Energy XXI, GoM, LLC v. New Tech Engineering, L.P.

845 F. Supp. 2d 770, 181 Oil & Gas Rep. 892, 2012 WL 75110, 2012 U.S. Dist. LEXIS 2756
CourtDistrict Court, S.D. Texas
DecidedJanuary 10, 2012
DocketCivil Action No. H-10-00110
StatusPublished

This text of 845 F. Supp. 2d 770 (Energy XXI, GoM, LLC v. New Tech Engineering, L.P.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Energy XXI, GoM, LLC v. New Tech Engineering, L.P., 845 F. Supp. 2d 770, 181 Oil & Gas Rep. 892, 2012 WL 75110, 2012 U.S. Dist. LEXIS 2756 (S.D. Tex. 2012).

Opinion

Memorandum Opinion and Order

GRAY H. MILLER, District Judge.

Pending before the court is (1) defendant New Tech Engineering, L.P.’s (“New Tech”) motion for summary judgment on its independent contractor defense and, in the alternative, plaintiffs claim for gross negligence (Dkt. 59); (2) New Tech’s motion for certification of an indemnification issue addressed in the court’s April 15, 2011 order (Dkt. 42) for interlocutory appeal (Dkt. 53); and (3) plaintiff Energy XXI, GoM, LLC’s (“Energy XXI”) motion to file a supplemental brief in opposition to New Tech’s motion for summary judgment (Dkt. 62). Having considered the motions, related filings, and applicable law, the court is of the opinion that Energy XXI’s motion to file a supplemental brief (Dkt. 62) should be, and hereby is, GRANTED. Additionally, New Tech’s motion for summary judgment on its independent contractor defense (Dkt. 59) should be DENIED, its alternative motion on the gross negligence issue (Dkt. 59) should be GRANTED, and its motion for certification (Dkt. 53) should be DENIED AS MOOT.

I. Background

Energy XXI owns and operates an oil well (the “Well”) off of the coast of Louisiana. Dkts. 15, 16. New Tech and Energy XXI are parties to a Master Service Agreement, which governs consulting work ordered by Energy XXI and accepted by New Tech, including work on the Well. New Tech and defendant Tony Hines are parties to an Entity Consultant Agreement under which Hines agreed to “provide services as an Independent Professional Consultant ... to New Tech.” Dkt. 60, Exh. 1. In January 2009, Energy XXI was performing a recompletion operation on the Well, and Hines was working at the Well as a wellsite consultant, or “company man,” through New Tech. Dkt. 15, Exh. 1. He was responsible for overseeing the operation. Id. On or about January 15, 2009, Hines made a decision to circulate out excess cement after cementing work was performed below the retainer. This was contrary to Energy XXI’s written procedures, which require reverse circulation. [773]*773Id. A wellstring became stuck in the Well, and its removal was time consuming and expensive. Id.

Energy XXI asserts claims against New Tech for negligence, gross negligence, and breach of contract. Dkts. 1, 8, 43. The court has already granted summary judgment in New Tech’s favor on the negligence and breach of contract claims. See Dkt. 42. Energy XXI also asserts its gross negligence claim against Hines and Nationwide Oilfield Consultants, Inc., Hines’s consulting company. Dkt. 43. New Tech now seeks summary judgment on its independent contractor defense, or, in the alternative, on Energy XXI’s gross negligence claim. Dkt. 59.

II. Legal Standard

Summary judgment is proper if “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed. R.Civ.P. 56(c); see also Carrizales v. State Farm Lloyds, 518 F.3d 343, 345 (5th Cir.2008). The mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; there must be an absence of any genuine issue of material fact. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). An issue is “material” if its resolution could affect the outcome of the action. Burrell v. Dr. Pepper/Seven Up Bottling Grp., Inc., 482 F.3d 408, 411 (5th Cir.2007). “[A]nd a fact is genuinely in dispute only if a reasonable jury could return a verdict for the non-moving party.” Fordoche, Inc. v. Texaco, Inc., 463 F.3d 388, 392 (5th Cir.2006).

The moving party bears the initial burden of informing the court of all evidence demonstrating the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Only when the moving party has discharged this initial burden does the burden shift to the non-moving party to demonstrate that there is a genuine issue of material fact. Id. at 322, 106 S.Ct. 2548. If the moving party fails to meet this burden, then it is not entitled to a summary judgment, and no defense to the motion is required. Id. “For any matter on which the non-movant would bear the burden of proof at trial ..., the movant may merely point to the absence of evidence and thereby shift to the non-movant the burden of demonstrating by competent summary judgment proof that there is an issue of material fact warranting trial.” Transamerica Ins. Co. v. Avenell, 66 F.3d 715, 718-19 (5th Cir.1995); see also Celotex, 477 U.S. at 323-25, 106 S.Ct. 2548. To prevent summary judgment, “the non-moving party must come forward with ‘specific facts showing that there is a genuine issue for trial.’ ” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (quoting Fed.R.Civ.P. 56(e)).

When considering a motion for summary judgment, the court must view the evidence in the light most favorable to the non-movant and draw all justifiable inferences in favor of the nonmovant. Envtl. Conservation Org. v. City of Dallas, Tex., 529 F.3d 519, 524 (5th Cir.2008). The court must review all of the evidence in the record, but make no credibility determinations or weigh any evidence; disregard all evidence favorable to the moving party that the jury is not required to believe; and give credence to the evidence favoring the non-moving party as well as to the evidence supporting the moving party that is uncontradicted and unimpeached. Moore v. Willis Ind. Sch. Dist., 233 F.3d [774]*774871, 874 (5th Cir.2000). However, the nonmovant cannot avoid summary judgment simply by presenting “eonclusory allegations and denials, speculation, improbable inferences, unsubstantiated assertions, and legalistic argumentation.” TIG Ins. Co. v. Sedgwick James of Wash, 276 F.3d 754, 759 (5th Cir.2002); Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir.1994) (en banc). By the same token, the moving party will not meet its burden of proof based on eonclusory “bald assertions of ultimate facts.” Gossett v. Du-Ra-Kel Corp.,

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Bluebook (online)
845 F. Supp. 2d 770, 181 Oil & Gas Rep. 892, 2012 WL 75110, 2012 U.S. Dist. LEXIS 2756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/energy-xxi-gom-llc-v-new-tech-engineering-lp-txsd-2012.