Opinion
2023 CA 0987
12-27-2024
CROSSTEX ENERGY SERVICES, LP, CROSSTEX LIG, LLC, AND CROSSTEX PROCESSING SERVICES, LLC v. TEXAS BRINE COMPANY, LLC, ET AL.
Leopold Z. Sher James M. Garner Jeffrey D. Kessler Martha Y. Curtis Neal J. Kling New Orleans, LA Counsel for Appellant/Defendant/ Third -Party Plaintiff Texas Brine Company, LLC Robert Ryland Percy, III Gonzales, LA Travis J. Turner Gonzales, LA Ulysses Gene Thibodeaux Lake Charles, LA Roy C. Cheatwood Kent A. Lambert Adam B. Zuckerman Leopoldo J. Yanez Lauren Brink Adams Colleen C. Jarrott Matthew C. Juneau New Orleans, LA Antonio M. Tony Clayton Port Allen, LA Counsel for Appellee/Defendant/ Third -Party Defendant Legacy Vulcan Corporation f/k/a Vulcan Materials Company
NOT DESIGNATED FOR PUBLICATION
Appealed from the Twenty-Third Judicial District Court In and for the Parish of Assumption State of Louisiana Suit Number 34,202 Honorable Thomas J. Kliebert, Jr., Presiding
Leopold Z. Sher James M. Garner Jeffrey D. Kessler Martha Y. Curtis Neal J. Kling New Orleans, LA Counsel for Appellant/Defendant/ Third -Party Plaintiff Texas Brine Company, LLC
Robert Ryland Percy, III Gonzales, LA Travis J. Turner Gonzales, LA Ulysses Gene Thibodeaux Lake Charles, LA Roy C. Cheatwood Kent A. Lambert Adam B. Zuckerman Leopoldo J. Yanez Lauren Brink Adams Colleen C. Jarrott Matthew C. Juneau New Orleans, LA Antonio M. "Tony" Clayton Port Allen, LA Counsel for Appellee/Defendant/ Third -Party Defendant Legacy Vulcan Corporation f/k/a Vulcan Materials Company
BEFORE: GUIDRY, C.J., THERIOT AND HESTER, JJ.
HESTER, J.
This dispute is one of many arising out of the August 2012 sinkhole that appeared near Bayou Come in Assumption Parish. Following the emergence of the sinkhole, numerous lawsuits were filed by various parties against Texas Brine Company, LLC ("Texas Brine"), including several pipeline companies, among which are the named plaintiffs in this case, Crosstex Energy Services, LP, Crosstex LIG, LLC and Crosstex Processing Services, LLC, which filed suit under docket number 34,202. Texas Brine responded to the lawsuits by filing incidental demands asserting tort and contract claims against various other parties, including the third-party defendant/appellee in this appeal, Legacy Vulcan, LLC f/k/a Legacy Vulcan Corporation and/or Vulcan Materials Company ("Legacy Vulcan"). A more detailed discussion of the factual and procedural history of the litigation is contained in Pontchartrain Natural Gas System v. Texas Brine Company, LLC, 2018-1249 (La.App. 1st Cir. 12/30/20), 317 So.3d 715, 724, writ denied, 2021-00382 (La. 6/8/21), 317 So.3d 323 and Florida Gas Transmission Company, LLC v. Texas Brine Company, LLC, 2018-1391 (La.App. 1st Cir. 5/3/21), 324 So.3d 1090, writs denied, 2021-00770, 2021-00773 (La. 10/19/21), 326 So.3d 255, 260. See Crosstex Energy Services, LP v. Texas Brine Company, LLC, 2018-1425 (La.App. 1st Cir. 4/11/22), 342 So.3d 83, 88, writ denied, 2022-00778 (La. 9/20/22), 346 So.3d 284.
Due to the size and complexity of the litigation, the district court issued an order in September 2016 outlining four phases of trial for the various claims raised. Pontchartrain Natural Gas System, 2018-1249 at p. 6, 317 So.3d at 725. Herein, Texas Brine seeks review of the Phase 2 damages judgment, as well as review of several interlocutory judgments related thereto. Another panel of this court recently decided an identical appeal involving the exact same judgment, parties, evidence, assignments of error, and factual and legal considerations. Sec Pontchartrain Natural Gas System v. Texas Brine Company, LLC, 2023-0986 (La.App. 1st Cir. 12/12/24), - So.3d -, 2024 WL 5084321. Constrained by that opinion, we adopt by reference the discussion of the procedural history and the evidence presented in the Phase 2 proceedings, as well as the analysis of the issues raised on appeal. Accordingly, for the reasons more fully set forth in Pontchartrain Natural Gas System, 2024 WL 5084321, we issue the following rulings:
Following submission of these judgments for this panel's consideration, the parties, sua sponte, supplemented the record with an amended judgment dated October 29, 2024, which in all material respects is identical to the December 1, 2022 judgment on appeal. Because this panel did not request the supplementation and finds no material differences between the two, the supplementation will not be considered.
The other pipeline companies that also filed suit against Texas Brine are Pontchartrain Natural Gas System, K/D/S Promix, L.L.C, and Acadian Gas Pipeline, which filed suit under docket number 34,265, and Florida Gas Transmission Company, LLC, which filed suit under docket number 34,316. Appeals were filed in the three separate "pipeline cases" following the joint Phase 2 damages trial.
We reverse the January 18, 2022 judgment granting Legacy Vulcan, LLC's motion for partial summary judgment and dismissing with prejudice Texas Brine Company, LLC's claims under the Amended Operating Agreement. We further vacate the portion of the December 1, 2022 judgment rendering judgment against Legacy Vulcan, LLC in favor of Texas Brine Company, LLC in the amount of $11,896,554.80, and remand this matter to the district court for further proceedings. We affirm the December 1, 2022 stipulated judgment insofar as the parties determined a total amount of damages that were to be allocated between the at fault parties.
We affirm the following interlocutory judgments rendered by the district court in the course of the proceedings below:
• the January 18, 2022 judgment dismissing with prejudice Texas Brine Company, LLC's claims for double recovery of insured losses and liabilities against Legacy Vulcan, LLC;
• the July 19, 2022 judgment dismissing with prejudice Texas Brine Company, LLC's claims against Legacy Vulcan, LLC for alleged costs associated with vendors, Commerce Title &Abstract Company and Right of Way Services, Inc., to recover closing costs and appraisal costs associated with Texas Brine Company, LLC's voluntary acquisition of properties;
• the July 19, 2022 judgment dismissing with prejudice Texas Brine Company, LLC's claim against Legacy Vulcan, LLC for capitalized interest;
• the April 26, 2022 judgment granting Legacy Vulcan, LLC's motion to strike all discovery and expert reports related to Texas Brine Company, LLC's lost opportunity claims regarding the sale of its Baytown and Napoleonville properties;
• the May 5, 2022 judgment dismissing with prejudice Texas Brine Company, LLC's claim under the Assignment of the Salt Lease; and
• the July 19, 2022 judgment denying Texas Brine Company, LLC's motion for partial summary judgment regarding Legacy Vulcan, LLC's liability as an intentional tortfeasor.
We issue this memorandum opinion in accordance with the Uniform Rules of Louisiana Courts of Appeal, Rule 2-16.1(B) and order Texas Brine Company, LLC and Legacy Vulcan, LLC to bear their own costs on appeal.
JANUARY 18, 2022 PARTIAL SUMMARY JUDGMENT IN FAVOR OF LEGACY VULCAN, LLC REVERSED; THE PORTION OF THE DECEMBER 1, 2022 JUDGMENT IN FAVOR OF TEXAS BRINE COMPANY, LLC AND AGAINST LEGACY VULCAN, LLC IN THE AMOUNT OF $11,896,554.80 VACATED AND REMANDED; THE PORTION OF THE DECEMBER 1, 2022 JUDGMENT THAT DETERMINED TEXAS BRINE COMPANY, LLC'S PHASE 2 DAMAGES AFFIRMED; ALL OTHER JUDGMENTS ON APPEAL AFFIRMED.