Diamond Offshore Drilling, Inc. and Diamond Rig Investments LTD v. William Black

Court of Appeals of Texas·Decided June 14, 2022·No. 14-19-00905-CV·Published

Opinion

Reversed and Rendered in Part, Reversed and Remanded in Part, and Majority and Concurring Opinions filed June 14, 2022.

In The

Fourteenth Court of Appeals

NO. 14-19-00905-CV

DIAMOND OFFSHORE DRILLING, INC. AND DIAMOND RIG INVESTMENTS LTD., Appellants V.

WILLIAM BLACK, Appellee

On Appeal from the 281st District Court Harris County, Texas Trial Court Cause No. 2015-74728

MAJORITY OPINION

Appellee William Black was injured while working as a mechanic on board a mobile offshore drilling unit docked in Spain. Black sued appellants Diamond Offshore Drilling, Inc. (“Diamond Drilling”) and Diamond Rig Investments Limited (“Diamond Rig”) (together, “Appellants”) for damages stemming from the incident. The parties proceeded to trial and the jury returned a verdict in Black’s favor, finding that both Appellants were negligent with respect to the incident. The trial court signed a final judgment awarding Black $2.2 million in damages.

On appeal, Appellants challenge (1) the wording of the sole jury question on liability; (2) the legal and evidentiary bases for liability with respect to each Appellant; and (3) the sufficiency of the evidence supporting the damages assessed for Black’s future medical expenses. For the reasons below, we reverse the trial court’s judgment, render judgment in part, and remand the case in part for further proceedings in accordance with this court’s opinion.

BACKGROUND

Facts

Black is a citizen and resident of the United Kingdom. Black was injured on January 2, 2015, while working as a mechanic on board the Ocean Valiant, a mobile offshore drilling unit. As Black was working on a piece of equipment located below knee level, he sat on a bucket containing a caustic cleaning chemical called “AlfaNeutra.” The bucket’s lid was not completely fastened and, when Black sat down, the AlfaNeutra leaked out and soaked through Black’s clothes. Shortly after, Black started to feel a burning pain on his right buttock.

Black initially was treated on the ship by Daryl Tankersley, a safety department representative. Black then was transported to a local hospital, where his wound was dressed. Black returned to the ship the same day and continued working.

Over the next several days, Black’s pain continued to worsen. Black returned home to the United Kingdom and visited his local doctor. Black’s injury was diagnosed as a third-degree chemical burn and he was scheduled for a skin

2 graft the following day. Black remained in the hospital for a week following his surgery. Approximately five months later, Black’s employment was terminated as part of a planned reduction-in-force.

As relevant to this appeal, we provide a brief overview of several Diamond entities involved in the facts and circumstances giving rise to this case:

• In January 2008, Black signed a written employment agreement with Diamond Offshore Drilling (Bermuda) Limited (“Diamond Bermuda”). This agreement required Black to bring any claims against Diamond Bermuda “in the courts of Bermuda.” • Diamond Bermuda is an “employment subsidiary” of parent corporation Diamond Drilling. Diamond Bermuda employs third- country nationals like Black. • Diamond Offshore Services Limited is another “employment subsidiary” of parent corporation Diamond Drilling. Diamond Offshore Services Limited employs United States citizens. • Diamond Drilling maintains its office in Houston, Texas and has no employees. • At the time of the incident, Diamond Rig owned the Ocean Valiant. • Diamond Rig is a wholly-owned subsidiary of Diamond Drilling. Like Diamond Drilling, Diamond Rig has no employees. • The seamen working on the Ocean Valiant at the time of Black’s injury had employment agreements with Diamond Bermuda and Diamond Offshore Services Limited.

Legal Proceedings

In December 2015, Black sued Diamond Drilling and two other Diamond entities,1 asserting claims under the Jones Act, the general maritime law of the United States, and the laws of the United Kingdom. In his first amended petition, 1 Specifically, Black also asserted claims against Diamond Offshore Drilling, Limited and Diamond Offshore General Company. Diamond Drilling is the parent corporation of both entities.

3 Black added Diamond Rig and Diamond Bermuda as defendants.

The defendants moved to dismiss Black’s suit based on the forum selection clause in his employment agreement with Diamond Bermuda and the trial court granted the defendants’ motion. This court reversed and remanded, holding that the non-signatory defendants — i.e., all defendants other than Diamond Bermuda — were “not parties to or otherwise within the scope” of the employment agreement, that Black’s claims against the non-signatory defendants “do not arise from the Agreement,” and those claims are based on statute and common law. See Black v. Diamond Offshore Drilling, Inc., 551 S.W.3d 346, 353, 355 (Tex. App.— Houston [14th Dist.] 2018, no pet.).

On remand, the defendants filed two motions for summary judgment. In their first motion, the defendants requested that the trial court dismiss Black’s claims against Diamond Drilling and the two other Diamond Offshore entities “as they neither employed [Black] . . . nor owned the rig to which he was assigned.” In their second motion, the defendants sought the dismissal of Black’s Jones Act and general maritime law claims. The trial court denied both motions.

The parties proceeded to a four-day jury trial. Before closing arguments, the trial court granted a directed verdict on Black’s Jones Act claim. The jury returned a verdict finding that Diamond Drilling, Diamond Rig, and Black were negligent with respect to the incident. The jury apportioned liability as follows: 52% to Diamond Drilling; 28% to Diamond Rig; and 20% to Black. The jury assessed $2.75 million in damages. The trial court signed a final judgment on August 20, 2019, awarding Black $2.2 million in damages.

Appellants timely appealed.

4 ANALYSIS

Appellants raise three issues on appeal and contend that (1) jury charge Question No. 1 submitted an immaterial claim that cannot support Black’s recovery; (2) there is neither a legal nor evidentiary basis to support the imposition of liability as to either Appellant; and (3) the evidence is insufficient to support the $1 million assessed as damages for Black’s future medical care expenses.

We overrule Appellants’ first issue and conclude that the alleged error in the jury charge did not render Question No. 1 immaterial. We overrule in part and sustain in part Appellants’ second challenge and hold that (1) a sufficient legal and evidentiary basis supports the imposition of liability against Diamond Drilling, and (2) an insufficient evidentiary basis supports liability against Diamond Rig. In light of this disposition of Appellants’ second issue, we need not reach Appellants’ third issue.

We develop these issues more fully below.

I. Question No. 1

In their first issue, Appellants contend that Question No. 1 submitted a Jones Act claim that is foreclosed as a matter of law because the phrase “proximate cause” was omitted and replaced with “cause, in whole or in part.” Specifically, Appellants contend that the absence of the phrase “proximately caused” automatically incorporated the “featherweight” causation standard utilized for Jones Act claims. See Noble Drilling (US) Inc. v. Fountain, 238 S.W.3d 432, 439- 40 (Tex. App.—Houston [1st Dist.] 2007, pet. denied) (“Under the Jones Act, a seaman is entitled to recovery if his employer’s negligence is the cause, in whole or in part, of his injury. . . . The burden to establish causation under the Jones Act has been termed ‘featherweight.’”).

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