COOKS, Judge.
Plaintiffs, who consist of several dozen buyers and/or processors of crawfish, appeal the trial court's granting of the defendants' motions for summary judgment, which dismissed the remaining claims of the buyer/processor plaintiffs. In Phillips v. G & H Seed Co., 10-1405 (La.App. 3 Cir. 5/11/11), 66 So.3d 507 (hereafter referred to as Phillips II), a panel of this Court reversed the summary judgment grants, and remanded the matter back to the trial court for trial on the merits. The panel in Phillips II reversed on the grounds that the trial court based its granting of the summary judgments solely on this Court's prior opinion in Phillips v. G & H Seed Co., 08-934 (La.App. 3 Cir. 4/8/09), 10 So.3d 339, writ denied, 09-1504 (La.10/30/09), 21 So.3d 284 (hereafter referred to as Phillips I). In Phillips I, a panel of this Court held the plaintiffs in that case (who were three specifically selected buyers and/or processors of crawfish) "failed to prove a proprietary interest in the crawfish crop destroyed by the use of ICON.... [and as such] the plaintiffs' cause must fail." Phillips I, 10 So.3d at 344. In Phillips II, we held "a per se proprietary interest rule is not the law of Louisiana in a products liability case" and the jurisprudence of this state has consistently mandated "a case specific duty-risk analysis be undertaken to determine the scope and extent of the defendants duties in this case." Phillips II, 66 So.3d at 516. Defendants, Bayer CropScience LP, its employee/salesman, Michael Redlich, and several companies who purchased the allegedly defective insecticide from Bayer CropScience, LP, applied for writs to the Louisiana Supreme Court. After considering the writ application, the supreme court "remanded to the Third Circuit Court of Appeal for en banc opinion after
After en banc consideration, a majority of the judges vote to adopt Phillips II as the controlling opinion from this Court, which we reissue this date:
Plaintiffs, who consist of several dozen buyers and/or processors of crawfish, appeal the trial court's granting of the defendants' motions for summary judgment, which dismissed the remaining claims of the buyer/processor plaintiffs. For the following reasons, we reverse the summary judgment grants, and remand the matter back to the trial court for trial on the merits.
This protracted and contentious litigation had its genesis in the late 1990's, when Bayer CropScience LP and its employee, Michael G. Redlich, marketed the insecticide ICON in Louisiana. Certain companies purchased ICON, applied it to rice seed, and sold the ICON-coated rice seed to rice farmers in Louisiana. Many of these rice farmers also raised crawfish in their rice ponds.
Essentially, Plaintiffs allege the ICON coated rice seed was introduced into the rice fields/crawfish ponds of South Louisiana in 1999. The active ingredient in ICON was fipronil, which is a chemical used to control arthropods and is used in a variety of compounds to control insects such as termites, fleas, mole crickets and the rice water weevil. According to the plaintiffs, the introduction of ICON killed and/or sterilized the crawfish, both wild and pond-raised. According to the plaintiffs, as a result of the contamination, Louisiana's annual farm-raised crawfish crop dropped from over 60 million pounds to approximately 10 million pounds.
Defendants argued the use of ICON is compatible with crawfish farming, provided the farmer allows for a suitable waiting period between planting the ICON-treated rice seed and introducing crawfish to the rice field. Defendants also argued the record breaking drought in Louisiana during the time in question was the reason for the decline in crawfish production.
In 1999, a class action lawsuit was filed on behalf of all crawfish farmers in Louisiana, Craig West, et al. v. G & H Seed Co., et al., No. 99-C-4984-A in the Twenty-Seventh Judicial District Court, Parish of St. Landry. That lawsuit was eventually settled.
Thereafter a class action suit was initiated on behalf of Patrick Phillips and Atchafalaya Processors, Inc, individually and on behalf of all others similarly situated. This class action suit was brought by crawfish buyers, processors and resellers. Named as Defendants were Bayer Crop-Science LP and Michael Redlich. Also named as Defendants were the companies who purchased the ICON, applied it to the rice seed, and sold it to the farmers: G & H Seed Co., Inc., Crowley Grain Drier, Inc., Delhi Seed Co., Inc., Terral Seed Co., Inc., Mamou Rice Drier & Warehouse, Inc.
Plaintiffs eventually abandoned their efforts to certify either a plaintiff or defendant class. Thereafter, through a series of supplemental and amending petitions, the matter proceeded as a cumulation of individual actions comprising the claims of approximately 72 individual crawfish buyers, resellers, and processors.
Bayer filed an exception of no cause of action, contending in order to maintain a delictual action against a manufacturer for property damage caused by a defective product, the claimants must have some proprietary interest in the damaged property. Bayer argued that since none of the
Because of the enormity of trying all 72 actions at once, the trial court determined it would be best to try the actions of four plaintiffs, three to be chosen by the plaintiffs and one chosen by the defense. This number was eventually reduced to three plaintiffs: Patrick Phillips (d/b/a Phillips Seafood), James Bernard (d/b/a J. Bernard Seafood Processors, Inc.), and Lisa Guidry (d/b/a Guidry's Crawfish).
After a full trial on the merits, Plaintiffs filed a Motion for Directed Verdict on whether the Defendants' duty extended to these buyer/processor plaintiffs. Finding there was an "ease of association from farmer to wholesaler" such that farmers and processors are "inextricably interwoven and symbiotic in their relationships," the trial court granted the Motion for Directed Verdict. The jury then returned a verdict in favor of each of the three plaintiffs, assigning 94% fault or causation to Bayer, 1% to Bayer salesman Michael Redlich, and 4% to the drought that occurred in South Louisiana. It awarded $900,000 to plaintiff Phillips, $750,000 in damages to plaintiff Bernard, and $100,000 to plaintiff Guidry.
Defendants timely filed a Motion for Judgment Notwithstanding the Verdict, New Trial, and Remittitur. The motions were denied and Defendants filed an appeal with this Court.
A five judge panel of this Court reversed the trial court's directed verdict on scope of duty and set aside the jury's verdict. Phillips v. G & H Seed Co., 08-934 (La. App. 3 Cir. 4/8/09), 10 So.3d 339 (hereafter referred to as Phillips I). The majority reasoned that since "the plaintiffs in this case failed to prove a proprietary interest in the crawfish crop destroyed by the use of ICON. . . . the plaintiff's cause must fail." Id. at 344. The majority did not undertake a duty-risk analysis or apply the PPG factors as done by the trial court. Instead it applied the per se exclusionary/proprietary interest rule of Robins Dry Dock. Plaintiffs also note the majority did not explain what would be "sufficient" to establish a proprietary interest under Louisiana law.
Judge Saunders dissented from the majority opinion, finding it contradicted the Louisiana Supreme Court's finding in 9 to 5 Fashions, Inc. v. Spurney, 538 So.2d 228, 234 (La.1989), that "the PPG case abrogat[ed] the rule that flatly prohibited recovery for intangible economic loss produced by negligent conduct." Judge Saunders found "the only conclusion a reasonable juror could reach was that Bayer had reckless disregard for the potential ramifications to this state's crawfish industry, as a whole, when crawfish farmers used ICON." Phillips I, 10 So.3d at 345. This callousness, Judge Saunders concluded, was sufficient to support the trial court's directed verdict on scope of duty. Further, Judge Saunders noted that even if one interprets PPG as the majority does, it was factually distinguishable from the
Plaintiffs' Application for Rehearing to this Court was denied. Similarly, the application for a Writ of Review to the Louisiana Supreme Court was denied. Phillips v. G & H Seed Co., 09-1504 (La.10/30/09), 21 So.3d 284. Following these denials, Defendants filed Motions for Summary Judgment against all the remaining buyer/processor plaintiffs based on the proprietary interest requirement espoused by this Court's opinion in Phillips I.
At the hearing on the summary judgment motions, Plaintiffs argued the duty-risk analysis set forth in the PPG case was controlling in this case. Plaintiffs also contended even if the trial court was compelled to enforce a proprietary interest requirement pursuant to this Court's decision in Phillips I, that term had never been defined by our Supreme Court to require ownership to assert a claim for economic damages. Plaintiffs complained they were at a loss to understand exactly what material fact(s) were necessary to establish a level or degree of interest sufficient to allow them to prevail. Nonetheless, in an attempt to meet this burden of proof, Plaintiffs submitted numerous sworn affidavits attesting to the nature and extent of the buyers/processors involvement in the Louisiana crawfish industry.
In oral reasons for judgment, the trial court voiced its disagreement with the opinion in Phillips I. However, believing it was constrained by that ruling, the trial court granted the motions for summary judgment and dismissed the remaining claims of the buyer/processor plaintiffs.
Defendants contend that this Court's previous decision in Phillips I has already decided the legal issues raised in this appeal,
We will first address Defendants' argument that this Court's decision in Phillips I is law of the case, and should not be revisited. For the following reasons, we do not find the law of the case doctrine applicable here.
Generally, the law of the case doctrine applies to prior rulings of the appellate court and an appeals court will not reconsider its own ruling in the same case. Gentry v. Biddle, 05-61 (La.App. 3 Cir. 11/2/05), 916 So.2d 347. However, the application of this doctrine is discretionary and an appellate court may reconsider an issue if the prior decision was "palpably erroneous or its application would result in manifest injustice." Id. at 352 (quoting Griggs v. Riverland Med. Ctr., 98-256, p. 6 (La.App. 3 Cir. 10/14/98), 722 So.2d 15, 19, writ denied, 99-385 (La.5/28/99), 735 So.2d 622).
We note that earlier in the procedural history of this case, Defendants filed an exception of no cause of action asserting, for Plaintiffs to maintain a delictual action, they must first demonstrate some proprietary interest in the damaged property. The trial court overruled the exception, rejecting the per se exclusionary/proprietary interest rule of Robins Dry Dock in favor of the policy driven duty/risk analysis set forth by the Louisiana Supreme Court in PPG Industries. A three member panel of this Court unanimously denied writs, finding no error in the trial court's decision. However, on appeal a five-judge panel (with one dissenting judge) reached an opposite conclusion, finding "the plaintiffs case [sic] must fail" because they "failed to prove a proprietary interest in the crawfish crop." Phillips I, 10 So.3d at 344. Finding this Court's previous rulings on this issue are equivocal, we choose not to apply the law of the case doctrine.
We initially make the following observations at the outset of our discussion on proprietary interest: (1) the trial court unquestionably based its ruling granting the summary judgments solely on this Court's prior decision in Phillips I, 10 So.3d 339; (2) although the opinion in Phillips I discussed PPG and the duty-risk method, it did not engage in any such duty-risk analysis; instead it resurrected the bright-line litmus test that required a proprietary interest in the damaged property that was abrogated in PPG.
The issue in this case boils down to whether Louisiana will apply a bright-line litmus test mandating proprietary interest in damaged property as a prerequisite to recovery, or do Louisiana courts apply a multi-factor, policy-driven, duty-risk analysis when determining the scope and extent of a defendant's duties under the Louisiana Products Liability Act for particularly foreseeable economic damages. Finding our previous opinion in Phillips I failed to consider the instruction of the Louisiana Supreme Court's opinion in PPG, which directed that a duty-risk analysis should be performed to determine the scope and extent of a particular defendant's duties,
Our review of the jurisprudence of this State indicates that the per se exclusionary/proprietary interest rule illustrated in Robins Dry Dock is not the law of this state. Rather, a duty-risk analysis was adopted by the Louisiana Supreme Court in PPG.
In PPG, the defendant's dredging operations damaged a gas pipeline owned by Texaco. Texaco had a contract to supply gas to PPG. As a result of the damage to the pipeline, PPG was forced to obtain gas from other sources. PPG sued Bean Dredging, seeking recovery of the additional costs expended to obtain gas. Although the supreme court ultimately held PPG's damages did not fall within the scope of the duty not to damage a pipeline owned by Texaco, it did so after undertaking a duty-risk analysis to determine whether that particular risk fell within the scope of the duty. The court stated:
PPG Indus., Inc., 447 So.2d at 1061.
The court in PPG did caution that a party who negligently causes injury to property will not always be held legally responsible to all persons for all damages flowing in a "but for" sequence, because the list of possible victims might be "expanded indefinitely." Thus, the court must "necessarily make a policy decision on the limitation of recovery of damages." Id. at 1061-62.
In his dissent in PPG, Justice Calogero "applaud[ed] the majority's applying a duty risk analysis in the consideration of tort recovery . . . and [in] abandoning the per se exclusion of such damages which our courts have heretofore adopted on the heels of Robins and Forcum-James [Co. v. Duke Transportation Co., 231 La. 953, 93 So.2d 228 (1957) ]."
The cases since have consistently followed the duty-risk analysis set forth in PPG. In Cleco Corp. v. Johnson, 01-175 (La.9/18/01), 795 So.2d 302, a negligent truck operator backed into a utility pole causing a power surge that ultimately caused damages to the property of Cleco's customers. Cleco then paid for the customers' damages and filed suit to recover
The court in Cleco, cited with approval this Court's decision in Istre v. Fidelity Fire & Casualty Ins. Co., 628 So.2d 1229 (La.App. 3 Cir.1993), writ denied, 634 So.2d 852 (La.1994). In Istre, a backhoe operator working for a construction company came into contact with electrical lines causing a power outage that knocked out electrical power to a traffic signal four miles away. Approximately one hour later, the plaintiff was involved in an accident due to the traffic light outage. The plaintiff subsequently filed suit against several parties, including the construction company. After utilizing a duty-risk analysis, this Court found the construction company liable, stating:
Id. at 1232.
As noted by Judge Saunders in his dissent in Phillips I, the supreme court in 9 to 5 Fashions, Inc. v. Spurney, 538 So.2d 228, 234 (La.1989), specifically found that "the PPG case abrogat[ed] the rule that flatly prohibited recovery for intangible economic loss produced by negligent conduct."
In Roberts v. Benoit, 605 So.2d 1032 (La.1991), the supreme court reiterated that the extent of protection owed a particular plaintiff is determined on a case-by-case basis to avoid making a defendant an insurer of all persons against all harms. The Roberts court found that "[r]egardless if stated in terms of proximate cause, legal cause, or duty, the scope of the duty inquiry is ultimately a question of policy as to whether the particular risk falls within the scope of the duty." Id. at 1044.
We also note the comments of several commentators, that have expressed both the conclusion that PPG's utilization of a case by case duty-risk analysis is the law in Louisiana, and that it is the preferable
Plaintiffs also call this Court's attention to the following language from a leading treatise on tort law in this state:
Frank L. Maraist & Thomas C. Galligan, Louisiana Tort Law, § 5.09 (1996).
Our review of the jurisprudence establishes that the Louisiana Supreme Court in PPG, and the cases that followed, abandoned the per se no duty rule espoused in Robins Dry Dock and Forcum-James in favor of a duty-risk analysis. Rather than "taking a mechanical approach to the unreasoned conclusion that the petition for economic loss caused by negligent interference with contractual relations fails to state a cause of action," the supreme court concluded a more nuanced, case specific, duty-risk analysis was preferable. PPG, 447 So.2d at 1061. PPG clearly shows the supreme court did not intend to close the door to recovery for all claims of economic harm arising out of damage to what is technically a third person's property, i.e., "proprietary interest." It made such recovery available in certain circumstances for limited groups of people with a special interest in or relationship with the damaged property, whose damages were a particularly foreseeable result of the tortious conduct of the defendant. Although the opinion in Phillips I discussed PPG and its utilization of a duty-risk method of analysis, the court failed to perform any such duty-risk analysis, and instead concluded the "plaintiffs' cause must fail" because they failed to prove a proprietary interest in the damaged property. Phillips I, 10 So.3d at 344. This was contrary to the law.
For the foregoing reasons, we reverse the trial court's grant of the summary judgments because a per se proprietary interest rule is not the law of Louisiana in a products liability case. Our Louisiana Supreme Court in PPG Indus. Inc., 447 So.2d 1058, mandates a case specific duty-risk analysis be undertaken to determine the scope and extent of the defendants' duties in this case. As the trial court based its granting of the summary judgments solely on this Court's opinion in Phillips I, we now reverse and remand this case back to the trial court for further proceedings consistent with this opinion. As this case is before us on grants of summary judgment, it is not appropriate for this Court to determine or even speculate on the result of the required duty-risk
THIBODEAUX, Chief Judge, concurs and assigns additional reasons.
PAINTER, J., concurs and assigns written reasons.
DECUIR, J., dissents and assigns written reasons.
PICKETT, J., dissents and assigns written reasons.
EZELL, J., dissents for the reasons assigned by DECUIR, J., and PICKETT, J.
GREMILLION, J., dissents for the reasons assigned by DECUIR, J., and PICKETT, J.
GENOVESE, J., recused.
THIBODEAUX, Chief Judge, concurring for additional reasons.
I fully agree with the majority opinion. I add this brief comment to provide an additional reason for reversal. While I do not agree that the proprietary interest rule is the law in Louisiana, the plaintiffs did not attempt to prove proprietary interest in Phillips I. This case is properly remanded to allow them to prove that standard, if they choose to do so, as an additional supplement to a duty-risk analysis.
PAINTER, Judge, concurring.
I feel that a duty risk analysis is applicable here. The question is how far the risk extends. All parties were not in the same relationship with the crawfish farmers. Many of these cases have different relationships and should not be lumped together. Issues of fact remain. Therefore, summary judgment is not appropriate. I therefore concur in the majority opinion herein.
DECUIR, J., dissenting.
I dissent for the reasons assigned by Judge Pickett, and for the additional reasons herein.
This is certainly not a new issue for this court. In PPG Industries, Inc. v. Bean Dredging Corp. (La.App. 3 Cir.1982), 419 So.2d 23, 24-25, this court said:
The supreme court affirmed our decision. However, without overruling Forcum-James, the majority discussed the policy reasons which barred recovery under a duty risk analysis. PPG Industries, Inc. v. Bean Dredging, 447 So.2d 1058 (La.1984). Despite comments by Justice Calogero in his dissent that the majority was abandoning the rule, and the majority's characterization in 9 to 5 Fashions, Inc., v. Spurney, 538 So.2d 228 (La.1989), of PPG as abrogating the per se exclusionary rule, Forcum-James has not been overruled.
Accordingly, we are constrained to follow the actual holdings of the supreme court. Just as the five-judge panel of this court did in Phillips, 08-934 (La.App.3 Cir. 4/8/09), 10 So.3d 339, writ denied, 09-1504 (La. 10/30/09), 21 So.3d 284, and just as the federal court did in Wiltz v. Bayer Crop-Science, 645 F.3d 690 (5th Cir.2011). Today
The trial court should be affirmed.
PICKETT, J., dissenting.
I dissent for the reasons assigned by Judge Decuir, and for the additional reasons herein.
Having reviewed the materials and the transcript of the hearing on the motion for summary judgment in the court below, I continue to believe that the analysis in Phillips v. G & H Seed Co., Inc., 08-934 (La.App. 3 Cir. 4/8/09), 10 So.3d 339, writ denied, 09-1504 (La.10/30/09), 21 So.3d 284, is correct. In that case, we dismissed the claims of three bellwether plaintiffs after a full jury trial, finding that they had no cause of action. These three plaintiffs were chosen because their claims were representative of the claims of the defendants before us today. On remand, the remaining plaintiffs had an opportunity to show that they had a proprietary interest in the crawfish and were differently situated than the bellwether plaintiffs. Though the trial court noted that he disagreed with our previous decision, he rightly found that he was bound to follow it and granted the motion for summary judgment and dismissed the claims. The trial court was correct. These buyers and processors of the crawfish cannot recover from the defendants. There were no genuine issues of material fact, and there were strictly legal arguments presented below. The trial court should be affirmed, and the plaintiffs claims should be dismissed.