The Third Circuit Court of Appeal’s decision in Dietz v. Superior Oil Company, No. 13-657, 129 So.3d 836 (La. App. 3 Cir. Dec. 11, 2013) reinforces the use of traditional cumulation rules to defend legacy oilfield litigation in Louisiana. Dietz family members owned two separate pieces of property in Acadia Parish, each subject to different mineral leases. The plaintiffs filed suit against all of the oil and gas companies for both pieces of property in a single suit, alleging that the lessees had contaminated the properties.
Finding no community of interest among the cumulated actions as required by La, C. Civ. P. Art. 463, the Court noted the extensive time period of operations, the different lease obligations, and the specific facts that would need to be proven to show liability for each operator. A community of interest exists between different actions or parties where “enough factual overlap is present between the cases to make it commonsensical to litigate them together.” Albarado v. Union R.R. Co., 787 So.2d 431, 438 (La. App. 4 Cir. Apr. 25, 2001) (rev’d on other grounds, 796 So.2d 666 (La. 2001). The Third Circuit Court of Appeal found no community of interest existed because there was not a sufficient factual overlap between the challenged actions of the individual defendants for them to be litigated together.
The Third Circuit denied Plaintiffs’ rehearing application on January 30, 2014. Given the procedural significance of this decision, the Dietz plaintiffs are likely to seek review in the Louisiana Supreme Court. If affirmed, the ruling will serve to deter plaintiffs’ from combining claims related to multiple fields or properties into a single action for damages. The ruling will also prevent cumulation of claims of non-diverse defendants simply to avoid federal court jurisdiction.
For questions regarding this ruling or assistance with other oil and gas related matters, please contact Toni Ellington at 504-599-8500.
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