Commonwealth Insurance Co. v. Halliburton Energy Services, Inc.

899 So. 2d 24, 2003 La.App. 1 Cir. 2490, 2004 La. App. LEXIS 3389, 2004 WL 3142444
CourtLouisiana Court of Appeal
DecidedDecember 30, 2004
DocketNo. 2003 CA 2490
StatusPublished
Cited by2 cases

This text of 899 So. 2d 24 (Commonwealth Insurance Co. v. Halliburton Energy 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
Commonwealth Insurance Co. v. Halliburton Energy Services, Inc., 899 So. 2d 24, 2003 La.App. 1 Cir. 2490, 2004 La. App. LEXIS 3389, 2004 WL 3142444 (La. Ct. App. 2004).

Opinion

JjMCCLENDON, J.

This action was brought by the plaintiff, Commonwealth Insurance Company and other interested underwriters (Commonwealth) as the subrogated insurer of Parker & Parsley Petroleum Company (Parker), now Pioneer Natural Resources, Inc., seeking to recover damages as the result of the blowout of Parker’s Well #2 at Myette Point, in St. Mary Parish, Louisiana, on December 1, 1996. The blowout occurred at a sealing area in a swivel joint, or chiksan1, supplied by Halliburton Energy Services, Inc. (Halliburton) to Parker and its well control expert, Cudd Pressure Control, Inc. (Cudd). Prior to the commencement of trial, the parties stipulated the amount of damages to be $6,796.225.76, exclusive of interest. Named defendants in the lawsuit were Halliburton and Cudd. Cudd settled prior to trial, and trial proceeded against Halliburton only.

Trial of this matter was held before a jury from August 12-21, 2002. Prior to trial, the trial court decided, in order to simplify matters and avoid jury confusion, that the trial would take place in two phases. The first phase of the trial addressed liability issues and the second phase addressed contractual issues regarding indemnification. The liability phase of the trial lasted seven days, after which the jury unanimously determined that Halliburton was not negligent, that the chiksan was not defective, that Parker and Cudd were both negligent, and that Cudd was grossly negligent. The jury apportioned the fault for the blowout 55% to Cudd and 45% to Parker. Two days of testimony then followed to determine whether Halliburton was entitled to indemnity from Parker. Again, the jury made a unanimous decision and determined that Parker owed indemnity to Halliburton.

A judgment consistent with the jury verdicts was signed on September 23, 2002. On October 1, 2002, Commonwealth and Parker filed a motion for judgment notwithstanding the verdict (JNOV) and, alternatively, a motion for new trial with respect to both the liability and indemnity issues. Following | ¿extensive briefing and argument by the parties, the trial court denied the motions.2 A judgment reflecting the denial of the motions for JNOV and new trial was signed on May 13, 2003. Commonwealth appealed.3

In its appeal, Commonwealth raises seven assignments of error:

[28]*281. By finding that Halliburton was not strictly liable, negligent, grossly negligent or otherwise at fault and by assigning 45% of the fault to Parker and 55% to Cudd, the jury committed clear and manifest error; thus, the answers to Interrogatories Number 1-4 on the liability portion of the trial, as incorporated in the Judgment of September 23, 2002, constitutes clear and manifest error.
2. The trial court’s ruling that a New Trial on the Issue of Liability was rendered moot by the jury verdict on the contract issues is incorrect as a matter of law and constitutes reversible error.
3. The trial court’s refusal to disqualify Dennis Stanfield as an expert witness for Halliburton constituted prejudicial and reversible error and is a basis for a new trial on the liability issues.
4. The jury’s answers to Interrogatories Numbers 1-9 on the Contract portion of the trial, as set forth in the Judgment of September 23, 2002, constitute clear and manifest error.
5. The trial court’s refusal to grant a New Trial/JNOV on the indemnity issues constitutes an abuse of discretion.
6. The trial court erred as a matter of law by failing to find that, as between the two documents which the jury found to be contracts, the Hazardous Work Master Service Contract controlled, and therefore that Halliburton was not entitled to be indemnified, held harmless or defended for its own negligence or fault.
7. The trial court’s refusal to strike the deposition testimony of Larry Mitschke and Richard Gonzales constituted prejudicial and reversible error and is a basis for a new trial on the contract issues.

Halliburton answered the appeal seeking attorney fees and costs for the appeal of this matter.

I.STANDARD OF REVIEW

A court of appeal may not set aside a trial court’s finding of fact in the absence of manifest error or unless it is clearly wrong. Bonin v. Ferrellgas, Inc., 03-3024, p. 6 (La.7/2/04), 877 So.2d 89, 94. Under the manifest error standard, in order to reverse a trial court’s determination of a fact, an appellate court must review the record in its entirety and (1) find that a reasonable factual basis does not exist for the finding, and (2) further determine that the record establishes that the fact finder is clearly wrong or manifestly erroneous. Stobart v. State Through Dep’t of Transp. and Dev., 617 So.2d 880, 882 (La. 1993). On review, an appellate court must be cautious not to re-weigh the evidence or to substitute its own factual findings just because it would have decided the case differently. Ambrose v. New Orleans Police Dept. Ambulance Service, 93-3099, p. 8 (La.7/5/94), 639 So.2d 216, 221. The reviewing court must give great weight to factual conclusions of the trier of fact; where there is conflict in the testimony, reasonable evaluations of credibility and reasonable inferences of fact should not be disturbed upon review, even though the appellate court may feel that its own evaluations and inferences are as reasonable. The reason for this well-settled principle of review is based not only upon the trial court’s better capacity to evaluate live witnesses (as compared with the appellate court’s access only to a cold record), but also upon the proper allocation of trial and appellate functions between the respective courts. Bonin, 03-3024 at pp. 6-7, 877 So.2d at 94-95; Canter v. Koehring Co., 283 So.2d 716, 724 (La.1973).

Nevertheless, recognizing that great deference should be accorded to the fact finder, the court of appeal has a con[29]*29stitutional duty to review facts. To perform its constitutional duty properly, an appellate court must determine whether the trial court’s conclusions were clearly wrong based on the evidence or clearly without evidentiary support. When two permissible views of the evidence exist, the fact finder’s choice between them cannot be manifestly erroneous or clearly wrong. Bonin, 03-3024 at p. 7, 877 So.2d at 95. The issue Ris not whether the trier of fact’s determination was right or wrong, but whether it was reasonable. Bonin, 03-3024 at p. 12, 877 So.2d at 98.

DISCUSSION

Facts of well blowout

Parker’s Well # 2, State Lease # 5706, was located near one end of a canal that accessed the Atchafalaya River at its other end. Parker developed a workover plan for the well and contracted with Dawson Well Service (Dawson) to provide a rig to perform the job. Parker also engaged the services of Steve Halpin, an independent consultant, to be its company representative at the well site. In connection with the workover, Parker hired Halliburton to provide pumping services.

On November 26, 1996, during downhole operations to cut and remove damaged tubing, the well experienced a sudden flow of gas to the surface, known as a kick. Dawson closed the rig’s blowout prevent-ers and a TIW valve on top of the tubing. Thereafter, a small leak developed in a flange between two blowout preventers on the wellhead, and the Dawson rig was moved offsite.

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899 So. 2d 24, 2003 La.App. 1 Cir. 2490, 2004 La. App. LEXIS 3389, 2004 WL 3142444, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-insurance-co-v-halliburton-energy-services-inc-lactapp-2004.