KEATY, Judge.
Plaintiffs/landowners in this legacy litigation
According to a Petition for Damages filed on March 3, 2011, Plaintiffs own property in Cameron Parish, Louisiana, (hereinafter referred to as "the property"), which had sustained both surface and sub-surface contamination as a result of the historical oil and gas exploration and production activities of four named defendants, including BP, or their predecessors in interest. Plaintiffs sought remediation and other damages based on causes of action sounding in tort and in breach of contract and/or the Mineral Code.
Several months before a jury trial that was scheduled to take place in the fall of 2015, BP filed a motion for summary judgment seeking to have Plaintiffs' claims against it dismissed on the basis of prescription. Plaintiffs opposed the motion, asserting that they lacked actual or constructive knowledge of their causes of action until less than a year before they filed suit. Following a hearing, the trial court issued written reasons for judgment, and later a Final Judgment, granting BP's motion for summary judgment, dismissing Plaintiffs' claims against it, and designating the judgment as final and appealable under La.Code Civ.P. Art. 1915(A). Plaintiffs timely appealed.
Summary judgment "shall be rendered... if the pleadings, depositions, answers to interrogatories, and admission, together with the affidavits, if any, admitted for purpose of the motion for summary judgment, show that there is no genuine issue as to any material fact, and that mover is entitled to judgment as a matter of law." La.Code Civ.P. Art. 966(B)(2).
As noted in La.Code Civ.P. Art. 966(A)(2), "[t]he summary judgment procedure is designed to secure the just, speedy, and inexpensive determination of every action.... The procedure is favored and shall be construed to accomplish these ends." Nevertheless:
La.Code Civ.P. Art. 966(C)(2).
The Louisiana Supreme Court has held that "[s]ummary judgment is seldom appropriate
"Although typically asserted through the procedural vehicle of the peremptory exception, the defense of prescription may also be raised by motion for summary judgment." Hogg v. Chevron USA, Inc., 09-2632, 09-2635, p. 6 (La. 7/6/10), 45 So.3d 991, 997. "When prescription is raised by motion for summary judgment, review is de novo, using the same criteria used by the district court in determining whether summary judgment is appropriate." Id. In Labbe Service Garage, Inc. v. LBM Distributors, Inc., 94-1043, pp. 10-11 (La.App. 3 Cir. 2/1/95), 650 So.2d 824, 829 (citation omitted), this court noted:
See also, Hogg, 45 So.3d 991. "Damage is sustained, within the meaning of prescription, only when it has manifested itself with sufficient certainty to support the accrual of a cause of action. Cole v. Celotex Corporation, 620 So.2d 1154 (La.1993). The damages suffered must at least be actual and appreciable in quality." Labbe, 650 So.2d at 829.
In this case, Plaintiffs' claims that derive from contracts or mineral leases fall under the ten-year liberative prescriptive period applicable to personal actions found in La. Civ.Code Art. 3499. Plaintiffs' tort claims are governed by La.Civ.Code Art. 3493, which provides that "when damage is caused to immovable property, the one year prescription commences to run from the day the owner of the immovable acquired, or should have acquired, knowledge of the damage."
"[T]he ultimate issue in determining whether a plaintiff had constructive knowledge sufficient to commence a prescriptive period is the reasonableness of the plaintiff's action or inaction in light of his education, intelligence, and the nature of the defendant's conduct." Marin, 48 So.3d
The supreme court elaborated in Marin, 48 So.3d at 245, (footnote omitted):
If the defendant establishes that the plaintiff's case has prescribed, the plaintiff who "assert[s] the benefit of contra non valentum" bears "the burden of proof of its requisite elements and applicability." Peak Performance Physical Therapy & Fitness, LLC v. Hibernia Corp., 07-2206, p. 7 (La.App. 1 Cir. 6/6/08), 992 So.2d 527, 531, writ denied, 08-1478 (La. 10/3/08), 992 So.2d 1018.
Plaintiffs assert the following assignments of error (footnote omitted):
At the outset, we note that the general premise of BP's motion for summary judgment was that Plaintiffs' claims against it had prescribed on the face of the petition, and thus, the burden of proof shifted to Plaintiffs to prove that prescription was suspended by the application of contra non valentum. That premise is fundamentally flawed. Because BP chose to file a motion for summary judgment based on prescription rather than an exception of prescription, no such shifting of the burden of proof to the non-movant occurred. See Hogg, 45 So.3d 991; Labbe, 650 So.2d 824. Instead, as the mover on summary judgment, BP was "required to prove, based solely on documentary evidence and without the benefit of testimony at a hearing, that there is no genuine material factual issue in dispute regarding the date upon which plaintiffs acquired actual or constructive knowledge of the damage."
As evidenced in its reasons for judgment, the trial court in this case found that BP produced evidence that its operations on the property ceased more than "forty-five years" ago and that Plaintiffs' deposition testimony revealed that they had "not learned anything new within one year of filing suit." Thereafter, citing La.Code Civ.P. Art. 966(C)(2), the trial court stated that because BP had "come forward with
BP's memorandum in support of its motion for summary judgment contained a fifty-six item Statement of Undisputed Material
BP submitted that those six so-called undisputed material facts proved that the four Plaintiffs who had seen the white sandy area had actual knowledge of damages sufficient to commence the running of prescription. While it noted in its SUMF that deposition testimony from seventeen of the twenty-six Plaintiffs revealed that most of them had rarely, if ever, been to the property, BP argued that any lack of knowledge of their potential claims against it was caused by their neglect in failing to exercise any diligence, much less reasonable diligence, to observe and ascertain the condition of the property. Thus, BP claimed that those Plaintiffs had constructive knowledge of damages sufficient to commence the running of prescription. Based upon the length of time between the cessation of "any alleged damage-causing act or omission attributable to BP" and the date upon which Plaintiffs filed their petition, BP alleged that every Plaintiff's claims against it prescribed decades before they filed this suit on March 3, 2011.
In opposition to BP's claim that there was no genuine issue of material fact regarding
While Plaintiffs did not specifically contest the underlying facts which BP claimed were undisputed, they vehemently disagreed with the conclusions that BP drew from those facts, and they insisted that the following material facts remained in dispute (footnote omitted):
Plaintiffs cited Winterrowd v. Travelers Indemnity Co., 462 So.2d 639 (La.1985) in opposition to BP's contention that their claims were prescribed by the mere fact that their petition was filed sixty years after BP's predecessors' last operations on the property. The plaintiff in that case was injured in 1976 by a malfunctioning punch press that was manufactured in 1907. The undisputed facts established a causal connection between the plaintiff's injuries and the manufacturer's failure to warn of a danger which it knew about since the time it built the punch press. The supreme court affirmed a judgment in favor of the plaintiff after finding that the manufacturer of the press violated its duty to warn "of any danger inherent in the normal use of its product which is not within the knowledge of an ordinary user." Id. at 642. While they acknowledged that Winterrowd was not a prescription case, Plaintiffs nonetheless argued that it stands for the proposition that "[l]ong delays between the actions of a defendant and the litigation of claims based on such actions are commonplace."
In support of their denial that they had actual knowledge that BP's actions may have contaminated the property, Plaintiffs' opposition referenced excerpts from sixteen of their depositions, including the four Plaintiffs whose knowledge of the
With regard to BP's claim that they or their ancestors in title should be deemed to have constructive knowledge of the property's condition, Plaintiffs asserted in their opposition memorandum that their "education, intelligence and background vis-à-vis oil and gas operations, industry standards, rules and regulation, normal wear and tear, excessive use and exceedances pales in comparison to that of defendants and their predecessors-in-interest." In specific reference to BP's assertion that the white sandy area should have put them on constructive notice of any contamination, Plaintiffs submitted that their deposition and affidavit testimony reflected that none of the physical characteristics of the area gave them reason to relate the area to oil and gas operations or to know that the area was caused by toxic chemicals coming from those operations. They further asserted that they had no suspicion
Two cases rendered by the Louisiana Supreme Court in 2010 provide us with guidance in determining when a plaintiff should be deemed to have actual or constructive knowledge sufficient to commence prescription in a property damage case. In Hogg, 45 So.3d 991, the supreme court reversed the trial court's denial of the defendants' motion for summary judgment based on prescription in a case brought by five plaintiffs who alleged that their immovable property had been contaminated from three formerly leaking underground gasoline storage tanks at a Chevron service station operating on neighboring property. After the tanks were replaced in 1997, the plaintiffs received two letters from the Louisiana Department of Environmental Quality (LDEQ) informing them that environmental contamination had been detected near the Chevron station and that they may later be asked for permission for access to their property for testing purposes. A December 20, 2001 letter told the plaintiffs that "water samples collected from [an] unnamed stream" on their property "indicated the presence of chemicals commonly found in gasoline.'" Hogg, 45 So.3d at 995. The letter "specifically explained: `Due to the direction of groundwater flow, there is a possibility that gasoline may have migrated underground from the Burt's Chevron site to your property or that such migration may occur in the future.'" Id. In a second letter dated April 26, 2002, the LDEQ informed the plaintiffs that due to the results of air sampling at a stream near Burt's Chevron, some of which sampling was taken on their property, they should limit the time spent in that area.
On September 12, 2006, a company hired by the LDEQ sent correspondence to the plaintiffs seeking to access their property to perform remediation. The plaintiffs filed suit on September 6, 2007, against the owners of the neighboring property, the operator of the service station, and Chevron U.S.A. provider of the tanks and the gasoline stored in them. The defendants responded by filing a motion for summary judgment in which they claimed that the plaintiffs' claims were prescribed because they "acquired, or should have acquired, knowledge of the contamination and damage to their property with the receipt of the 2001 and 2002 letters from LDEQ, but failed to file suit until 2007." Id. at 966. In opposing the motion, the plaintiffs asserted that they did not interpret the letters as putting them on notice that the defendants' conduct had damaged their property. The trial court denied the defendants' motion, finding that genuine issues of material fact remained "regarding whether the LDEQ letters of 2001 and 2002 provided constructive knowledge of tortious conduct and damage sufficient to commence the running of prescription." Id. After the appellate court declined to exercise supervisory jurisdiction, the supreme court granted certiorari, and framed the issue before it as follows:
Id. at 999 (footnotes omitted). On the merits, the supreme court concluded that the information contained in the LDEQ letters "was sufficient to excite attention and put a reasonable person on guard to call for inquiry, which is the essence of constructive knowledge," and that "plaintiffs' inaction in light of such action was unreasonable." Id. at 1001. Ultimately, the Hogg court found that "[w]ith the receipt of the second letter from LDEQ in 2002, the plaintiffs acquired constructive knowledge of the damage to their immovable property sufficient to commence the running of prescription." Id.
Marin, 48 So.3d 234, came before the supreme court after a trial on the merits, but it is nonetheless instructive regarding when the prescriptive period starts to run and when the discovery rule of contra non valentum should apply in a legacy case. The matter concerned two pieces of property. The first, known as the "Marin Property," was owned by three siblings and the second, known as the "Breaux Property," was owned by one of the siblings and her husband. Pursuant to mineral and surface leases entered into in the 1930s, Exxon Mobil Corporation, or its predecessors, conducted oil and gas operations on the two properties and built open and unlined pits where contaminants from those operations accumulated. Waste byproducts from the pits were released into a bayou on the property. The evidence showed that sugarcane farmers on the Marin Property knew by 1958 that their crops near the pit areas would not properly grow, and by the 1980s, the plaintiffs had the same concerns. Plaintiff Clyde Breaux, serving as a "family representative," made several demands on Exxon between 1988 and 1990 that it clean their properties and rid them of contamination so they could resume their farming activities. Id. at 240. By 1991, Exxon had closed all of the pits on the plaintiffs' properties and had assured them, via regular communication with Breaux, that it had remediated those areas in compliance with mandated state standards. The plaintiffs filed suit against Exxon in November of 2003 "for remediation of the soil and groundwater and other damages" after an environmental assessment conducted several months earlier revealed "significant contamination" on both properties. Id. at 241. After a trial on the merits, the trial court found that the plaintiffs' tort claims were suspended by contra non valentum. On writs, the supreme court disagreed, finding:
Id. at 248. The supreme court further held:
Id. at 249-50.
As the mover on summary judgment, BP was "required to prove, based solely on documentary evidence and without the benefit of testimony at a hearing, that there is no genuine material factual issue in dispute regarding the date upon which plaintiffs acquired actual or constructive knowledge of the damage." Hogg, 45 So.3d at 998. After having completed a de novo review of the evidence submitted in favor of and against BP's motion for summary judgment, we conclude that BP is not entitled to summary judgment in its favor because many genuine issues of material fact remain in dispute.
BP contends that a white sandy area on two of the nine tracts that make up the property, and of which it offered evidence that only four Plaintiffs had seen, provided all Plaintiffs and/or their ancestors in title with actual or constructive knowledge of damage that was open and obvious and which should have prompted them to investigate further to ascertain the cause and extent of the contamination upon which this suit is based.
In order to prevail on its motion for summary judgment, BP first had to prove that no genuine issue of material fact remained regarding whether Plaintiffs sustained "actual and appreciable" damage to the property so as to excite their attention and lead them to delve further into the source and extent of that damage. Labbe, 650 So.2d at 829. BP provided only scant evidence of the characteristics of the white sandy area, simply describing it as an area that lacked vegetation and that had been observable by air since the 1940s. Relying on the deposition testimony of Craig Vincent, one of the four Plaintiffs who had actually seen the white sandy area, BP asserted that the following statements were undisputed material facts: "Mr. Vincent worked in the oil and gas industry for approximately forty years. He remember[s] that grass would die if someone spilled produced water on the ground. The White Sandy Area on the property is consistent with produced water spills he observed while working in the oil and gas industry." In its memorandum in support of summary judgment, BP argued that "[l]ike the damaged sugar cane in Marin, the White Sandy Area provided Plaintiffs with constructive knowledge of actual and appreciable damage" and gave
Even if we were to conclude that BP had met its burden of proving that the white sandy area was damaged enough to begin the tolling of prescription, BP would also have to prove that Plaintiffs or their ancestors in title acquired or should have acquired knowledge of the damage and the date they acquired or should have acquired such knowledge. BP would have this court find that all twenty-six Plaintiffs acquired or should have acquired knowledge of the damage to their property, even though the evidence it produced showed that only four Plaintiffs had actually seen the white sandy area, because aerial photographs dating back to 1940 evidenced the same white sandy area that is depicted in current aerial photos. With regard to the Plaintiffs who admittedly rarely or never visited the property, BP argued that they should be deemed to have constructive knowledge of the damage because any lack of knowledge was due to their collective neglect of the property. As evidenced by its reasons for judgment, the trial court agreed with BP's argument, finding that it was "unreasonable for a plaintiff to have never stepped foot on his/her property" and that "plaintiffs' lack of knowledge about their property is attributable to their own willfulness and neglect."
Plaintiffs opposed BP's attempt to lump them together to determine their actual or constructive knowledge as to their damages, arguing that BP must prove what knowledge each individual Plaintiff had or should have had. Given their "education, intelligence, and the nature of [BP's] conduct," Plaintiffs argue that none of them had any reason to know that the property may have been damaged by BP or its
The property at issue in this case is rural and consists of nine separate tracts owned by twenty-six Plaintiffs, some, but not all, of whom are related. The white sandy area was located only on tracts seven and nine. However, as shown in BP's SUMF, each tract has up to seven owners, and while tracts five, six, and seven have the same seven owners, the remaining tracts do not have overlapping ownership. Unlike the five plaintiffs in Hogg, 45 So.3d 991, the Plaintiffs herein do not co-own the same tract of property, and there is no evidence that they or their ancestors in title were ever told that actual contamination had been detected nearby and could migrate to their property. BP has offered no evidence to prove each tract of the property was accessible to the owners of the remaining tracts. On the other hand, each of the affiants in the eight affidavits attached to Plaintiffs' opposition stated that they had never traversed the entire property. We find it unreasonable to expect the owner of a rural tract of property to visit and inspect nearby tracts of property. We, likewise, find it unreasonable to expect that a property owner would be aware of current or historical aerial images of its property and that of its neighbors or that such property owner would understand what was depicted in such images had they seen them. Accordingly, we conclude that BP failed to prove that there are no genuine issues of material fact regarding whether any Plaintiff or their ancestors in title had actual or constructive knowledge of their damages.
Finally, BP offered no evidence as to the date Plaintiffs acquired actual or constructive knowledge of any such damages. Instead, it made the conclusory argument that because the last oil and gas operations of its predecessors on the property occurred in 1951 and because aerial photographs dating back to 1940 evidenced the same white sandy area that can still be seen in current aerial photos, Plaintiffs' claims prescribed before the filing of their petition on March 3, 2011. In obvious contradiction to that argument, however, BP asserted that the following statements
Plaintiffs cite La.Civ.Code Art. 3493 in support of their claim that prescription in tort property damage cases begins to run when a plaintiff acquires actual or constructive knowledge of the damage, regardless of when the damaging conduct ceases. Plaintiffs also provided documentary evidence wherein they asserted that they did not receive knowledge of their claims or of the facts upon which those claims were based until being notified by family members or others less than one year before this suit was filed.
In Hogg, the supreme court found that the defendants proved the plaintiffs had constructive knowledge of their property damage upon the receipt of a letter from the LDEQ on April 26, 2002. Hogg, 45 So.3d at 999. In Marin, while the supreme court did not specify the exact date the plaintiffs had actual knowledge of damage, it found that "at least by 1995, plaintiffs had sufficient information to excite their attention[,] and they should have investigated further at that time." Marin, 48 So.3d at 250.
In the instant matter, BP did not attempt to point to the date, or even the year, that Plaintiffs or their ancestors in title acquired actual or constructive knowledge of their damages, nor did it offer any statutory or jurisprudential authority to support its argument that the mere passage of time starts the tolling of prescription. In addition, BP's SUMF contains statements which support Plaintiffs' claims that they lacked the knowledge upon which their suit was based until less than one year before they filed suit. Accordingly, we find that BP failed "to prove, based solely on documentary evidence and without the benefit of testimony at a hearing, that there is no genuine material factual issue in dispute regarding the date upon which plaintiffs acquired actual or constructive knowledge of the damage." Hogg, 45 So.3d at 998. Thus, we find merit to Plaintiffs' first assignment of error. As a result, Plaintiffs' remaining assignments of error are moot and need not be addressed.
As noted previously, BP's burden on summary judgment was "to prove, based solely on documentary evidence and without the benefit of testimony at a hearing, that there is no genuine material factual issue in dispute regarding the date upon which plaintiffs acquired actual or constructive knowledge of the damage." Hogg, 45 So.3d at 998. Our de novo review of the evidence offered in support of and against BP's motion for summary judgment reveals the presence of several genuine issues of material fact which preclude the grant of summary judgment in its favor. Accordingly, the trial court erred in finding that Plaintiffs' claims were prescribed, and its judgment must be reversed.
For the foregoing reasons, the judgment of the trial court granting the motion for summary judgment based on prescription filed by defendant, BP America Production Company (BP), and dismissing their claims