Darty v. Transocean Offshore U.S.A., Inc.

875 So. 2d 106, 2003 La.App. 4 Cir. 1669, 2004 A.M.C. 1983, 2004 La. App. LEXIS 1537, 2004 WL 1345276
CourtLouisiana Court of Appeal
DecidedMay 12, 2004
DocketNo. 2003-CA-1669
StatusPublished
Cited by5 cases

This text of 875 So. 2d 106 (Darty v. Transocean Offshore U.S.A., 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
Darty v. Transocean Offshore U.S.A., Inc., 875 So. 2d 106, 2003 La.App. 4 Cir. 1669, 2004 A.M.C. 1983, 2004 La. App. LEXIS 1537, 2004 WL 1345276 (La. Ct. App. 2004).

Opinion

| MOAN BERNARD ARMSTRONG, Chief Judge.

The appellant, Bay Coquille, Inc., appeals a judgment of June 26, 2003, denying its motion for summary judgment for indemnity against the appellee, R & B Falcon Drilling USA, Inc. (hereinafter “Falcon”), and granting the motion for summary judgment of Falcon for indemnity against the Bay Coquille in a personal injury claim brought by the original plaintiff, Darían Darty. We affirm. Written reasons were given for designating this partial judgment as final and that determination is not contested on this appeal.

This matter arises out of a personal injury sustained by the plaintiff, Darían Darty, a wage employee of Tom’s Welding, but also arguably a borrowed employee of the appellee, Falcon. The alleged accident took place during the transfer of cargo from a materials barge to Falcon’s Rig #20, a submersible drilling barge employed in drilling the Delesdernier No. 9 well in Plaquemines Parish, where Darty was working. However, the merits of Darty’s personal injury claim are not part of this appeal. The appeal concerns only Falcon and Bay Coquille’s claims for indemnity against each other.

| ?Darty filed his claim in state court under the Jones Act and General Maritime Law against Transocean Offshore USA, Inc. and Bay Coquille, Inc. In an amended petition, Darty named Falcon as a defendant. Falcon filed a cross claim against Bay Coquille alleging that Darty was employed by Tom’s Welding Services and that in turn Tom’s Welding Services was retained by Bay Coquille. More importantly, Falcon alleged that Bay Coquille was contractually obligated to indemnify it. Bay Coquille answered and filed a cross claim for indemnity against Falcon. Falcon moved for summary judgment and Bay Coquille filed a cross motion for summary judgment.

The indemnity claims of Bay Coquille and Falcon against each other arise from the reciprocal indemnity provisions found in § 14.8 and § 14.9 of the “International Association of Drilling Contractors Drilling Bid Proposal and Daywork Drilling Contract” (hereinafter “Contract”) between Falcon and Bay Coquille. It is undisputed that this is a maritime contract. According to the parties, the crux of this case is whether the term “employees” found in § 14.8 and § 14.9 includes “borrowed employees.” However, there is more to interpreting the reciprocal indemnity provisions than just devining the meaning of the term “employees.”

§ 14.9 of the Contract provides in pertinent part for Bay Coquille’s indemnity of Falcon:

Operator’s [Bay Coquille’s] Indemnification of Contractor [Falcon]: Operator agrees to release, defend, indemnify, and hold harmless, Contractor, its officers, directors, employees and joint owners from and against all claims, demands and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party or ^parties, arising in connection herewith in favor of Operator’s employees or Operator’s [Bay Coquille’s] contractors or their employees, or Operator’s invitees, other than those parties identified in paragraph 14.8 on account of bodily injury, death or damage to property ... [Emphasis added.]

Thus § 14.9 requires Bay Coquille to indemnify Falcon “on account of bodily injury, death or damage to property” for [109]*109claims made by Bay Coquille’s “contractor’s or their employee.” It is uncontested that Bay Coquille contracted for the services of Tom’s Welding and that the original personal injury plaintiff herein, Darían Darty, was a wage employee of Tom’s Welding. Consequently, if the only issue in the case were whether Darían Darty was an employee of one of Bay Coquille’s contractors we would simply conclude that Bay Coquille owes indemnity to Falcon under § 14.9 of the Contract. However, Bay Coquille points to what it refers to as the “Exception Clause” in § 14.9, which modifies the reference to Bay Coquille’s “contractors or their employees” by limiting them to those “contractors and their employees ... other than those parties identified in paragraph 14.8 ...” [Emphasis added.]

§ 14.8 provides in pertinent part for Falcon to indemnify Bay Coquille:

Contractor’s [Falcon’s] Indemnification of Operator [Bay Coquille]: Contractor agrees to release, defend, indemnify, and hold harmless, Operator, its officers, directors, employees and joint owners from and against all claims, demands, and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party or parties, arising in connection herewith in favor of Contractor’s [Falcon’s] employees or contractor’s subcontractors or their employees, or Contractor’s invitees, on account of bodily injury, death or damages to property.... [Emphasis added.]

|4The “Exception Clause” in § 14.9 refers to, among others, Falcon’s “employees,” as Falcon’s employees are “parties identified in paragraph 14.8.” Thus when read together § 14.8 and § 14.9 are, § 14.9 requires Bay Coquille to indemnify Falcon for claims of bodily injury for employees of its contractors such as Darty, with the exception of claims made by Falcon’s employees. Bay Coquille alleges that Darty is Falcon’s borrowed employee, thereby, under the Exception Clause transferring the obligation to indemnify from Bay Coq-uille to Falcon. Falcon counters that the term “employees” found in § 14.8 refers only to traditional direct wage paid employees and not to employees by operation of law such as borrowed employees.

Bay Coquille explains that the Exception Clause is necessary because Falcon and its employees would qualify as one of Bay Coquille’s contractor’s or its employees under § 14.9, which would nullify Falcon’s indemnity obligations to Bay Coquille if one of Falcon’s employees were injured.1 Put another way, it is Bay Coquille’s contention that the “Exception Clause” refers to Falcon and its employees solely for the purpose of preventing the reciprocal indemnity provision from canceling itself out. From this we conclude that the Exception Clause was not intended to apply to situations in which Bay Coquille may have contracted with a party other than Falcon, such as Tom’s Welding, Darty’s wage paying employer. Thus, the Exception Clause provides this Court with no insight into the intention of the parties regarding the question of whether the term “employees” includes | sborrowed employees. Moreover, even if the Exception Clause could be said in some way to support Bay Coquille’s contention that the [110]*110term “employees” was intended to include borrowed employees, it still doesn’t help us determine whether the fact that Darty may be considered Falcon’s borrowed employee should take precedence over his initial and continuing status as an employee of a non-Falcon contractor retained by Bay Coquille.

While Falcon and Bay Coquille attempt to persuade this Court that, in effect, almost as a matter of law, the term “employees” either includes borrowed employees according to Bay Coquille, or does not according to Falcon, we find that the intent of the parties controls. We find nothing in the law or public policy that prevents the parties form entering into a contract that could be read as either Bay Coquille or Falcon suggest, i.e., the task of this Court in this case is initially to determine whether it was the intent of the parties that the term “employees” in the contract should also include borrowed employees.

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Bluebook (online)
875 So. 2d 106, 2003 La.App. 4 Cir. 1669, 2004 A.M.C. 1983, 2004 La. App. LEXIS 1537, 2004 WL 1345276, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darty-v-transocean-offshore-usa-inc-lactapp-2004.