Fontenot v. Southwestern Offshore Corp.

771 So. 2d 679, 2000 WL 875946
CourtLouisiana Court of Appeal
DecidedJuly 5, 2000
Docket99-1559
StatusPublished
Cited by3 cases

This text of 771 So. 2d 679 (Fontenot v. Southwestern Offshore Corp.) 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
Fontenot v. Southwestern Offshore Corp., 771 So. 2d 679, 2000 WL 875946 (La. Ct. App. 2000).

Opinion

771 So.2d 679 (2000)

Keith FONTENOT
v.
SOUTHWESTERN OFFSHORE CORPORATION and Pennzoil Exploration and Production Company.

No. 99-1559.

Court of Appeal of Louisiana, Third Circuit.

July 5, 2000.
Writ Denied November 3, 2000.

*681 James P. Ryan, Jeffrey M. Bassett, Opelousas, Louisiana, Counsel for Plaintiff.

Gary P. Kraus, Mark A. Lowe, Lafayette, Louisiana, Counsel for Defendant/Appellant.

John P. Wolff, III, Baton Rouge, Louisiana, Counsel for Defendant.

Michael A. McGlone, William M. Quin, New Orleans, Louisiana, Counsel for Defendant/ Appellee.

Barry L. Domingue, Lafayette, Louisiana, Counsel for Intervenor.

(Court composed of JOHN D. SAUNDERS, JIMMIE C. PETERS, and MICHAEL G. SULLIVAN, Judges.)

SULLIVAN, Judge.

In this maritime personal injury case, the trial court granted summary judgments holding that a contract to perform drilling mud services on a jackup barge on the outer Continental Shelf was nonmaritime; therefore, the Louisiana Oilfield Indemnity Act (LOIA), La.R.S. 9:2780, invalidated its indemnity and additional insured provisions. Because we disagree with the trial court's characterization of the contract as nonmaritime, we reverse the trial court judgments as explained more fully below.

Procedural History

Keith Fontenot, a drilling mud engineer employed by A & W Louisiana, Inc. (formerly Chemrich, Inc.), filed suit under the general maritime law for injuries sustained while working aboard Southwestern Offshore Corporation's Rig # 151 in navigable waters on the outer Continental Shelf. Fontenot was working on Rig # 151 pursuant to a Master Service and Supply Agreement (MSSA) between his employer and Pennzoil Exploration and Production Company. Pennzoil had also contracted with Southwestern to supply a drilling unit and to drill the well.

Defendants, Southwestern and Pennzoil, each filed third party demands for contractual defense and indemnity against A & W Louisiana and its insurer, Indemnity Insurance Company of North America. Presented with cross motions for summary judgment on this issue, the trial court determined (1) because drilling mud services are peculiar to the oil and gas industry rather than to maritime commerce, the contract should be governed by Louisiana *682 law rather than maritime law; (2) Louisiana law did not apply as surrogate federal law under the Outer Continental Shelf Lands Act (OCSLA), at 43 U.S.C. § 1333(a)(2)(A), because the injury occurred on a vessel, which is not an OCSLA "situs;" and (3) the prohibition of indemnity for a vessel against an employer under the Longshore and Harbor Workers' Compensation Act (LHWCA), at 33 U.S.C. § 905(b), did not apply because drilling mud services were not "maritime employment" for the purposes of that act. Based upon these conclusions, the trial court granted motions for summary judgment in favor of A & W Louisiana and Indemnity Insurance Company and denied those of Pennzoil and Southwestern. Pennzoil and Southwestern have appealed.

Standard of Review

Appellate courts review summary judgments de novo, applying the same criteria used by the trial courts in deciding whether summary judgment is appropriate. Schroeder v. Board of Supervisors, 591 So.2d 342 (La.1991). Summary judgment shall be granted "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 material fact, and that mover is entitled to judgment as a matter of law." La.Code Civ.P. art. 966(B).

Discussion

State or Federal Law?

On November 9, 1991, Pennzoil contracted for A & W Louisiana (then Chemrich) to provide services or equipment in connection with the development or production of oil, gas, or minerals "in, on or above the navigable and/or offshore waters of the United States (including exploration and production activities on or above vessel rigs, artificial islands or fixed structures)." In this contract, Pennzoil and A & W Louisiana agreed to defend and indemnify each other for all claims brought as the result of certain enumerated risks, including those caused by the liability, fault, or negligence of the indemnitee. Included within the enumerated risks are personal injury claims brought by employees of either Pennzoil or of A & W Louisiana and its contractors and subcontractors. The agreement also required A & W Louisiana to maintain insurance naming Pennzoil and its contractors, such as Southwestern, as additional insureds.

To the extent that the MSSA requires indemnification for the indemnitee's fault, it would not be enforceable under La.R.S. 9:2780, which provides in part:

A. The legislature finds that an inequity is foisted on certain contractors and their employees by the defense or indemnity provisions, either or both, contained in some agreements pertaining to wells for oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, to the extent those provisions apply to death or bodily injury to persons. It is the intent of the legislature by this Section to declare null and void and against public policy of the state of Louisiana any provision in any agreement which requires defense and/or indemnification, for death or bodily injury to persons, where there is negligence or fault (strict liability) on the part of the indemnitee, or an agent or employee of the indemnitee, or an independent contractor who is directly responsible to the indemnitee.

Additionally, La.R.S. 9:2780(G) provides that "waivers of subrogation, additional named insured endorsements, or any other form of insurance protection which would frustrate or circumvent the prohibitions of this Section, shall be null and void and of no force and effect."

The agreement, however, would be enforceable under maritime law, provided that "indemnification for an indemnitee's own negligence be clearly and unequivocally expressed." Theriot v. Bay Drilling Corp., 783 F.2d 527, 540 (5 Cir.1986).

*683 In Davis & Sons, Inc. v. Gulf Oil Corp., 919 F.2d 313, 316 (5 Cir.1990) (emphasis added), the United States Fifth Circuit adopted the following inquiry for determining whether a contract is maritime or not:

Determination of the nature of a contract depends in part on historical treatment in the jurisprudence and in part on a fact-specific inquiry. We consider six factors in characterizing the contract: 1) what does the specific work order in effect at the time of the injury provide? 2) what work did the crew assigned under the work order actually do? 3) was the crew assigned to work aboard a vessel in navigable waters; 4) to what extent did the work being done relate to the mission of the vessel? 5) what was the principal work of the injured worker? 6) what work was the injured worker actually doing at the time of injury?

In granting A & W Louisiana's and Indemnity Insurance Company's motions for summary judgment, the trial court relied on Thurmond v. Delta Well Surveyors,

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