nullified the 2004 contract. Under the public records doctrine, as already stated, a party is only entitled to rely upon the absence of something reflecting an interest in a piece of property. Here, there was no absence of such a document from the public records. The 2004 agreement was duly recorded. The 2010 document, in our minds, effectively restored the Hacketts' claim to the mineral rights by assignment. That assignment was a new and additional document, but it was not the first and only document. This assignment of error has no merit.
Grand Anse and the Hacketts confected a valid sale of the mineral interests in the property in 2010, retroactive to 2004. Murphy relies upon Eagle Pipe for the proposition that the Hacketts have no right of action to recover royalties during the 2004-10 period. We find that Murphy is applying an overly-expansive interpretation of Eagle Pipe. The contractual language in the 2010 Grand Anse/Hackett contract operated to effectively assign Grand Anse's rights against Murphy. This exception is overruled.
Murphy also complains that the trial court erred in awarding legal interest from 2002. Awards of legal interest are governed by La.Code Civ.P. art. 1921, which provides that the trial court shall award interest as prayed for or as provided for by law. Under Louisiana Civil Code article 2000, damages for delay in performance on a sum due is measured by interest on that sum from when it is due. While the parties stipulated to the amount of damages the Hacketts would be owed under various scenarios, those sums represented the total amount of damages owed over time and depended on whether the Hacketts were owed royalties beginning in 1997 or in 2002. Regardless of when Murphy's obligation to the Hacketts began, though, it was not obligated for the entire amount of the judgment, but for their share of the production sales within 180 days of those sales. La.R.S. 30:10(A)(3). Accordingly, we remand the matter to the trial court for proper calculation of judicial interest on the award, with interest determined based upon the amount of each production sale and beginning 180 days from the date of each sale until paid, beginning in 2002.
The Hacketts' three assignments of error all complain of the trial court's grant of Murphy's exception of prescription. They first argue that Murphy had an ongoing obligation to ascertain ownership of the minerals, and that Murphy's failure to fulfill this obligation precluded the running of prescription. The law has settled on the proposition that an unleased landowner's cause of action for accounting
The Hacketts also maintain that Murphy's actions warrant the court applying the doctrine of contra non valentem. The doctrine establishes that prescription does not run against a plaintiff under four situations:
Corsey v. State, through Dep't of Corr., 375 So.2d 1319, 1321-22 (La. 1979)(Footnotes omitted).
The Hacketts argue that the actions of Murphy, its predecessor as operator of the unit, and their counsel warrant application of contra non valentem. Specifically, the Hacketts contend that Great River, through its attorney, and Murphy, through the same attorney, concealed the Hacketts' interest in the property despite possessing title opinions from two lawyers opining that they were owners of the property.
Thus, the Hacketts argue that Murphy acted effectually to prevent them from availing themselves of their cause of action. We disagree. If failure to recognize the legitimacy of another litigant's claim suspended the tolling of prescription, no claim brought before the courts would be susceptible of prescription. Courts exist to peacefully resolve disputes between parties who refuse to recognize the legitimacy of their opponents' positions. See Nixon v. Fitzgerald, 457 U.S. 731, 102 S.Ct. 2690, 73 L.Ed.2d 349 (1982).
In the present matter, Mr. Hackett opened the succession of his grandparents, through whom he became the owner of the property in question. In 1992, he was advised that he was probably the owner of the property. In fact, he executed a lease of his mineral interests in the property to Mr. John P. Newman on January 23, 1992. A reasonable person must ask himself why a third party would give payment to lease property from someone who did not own it. Further, the Hacketts later retained an attorney to whom they assigned a royalty interest in the property in exchange for investigating his interest in the property. Murphy played no part in that attorney's opinion that the Hacketts enjoyed little chance of prevailing in a claim to the property.
The Hacketts also contend that their claim is imprescriptible because they are asserting a real right. This ignores that the only real right the Hacketts are asserting is their claim of ownership of the land. That claim, it is true, does not prescribe. The right to recover under La.R.S. 30:10 prescribes in ten years, as noted above. These assignments of error lack merit. The trial court correctly held that any demands the Hacketts enjoyed under La.
Murphy, in adding the Woods heirs as third-party defendants to the action, rendered its exception of nonjoinder moot. The trial court correctly determined that the Hacketts own the property beneath the Vermilion Parish road. The trial court correctly determined that the Hacketts' demands for proceeds from the sale of the minerals beneath the road was subject to ten years liberative prescription. The doctrine of contra non valentem is not applicable to the Hacketts' claims. However, the trial court did err in awarding judicial interest from 2002, and we remand the matter for calculation of legal interest from 180 days from the date of each production sale until paid. All costs of this appeal are taxed to defendant/appellant, Murphy Exploration & Production Company-USA.