Louisiana Court of Appeal, 2019

Crosstex Energy Services, LP, Crosstex LIG, LLC and Crosstex Processing Services, LLC v. Texas Brine Company, LLC

Crosstex Energy Services, LP, Crosstex LIG, LLC and Crosstex Processing Services, LLC v. Texas Brine Company, LLC
Louisiana Court of Appeal · Decided September 16, 2019

Crosstex Energy Services, LP, Crosstex LIG, LLC and Crosstex Processing Services, LLC v. Texas Brine Company, LLC

Opinion

NOT DESIGNATED FOR PUBLICATION

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

2018 CA 1122 CROSSTEX ENERGY SERVICES, LP, ET AL.

VERSUS

TEXAS BRINE COMPANY, LLC, ET AL.

Judgment Rendered: SEP 16 2019

APPEALED FROM THE 23 RD JUDICIAL DISTRICT COURT ASSUMPTION PARISH, LOUISIANA l DOCKET NUMBER 34, 202

HONORABLE THOMAS KLIEBERT JR., JUDGE PRESIDING

Leopold Z. Sher Attorneys for Defendant/ James M. Garner Third -Party Plaintiff/ Appellant Peter L. Hilbert, Jr. Texas Brine Company, LLC Jeffrey D. Kessler New Orleans, Louisiana and Robert Ryland Percy, III Gonzales, Louisiana and Travis J. Turner Gonzales, Louisiana

Glen E. Mercer Attorneys for Third -Party Kourtney Twenhafel Defendant Steadfast New Orleans, Louisiana Insurance Company Mary S. Johnson Attorneys for Third -Parry Chad J. Mollere Defendants AIG Specialty Mandeville, Louisiana Insurance Company, Lexington Insurance Company, and National Union Fire Insurance Company of Pittsburgh, PA

BEFORE: McDONALD, WELCH, and CRAIN, 33.

McDONALD, 7.,

This appeal relates to one of several lawsuits arising from the August 3, 2012 sinkhole that developed near Bayou Come in Assumption Parish, Louisiana. In this

case, Texas Brine Company, LLC, defendant and third -parry plaintiff, appeals a district court judgment dismissing third party defendants in this litigation, Steadfast Insurance Company, AIG Specialty Insurance Company, Lexington Insurance Company, and

National Union Fire Insurance Company of Pittsburgh, PA, with prejudice in their

capacity as insurers of Adams Resources Exploration Company,' on a motion for

involuntary dismissal.

Another panel of this court recently affirmed the district court's involuntary dismissal of Texas Brine' s claims against Browning Oil Company, Inc. See

Pontchartrain Natural Gas System v. Texas Brine Company, LLC, 2018- 0631 La. App. 1 Cir. 7/ 3/ 19), _ So. 3d _, _, 2019 WL 2865136, p. 6. There, Texas Brine similarly argued the depressurization of the AH1 reservoir by production from the AH1 well contributed to the collapse of the OG3 cavern and the formation of the sinkhole.

In that case, the court concluded that " Our review of the totality of the evidence presented at trial reveals that Browning' s operations played absolutely no role in any of the causative factors for the development of the sinkhole and the damage that resulted." Pontchartrain Natural Gas System, _ So. 3d at _, 2019 WL 2865136,

p. 5.

Thereafter, in Florida Gas v. Texas Brine, 2018- 0907 ( La. App. 1 Cir.

8/ 29/ 19), _. So. 3d _, 2019 WL 4073383, for similar reasons, another panel of this

court found that the record reasonably supported the conclusion that Adams Resources' operations were not a causative factor for the development of the sinkhole and the

resulting damages. In that case, this court affirmed a November 11, 2017, district court judgment dismissing Texas Brine's claims against Steadfast Insurance Company, AIG

1 Adams Resources filed bankruptcy in 2017 and did not participate in the trial. See In Re Adams Resources Exploration Corporation, 17- 10866, 2017 WL 5479425 ( Bankr. D. Del. 5/ 24/ 17). The bankruptcy stay was lifted to allow the claims against Adams Resources' insurers, which were not released by the bankruptcy, to proceed. See La. R.S. 22: 1269A and B.

Specialty Insurance Company, Lexington Insurance Company, and National Union Fire Insurance Company of Pittsburgh, PA, in their capacity as insurers of Adams Resources Exploration Company.

The judgment in this case is based on the same evidence considered in Florida Gas v. Texas Brine, _ So. 3d _, 2019 WL 4073383, and we affirm the November 11, 2017 district court judgment involuntarily dismissing Steadfast Insurance Company, AIG Specialty Insurance Company, Lexington Insurance Company, and National Union Fire Insurance Company of Pittsburgh, PA, in their capacity as insurers of Adams Resources Exploration Company with prejudice for the reasons stated therein, This summary opinion is issued in accordance with Uniform Rules—Courts of Appeal, Rule 2- 16. 2A( 2) and ( 8). All costs of this appeal are assessed against Texas Brine Company, L. L. C.

AFFIRMED. 3

2 Texas Brine also maintains that the district court erred in its dismissal of Texas Brine' s claims against the insurers of Adams Resources based on Louisiana law in effect before 1996. For the reasons provided in Pontchartrain Natural Gas System, _ So. 3d at _, 2019 WL 2865136, p. 5, this argument has no merit. 3 Occidental Chemical Corporation, Occidental Petroleum Corporation, and OXY USA, Inc. filed a motion to consolidate this appeal with eight other appeals arising out of the liability trial. As to this appeal, that motion is denied.

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