Hotard v. Avondale Industries, Inc.

CourtDistrict Court, E.D. Louisiana
DecidedApril 3, 2024
Docket2:20-cv-01877
StatusUnknown

This text of Hotard v. Avondale Industries, Inc. (Hotard v. Avondale Industries, 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
Hotard v. Avondale Industries, Inc., (E.D. La. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

PAUL HOTARD CIVIL ACTION

VERSUS NO. 20-1877

AVONDALE INDUSTRIES, INC. ET AL SECTION "L" (1)

ORDER AND REASONS Before the Court are three motions. Huntington Ingalls Incorporated (“Avondale”) filed a Motion for Partial Summary Judgment. R. Doc. 535. Hopeman Brothers, Inc. and Liberty Mutual Insurance Company (collectively “Hopeman Interests”) filed a Motion for Partial Summary Judgment. R. Doc. 551. Lastly, Exxon Mobil Corporation and SeaRiver Maritime, Inc. (collectively “SeaRiver”) filed a Cross-Motion for Partial Summary Judgment. R. Doc. 561. The parties have also filed various replies and oppositions to the foregoing motions. R. Docs. 563, 565, 575, 582, 584, 595. On March 27, 2024, the Court held oral argument on the motions. Considering the briefing, applicable law, and oral argument, the Court now rules as follows. I. BACKGROUND The Court is familiar with the extensive factual history of this case and will not repeat it here. See R. Doc. 520 for a full history. For this motion, the relevant background is as follows. This litigation arises from Decedent Paul Hotard’s alleged exposure to injurious levels of asbestos and asbestos-containing products designed, manufactured, sold and/or supplied by several Defendant companies while employed by Avondale in the mid-1960s. R. Doc. 1-2 at 2. Mr. Hotard allegedly was diagnosed with mesothelioma on or around April 2020. R. Doc. 166-2 at 2; R. Doc. 181-1 at 2. His alleged occupational exposure to asbestos-containing products at Avondale was a result of a failure by the company and its executive officers “to provide a safe place in which to work free from the dangers of respirable asbestos-containing dust.” R. Doc. 166-2 at 5. Decedent, a citizen of Kentucky, brought Louisiana state law negligence and strict liability tort claims against the defendants in Orleans Parish Civil District Court. R. Doc. 1-2.

Avondale removed the case to this court on the basis of diversity jurisdiction. The matter was originally assigned to Chief Judge Brown. On or about September 21, 2021, Paul Hotard, the decedent, died allegedly because of malignant mesothelioma. R. Doc. 233. His widow, Patricia Hotard, filed an amended complaint as the independent administratrix of decedent’s estate. Id. On April 8, 2021, Hopeman Interests entered a settlement with Plaintiff. R. Doc. 191. On January 26, 2022, Chief Judge Brown granted Avondale’s motion for summary judgment, holding that “the ‘date of disease manifestation’ theory of accrual governs Plaintiff’s claim, rendering the post-1972 version of the [Longshore and Harbor Workers’ Compensation Act (“LHWCA”), 33 U.S.C. § 901, et seq.] applicable to this case. The Court also found that the LHWCA preempts Plaintiff’s state law tort claims.” R. Doc. 271 at 35. Accordingly, the Court dismissed with

prejudice Plaintiff’s state law tort claims against Avondale. Id. at 36. On February 15, 2022, Chief Judge Brown recused herself and the matter was reallotted to this Section. R. Docs. 304-06. On January 6, 2023, trial dates for the matter were continued pending the Fifth Circuit’s opinion in Barrosse v. Huntington Ingalls, Inc., 70 F.4th 315 (5th Cir. 2023), which was decided on June 12, 2023.1 The Court then issued an order that defendants file or amend any third-party

1 On November 22, 2021, Judge Vitter held—in a similar line of cases—that state-law negligence claims against Avondale were preempted by the LHWCA “because they directly conflicted with and frustrated the purposes of the Act.” Id. at 317. Thus, the Court granted Avondale’s motion for summary judgment in favor of Avondale. Barrosse v. Huntington Ingalls, Inc., 20-2042, 2021 WL 5447447 at *3 (E.D. La. Nov. 22, 2021). The plaintiff, Ronald Barrosse, who was diagnosed with mesothelioma, appealed this decision. On June 12, 2023, the Fifth Circuit reversed the district court’s decision and held that the plaintiff’s claims were not preempted by the LHWCA because his injury occurred prior to the Louisiana’s 1975 worker’s compensation statute thereby creating a “twilight zone of concurrent jurisdiction.” Barrosse, 70 F.4th at 324. Accordingly, and similar to the case at hand, Avondale once again became a defendant in the case. complaint by July 28, 2023. R. Doc. 463. A month later, the Court issued a scheduling order, which included a new trial date, and reset trial to February 20, 2024. R. Doc. 480. Though the Court had previously denied SeaRiver’s Motion for Leave to File a Third-Party Demand because of its untimely nature, SeaRiver filed a Motion for Reconsideration of the Court’s

decision on July 28, 2023. Because the Court had reset deadlines to file third-party complaints and trial dates, the Court granted the reconsideration motion. R. Docs. 469; 496. Accordingly, SeaRiver filed a third-party complaint against Avondale and Hopeman Interests, bringing the latter back into the suit. At a telephone status conference held on December 4, 2023, Mrs. Hotard indicated to the Court that she had reached a resolution with all parties—leaving only contractual and indemnity claims between the defendants to be resolved. R. Doc. 528. At a late January 2024 telephone conference, the Court granted the Hopeman Interests’ motion and reset trial dates to August 12, 2024. R. Doc. 546. Presently before the Court are three motions for partial summary judgment, which focus on SeaRiver’s indemnity claims against Avondale and Hopeman Interests. On March

28, 2024, the Court heard oral argument on the motions. II. PRESENT MOTIONS a. Avondale’s Motion for Partial Summary Judgment In its motion for partial summary judgment, Avondale argues that it is entitled to dismissal of SeaRiver’s defense and indemnity claims that are based upon SeaRiver’s own negligence. R. Doc. 535. SeaRiver’s predecessor-in-interest, Humble Oil & Refining Company, and Avondale entered into a contract to build oil tankers on Avondale’s shipyard. This contract, known as the SeaRiver-Avondale Contract, governs SeaRiver’s indemnity claims against Avondale. Under Louisiana law, Avondale explains that the applicable legal standard for contractual indemnity claims depends on whether it is based upon negligence or strict liability. Presently, Avondale seeks a ruling from the Court focusing on SeaRiver’s indemnity claims arising out of SeaRiver’s own negligence. It argues that indemnity contracts only cover the indemnitee’s own negligence when

that intention is expressly and unequivocally stated in the contract. The relevant indemnity provision in the SeaRiver-Avondale Contract can be found in Article VII(3) and provides: 3. [Avondale] shall indemnify [Humble Oil] against and hold it harmless from all claims and damages arising from injuries to any person or persons (except employees of [Humble Oil], unless said employees are injured through carelessness or negligence of [Avondale]) or from damages to property in or about or connected with the fabrication, erection, construction, launching, equipment, and operation of the Vessel until delivery of the Vessel to [Humble Oil].

R. Doc. 535-2 at 25-26.

Avondale argues that the language used in this provision does not expressly and unequivocally state that Avondale is to indemnify SeaRiver for injuries arising out of SeaRiver’s own negligence. It further distinguishes this provision from those that Louisiana courts have previously held expressly state that an indemnitor is obligated to an indemnitee even in instances arising from the indemnitee’s own negligence. Thus, Avondale requests that the Court dismiss SeaRiver’s indemnity and defense claims against it arising out of SeaRiver’s own negligence.

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Hotard v. Avondale Industries, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/hotard-v-avondale-industries-inc-laed-2024.