Brennan v. Shell Offshore, Inc.

612 So. 2d 929, 1993 La. App. LEXIS 39, 1993 WL 5589
CourtLouisiana Court of Appeal
DecidedJanuary 14, 1993
Docket92-CA-0353
StatusPublished
Cited by8 cases

This text of 612 So. 2d 929 (Brennan v. Shell Offshore, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brennan v. Shell Offshore, Inc., 612 So. 2d 929, 1993 La. App. LEXIS 39, 1993 WL 5589 (La. Ct. App. 1993).

Opinion

612 So.2d 929 (1993)

James M. BRENNAN
v.
SHELL OFFSHORE, INC., et al.

No. 92-CA-0353.

Court of Appeal of Louisiana, Fourth Circuit.

January 14, 1993.
Writ Denied March 26, 1993.

*930 Charles M. Raymond, New Orleans, for defendant/appellant, Shell Offshore, Inc.

Charles M. Steen, William J. Riviere, Phelps Dunbar, New Orleans, for defendant/appellee, Ray Gibbins Maintenance, Inc.

Before BARRY, BYRNES and WARD, JJ.

BARRY, Judge.

Shell Offshore, Inc. satisfied a judgment in favor of James Brennan, a Jones Act seaman employed by Ray Gibbins Industries, Inc. Shell appeals the denial of its cross-claim for indemnity against Gibbins.

Brennan primarily worked as a welder aboard a jack-up vessel and on a Shell rig in Main Pass. On June 22, 1989 he was on a barge leased by Shell when he injured his lower back while moving pipe to a Shell jo-boat. Brennan sued Shell and Gibbins under the Jones Act and general maritime law. Gibbins settled during trial. Shell cross-claimed against Gibbins based on an indemnity clause in their contract.

According to the Jones Act judgment and jury verdict form (introduced in this cross-claim by Shell) Brennan was found to be 23.75% negligent and Shell 76.25% negligent. Paragraph V of Shell's supplemental cross-claim provides: "Shell Offshore, Inc. was found liable and judgment of $199,902.08 was awarded ... against Shell...."

Shell submits that the court erred in its conclusion that Shell's contract with Gibbins was not maritime in nature and the Louisiana Oilfield Indemnity Act nullified their indemnity agreement. Shell also claims that on the negligence issue the court erroneously incorporated the jury's Jones Act findings into its judgment without making independent findings of fact.

THE LAW

A contract which is maritime in nature is governed by maritime law. If a contract is not maritime in nature Louisiana law applies and an indemnity agreement may be declared null under the Louisiana Oilfield Indemnity Act, La.R.S. 9:2780 A which provides:

The legislature finds that an inequity is foisted on certain contractors and their employees by the defense or indemnity provisions, either or both, contained in some agreements pertaining to wells for oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, to the extent those provisions apply to death or bodily injury to persons. It is the intent of the legislature by this Section to declare null and void and against public policy of the state of Louisiana any provision in any agreement which requires defense and/or indemnification, for death or bodily injury to persons, where there is negligence *931 or fault (strict liability) on the part of the indemnitee, or an agent or employee of the indemnitee, or an independent contractor who is directly responsible to the indemnitee.

The primary issue is whether the contract between Shell and Gibbins is maritime. If the agreement consists of a blanket contract and later work orders, all the documents must be interpreted together to determine maritime status. Jurisprudentially there are six factors which direct the fact-specific inquiry into whether a contract is maritime:

(1) The work order in effect at the time of injury;

(2) The work performed by the crew;

(3) Whether the vessel was in navigable waters;

(4) To what extent did the work relate to the mission of the vessel;

(5) The primary work of the injured worker;

(6) The work being done at the time of injury.

Domingue v. Ocean Drilling and Exploration Company, 923 F.2d 393, 395-96 (5th Cir.1991), cert. denied ___ U.S. ___, 112 S.Ct. 874, 116 L.Ed.2d 779 (1992) quoting from Davis & Sons Inc. v. Gulf Oil Corporation, 919 F.2d 313, 316 (5th Cir. 1990).

Seaman status is only one basis to determine if maritime law is applicable. The contractual relationship between the contractor and the oil company is not governed by the same considerations. Clement v. Pressure Services, Inc., 526 So.2d 1338 (La. App. 4th Cir.1988), citing Lefler v. Atlantic Richfield Co., Inc., 785 F.2d 1341 (5th Cir. 1986).

The Louisiana Oilfield Indemnity Act nullifies a contractual provision that provides for a legal defense or indemnity where the indemnitee is at fault. Meloy v. CONOCO, Inc., 504 So.2d 833 (La.1987). See also Doucet v. Gulf Oil Company, 783 F.2d 518 (5th Cir.1991), cert. denied 479 U.S. 883, 107 S.Ct. 272, 93 L.Ed.2d 249 (1986).

THE RECORD

Shell introduced the Jones Act judgment which held it liable and the verdict form wherein the jury found Shell 76.25% and Brennan 23.75% at fault. Shell also introduced a number of photographs and its July 15, 1987 blanket order with Ray Gibbins Maintenance Inc. (Ray Gibbins Industries Inc. is the parent company) which states that Gibbins was to provide:

All necessary tools and equipment, materials (except SOI-furnished materials), labor and supervision to: Furnish primary contract labor and/or welding services (contract labor—maintenance program) as requested by SOI's production and drilling foremen assigned to our east, west and coastal divisions (offshore use only). SOI shall furnish lodging and food whenever necessary.

Paragraph 11 of the liability/indemnity provision on the back of the order provides in pertinent part:

Except as stipulated above in this Article 11, and to the maximum extent permitted by applicable law (but no further), CONTRACTOR [Gibbins] shall defend, indemnify and hold harmless BUYER [Shell], its parent and subsidiary companies, coventurers, and directors, employees and agents of such companies against any loss, damage, claim, suit, liability, judgment and expense (including attorneys' fees and other costs of litigation), and any fines, penalties and assessments, arising out of injury, disease or death of persons or damage to or loss of any property (including but not limited to BUYER'S existing facilities) or the environment resulting from or in connection with performance or nonperformance of work under this Order by CONTRACTOR, its agents or sub-contractors, even though caused by the concurrent and/or contributory negligence (whether active or passive or of any kind or description) or fault of a party indemnified, subject to the next succeeding sentence herein. Without regard to the extent of negligence, if any, of an indemnified party, CONTRACTOR, at its expense, shall defend any such claim or suit against an *932 indemnified party and shall pay any judgment resulting therefrom. If, after CONTRACTOR has both defended any such suit and paid any resulting judgment, it is judicially determined that the injury, disease, death or damage was caused by the sole negligence of a party indemnified, then BUYER shall reimburse CONTRACTOR for the judgment and for reasonable defense costs incurred. BUYER shall have the right but not the duty to participate in the defense of any such claim or suit with attorneys of its own selection without relieving CONTRACTOR of any obligations hereunder....

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