Heavin v. Mobil Oil Exploration & Producing Southeast, Inc.

697 F. Supp. 1408, 1989 A.M.C. 910, 1988 U.S. Dist. LEXIS 9170, 1988 WL 102543
CourtDistrict Court, E.D. Louisiana
DecidedAugust 18, 1988
DocketCiv. A. No. 87-4786
StatusPublished

This text of 697 F. Supp. 1408 (Heavin v. Mobil Oil Exploration & Producing Southeast, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heavin v. Mobil Oil Exploration & Producing Southeast, Inc., 697 F. Supp. 1408, 1989 A.M.C. 910, 1988 U.S. Dist. LEXIS 9170, 1988 WL 102543 (E.D. La. 1988).

Opinion

ORDER

HEEBE, Chief Judge.

This cause came on for hearing July 13, 1988 on the Motion of defendants, Mobil Oil Exploration and Producing Southeast, Inc. and Exxon Corporation, for Summary-Judgment.

The Court, having considered the record, the memoranda, and the arguments of counsel, is now fully advised in the premises and ready to rule. Accordingly,

IT IS THE ORDER OF THE COURT that the motion of defendants, Mobil Oil Exploration and Producing Southeast, Inc. and Exxon Corporation, be, and the same is hereby DENIED.

REASONS

Defendants, Mobil Oil Exploration and Producing Southeast, Inc. (“Mobil”) and Exxon Corporation (“Exxon”), have jointly filed this motion for summary judgment in the instant matter, setting forth three arguments in support thereof. Their first two arguments contend that they are immune from tort liability as a matter of law. Their third argument is based on the contention that they cannot be held liable in [1410]*1410negligence for the operations of an independent contractor.

The Court will address each of these arguments separately. But first, a brief review of the established and uncontested facts is appropriate.

On October 13, 1986, while in the course and scope of his employment with Chevron U.S.A., Inc. (“Chevron”) as a pumper gau-ger/facility operator, Chris Heavin sustained an injury on Ship Shoal Block 169 “C” offshore oil and gas production structure (“Platform 169C”), which structure was located on the Outer Continental Shelf (“OCS”) off the Louisiana coast. Heavin allegedly was injured when he stepped through a hole in the grating of one of the upper decks of that structure. Heavin and his wife (hereinafter sometimes collectively referred to as “plaintiffs”) filed this suit against Mobil and Exxon to recover damages resulting from this accident. Specifically, plaintiffs allege that Mr. Heavin’s injuries resulted from Mobil and Exxon’s negligence in modifying Platform 169C, and that Mobil and Exxon knew or should have known that any modifications to Platform 169C were dangerous. (R., Doc. 1, paragraphs XI and XII). Because the Outer Continental Shelf Lands Act (“OCSLA”) provides that, to the extent they are not inconsistent with other federal laws and regulations, the laws of the adjacent state apply to the OCS, 43 U.S.C. § 1333(a)(2)(A), plaintiffs are seeking to recover their alleged damages resulting from these negligence claims under La.Civ.Code arts. 2315-2322.

In addition, plaintiffs claim that Mobil and Exxon are strictly liable as owners of Platform 169C for any defect in that platform under La.Civ.Code art. 2322. (R., Doc. 1, paragraph XIII.)

Platform 169C was located on an area of the OCS designated as Ship Shoal Block 169. Ship Shoal Block 169 (“Block 169”) was at all times relevant hereto leased by the United States of America to Exxon, Mobil, and Chevron. Additionally, these same three entities were the undivided owners of Platform 169C of Block 169, the structure on which Mr. Heavin allegedly sustained his injuries. (R., Doc. 1, paragraph VIII).

In connection with their leasing Block 169, Chevron, Mobil, and Exxon entered into and executed a contract, which contract established the respective relationships among themselves; this contract was and is known as a Joint Operating Agreement (hereinafter sometimes referred to as “the Agreement”), which was attached as Exhibit “A” to Mobil and Exxon’s Memorandum in Support of Motion for Summary Judgment. (R., Doc. 11.)

The Agreement was executed on July 25, 1960 by Gulf Oil Corporation (“Gulf”), the predecessor of Chevron; Socony Mobil Oil Company, Inc., the predecessor of Mobil; and Humble Oil and Refinery Company, the predecessor of Exxon. The Agreement provided that it would be binding upon all parties thereto and their successors. (Paragraph XXVII). Additionally, the Agreement named Gulf as the Operator of the joint lease, which, by virtue of Paragraph XXVIII became and was at the time of Mr. Heavin’s alleged injury Chevron. In connection with its duties as Operator, Chevron employed Mr. Heavin and assigned him to Platform 169C on the day of that alleged injury.

1. Are Mobil and Exxon immune from tort liability as joint employers of Mr. Heavin?

Because the injuries allegedly sustained by Mr. Heavin occurred on a platform located on the OCS, OCSLA applies to plaintiffs’ cause of action. 43 U.S.C. § 1333(a)(1). OCSLA provides that compensation shall be payable under the provisions of the Longshore and Harbor Workers’ Compensation Act (“LHWCA”), 33 U.S.C. § 901, et seq., when the “disability or death of an employee result[s] ... from an injury as the result of operations conducted on the Outer Continental Shelf for the purpose of developing or removing natural resources.” 43 U.S.C. § 1333(b); Bertrand v. Forest Corp., 441 F.2d 809, 810 (5th Cir.), cert, denied, 404 U.S. 863, 92 S.Ct. 106, 30 L.Ed.2d 107 (1971).

[1411]*1411Relying on § 5(a) of the LHWCA, which immunizes LHWCA-covered employers from tort liability since it provides the “exclusive” remedy of LHWCA-employees against their employers, 33 U.S.C. § 905(a), Bertrand, 441 F.2d at 811, Exxon and Mobil argue that under the clear jurisprudence of this Circuit, the tort immunity granted Chevron under § 905(a) extends to them as joint venturers, and therefore joint employers, with Chevron. Davidson v. Enstar Corp., 848 F.2d 574, 577-578 (5th Cir.1988).

Of course, this argument presupposes not only that Chevron, Mobil, and Exxon engaged in a joint venture, but also that Chevron, as Mr. Heavin’s employer, was a member of that joint venture. Thus, the Court must first determine whether Chevron, Mobil, and Exxon entered into a joint venture when they executed the Agreement among themselves. If the Court finds that Chevron, Mobil, and Exxon did form a joint venture, then the Court must determine whether Chevron, when it employed Mr. Heavin, did so as a joint venturer or in some other capacity.

a. Did Chevron, Mobil, and Exxon form a joint venture when they executed the Agreement?

In determining whether a particular business relationship is a joint venture, the Court must ground its findings on the precise legal context in which the joint venture is alleged to exist. These contexts vary in relation to the facts of each particular case. Sasportes v. M/V Sol de Copacabana, 581 F.2d 1204, 1208 (5th Cir.1978).

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
697 F. Supp. 1408, 1989 A.M.C. 910, 1988 U.S. Dist. LEXIS 9170, 1988 WL 102543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heavin-v-mobil-oil-exploration-producing-southeast-inc-laed-1988.