Blanks v. Murco Drilling Corp.

766 F.2d 891
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 29, 1985
DocketNo. 84-4509
StatusPublished
Cited by20 cases

This text of 766 F.2d 891 (Blanks v. Murco Drilling Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blanks v. Murco Drilling Corp., 766 F.2d 891 (5th Cir. 1985).

Opinion

JERRE S. WILLIAMS, Circuit Judge.

This diversity action involves the interpretation of the indemnity provisions of a drilling contract as well as certain provisions of an insurance policy purchased in accordance with the drilling contract. ANR Production Company is the owner and operator of the Paul E. Messenger No. 1 oil well located in Natchitoches Parish, Louisiana. ANR contracted in writing with Murco Drilling Corporation to provide a rig and crew for the drilling of the Mes[893]*893senger well. The contract stipulated that ANR as the operator of the well was to provide all mudlogging services. ANR hired Consolidated Laboratories to provide these services at the drilling site. Although there was no written contract between ANR and Consolidated, Consolidated was clearly working directly for ANR and for ANR’s benefit. Weekly reports and service tickets for Consolidated’s services were signed by an on-site representative of ANR. Consolidated’s invoices were presented to ANR for payment.

Harold Blanks was a mudlogger employed by Consolidated and assigned to ANR’s drilling site. On September 8, 1981, Mr. Blanks was on the Messenger No. 1 drilling site when he noticed that Rodney Elliott, a Murco employee who was attempting to lift a pipe joint with a forklift, was experiencing some difficulty. Elliott shouted to Blanks and motioned for him to approach. Blanks walked over to Elliott and attempted to steady the teetering pipe joint. While grabbing the end of the pipe, Blanks lost his footing and fell to the ground. The pipe section fell on top of him, and he sustained injuries.

Blanks filed suit for personal injuries against Murco alleging that the negligence of Murco’s employee caused his injuries. The Hartford Accident and Indemnity Company, Consolidated's compensation insurer, intervened in the action to recover compensation paid to Blanks. Murco filed a third-party demand against ANR and New York Marine and General Insurance Co., ANR’s insurer, for indemnification. ANR filed a counterclaim against Murco and a third-party demand against Federal Insurance Co., Murco’s insurer. The district court bifurcated all third-party claims. At trial on Blanks’ negligence claim, the district court found that Murco was 75% at fault, and Blanks 25% at fault, for Blanks’ injuries. Blanks was found to have been damaged in the amount of $130,184.73, and Hartford was awarded $25,579.66 out of these damages for compensation paid to Blanks.

On the bifurcated indemnification claims, the district court held that ANR was liable to Murco for damages paid to Blanks by virtue of the mutual indemnification provisions of the contract between ANR and Murco. The court found that Blanks was not an “invitee” of Murco within the meaning of the contract and that under the indemnification terms of the contract, ANR had agreed to indemnify Murco for claims paid by Murco to any employee of ANR’s contractors or invitees, regardless of fault. Because Blanks was an employee of Consolidated, a contractor of ANR, Murco and their insurer New York Marine, were ordered to indemnify Murco. The district court also found that the Federal Insurance policy purchased by Murco in which ANR was named as an additional insured did not provide coverage for ANR’s indemnification to Murco.

I. The Drilling Contract.

At issue in the drilling contract between ANR and Murco is the interpretation of the so-called “mutual indemnity” provisions. The contract provides for indemnity as follows:

14.8 Contractor’s [Murco’s] Indemnification of Operator [ANR]: Contractor agrees to protect, defend, indemnify, and save Operator ... harmless from and against all claims, demands, and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party or parties, arising in connection herewith in favor of Contractor’s employees or Contractor’s subcontractors or their employees, or Contractor’s invitees, on account of bodily injury, death or damage to property.
14.9 Operator’s [ANR’s] Indemnification of Contractor [Murco]: Operator agrees to protect, defend, indemnify, and save Contractor harmless from and against all claims, demands, and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party or par[894]*894ties, arising in connection herewith in favor of Operator’s employees or Operator’s contractors or their employees, or Operator’s invitees, other than those parties identified in paragraph 14.8 on account of bodily injury, death or damage to property.

Under this agreement, ANR as the operator of the well, and Murco as the drilling contractor, assumed all liability for injuries sustained by their own employees, statutory or direct, regardless of whose fault caused the injury. These indemnification provisions therefore established that it was the relationship of the parties that determined liability rather than fault.

According to j[ 14.9, ANR was to indemnify Murco for any claims paid by Murco where the individual injured was an employee of a contractor of ANR. Blanks was an employee of Consolidated, a contractor of ANR. Therefore, Blanks was a party identified in j[ 14.9 for whom ANR had accepted liability even though Murco was determined to be at fault.

ANR, however, argues that under the proper construction of the mutual indemnity provisions, liability for Blank’s injuries lies with Murco and not with ANR. Under jf 14.9, ANR must indemnify Murco for parties identified in that section, other than those parties identified in j[ 14.8. Under U 14.8, Murco assumes liability for “invitees” of Murco who are injured at the drilling site. ANR argues that Blanks was an “invitee” of Murco and is therefore a party identified in j| 14.8. As a party identified in j[ 14.8, ANR contends that j| 14.9 is inapplicable and that (J 14.8 is the operative indemnity provision.

The district court found that Blanks was not an “invitee” of Murco within the meaning of U 14.8. In Louisiana, an “invitee” is a person who goes onto premises with the expressed or implied invitation of the occupant, on business of the occupant or for their mutual advantage. Arcement v. Southern Pacific Transportation Co., 517 F.2d 729, 733 (5th Cir.1975); Foggin v. General Guaranty Insurance Co., 195 So.2d 636, 641, 250 La. 347 (La.1967); Brown v. State Farm, Fire & Casualty Company, 252 So.2d 909, 911 (La.App. 2nd Cir.1971). ANR argues that because Blanks was assisting a Murco employee at the time he was injured, at that moment he became an invitee of Murco. But ANR ignores the fact that invitee status is determined by who invites the injured party onto the premises. Blanks was invited onto the drilling site by ANR through his employee status with Consolidated and was there performing services for ANR’s benefit. Blanks and Consolidated were invitees of ANR, as was Murco. 62 Am.Jur.2d, Premises Liability, § 121 (1972). The fact that Blanks assisted a Murco employee, even though his assistance may have been solicited by the Murco employee, has no bearing on his status as an invitee of ANR.

ANR cites Paul v. Traders & General Insurance Co., 127 So.2d 801 (La.App. 3rd Cir.1961), to support its position that Blanks became an invitee of Murco by virtue of the fact that a Murco employee solicited Blanks’ assistance.

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Bluebook (online)
766 F.2d 891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blanks-v-murco-drilling-corp-ca5-1985.