Cardoso-Gonzalez v. Anadarko Petroleum Corp.

326 F. Supp. 3d 273
CourtDistrict Court, E.D. Louisiana
DecidedJune 20, 2018
DocketCIVIL ACTION NO. 16-16585
StatusPublished
Cited by3 cases

This text of 326 F. Supp. 3d 273 (Cardoso-Gonzalez v. Anadarko Petroleum Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cardoso-Gonzalez v. Anadarko Petroleum Corp., 326 F. Supp. 3d 273 (E.D. La. 2018).

Opinion

SUSIE MORGAN, UNITED STATES DISTRICT JUDGE

Before the Court are two motions for summary judgment filed by Crossclaim Defendant Anadarko Petroleum Corporation ("Anadarko").1 In the first motion, *276Anadarko seeks a ruling that the indemnity and insurance provisions in its Master Service Contract with Crossclaim Plaintiff W-Industries of Louisiana, L.L.C. ("W-Industries") is unenforceable under the Louisiana Oilfield Indemnity Act ("LOIA"), and that Anadarko is entitled to judgment as a matter of law on W-Industries' crossclaim.2 W-Industries, LLC filed an opposition.3 Anadarko filed a supplemental memorandum in support of its motion.4

In the second motion, Anadarko seeks a ruling that the analogous provisions in its Master Service Contract with Crossclaim Plaintiff Dolphin Services, L.L.C. ("Dolphin") are invalid, and that Anadarko is entitled to judgment as a matter of law on Dolphin's crossclaim.5 Dolphin has not filed an opposition.6

Because the issues raised in the two motions are identical, the Court will address them together. For the reasons that follow, Anadarko's motions are GRANTED .

BACKGROUND

Plaintiff Noel Cardoso-Gonzales alleges that on August 13, 2016, he was working aboard the LUCIUS spar, an offshore oil and gas production platform, when an unsecured cable tray fell from overhead, striking him between the shoulder and neck.7 Plaintiff alleges the incident resulted in severe and disabling injuries.8 On November 23, 2016, Plaintiff filed suit against (1) Anadarko Petroleum Corporation, the owner and/or operator of the LUCIUS; (2) W-Industries, which provided electrical services on the LUCIUS;9 (3) Dolphin, which provided construction services on the LUCIUS;10 (4) Safezone Safety Systems, LLC; and (5) Gulf South Services, Inc., the spar's scaffolding supplier.11 Plaintiff asserts negligence claims against all defendants.12

On November 9, 2017, Dolphin filed a crossclaim against Anadarko, seeking defense and indemnity from Plaintiff's claims pursuant to its Master Service Contract ("MSC") with Anadarko.13 W-Industries filed a crossclaim on November 15, 2017 on the same grounds.14 The MSCs include indemnity and insurance sections that provide standard "knock for knock" provisions pursuant to which the parties agree to indemnify each other for personal injuries *277sustained by their respective employees and invitees regardless of fault.15 Specifically, the W-Industries' MSC provides:

Company agrees to be responsible for and assume all liability for and hereby agrees to defend, release, indemnify, and hold harmless contractor indemnitees against claims arising in connection with; (i) bodily injury to and/or death of company's personnel and company's invitees; and/or (ii) subject to section 5, damage to property of company, company's personnel, and its and their invitees; arising in connection with this agreement, regardless of fault.16

The MSC between Anadarko and Dolphin provides:

The company agrees to be responsible for and assume all liability for and hereby agrees to defend, release, indemnify, and hold harmless the contractor indemnitees against claims arising in connection with: (i) bodily injury and/or death to company's employees, company's subcontractors and their employees, and company's invitees; and/or (ii) damage to property of company's employees and company's subcontractors and their employees, and company's invitees; arising out of or resulting from the performance of this agreement, regardless of fault. The indemnity obligations set forth in this paragraph 14(b) shall include any medical, compensation, or other benefits paid by contractor or any member of contractor indemnitees and shall apply even if the employee is determined to be the borrowed or statutory employee of contractor or any other member of contractor indemnitees.17

The MSCs also establish that each party must provide insurance coverage "for the benefit of the other" to cover the indemnity obligations included in the agreement.18 Specifically, Exhibit B of W-Industries' MSC requires each party to obtain "General Liability Insurance with limits of $1,000,000 combined single limit per occurrence, including, but not limited to, coverage for public liability including bodily injury and property damage liability, personal/advertising injury, contractual liability for those liabilities assumed by the Party herein, cross liability and severability of interest[.]"19 Similarly, the MSC between Anadarko and Dolphin provides that "The party's insurers name Company Indemnitees or Contractor Indemnitees, which ever is applicable, as additional insureds (except for Worker's Compensation and Property Insurance)."20

Anadarko now moves for summary judgment, asserting the indemnity and insurance coverage provisions in the MSCs are null and void under Louisiana law.21 These are the undisputed facts relevant to these motions. Anadarko owns and operates the LUCIUS platform, an offshore oil and gas platform located in the Gulf of Mexico off the coast of Louisiana.22 Anadarko decided to expand the platform by adding an amine unit, which would remove CO2 impurities from the natural gas produced from the platform.23 This project is referred to as *278the "Amine Project."24 Anadarko hired W-Industries to provide electrical services on the LUCIUS for the Amine Project, which included installing cable trays and running cable, and Anadarko and W-Industries entered into a MSC dated December 7, 2009.25 Anadarko hired Dolphin to provide construction services, including the installation of the brackets upon which the cable trays are secured, for the Amine Project.26 Anadarko and Dolphin entered into a MSC on March 21, 2001.27

Anadarko argues that, although the MSCs contain a choice of law provision specifying that Texas law will govern any state claims between the parties, the federal Outer Continental Shelf Lands Act requires that the laws of the "adjacent state"-in this case, Louisiana-should apply.28 Anadarko contends that under Louisiana law, the indemnity and insurance provisions in the MSCs are null and void pursuant to the LOIA.29 Anadarko asserts that, as a result, it is entitled to judgment as matter of law on the crossclaims of W-Industries and Dolphin.

W-Industries filed an opposition to Anadarko's motion.30 To date, Dolphin has not filed an opposition to Anadarko's motion.

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Bluebook (online)
326 F. Supp. 3d 273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cardoso-gonzalez-v-anadarko-petroleum-corp-laed-2018.