Exxon Mobil Corp. v. Starr Indemnity & Liability Insurance Co.

181 F. Supp. 3d 347, 2016 A.M.C. 351, 2015 U.S. Dist. LEXIS 178100, 2015 WL 10844699
CourtDistrict Court, S.D. Texas
DecidedDecember 21, 2015
DocketCivil Action No. H-15-1555
StatusPublished
Cited by2 cases

This text of 181 F. Supp. 3d 347 (Exxon Mobil Corp. v. Starr Indemnity & Liability Insurance Co.) 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
Exxon Mobil Corp. v. Starr Indemnity & Liability Insurance Co., 181 F. Supp. 3d 347, 2016 A.M.C. 351, 2015 U.S. Dist. LEXIS 178100, 2015 WL 10844699 (S.D. Tex. 2015).

Opinion

ORDER

DAVID HITTNER, United States District Judge

Pending before the Court is Exxon Mobil Corporation’s Motion to Remand (Document No. 6). Having considered the motion, submissions, and applicable law, the Court determines the motion should be denied.

I. BACKGROUND

This case arises out of a series of litigation over disputed insurance obligations to Plaintiff Exxon Mobil Corporation (“Exxon”). Savage Refinery Services, LLC (“Savage”), a non-party, contracted to provide services to Exxon (the “Savage Contract”). The Savage Contract purportedly required Savage to obtain insurance policies listing Exxon as an additional insured. [351]*351Savage held various insurance policies with Defendants Starr Indemnity & Liability Company (“Starr”) and National Union Fire Insurance Company of Pittsburgh PA (“National Union”). Defendant The Insurance Company of the State of Pennsylvania (“ICSOP”) issued Savage a workers’ compensation policy.

On January 12, 2013, two Savage employees, Kevin Roberts (“Roberts”) and Arturo Munoz (“Munoz”), were injured while servicing Exxon’s Baytown Refinery. On January 16, 2013, the first lawsuit related to the underlying incident at the Baytown Refinery was filed by Roberts,1 solely against Exxon, in the 165th District Court of Harris County, Texas (“Roberts Suit”).2 Exxon made demands on all of Savage’s liability insurance carriers following the filing of the Roberts Suit. A series of litigation arising in both Texas state district court and the Southern District of Texas followed.

A. The Roberts Suit in Texas State Court

On January 16, 2013, the Roberts Suit was filed in Texas state court. Roberts asserted claims for bum injuries arising from the January 12, 2013 Baytown Refinery incident. Exxon was the sole defendant named in the suit. Starr, National Union, and ICSOP were among the Savage liability coverage carriers on which Exxon made demands following the filing of the suit.

B. ICSOP and Starr Lawsuits for De- ■ ■ claratory Relief in Federal Court

.1. ICSOP Suit

On January 9, 2014, ICSOP filed The Insurance Company of the State of Pennsylvania v. Exxon Mobil Corporation, Civil Action No. H-14-00053 (“ICSOP Suit”) in the Southern District of Texás seeking declaratory relief as to its obligations to Exxon, Roberts, and Munoz. Roberts and Munoz were dropped from the suit when ICSOP filed its amended complaint. The case was assigned to United States District Court Judge Atlas. Exxon moved to dismiss asserting the court lacked subject matter jurisdiction. On June 18, 2014, the Court denied the motion.3 The Court found the Roberts Suit was not parallel litigation requiring abstention or dismissal, as Roberts was not a party to the ICSOP Suit and ICSOP was not a party to the Roberts Suit.4

2. Starr Suit

On March 21, 2014, Starr filed Starr Indemnity & Liability Company v. Exxon Mobil Corporation, Civil Action No. H-14-00725 (“Starr Suit”) in the Southern District of Texas seeking declaratory relief as to its obligations to Exxon. The Starr Suit was also assigned to Judge Atlas. Exxon moved to dismiss asserting the court lacked subject matter jurisdiction. On June 18, 2014, the Court denied the mo[352]*352tion.5 The Court found that, although the Bayton Refinery incident occurred on land, because the bumbershoot policy6 at issue provided liability coverage for both marine and non-marine risks, admiralty jurisdiction pursuant to 28 U.S.C. § 1333 existed.

C. Exxon Files a Third Party Action against ICSOP in the Roberts Suit

On March 24, 2014, Exxon moved to add ICSOP as a third-party defendant in the Roberts Suit. On March 28, 2014, Roberts and Exxon entered into a settlement agreement.7 After securing leave of the court in the Roberts Suit, Exxon filed a third-party action against ICSOP on April 10, 2014, The third-party action contended that ICSOP waived all workers’ compensation subrogation rights.

D. The Instant Lawsuit—Exxon Mobil Corporation v. Starr Indemnity & Liability Company, et al.

On April 23, 2014, Exxon filed the instant suit against Starr, National Union, and ICSOP in the 125th District Court of Harris County, Texas (“Instant Suit”).8 The original petition asserted claims for breach of contract against Starr and National Union, for breach of contract on the waiver of subrogation against ICSOP, and sought declaratory judgment against all defendants. On April 25, 2014, the case was removed to the Southern District of Texas and assigned to Judge Atlas.9

On May 9, 2014, Exxon moved for remand asserting a lack of subject matter jurisdiction,10 Exxon contended the bum-bershoot policy at issue did not confer admiralty jurisdiction and the waiver of subrogation claim against ICSOP arose under Texas workers’ compensation law precluding removal. The Court denied the motion to remand.11 The Court found that the bumbershoot policy conferred admiralty jurisdiction and that Exxon’s claims against ICSOP were based in contract and did not arise under workers’ compensation law.

E.Stays of Litigation and Remand Resulting from the Trahan Decision

On June 10, .2014, the Fifth Circuit issued Trahan v. Liberty Mutual Insurance Company, 571 Fed.Appx. 319 (5th Cir. 2014). Trahan held that a claim as to whether a workers’ compensation insurance carrier waived contractual rights— such as the claim Exxon asserted against ICSOP as to subrogation—arises under Texas workers’ compensation law. and is not removable. Citing to Trahan, Exxon moved for reconsideration of the denial of [353]*353remand in the Instant Suit on July 11, 2014. On July 16, 2014, Exxon also moved for reconsideration of the denial of dismissal in the Starr Suit and ICSOP Suit,

The Instant Suit, Starr Suit, and ICSOP Suit were all pending before Judge Atlas.12 The motions for reconsideration were granted in all three cases.13 In the Instant Suit, the Court rejected the argument that the now non-removable claims against IC-SOP should be severed, and remanded the entire case. In the Starr Suit and ICSOP Suit, the Court stayed and administratively closed the cases pending a final decision in the state court proceedings in the Instant Suit and Roberts Suit.

F. Exxon’s Motions for Summary Judgment against ICSOP
I. The Instant Suit

On September 23, 2014, following remand to state court, Exxon moved for summary judgment against ICSOP in the Instant Suit.14 The motion sought declaratory relief that ICSOP waived its subrogation rights as well as attorneys’ fees and damages. On April 2, 2015, interlocutory summary judgment15

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181 F. Supp. 3d 347, 2016 A.M.C. 351, 2015 U.S. Dist. LEXIS 178100, 2015 WL 10844699, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exxon-mobil-corp-v-starr-indemnity-liability-insurance-co-txsd-2015.