Genina Marine Services, Inc. v. Mobil Exploration & Production Southeast, Inc.

506 So. 2d 922, 1987 La. App. LEXIS 9353
CourtLouisiana Court of Appeal
DecidedApril 14, 1987
DocketNo. CA 86 0298
StatusPublished

This text of 506 So. 2d 922 (Genina Marine Services, Inc. v. Mobil Exploration & Production Southeast, Inc.) 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
Genina Marine Services, Inc. v. Mobil Exploration & Production Southeast, Inc., 506 So. 2d 922, 1987 La. App. LEXIS 9353 (La. Ct. App. 1987).

Opinion

JOHN S. COVINGTON, Judge.

Genina Marine Services, Inc. (Genina) de-volutively appealed the October 23, 1985 judgment dismissing its suit to recover monies allegedly owed by Mobil Oil Exploration & Production Southeast, Inc. (MOEP-SI) and to declare valid Genina’s lien and privilege on various oil producing properties, which was filed under La.R.S. 9:4861 et seq., The Louisiana Oil Well Lien Act. MOEPSI answered the appeal, requesting that “[t]he judgment of the trial court should be amended to hold, alternatively, that the Oilwell Liens, filed by Genina, which served as the basis for Genina’s claim, were not timely filed and therefore, both were invalid.”

Genina moved for summary judgment, claiming, inter alia, that there was no genuine question as to material fact that its privilege had not prescribed and its liens were, accordingly, timely filed. MOEPSI filed a cross motion for summary judgment asserting that “[t]he liens are unenforceable because notice of the same was not recorded until more than one year after the completion date of the work for which the lien is claimed[,] a time well in excess of the 90 days expressed in ... La.R.S. 9:4861 et seq.” The motions were heard on January 17, 1985 and both were denied. The court’s minute entry reflects the denials and the notation “Written judgment to be submitted at a later date for the Court’s signature.” The record neither contains a formal judgment dismissing Genina’s and MOEPSI’s motions for summary judgment nor a minute entry that a judgment denying both motions, or either motion, was submitted to or signed by the judge. The judgment which is the subject of this appeal is silent on the matter of the timeliness of recordation of the liens.

The trial court, in written reasons for judgment dated and filed September 25, 1985, stated the pertinent facts as follows:

Certain facts are not in dispute. Geni-na ... and Briley Marine [,Inc.] entered into a written management agreement on October 24, 1978 whereby Briley would manage four vessels owned by Genina. Briley then entered into an agreement with [MOEPSI] for the charter of these vessels. [MOEPSI] paid the monies due ... Briley but Briley did not pay Genina. Subsequently Briley filed for bankruptcy under Chapter 11.
In [an adversary proceeding in] the bankruptcy ..., Genina contended the monies paid by [MOEPSI] to Briley were not assets of Briley but belonged to Geni-na since Briley was its agent. The Bankruptcy Court found ... that [,] while the [924]*924original relationship between Briley and Genina was that of an agent and principal, certain oral modifications changed the relationship to that of debtor-creditor. Under this finding, the Bankruptcy Court held that the monies paid by [MOEPSI] were assets of Briley and subject to control by the Bankruptcy Court. (Brackets supplied.)

After a thorough analysis of the testimony and documentary evidence, the trial judge found that Genina had clothed Briley with apparent authority to deal on Genina’s behalf with third persons, into which category MOEPSI fit, and “since Genina may not deny agency[,] the effect of apparent authority is the same in this case as if such relations existed.”

ASSIGNMENTS OF ERROR

Appellant assigns as errors the trial court’s findings that:

1. Louisiana law, rather than federal maritime law, governed in determining the legal effect of the Genina-Briley management agreement, including MOEPSI’s affirmative defense of payment;

2. The Bankruptcy Court’s judgment in the adversary proceeding, brought in Bri-ley’s Chapter 11 Bankruptcy, holding that money paid by MOEPSI to Briley for the boat services Briley provided MOEPSI was Briley’s money, was not binding on the state court in the instant case;

3. Genina had clothed Briley with apparent authority to deal with third persons on Genina’s behalf in chartering the boats Genina owned; and

4. MOEPSI carried its burden of proving the affirmative defense of payment and that Genina, within contemplation of law, had been paid by MOEPSI’s paying Briley for the boat services furnished by Briley under contract with MOEPSI.

FEDERAL MARITIME LAW APPLICABILITY

Appellant argues that: “[A]ll maritime contracts are governed by federal maritime law”; “who is a party to a maritime contract is a question of federal maritime law”; “by pleading that Briley was Genina’s agent, [MOEPSI] is pleading that Genina is a party to the time charters ... [which raises] a question of federal maritime law”; and “the district court erred by applying Louisiana law.” Appellant contends that the question of whether federal or Louisiana law applies “is more than academic” because: (1) “[F]ederal maritime law is a national system”; (2) “[S]tate courts are bound by the decisions of federal courts”; and (3) “the U.S. Supreme Court only has jurisdiction to review the application of federal law by state courts.”

Appellee, MOEPSI, succinctly and accurately restates appellant’s argument as being “based upon the logic that since a charter of a vessel is a maritime contract and all maritime contracts are governed by the federal maritime law, the management contract must also be governed by the federal maritime law.” Appellee straightforwardly labels appellant’s argument as “without any foundation in either law or in fact” and argues, additionally that:

[T]he Bankruptcy Court, in its reasons for judgment, in making its determination of the effect of the contract, relied upon a ... Louisiana law and specifically three (3) Louisiana cases in reaching its conclusion. Fortunately, plaintiff’s argument is academic since there is [no] “federal agency law” which can be used in determining this matter. A review of the federal cases shows that in the absence of federal agency law, courts look to the law of the pertinent state or to the [Restatement of [A]gency. Accordingly ... the law of Louisiana relating to agency ... is the applicable law in this situation.
(Brackets and elipsis supplied.)

The written reasons for judgment, which Bankruptcy Judge Rodney Bernard, Jr. assigned in the adversary proceeding in Bri-ley's bankruptcy, offered into evidence by appellant in the instant case, contains the following pertinent findings of fact and conclusions of law:

Plaintiff [Genina] filed, its initial complaint on May 6, 1983, alleging among other things that defendant, Bri-[925]*925ley Marine, Inc., was an agent for the plaintiff and had received funds in its capacity as agent which plaintiff sought to recover from the debtor’s estate.
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[T]he court finds that ... Briley ... did agree to operate and manage [Geni-na’s] three ... motor vessels for ... $5,000.00 per month during the year of 1978. This agreement [is dated October 24, 1978 and] was reduced to writing between the parties.... The agreement is titled “Management Contract” ... [and] [u]nder the terms of this agreement, Briley ... was to find jobs for Genina[’s] ... motor vessels and to contract for said jobs in the name of Briley ... who at the time was well known generally in the offshore boat business and was on an approved list for various oil companies seeking charters of motor vessels. As funds were received by Bri-ley ... from these charters, [they] were to be deposited in a special account designated and controlled exclusively by [Gen-ina]. ...

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Bluebook (online)
506 So. 2d 922, 1987 La. App. LEXIS 9353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/genina-marine-services-inc-v-mobil-exploration-production-southeast-lactapp-1987.