BROOKS WELL SERV. v. Cudd Pressure Control

850 So. 2d 1027, 2003 WL 21472725
CourtLouisiana Court of Appeal
DecidedJune 27, 2003
Docket36,723-CA
StatusPublished
Cited by11 cases

This text of 850 So. 2d 1027 (BROOKS WELL SERV. v. Cudd Pressure Control) 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
BROOKS WELL SERV. v. Cudd Pressure Control, 850 So. 2d 1027, 2003 WL 21472725 (La. Ct. App. 2003).

Opinion

850 So.2d 1027 (2003)

BROOKS WELL SERVICING, INC. and National Union Fire Insurance Company of Pittsburgh, PA, Plaintiff-Appellee,
v.
CUDD PRESSURE CONTROL, INC. and Sonat Exploration Company, Defendant-Appellant.

No. 36,723-CA.

Court of Appeal of Louisiana, Second Circuit.

June 27, 2003.
Rehearing Denied August 14, 2003.

*1028 Michael H. Bagot, Jr., Thomas A. Rayer, Jr., New Orleans, for Appellant, Cudd Pressure Control, Inc.

*1029 Philip K. Jones, Jr., New Orleans, Russell K. Jarrett, Thomas P. Diaz, New Orleans, for Appellant, Sonat Exploration Company.

Robert B. Nolan, Thomas G. O'Brien, New Orleans, Patrick E. Henry, Shreveport, Megan Haggerty, Thomas Eliot Gottsegen, New Orleans, for Appellee, Brooks Well Servicing, Inc.

Francis J. Barry, Jr., Robert E. Kerrigan, Jr., Walter P. Maestri, New Orleans, for Appellee, National Union Fire Insurance Co.

Arthur W. Landry, New Orleans, for Intervenor, Lumbermens Mutual Casualty Co.

Before BROWN, WILLIAMS and GASKINS, JJ.

WILLIAMS, J.

The defendant, Cudd Pressure Control, Inc. ("Cudd"), appeals a district court judgment in favor of Sonat Exploration Company ("Sonat") sustaining Sonat's exceptions of lis pendens and res judicata, finding that Cudd's request for declaratory judgment was precluded by a prior Texas judgment. Additionally, the co-defendant, Sonat, appealed a judgment granting the motion for summary judgment of the plaintiffs, Brooks Well Servicing, Inc. ("Brooks") and its insurer National Union Fire Insurance Company of Pittsburgh, Pennsylvania ("National Union"). The district court held that pursuant to Louisiana law Sonat was not entitled to indemnity from Brooks or to insurance coverage from National Union under the parties' service contract. The intervenor, Lumbermens Mutual Casualty Company ("Lumbermens"), appeals a judgment sustaining Sonat's exception of lis pendens and staying its intervention.

Subsequently, Sonat, Brooks and National Union settled their differences and filed a joint motion to dismiss Sonat's appeal. Accordingly, by separate order of this court, the appeal filed by Sonat has been dismissed with prejudice and the moving parties have been assessed with their own appeal costs. The settlement and dismissal do not affect the appeal filed by Cudd. For the following reasons, we reverse in part and affirm in part.

FACTUAL AND PROCEDURAL BACKGROUND

Sonat owned and operated the Otto Cummings Alt. Well No. 2, a high pressure gas well in Bryceland, Bienville Parish, Louisiana. Pursuant to separate Master Service Agreements ("MSA"), Sonat retained Brooks to conduct well-servicing operations at the Bryceland site and hired Cudd to perform snubbing operations, a process which involves forcing pipe into high pressure wells. In October 1998, during the snubbing operations, a well explosion killed seven men and severely burned three others. There was also significant damage to all of the equipment at the site. Prior to beginning work, Brooks had obtained excess liability insurance coverage from National Union. Cudd's excess coverage was provided by Lumbermens. Pursuant to the MSA, Sonat was added as an insured under the policies issued by National Union and Lumbermens.

As a result of the well blowout, a number of lawsuits were filed in various locations. Employee personal injury and wrongful death suits were filed in Texas. Cudd sued various parties, including Brooks in Orleans Parish, Louisiana, for damage to Cudd's equipment. Sonat also filed suit in Orleans Parish for damage to its property. In January 2000, Brooks and National Union sued Cudd and Sonat in Bienville Parish seeking damages for the loss of Brooks' equipment. That suit was *1030 dismissed in March 2000 following the trial court's sustention of Cudd's exception of lis pendens based on the lawsuit in Orleans Parish. Brooks and National Union appealed the dismissal. However, while the appeal was pending, Cudd amicably resolved its property damage claim against Brooks and National Union and the Orleans Parish case was dismissed.

In September 2000, Sonat filed third-party indemnity claims against Brooks and Cudd in a pending personal injury case entitled Creel v. Sonat Exploration Company, NO. 99-0199, 71st Judicial District Ct. of Harrison County (Houston), Texas. By August 2001, Sonat had settled the wrongful death and personal injury suits of the Cudd and Brooks employees. Sonat also filed a separate action against Brooks and National Union seeking insurance coverage for the amount of personal injury damages paid.

In February 2001, Cudd joined Brooks and National Union in their appeal of the district court's judgment sustaining Cudd's exception of lis pendens. After finding that the parties had resolved the Orleans Parish suit which was the basis for the exception, this court reversed the trial court's judgment and remanded the case to the district court in Bienville Parish. Brooks Well Servicing v. Cudd Pressure Control, Inc., 34,796 (La.App.2d Cir.8/22/01), 796 So.2d 66.

Prior to our remand of the Bienville Parish case, Sonat filed motions for partial summary judgment in Harrison County against Cudd, Brooks and National Union seeking the application of Texas law to the M.S.A. and a finding that Sonat was entitled to indemnity and insurance coverage for personal injury damages paid. The motions were granted in Sonat's favor, leaving the assessment of quantum to be determined. The jury trial on the issue of damages convened as to Cudd; however, Brooks was granted a continuance after its attorney became ill. In October 2001, the Texas Court rendered judgment on the jury verdict in favor of Sonat and against Cudd in the amount of $20.7 million. Cudd appealed to the Texas court of appeals, which dismissed the appeal on the grounds that the judgment was not final. Cudd Pressure Control, Inc. v. Sonat Exploration Company, 74 S.W.3d 185 (Tex. App.-Texarkana 2002).

In January 2002, Cudd filed its answer and cross-claim against Sonat in Bienville Parish, seeking a declaration that it did not owe indemnity to Sonat. Cudd's excess insurer, Lumbermens, intervened in the lawsuit.

Based upon the ongoing proceedings in Harrison County against Brooks and Cudd, Sonat filed an exception of lis pendens and a motion to dismiss or stay against Brooks and National Union in Bienville Parish district court. Sonat filed an exception of lis pendens and motion to dismiss or stay against Cudd, and added an exception of res judicata based upon the October 22, 2001 Texas judgment assessing quantum. Sonat also filed an exception of lis pendens against Lumbermens.

In March 2002, the district court denied Sonat's exception of lis pendens and motion to dismiss against Brooks and National Union and granted the motions for summary judgment filed by Brooks and National Union, holding that the indemnity and insurance provisions of the M.S.A. § were void under Louisiana Law. In May 2002, the district court granted Sonat's exceptions of lis pendens and res judicata against Cudd based upon the prior Texas judgment and dismissed Cudd's cross-claims against Sonat. The district court also stayed Lumbermens' claim based upon Sonat's exception of lis pendens and *1031 denied Sonat's motions to dismiss or stayed the proceeding.

Cudd appeals the judgment dismissing its cross-claim against Sonat.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
850 So. 2d 1027, 2003 WL 21472725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brooks-well-serv-v-cudd-pressure-control-lactapp-2003.