Lafayette Steel Erector, Inc. d/b/a LSE Crane and Transportation and IC Rigging, LLC v. G. Kendrick, LLC, Low Land Construction Co., Inc., United Bulk Terminals Davant, LLC, Underwriters at Lloyd's London, and Atlantic Specialty Insurance Company

Louisiana Court of Appeal·Decided August 30, 2023·No. 2022CA0895·Unknown

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

2022 CA 0895

LAFAYETTE STEEL ERECTOR, INC., d/ b/ a LSE CRANE AND TRANSPORTATION, AND IC RIGGING, LLC

VERSUS

G. KENDRICK, LLC, LOW LAND CONSTRUCTION CO., INC., UNITED BULK TERMINALS DAVANT, LLC, UNDERWRITERS AT LLOYD' S, LONDON, AND ATLANTIC SPECIALTY INSURANCE COMPANY

AUG 3 0 2023 Judgment rendered:

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On Appeal from the Nineteenth Judicial District Court In and for the Parish of East Baton Rouge State of Louisiana Docket No. 660341

The Honorable Wilson E. Fields, Judge Presiding

James Michael Dill Attorneys for Plaintiff/Appellant G. Austin Love Lafayette Steel Erector, Inc., d/ b/ a Lafayette, Louisiana LSE Crane and Transportation

Jake P. Skaggs Attorney for Intervenor/Appellant Houston, Texas Mitsui Sumitomo Insurance Company of America

Michael William McMahon Attorneys for Defendant/ Appellee Kirk N. Aurandt United Bulk Terminals Davant, LLC Paul R. Trapani, III Covington, Louisiana

Stephen F. Butterfield Attorneys for Defendant/Appellee Ryan M. Tucker G. Kendrick, LLC New Orleans, Louisiana

Ross M. Molina Attorneys for Defendant/ Appellee, Donald G. Cassels, III Certain Underwriters at Lloyd' s, London New Orleans, Louisiana

BEFORE: McCLENDON, HOLDRIDGE, AND GREENE, JJ.

c6j' o HOLDRIDGE, J.

Lafayette Steel Erector, Inc., d/ b/ a LSE Crane and Transportation (" LSE"),

and Mitsui Sumitomo Insurance Company of America (" Mitsui") appeal a summary

judgment rendered in favor of United Bulk Terminals Davant, LLC (" United Bulk")

on April 14, 2022, dismissing their claims against it with prejudice. For the

following reasons, we affirm the trial court' s grant of summary judgment.

FACTS AND PROCEDURAL HISTORY

On August 11, 2017, LSE and IC Rigging, LLC (" IC") ( collectively

LSE/ IC"), filed a petition for damages against G. Kendrick, LLC (" Kendrick") and

its insurer, Certain Underwriters at Lloyd' s, London (" Underwriters"); Low Land

Construction Co., Inc. (" Low Land") and its insurer, Atlantic Specialty Insurance

Company (" Atlantic") and United Bulk.' In the petition, LSE/ IC asserted that in

May of 2017, United Bulk hired Kendrick as the general contractor on a demolition

project to remove its Krupp Stacker Reclaimer at the plant it owned in Davant,

Louisiana. Kendrick subcontracted with Low Land to provide services on the

project.

On June 13, 2017, a crane owned by Low Land was being used in the

demolition of the reclaimer when it fell and struck a crane owned by IC and leased

to LSE (hereinafter referred to as " the LSE crane"). The Low Land crane was being

operated by Jason Guidry, an employee of Low Land for approximately fifteen

years. The LSE crane was being operated by Jason Robichaux, an employee of LSE.

The cutter on the project was David Hernandez, the owner and operator of LDH

Recycling, LLC (LDH). The accident caused extensive damage to the LSE crane.

LSE' s original petition apparently improperly named the Underwriters defendant as Underwriters at Lloyd' s London.

2 Due to its large size, demolishing the reclaimer required the use of two cranes and a cutter to dismantle portions of the structure. Kendrick did not employ cutters and did not own or operate any cranes. Therefore, it subcontracted Low Land to provide cranes and LDH to provide the cutter necessary to complete the demolition project.

2 In its petition, LSE/IC alleged that the accident was caused by the negligence

of Kendrick and Low Land. As to United Bulk specifically, LSE/ IC alleged in the

petition that United Bulk was at fault for the accident and resulting damages " for the

negligent hiring of [Kendrick] for this project."' LSE/ IC later amended the petition

to add LDH and its insurer, Mesa Underwriters Specialty Insurance Co. (" Mesa"),

as defendants.

On October 2, 2017, Kendrick answered the petition for damages; asserted

cross- claims against Low Land, Atlantic, and Underwriters; and asserted third -party

demands against LDH and its insurer, Mesa, its insurance agency, Giambelluca

Insurance Agency, and ABC Insurance Agency.' On October 4, 2017, Low Land

and Atlantic answered the petition for damages, filed a cross- claim against Kendrick,

and filed a third -party demand against David Burner, an independent contractor

allegedly hired by Kendrick.

On November 3, 2017, United Bulk answered the petition for damages;

asserted cross- claims against Kendrick, Low Land, LDH, Underwriters, Atlantic,

and Mesa; and asserted a counterclaim against LSE. United Bulk admitted that it

owned the terminal where the crane was damaged, that it contracted with Kendrick

for the removal of its Krupp Stacker Reclaimer, that Low Land was acting as a

subcontractor to Kendrick and a Low Land employee was operating the Low Land

crane, that Underwriters insured Kendrick, and that the accident was caused by LSE

and Low Land' s negligence. United Bulk alleged that the damages to the crane were

3 We note that LSEIIC did not allege that United Bulk contractually reserved the right to control the work for which it contracted Kendrick to perform. It also did not allege that United Bulk breached any assumed duty or exercised operational control over the project or that the project involved ultrahazardous activity.

Kendrick asserted that it subcontracted with LDH to provide personnel and expertise in connection with the project. Kendrick asserted that it also subcontracted with Low Land to furnish a crane for the project. Low Land subcontracted with LSE to furnish an additional crane and personnel, including an operator.

3 caused by entities or persons for which it was not legally responsible. In its cross-

claims, United Bulk sought to recover damages to its conveyor system which

occurred when the crane fell.

On November 13, 2017, Mitsui, a partially subrogated insurance carrier for

the crane leased by LSE, intervened in the suit. Mitsui alleged that it was entitled to

damages from Low Land, Kendrick, and United. Bulk as a result of the accident. As

to United Bulk, Mitsui alleged it was liable for negligently hiring Kendrick.5 Mitsui

amended its petition in intervention on February 20, 2018, to add LDH as a

defendant. On January 11, 2018, United Bulk answered Mitsui' s petition in

intervention, making the same admissions as it did in its answer to LSE/IC' s petition.

On October 22, 2020, AIG UK Limited and Zurich Insurance PLC, UK

Branch, fled an unopposed motion to intervene in the suit as the subrogated insurers

of United Bulk, which was granted by the trial court on October 23, 2020.

After various pleadings were filed by the parties, on October 25, 2021,

Kendrick filed a motion for summary judgment seeking the dismissal of the claims

of LSE/ IC, Mitsui, Low Land, and Atlantic against it. In its memorandum in support

of its motion, Kendrick asserted that as the general contractor of the demolition

project, it had no duty to oversee or assist the performance of the independent

contractor' s work. On November 5, 2021, Underwriters filed a motion to adopt

Kendrick' s motion for summary judgment.

On November 16, 2021, United Bulk filed a motion for summary judgment

seeking dismissal of LSE/IC' s and Mitsui' s claims against it.6 In its memorandum

5 As was the case with LSEAC' s petition, Mitsui did not allege any other basis for United Bulk' s liability. See footnote 3.

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Lafayette Steel Erector, Inc. d/b/a LSE Crane and Transportation and IC Rigging, LLC v. G. Kendrick, LLC, Low Land Construction Co., Inc., United Bulk Terminals Davant, LLC, Underwriters at Lloyd's London, and Atlantic Specialty Insurance Company, (La. Ct. App. 2023).

Lafayette Steel Erector, Inc. d/b/a LSE Crane and Transportation and IC Rigging, LLC v. G. Kendrick, LLC, Low Land Construction Co., Inc., United Bulk Terminals Davant, LLC, Underwriters at Lloyd's London, and Atlantic Specialty Insurance Company (Lafayette Steel Erector, Inc. d/b/a LSE Crane and Transportation and IC Rigging, LLC v. G. Kendrick, LLC, Low Land Construction Co., Inc., United Bulk Terminals Davant, LLC, Underwriters at Lloyd's London, and Atlantic Specialty Insurance Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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