Clement v. Pressure Services, Inc.

526 So. 2d 1338, 1988 La. App. LEXIS 1101, 1988 WL 46296
CourtLouisiana Court of Appeal
DecidedMay 12, 1988
DocketNo. CA-8767
StatusPublished
Cited by2 cases

This text of 526 So. 2d 1338 (Clement v. Pressure Services, 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
Clement v. Pressure Services, Inc., 526 So. 2d 1338, 1988 La. App. LEXIS 1101, 1988 WL 46296 (La. Ct. App. 1988).

Opinion

BARRY, Judge.

Conoco, Inc. appeals a summary judgment in favor of Pressure Services, Inc. [PSI]. Conoco’s appeal is based on its cross-claim against PSI for indemnity and costs to defend against the claim.

Stanley Clement, an employee of PSI, claimed seaman status under the Jones Act and general maritime law for personal injuries he sustained when the M/V Southern Cross, owned by Cross Marine, Inc. and chartered by Conoco, capsized and sank. Clement was going to a fixed Conoco platform for general workover operations. He sued PSI, Cross Marine and Conoco alleging unseaworthiness of the vessel and negligence of the defendants.

Conoco’s cross-claim seeks indemnification and defense costs pursuant to a Charter Party Agreement with Cross Marine and a Blanket Contract with PSI. Conoco asked for costs of defending the claim from both cross-claim defendants if it is not found liable.

PSI intervened to be paid by preference for compensation and medical expenses it paid to Clement under the Longshore and Harbor Workers’ Compensation Act [LHWCA] (33 U.S.C. § 901 et seq.). PSI’s motions for summary judgment1 on Clement’s petition and Conoco’s cross-claim were granted.

Conoco specifies as error: (1) the conclusion that the blanket contract was not subject to federal maritime law; (2) dismissal of Conoco’s claim for indemnity which, even under Louisiana law, should be allowed at least for recovery of costs if Cono-co is free from fault.

The trial court found that Clement was not a crew member of the Southern Cross IV and not a Jones Act seaman. The court noted that Clement’s duties on the vessel were ancillary to his employment by PSI (as a snubbing helper) and he did not show any permanent attachment to the vessel.

The trial court concluded the blanket contract between Conoco and PSI was not maritime in nature, it dealt with services to be performed on a fixed platform and was covered by La.R.S. 9:2780, the Louisiana Oilfield Indemnity Act [the Act] which does not permit indemnification.

In support of its motion for summary judgment PSI presented its open-ended Blanket Subcontractor’s Agreement with Conoco dated March 26, 1980 and continuing until either party gives written cancellation notice. Paragraph V (B) provides:

Contractor agrees to indemnify and hold harmless Company, and any or all co-lessees or co-owners of Company who whol[1340]*1340ly or partially bear the cost of operations hereunder, or other Company Contractors to which Company owes an indemnification, and any or all agents, directors, officers, employees, or servants of Company or of such co-lessees or co-owners, or other such Company Contractors, against any and all claims, demands, or suits (including, but not limited to, claims, demands, or suits, for bodily injury, illness, disease, death, or loss of services, property or wages) which may be brought against Company or against Company and such co-lessees or co-owners, or other such Company Contractor, whether one or more, or in which any and all such agents, directors, officers, employees, or servants of Company or of such co-lessees, co-owners, or other such Company Contractors, as the case may be, are named party defendant or parties defendant, as the case may be, by any employee of Contractor, his subcontractor, or the legal representative or successor of such employee, in any way arising out of or incident to the work to be performed under this contract, irrespective of whether such suits are based on the relationship of master and servant, third party, or otherwise, and even though occasioned, brought about, or caused in whole or in part by the negligence of Company, and/or its co-lessees or co-owners, and/or other Company Contractors, their agents, directors, officers, employees, or servants, or the unseaworthiness of vessels or craft, or by conditions, acts or omissions (whether or not in whole or in part the responsibility of or occasioned by negligence or fault of Company and/or co-lessees and/or co-owners or other Company Contractor, their agents, directors, officers, employees or servants) which impose strict liability provided, however, that such indemnification shall only apply to the extent permitted by applicable law. Contractor further agrees to have any such claim, demand, or suit investigated, handled, responded to and defended at no cost to Company, its co-lessees, co-owners and/or other Company Contractors, even if such claim, demand, or suit is groundless, false or fraudulent.

PSI submitted its December 18, 1985 letter for a specific workover job which states that PSI submits a quote on the “upcoming work at the above referenced location.” The attachments included two pages, the first listed the component parts of PSI's double hydraulic workover unit, its cost per day (whited out), the cost of the standby with crew (whited out), and further provided:

Transportation charges to be passed thru to Conoco at ICC rates.

The second page listed 11” Bop Stack w/2” handling tools and the total daily cost for the equipment (whited out).

PSI also submitted the sworn affidavit of Jack Smith, Risk Manager of PSI, which states that Clement was a snubbing helper on January 29, 1986. Smith declared that PSI had contracted to perform work on a Conoco fixed platform in the Gulf of Mexico. He also stated that PSI’s insurer had paid and was continuing to pay compensation and medical expenses pursuant to LHWCA.

In its opposition Conoco refers to Clement’s deposition statement that he worked as a snubbing helper on a platform, but usually slept and ate on the boat.

Clement did not appeal the summary judgment in favor of PSI declaring he was not a seaman. That determination of seaman status involves one basis for the application of maritime law. The contractual relationship between PSI and Conoco is not governed by the same considerations. See Lefler v. Atlantic Richfield Co., Inc., 785 F.2d 1341 (5th Cir.1986).

Whether the contract is maritime is a separate consideration which would serve as an independent basis for application of federal maritime law. The interpretation of an indemnity clause in a maritime contract is governed by federal maritime law rather than state law. Corbitt v. Diamond M. Drilling Co., 654 F.2d 329 (5th Cir.1981). Only the summary judgment as to Conoco’s cross-claim for indemnity from PSI based on the contract is at issue.

[1341]*1341The standard for summary judgment under Fed.R.C.P. 56(c) corresponds to the companion Louisiana article. A summary judgment shall be rendered if the pleadings, depositions, answers to interrogatories and admissions on file, together with affidavits, if any, show that there is no genuine issue of fact and that the mover is entitled to judgment as a matter of law. La.C.C.P. Art. 966; Champagne v. M/V Cover Station, 508 So.2d 881 (La.App. 5th Cir.1987).

A heavy burden of proof is on the mover to establish there is no genuine issue of material fact. A summary judgment should be denied when reasonable minds differ on whether it is appropriate. Cates v. Beauregard,

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Bluebook (online)
526 So. 2d 1338, 1988 La. App. LEXIS 1101, 1988 WL 46296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clement-v-pressure-services-inc-lactapp-1988.