Freudensprung v. Offshore Technical Services, Inc.

379 F.3d 327, 159 Oil & Gas Rep. 791, 2004 A.M.C. 2059, 2004 U.S. App. LEXIS 16358, 2004 WL 1656972
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 9, 2004
Docket03-20226
StatusPublished
Cited by382 cases

This text of 379 F.3d 327 (Freudensprung v. Offshore Technical Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freudensprung v. Offshore Technical Services, Inc., 379 F.3d 327, 159 Oil & Gas Rep. 791, 2004 A.M.C. 2059, 2004 U.S. App. LEXIS 16358, 2004 WL 1656972 (5th Cir. 2004).

Opinion

CARL E. STEWART, Circuit Judge:

This maritime action stems from injuries sustained by Fred Freudensprung (“Freu-densprung”) while working as a barge leaderman on an offshore oil and gas project in Nigerian waters. Freudensprung appeals the district court’s orders staying litigation of his Jones Act and U.S. general maritime law claims pending arbitration and denying his alternative motions for entry of a separate judgment or clarification of the court’s orders. Freudensprung also appeals the district court’s order dismissing defendant Willbros West Africa, Inc., for lack of personal jurisdiction. For the following reasons, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

Freudensprung’s Jones Act and U.S. general maritime law action asserted that he sustained permanently disabling injuries while working as a leaderman aboard a sea-going derrick barge off the coast of Lagos, Nigeria. Freudensprung had been assigned to work on the barge through the operation of two agreements pertinent to the instant dispute: a “Consultant’s Agreement” between Freudensprung and Offshore Technical Services, Inc. (“OTSI”), a Texas-based corporation, and an “Offshore Personnel Supply Agreement” (“Personnel Supply Agreement”) between OTSI and the barge’s owner and operator, Willbros West Africa, Inc. (‘WWAI”), a Panamanian corporation. OTSI is an independent contractor that supplies experienced personnel, or “consultants,” to the offshore hydrocarbon industry to perform work on offshore platforms. To that end, on November 26, 1997, OTSI entered into the Consultant’s Agreement with Freuden-sprung, the stated purpose of which was to “effect the purchase of professional services ... for hook-up, engineering, planning, inspection, ... [and] pipeline work” “in order to discharge OTSI’s own contractual obligations” to entities seeking such services. Pursuant to the Consultant’s Agreement, Freudensprung agreed that he was retained as an independent contractor, not an employee, and further stipulated that he was not a seaman and thus would not claim any benefit under the Jones Act. The Consultant’s Agreement contained a Texas choice-of-law provision as well as an arbitration clause requiring the parties to submit “any dispute” arising from the agreement to binding arbitration in Houston, Texas. The agreement also expressly incorporated the terms of “any Work Order” issued to Freudensprung for a particular assignment.

On May 24, 2000, OTSI and WWAI entered into the Personnel Supply Agreement, pursuant to which OTSI agreed to supply technical, supervisory, and craft personnel to WWAI for the performance of WWAI’s contracts in Africa relating to offshore marine operations, fabrication, inspection, installation, hook-up, and pipeline work. The Personnel Supply Agreement contained an English choice-of-law provision and an arbitration clause requiring OTSI and WWAI to submit any dispute related to the agreement to binding arbitration in Houston, Texas. Under the terms of the Personnel Supply Agreement, WWAI would pay OTSI certain stipulated daily rates for each worker provided, but *333 all personnel supplied by OTSI would remain “employees of OTSI while ... assigned to [WWAI].” WWAI, however, “would be fully responsible for the management and organization of the work performed on the offshore vessels to which OTSI personnel are assigned.”

Shortly after retaining OTSI, WWAI contacted the company with a request for consultants for a WWAI project in Nigeria. Ultimately, WWAI selected Freuden-sprung from among the candidates referred by OTSI. By Work Order No. 4, dated June 9, 2000, OTSI and Freuden-sprung agreed that Freudensprung would work for WWAI as a barge leaderman in West Africa. Like their Consultant’s Agreement, Work Order No. 4 contained a clause requiring binding arbitration of any “contractual disagreements, claims or disputes of any nature” that might arise between OTSI and Freudensprung.

On July 1, 2000, Freudensprung departed for Africa to begin his assignment aboard WWAI’s seagoing derrick barge, the W B 318. The project involved the installation of a single point mooring system (“SPM”), a marine structure that facilitates the loading and offloading of oil tankers from onshore tanks. On July 28, 2000, Freudensprung and other crew members were charged with securing the SPM to the ocean floor with twelve large chains. This task required laying the chains over the side of the WB 318 and gradually lowering them by winches and cables. The chains were several hundred feet in length and each chain link weighed in excess of two hundred pounds. As the crew lowered the second chain, the cable on the stern winch failed, releasing the heavy chain. The runaway chain struck Freudensprung from behind, causing him severe and permanently disabling mental and physical injuries that rendered him unable to work.

On October 4, 2001, Freudensprung filed this maritime action in federal district court against OTSI and several alleged subsidiaries of Willbros Group, Inc., including Willbros USA, Inc., Willbros Engineering, Inc., and foreign subsidiaries WWAI and Willbros International, Inc. In his complaint, Freudensprung asserted claims under the Jones Act, 46 U.S.C. app. § 688 (2000), and the U.S. general maritime law for negligence, vessel unseaworthiness, and maintenance and cure. On December 21, 2001, defendant WWAI filed a motion to dismiss the suit for lack of personal jurisdiction and insufficient service of process. In response, Freuden-sprung amended his complaint, adding Willbros Group, Inc., the alleged parent company of WWAI, and modifying the place where service could be properly effected upon WWAI. Nonetheless, on February 20, 2002, the district court granted without prejudice WWAI’s motion to dismiss for lack of jurisdiction. OTSI then moved the district court to stay Freuden-sprung’s claims pending arbitration, citing the arbitration clause in its Consultant’s Agreement with Freudensprung. Freu-densprung responded by arguing that the agreement was a seaman’s contract of employment and thus exempt from arbitration, and furthermore that arbitration was inappropriate under both federal and state law. In its order of August 15, 2002, the district court granted OTSI’s motion without assigning reasons and ordered the case administratively closed. The order further granted leave to move to reinstate the case on the district court’s active docket “within ten (10) days from the date of a ruling by the Court of Appeals.”

On August 26, 2002, Freudensprung filed a motion for reconsideration, which the district court also denied in an order entered on October 15, 2002. Finding the language in the district court’s August 15 *334 order staying the case unclear, Freuden-sprung filed a motion for entry of judgment or, alternatively, a motion for clarification, on November 15, 2002. In his motion, Freudensprung requested that if the district court had intended to enter a final order from which he could appeal, that the district court enter a separate document setting forth the judgment as required under Federal Rule of Civil Procedure 58. If the court did not so intend, Freudensprung asked that the district court clarify that the stay would extend only until after arbitration of his claims and not until after a decision by this Court.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Sorbello v. Agco Corporation
E.D. Louisiana, 2025
Calicdan v. M D Nigeria
Fifth Circuit, 2023
J.B. Hunt Transport, Inc. v. Kim Lester
Court of Appeals of Texas, 2023
Gerald Libersat v. Sundance Energy Incorpor
978 F.3d 315 (Fifth Circuit, 2020)
Sayers Construction, L.L.C. v. Timberline Construc
976 F.3d 570 (Fifth Circuit, 2020)
Lee v. Verimatrix Inc
S.D. California, 2019
Stemcor USA Inc. v. Cia Siderurgica Do Para Cosipar
870 F.3d 370 (Fifth Circuit, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
379 F.3d 327, 159 Oil & Gas Rep. 791, 2004 A.M.C. 2059, 2004 U.S. App. LEXIS 16358, 2004 WL 1656972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freudensprung-v-offshore-technical-services-inc-ca5-2004.