Hanks v. Shell Oil Co.

631 So. 2d 1189, 1994 La. App. LEXIS 127, 1994 WL 17974
CourtLouisiana Court of Appeal
DecidedJanuary 25, 1994
Docket93-CA-737
StatusPublished
Cited by11 cases

This text of 631 So. 2d 1189 (Hanks v. Shell Oil Co.) 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
Hanks v. Shell Oil Co., 631 So. 2d 1189, 1994 La. App. LEXIS 127, 1994 WL 17974 (La. Ct. App. 1994).

Opinion

631 So.2d 1189 (1994)

Bill HANKS, et al.
v.
SHELL OIL CO.

No. 93-CA-737.

Court of Appeal of Louisiana, Fifth Circuit.

January 25, 1994.

*1190 Robert McCall, William B. Baggett, Lake Charles, Edward Lassus, Jr., New Orleans, for Bill Hanks.

Charles Raymond, New Orleans, for Shell Oil Co.

Richard Edrington, LaPlace, for Valley Systems, Inc.

Before KLIEBERT, BOWES and CANNELLA, JJ.

BOWES, Judge.

This is a suit for damages. Plaintiffs and third-party intervenors have both appealed from the grant of a motion for summary judgment filed by defendant, Shell Oil Company, dismissing plaintiffs' action. We affirm.

Plaintiffs, Bill Hanks, et al. filed suit on January 7, 1991 against defendant, Shell Oil Company. Plaintiff received injuries on January 23, 1990 when he was hit by scalding water and burned while working at the Shell Oil Company's Norco facility. At the time of the injury, Bill Hanks was employed by Valley Systems, Inc. as a gunman/crew leader in training of an ultra hydro blasting crew sent to the Norco facility pursuant to a contractual agreement between Shell Oil Company and Valley Systems, Inc. for the high pressure blast cleaning of tube bundles in the Norco facility.

Lumbermen's Mutual Insurance Company, the worker's compensation insurer for Valley Systems, Inc., filed a petition for intervention, seeking reimbursement of compensation monies paid by them to Bill Hanks. Shell Oil Company filed a third-party demand against Valley Systems under a contractual indemnity clause.

On December 21, 1992, Shell Oil Company filed a motion for summary judgment alleging that it was a statutory employer of Bill Hanks and was therefore immune from suit. After hearing, the trial court granted Shell Oil Company's motion and dismissed plaintiff's suit with prejudice.

Both Lumbermen's and Hanks have appealed this judgment.

There are two issues presented for review herein:

(1) Did the trial court err in applying Louisiana law instead of the law of the State of Texas? and (2) Did the trial court err in ruling that, as a matter of law, Shell Oil Company was immune from suit?

ISSUE NUMBER ONE—CHOICE OF LAW

In his oral reasons for judgment, the trial judge held that the laws of the State of Louisiana were applicable to this suit. In doing so, the judge stated:

The Court finds that the law of Louisiana is the law that should be applicable with respect to the tort action that was brought. And I think in this particular contract, I read a particular paragraph that said that the contract—The agreement shall be construed and the rights of buyer and seller shall be determined with respect with both interpretation of this agreement and its performance according to the laws of the State of Louisiana. There's no question but that an employer in the State of Louisiana has the right to rely upon the laws of the state where it's actually conducting business. And the mere fact that this claimant, by virtue of insurance contracts, had the right to claim compensation under Texas laws does not mean that Louisiana laws are not applicable in this case. So I see no conflict of interest or conflict of laws problem in this case at all. It would be curious to me and just crossed my mind, if that be the case, whether or not in states where we have punitive damages, whether claimants could elect if they had a particular right to elect laws under that particular state and have that applied to employees in the state of Louisiana where we don't have punitive *1191 damages, in certain instances. So that's not a problem with this particular Court. I find that there's no conflict of laws problem; that the law of Louisiana where the accident occurred, where the work was being performed, is the law that is applicable.

We find no error in this determination.

The contract between Shell Oil and Valley Systems provides the choice of law. Paragraph XVI states:

This agreement shall be construed and the rights of buyer and seller shall be determined (with respect to both interpretation of this agreement and its performance) according to the laws of the State of Louisiana.

The Blanket Order executed in conjunction with the contract states:

This blanket purchase order RNAB/ONB 1437 is issued between Shell Oil Company (herein referred to as buyer) and Valley Systems (herein referred to as seller) to cover the requirements of the Norco Refinery and Chemical Plant for ultra high pressure cleaning.

In Whitehurst v. James Noel Flying Services, 509 So.2d 1035, 1037 (La.App. 3 Cir. 1987), the court said:

It is well established that where the parties stipulate the state law governing the contract, Louisiana conflict of laws principles require that the stipulation be given effect, unless there is statutory or jurisprudential law to the contrary or strong public policy considerations justifying the refusal to honor the contract as written. American Standard Leasing v. Plant Specialties, 427 So.2d 555 (La.App. 3 Cir.1983); Associated Press v. Toledo Investments, Inc., 389 So.2d 752 (La.App. 3 Cir.1980). A choice of law provision in a contract is presumed valid until it is proved invalid. The party seeking to prove such a provision is invalid bears the burden of proof. Delhomme Industries, Inc. v. Houston Beechcraft, 669 F.2d 1049 (5th Cir.1982).

In this case, appellants have made no showing that the stipulation that Louisiana law is invalid due to an express legislative or constitutional prohibition, or a showing that the purpose of the contract between Shell Oil and Valley Systems contravenes social morals or public interest. Accordingly, the trial court did not err in holding that Louisiana law applies to this case.

Assuming arguendo that no contractual provision existed, an application of choice of law principles reflects that the trial judge did not err.

The development of jurisprudence relative to the application of choice of law was described by the First Circuit in Brown v. DSI Transports, Inc., 496 So.2d 478, 481 (La.App. 1 Cir.1986):

Louisiana has rejected the traditional rule of lex loci delecti. In Jagers v. Royal Indemnity Company, 276 So.2d 309 (La. 1973), instead of deciding that the law of the state in which the tort occurred would apply, the court concluded that an interest analysis was the more appropriate method of choosing which law applied. Jagers presented a false conflict of laws in that only one state (Louisiana) had an interest in the application of its laws. Cases following Jagers have adopted an interest analysis when faced with a genuine conflict of laws. Burns v. Holiday Travel, Inc., 459 So.2d 666 (La.App. 4th Cir.1984); Lee v. Ford Motor Company, 457 So.2d 193 (La.App. 2d Cir.1984), writ denied, 461 So.2d 319 (La.1984); Champion v. Panel Era Manufacturing Company, 410 So.2d 1230 (La.App. 3rd Cir.1982), writ denied, 414 So.2d 389 (La.1982). The threshold inquiry is whether at least two states have an interest in the matter; if so, the court must undertake an interest analysis to determine which state has the more significant relationship to the occurrence and the parties. Lee, 457 So.2d at 194-5.
The Restatement (Second) of Conflict of Laws (1969) (hereafter Restatement) has been used as the guide in resolving choiceof-law questions. Jagers, 276 So.2d at 312; Burns, 459 So.2d at 668.

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Bluebook (online)
631 So. 2d 1189, 1994 La. App. LEXIS 127, 1994 WL 17974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanks-v-shell-oil-co-lactapp-1994.