Opinion
NO. 2018 CA 0062
01-11-2019
FLORIDA GAS TRANSMISSION COMPANY, LLC v. TEXAS BRINE COMPANY, LLC, ET AL.
Leopold Z. Sher James M. Garner Peter L. Hilbert Jr. Neal J. Kling New Orleans, Louisiana Theodore L. Jones Baton Rouge, Louisiana Robert Ryland Percy III Gonzales, Louisiana Eric J. Mayer Houston, Texas Travis J. Turner Gonzales, Louisiana Attorneys for Defendant/Appellant, Texas Brine Company, LLC Mary S. Johnson Mandeville, Louisiana Nichole M. Gray New Orleans, Louisiana Attorneys for Defendants/Appellees, National Union Fire Insurance Company Of Pittsburg, PA and AIG Specialty Insurance Company
NOT DESIGNATED FOR PUBLICATION On Appeal from The 23rd Judicial District Court, Parish of Assumption, State of Louisiana
Trial Court No. 34,316
The Honorable Thomas J. Kliebert Jr., Judge Presiding Leopold Z. Sher
James M. Garner
Peter L. Hilbert Jr.
Neal J. Kling
New Orleans, Louisiana Theodore L. Jones
Baton Rouge, Louisiana Robert Ryland Percy III
Gonzales, Louisiana Eric J. Mayer
Houston, Texas Travis J. Turner
Gonzales, Louisiana Attorneys for Defendant/Appellant,
Texas Brine Company, LLC Mary S. Johnson
Mandeville, Louisiana Nichole M. Gray
New Orleans, Louisiana Attorneys for Defendants/Appellees,
National Union Fire Insurance Company
Of Pittsburg, PA and AIG Specialty
Insurance Company BEFORE: McDONALD, CRAIN, AND HOLDRIDGE, JJ CRAIN, J.
Texas Brine Company, LLC appeals a summary judgment dismissing the plaintiff's claims against certain liability insurers of Texas Brine. In an answer to the appeal, the insurers assert the trial court erred in denying their motion for summary judgment seeking a dismissal of Texas Brine's incidental demand against them. We affirm in part, reverse in part, and render summary judgment in favor of the insurers.
This is one of several lawsuits arising out of a sinkhole in Assumption Parish that developed on or about August 3, 2012, following the collapse of a salt mine cavern. Florida Gas Transmission Company sued Texas Brine, among other defendants, alleging Texas Brine's salt mining operations caused the collapse of the cavern and the resulting sinkhole, which damaged two of Florida Gas's nearby pipelines. Florida Gas also sued several liability insurers, including National Union Fire Insurance Company of Pittsburgh, Pa. and AIG Specialty Insurance Company, alleging the insurers issued policies providing coverage for Texas Brine's alleged liability. Texas Brine filed an incidental demand against National Union and AIG, alleging they were obligated to provide Texas Brine with indemnity and a defense in the litigation.
Texas Brine named American International Surplus Lines Insurance Company, and American International Specialty Lines Insurance Company (collectively "AISLIC"), as third party defendants. In its motion for summary judgment here, the insurer identifies itself as AIG Specialty Insurance Company, f/k/a AISLIC. We will refer to this party as "AIG."
National Union and AIG filed a motion for summary judgment asserting their "pre-2012 policies," the last of which expired on March 1, 2009, do not cover Florida Gas's claims and do not require the insurers to provide a defense to Texas Brine, citing policy language limiting coverage to damage that "occurs during the policy period." In a judgment signed on September 13, 2017, the trial court granted summary judgment in favor of National Union and AIG, dismissing Florida Gas's claims against the insurers with prejudice; however, the trial court denied the motion with respect to Texas Brine's claims, stating in written reasons that a genuine issue of material fact precluded summary judgment on the insurer's duty to defend. Texas Brine appealed the dismissal of Florida Gas's claims against National Union and AIG. Answering the appeal, National Union and AIG assert the trial court erred in denying their motion as to Texas Brine's incidental claims.
The arguments and relevant evidence presented herein were addressed by this court in a related appeal decided this same day, Florida Gas Transmission Company, LLC v. Texas Brine Company, LLC, 18-0218 (La. App. 1 Cir. ___/___/18), ___ So. 3d ___. See also Pontchartrain Natural Gas System v. Texas Brine Company, LLC, 18-0244 (La. App. 1 Cir. 10/11/18), ___ So. 3d ___; Crosstex Energy Services, LP v. Texas Brine Co., LLC, 17-0863 (La. App. 1 Cir. 12/21/17), 240 So. 3d 1024, 1030-32, writ denied, 18-0145 (La. 3/23/18), 238 So. 3d 963. For the reasons contained therein, we affirm the September 13, 2017 summary judgment dismissing Florida Gas's claims against National Union and AIG. We reverse the trial court's denial of the motion for summary judgment relevant to Texas Brine's claim and render summary judgment in favor of National Union and AIG, dismissing Texas Brine's claims against them under the pre-2012 policies with prejudice and at the cost of Texas Brine. This memorandum opinion is issued in accordance with Uniform Rules—Courts of Appeal, Rule 2-16.1B. All costs of this appeal are assessed to Texas Brine.
National Union and AIG filed a motion to dismiss Texas Brine's appeal, arguing the summary judgment is a partial judgment not designated as final for purposes of appeal pursuant to Louisiana Code of Civil Procedure article 1915B. For the reasons stated in the related appeal, the motion is denied. See Florida Gas Transmission Company, LLC, 18-0218 (La. App. 1 Cir. ___/___/18), ___ So. 3d at ___, n.2. The appellees also filed a motion to supplement the record on appeal, which we deny.
MOTION TO DISMISS DENIED; MOTION TO SUPPLEMENT DENIED; JUDGMENT AFFIRMED IN PART, REVERSED IN PART, AND RENDERED.
FLORIDA GAS TRANSMISSION COMPANY, LLC
VERSUS
TEXAS BRINE COMPANY, LLC ET AL.
HOLDRIDGE, J. CONCURS
I respectfully concur. In Crosstex Energy Services, LP v. Texas Brine, Co., LLC, 17-0863 (La. App. 1 Cir. 12/21/17), 240 So.3d 1024, 1030-32, writ denied, 18-0145 (La. 3/23/18), 238 So.3d 963, this court decided the same issues presented in this case. Unlike Florida Gas Transmission Company, LLC v. Texas Brine Company, LLC, 18-0218 (decided this same day) and Pontchartrain Natural Gas System v. Texas Brine Company, LLC, 18-0244 (La. App. 1 Cir. 10/11/18), ___ So.3d ___, the Crosstex case is now a final and definitive judgment since the Louisiana Supreme Court has denied Texas Brine's application for a writ of certiorari. La. C.C.P. art. 2167(C). Therefore, we are bound to follow the final and definitive judgment rendered by another panel of this court.