Enterprise Marine Services LLC v. Motion Industires Inc. D/B/A Voorhies Supply Company, a Division of Motion Industries Inc.

CourtCourt of Appeals of Texas
DecidedJune 6, 2023
Docket01-22-00072-CV
StatusPublished

This text of Enterprise Marine Services LLC v. Motion Industires Inc. D/B/A Voorhies Supply Company, a Division of Motion Industries Inc. (Enterprise Marine Services LLC v. Motion Industires Inc. D/B/A Voorhies Supply Company, a Division of Motion Industries Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Enterprise Marine Services LLC v. Motion Industires Inc. D/B/A Voorhies Supply Company, a Division of Motion Industries Inc., (Tex. Ct. App. 2023).

Opinion

Opinion issued June 6, 2023

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-22-00072-CV ——————————— ENTERPRISE MARINE SERVICES LLC, Appellant V. MOTION INDUSTRIES INC. D/B/A VOORHIES SUPPLY COMPANY, LLC, A DIVISION OF MOTION INDUSTRIES INC., Appellee

On Appeal from the 190th District Court Harris County, Texas Trial Court Case No. 2019-39423A

MEMORANDUM OPINION

Enterprise Marine Services LLC (Enterprise) and Motion Industries, Inc.

d/b/a Voorhies Supply Company, LLC, a division of Motion Industries, Inc.

(Voorhies) dispute the meaning of a contractual indemnity provision under

Louisiana law. On cross-motions for summary judgment, the trial court ruled against Enterprise, the indemnitee, and for Voorhies, the indemnitor. Because Enterprise

correctly interprets the indemnity obligation, we reverse and remand for further

proceedings.

Background

In 2009, Enterprise’s predecessor, CTCO Shipyard of Louisiana, LLC

(CTCO), sought to consolidate the storerooms at its shipyard in Houma, Louisiana

and outsource the procurement and disbursement of supplies for its vessels by having

a vendor at the shipyard. CTCO agreed to lease Voorhies warehouse space at

CTCO’s shipyard, and Voorhies agreed to use the warehouse exclusively to sell

products to CTCO. By having Voorhies supply the products CTCO needed for its

vessels from this central location, CTCO “eliminate[d] the need for [it] to account

for, procure, or replenish” its product inventory.

CTCO and Voorhies executed a written Supply Agreement that is “governed,

interpreted, construed, and regulated by the laws of Louisiana.” In the Supply

Agreement, Voorhies agreed to: purchase CTCO’s existing product inventory,

“control and account for distributing the[] products for [CTCO’s] use,” and “use best

efforts to minimize obsolescence of the products[.]” Voorhies promised to “provide

CTCO with on-time delivery of the[] products and expertise along with the product

manufacturers in the recommended use and application of the products.” The

non-exclusive list of products included industrial supplies; bearing and PT products;

2 marine and janitorial supplies; fasteners, pipe fittings, weld fittings, and specialty

products; hydraulic pumps, hydraulic motors, controls, and hydraulic hose and

fittings; hand, air, and power tools; and repair of these power tools.

In exchange, CTCO agreed to provide Voorhies a rent-free “Building” or

“Premises” at the shipyard with some conditions. Voorhies was responsible for “all

building services” and “utilities, water, janitorial, and ordinary repair and

maintenance” and had to “keep the Building in good order, repair, and condition[.]”

Voorhies also had to maintain commercial general liability insurance “covering the

Premises” and insure both CTCO and Voorhies “against loss of the contents of the

Premises, including the inventory.”

The parties also executed the disputed indemnity provision in CTCO’s favor:

Voorhies will occupy and use the Building and Premises at its own risk. Without limitation of any other provision herein, CTCO . . . shall not be liable for any injuries to any person or damages to property from any cause whatsoever, whether owing to the Building or any part thereof, or any appurtenance thereof, being in need of repair or owing to the happening of any accident in or about the Building or the Premises or owing to any act of neglect of Voorhies or of any employee of Voorhies or visitor to the Building. Without limitation, this provision shall apply to injuries and damage caused by nature, rain, flood, hurricane or tropical storm, snow, ice, wind, frost, water, steam, gas, or odors in any form or by the bursting or leaking of windows, doors, walls, ceilings, floors, pipes, gutters, other fixtures; and to damage caused by fixtures, furniture, equipment, and the like situated at the Premises, whether owned by Voorhies or others.

Voorhies shall protect, defend, indemnify, and hold harmless CTCO . . . from any and all claims, demands and/or causes of action of any nature or kind, including but not limited to any claims for personal

3 injuries . . . brought by any person or entity which are in any way related to or connected with or arise out of this Agreement and/or Voorhies’[s] use or occupancy of the Premises, whether or not caused in whole or in part by active, passive, sole or concurrent negligence, strict liability or other fault or condition (preexisting or otherwise) attributable to CTCO . . . .

CTCO later sold its shipyard to Enterprise and, with Voorhies’s consent,

assigned the Supply Agreement to Enterprise (Assignment). Enterprise assumed

CTCO’s obligations under the Supply Agreement, and Voorhies agreed to perform

its contractual obligations for Enterprise’s benefit.

In 2019, Dallas Theriot sued Enterprise in Texas for injuries he sustained

while working as a relief captain on an Enterprise vessel. Theriot alleged that he was

injured when he sat in a newly installed captain’s chair, which gave way “suddenly”

and “without warning,” causing him to fall backward and strike his head and neck.

Voorhies had obtained the chair from H.O. Bostrom Company, the manufacturer,

and supplied it to Enterprise. Enterprise investigated the incident and concluded the

chair disconnected from its stand because the hardware delivered with the chair by

H.O. Bostrom to Voorhies and then by Voorhies to Enterprise was the wrong size.

Under maritime law, an injured seaman has three potential claims against his

employer: (1) a Jones Act negligence claim, (2) a claim that the ship was

unseaworthy, and (3) a claim for maintenance and cure. Theriot asserted all three

claims against Enterprise. He alleged that Enterprise was negligent because, among

other things, it failed to:

4 • maintain, inspect, or repair the vessel’s equipment;

• properly assemble the chair at issue;

• provide and maintain a safe work environment;

• adequately supervise or train its employees;

• follow its own safety rules, policies, and regulations;

• maintain safe mechanisms for work on the vessel; and

• operate the vessel in a safe and proper manner.

Theriot also alleged that Enterprise’s vessel was unseaworthy because he “did not

have adequate equipment to perform his duties because the chair [he] was sitting on

collapsed without warning.” Finally, Theriot alleged that he was entitled to

maintenance and cure because he was injured while working as a seaman.

Theriot also sued H.O. Bostrom and Voorhies, alleging that they had a duty

to provide correct hardware for the chair and that their failure to do so was not only

negligent but also a design, manufacturing, or marketing defect. As to Voorhies,

Theriot further alleged breaches of implied and express warranties.

Enterprise tendered its defense and indemnity to Voorhies under the Supply

Agreement and the Assignment. Enterprise also sought coverage and a defense under

Voorhies’s insurance policies as an additional insured. Voorhies refused the tender,

and Enterprise filed a third-party complaint asserting a breach-of-contract

5 crossclaim against Voorhies.1 Relevant here, Enterprise alleged that the Supply

Agreement obligated Voorhies to indemnify and defend Enterprise against Theriot’s

claims and that Voorhies had “materially breached the Supply Agreement and the

Assignment” by “failing to comply with the scope and terms of the Agreements” and

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Enterprise Marine Services LLC v. Motion Industires Inc. D/B/A Voorhies Supply Company, a Division of Motion Industries Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/enterprise-marine-services-llc-v-motion-industires-inc-dba-voorhies-texapp-2023.