Genesis Energy v. Danos

CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 15, 2025
Docket24-20357
StatusPublished

This text of Genesis Energy v. Danos (Genesis Energy v. Danos) 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
Genesis Energy v. Danos, (5th Cir. 2025).

Opinion

Case: 24-20357 Document: 59-1 Page: 1 Date Filed: 09/15/2025

United States Court of Appeals for the Fifth Circuit United States Court of Appeals ____________ Fifth Circuit

FILED No. 24-20357 September 15, 2025 ____________ Lyle W. Cayce Clerk Genesis Energy, L.P.; Genesis Energy, L.L.C.,

Defendants—Appellants,

versus

Danos, L.L.C.,

Defendant—Appellee. ______________________________

Appeal from the United States District Court for the Southern District of Texas USDC No. 4:21-CV-3090 ______________________________

Before Elrod, Chief Judge, and Duncan and Engelhardt, Circuit Judges. Jennifer Walker Elrod, Chief Judge: Genesis Energy appeals the dismissal of its crossclaim for defense and indemnification against Danos, LLC, in the underlying personal injury lawsuit. After both parties filed cross motions for summary judgment, the district court concluded that the parties’ contract was not a “maritime contract” and therefore that the contract’s indemnity provision was invalid. It accordingly denied Genesis’s motion and granted Danos’s motion. Because we agree that the parties’ contract is not a maritime contract, we AFFIRM. Case: 24-20357 Document: 59-1 Page: 2 Date Filed: 09/15/2025

No. 24-20357

I In 2020, Hurricane Laura damaged an offshore platform called Genesis Garden Banks 72 (“Platform”). Appellant Genesis Energy, LP, owns the Platform, which is located on the outer Continental Shelf off the coast of Louisiana. Genesis Energy, LLC, a wholly owned subsidiary of the limited partnership, contracted with Appellee Danos, LLC, to conduct repairs to the Platform. To facilitate the project, the Genesis parties (collectively, “Genesis” 1) also chartered the 240-foot Cheramie Botruc #41 (“Vessel”), which was owned by a third-party company, L&M Botruc Rental, LLC (“Botruc Rental”). In November 2020, a Danos employee, Maximo Sequera, suffered injuries during Platform repairs when he fell from a personnel basket carry- ing him from the Platform to the Vessel. He sued Danos, Genesis, and Botruc Rental in Texas state court to recover for his injuries, and Danos removed the action to federal court. Genesis later filed a crossclaim against Danos seeking defense and indemnification. According to Genesis, a 2008 Master Services Agreement executed by the parties’ predecessors in interest required indemnification. Genesis therefore filed a motion for summary judgment asserting that Danos was contractually obligated to indemnify it, and Danos filed a cross-motion seeking dismissal of Genesis’s claim. The district court concluded that the parties’ contract was not a “maritime contract,” meaning that Louisiana law applied under the Outer Continental Shelf Lands Act (“OCSLA”) and barred the enforceability of the indemnification provision. Accordingly, the court granted Danos’s _____________________ 1 The parties’ briefing refers to “Genesis” without differentiating between the two entities. We therefore do the same.

2 Case: 24-20357 Document: 59-1 Page: 3 Date Filed: 09/15/2025

cross-motion, denied Genesis’s motion, and dismissed Genesis’s crossclaim with prejudice. The court then granted Danos’s and Genesis’s joint motion to designate that order as a final judgment under Federal Rule of Civil Procedure 54(b) and entered final judgment. This appeal followed. Both parties agree that jurisdiction is proper under 28 U.S.C. § 1291. II A grant of summary judgment is reviewed de novo. Molina v. Home Depot USA, Inc., 20 F.4th 166, 168 (5th Cir. 2021). “Summary judgment should be granted, viewing the evidence in the light most favorable to the nonmoving party, if there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Id. at 168–69 (citing Fed. R. Civ. P. 56(a)). “On cross-motions for summary judgment, we review each party’s motion independently, viewing the evidence and inferences in the light most favorable to the nonmoving party.” Discover Prop. & Cas. Ins. Co. v. Blue Bell Creameries USA, Inc., 73 F.4th 322, 327 (5th Cir. 2023). III In 1953, Congress enacted OCSLA “to define a body of law applicable to the seabed, the subsoil, and the fixed structures such as” artificial drilling platforms, like the Platform, located on the outer Continental Shelf. Rodrigue v. Aetna Cas. & Sur. Co., 395 U.S. 352, 355 (1969); see also OCSLA, Pub. L. No. 83-212, 67 Stat. 462 (1953). OCSLA generally treats offshore oil and gas platforms as “island[s] or as federal enclaves within a landlocked State.” Earnest v. Palfinger Marine USA, Inc., 90 F.4th 804, 810 (5th Cir. 2024) (alteration in original) (citation omitted). So, for contracts pertaining to those platforms, OCSLA adopts the law of the state adjacent to the relevant part of the outer Continental Shelf as surrogate federal law. 43 U.S.C. §

3 Case: 24-20357 Document: 59-1 Page: 4 Date Filed: 09/15/2025

1333(a)(2)(a); Willis v. Barry Graham Oil Serv., L.L.C., 122 F.4th 149, 156 (5th Cir. 2024). Here, the adjacent state is Louisiana. Federal maritime law, however, applies if a contract is a maritime contract, among other requirements not at issue here. See Willis, 122 F.4th at 156. In In re Larry Doiron, Inc., we adopted a two-prong test to determine whether a contract is maritime. 879 F.3d 568, 576 (5th Cir. 2018) (en banc). That test asks: (1) “is the contract one to provide services to facilitate the drilling or production of oil and gas on navigable waters?” and, if yes, (2) “does the contract provide or do the parties expect that a vessel will play a substantial role in the completion of the contract?” Id. Here, both parties agree that the answer to the first question is yes, so the only disputed issue is whether the parties expected the Vessel to play a substantial role in completion of the Platform repair contract. For a vessel to have a “substantial role,” there must be a “direct and substantial link between the contract and the operation of the ship, its navigation, or its management afloat.” Earnest, 90 F.4th at 813 (citation omitted). For example, “a contract to repair or to insure a ship is maritime, but a contract to build a ship is not.” Id. at 810. “When work is performed in part on a vessel and in part on a platform or on land, we should consider not only time spent on the vessel but also the relative importance and value of the vessel-based work to completing the contract.” Doiron, 879 F.3d at 576 n.47. The focus “should be on whether the contract calls for substantial work to be performed from a vessel.” Id. at 573. This analysis “ignores the need for vessels to transport equipment and crew to the platform and considers only the other roles the vessels played.” In re Crescent Energy Servs., L.L.C., 896 F.3d 350, 360 (5th Cir. 2018); see also Doiron, 879 F.3d at 576 n.47 (explaining that the substantial role “calculus would not include transportation to and from the job site”).

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Genesis Energy v. Danos, Counsel Stack Legal Research, https://law.counselstack.com/opinion/genesis-energy-v-danos-ca5-2025.