Marquette Transportation Co. Gulf-Inland, LLC v. Unknown Potential

106 F. Supp. 3d 844, 2015 A.M.C. 1296, 2015 U.S. Dist. LEXIS 57931
CourtDistrict Court, S.D. Texas
DecidedMay 4, 2015
DocketCivil Action No. G-13-54
StatusPublished

This text of 106 F. Supp. 3d 844 (Marquette Transportation Co. Gulf-Inland, LLC v. Unknown Potential) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marquette Transportation Co. Gulf-Inland, LLC v. Unknown Potential, 106 F. Supp. 3d 844, 2015 A.M.C. 1296, 2015 U.S. Dist. LEXIS 57931 (S.D. Tex. 2015).

Opinion

Order

GRAY H. MILLER, District Judge.

Pending before the court is claimant American Commercial Lines, LLC’s (“ACL”) motion for summary judgment. Dkt. 86. ACL seeks a finding that Marquette Transportation Company Gulf-Inland, LLC (“Marquette”) owes ACL complete defense and indemnity for all claims brought against it by Anthony Ladner pursuant to the terms of a towage agreement in effect between ACL and Marquette at the time of Ladner’s alleged injuries. Id. After reviewing the motion, the responses, the towing agreement, and the applicable law, the court is of the opinion that the motion should be GRANTED in part and DENIED in part.

I. Background

As brief background, Ladner was employed by Marquette working aboard a vessel when he allegedly tripped and fell overboard after his shoelace became entangled in a broken wire which was lying on the deck of an ACL barge that Marquette was towing. Dkt. 86-1 at 2. ACL had entered into a towing agreement with Marquette to tow ACL’s barge. Dkt. 86-1. Ladner subsequently filed suit in state court against Marquette and ACL for his injuries. Dkts. 1-1, 13 at 2. Marquette then filed this limitation action, and the court granted an injunction on Ladner’s state court case and ordered all claims to be filed in the limitation action. Dkts. 1, 10. Accordingly, ACL filed its claim against Marquette in the limitation action [846]*846alleging that, under the towing contract, Marquette had a duty to defend and indemnify ACL for Ladner’s claim. Dkt. 13 at 4. Ladner also filed his personal injury claim in the limitation action. Dkt. 15.

II. Legal Standard

A court shall grant summary judgment when a “movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). “[A] fact is genuinely in dispute only if a reasonable jury could return a verdict for the non-moving party.” Fordoche, Inc. v. Texaco, Inc., 463 F.3d 388, 392 (5th Cir.2006). The moving party bears the initial burden of demonstrating the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). If the party meets its burden, the burden shifts to the non-moving party to set forth specific facts showing a genuine issue for trial. Fed.R.Civ.P. 56(e). The court must view the evidence in the light most favorable to the non-movant and draw all justifiable inferences in favor of the non-movant. Envtl. Conservation Org. v. City of Dallas, Tex., 529 F.3d 519, 524 (5th Cir.2008).

III. Analysis

A. Contentions of the Parties

ACL contends that the towing agreement is a maritime contract, and therefore the agreement and its indemnity provisions should be interpreted under maritime law. Dkt. 86-1 at 6. ACL claims that the indemnity section contained in the towing agreement clearly and unequivocally states that Marquette is to indemnify and hold ACL harmless for any injuries sustained by any of Marquette’s employees. Id. at 8. Because Ladner is a Marquette employee, the injuries arose out of the towing agreement, and the agreement provides that ACL is to be defended and indemnified for sole or concurrent negligence or fault on the part of ACL, strict liability, or the unseaworthiness of any barge or barges by ACL and “howsoever caused,” ACL asserts that it should be completely indemnified by Marquette. Id. ACL also asserts that it is entitled to reimbursement of all of its attorney’s fees incurred in the defense of Ladner’s claims because the indemnity language also states that Marquette must pay ACL’s costs, damages, or expenses. Id.

Marquette does not dispute that it owes ACL defense and indemnity for every claim made by Ladner, other than claims made for gross negligence and punitive damages. Dkt. 115 at 1. ACL responds that Ladner does not have a viable punitive damages claim against it, but if there were a gross negligence finding against ACL, the agreement language is broad enough to cover it. Marquette only disputes indemnity for Ladner’s claims of gross negligence or punitive damages because the agreement does not expressly include gross negligence and punitive damages claims. Dkt. 111 at 2. Marquette asserts that under maritime law, a party cannot agree to contractually indemnify another party for its own gross negligence or punitive damages, and a party can only agree to contractually indemnify another entity from gross negligence if it was specifically and expressly included in the parties’ contract. Id. Finally, Marquette asserts that ACL is not entitled to recover its attorney’s fees and costs because it has not provided any evidence of its attorneys’ fees and costs, or categorized what fees and expenses relate to defending claims of ordinary negligence as opposed to that for the defense of gross negligence and punitive damages claims. Id. at 9.

[847]*847 B. Substantive Law

Resolution of this motion depends on the interpretation of an indemnity provision within a maritime contract. “The interpretation of a contractual indemnity provision is a question of law.” Becker v. Tidewater, Inc., 586 F.3d 358, 369 (5th Cir.2009). And, “[a] maritime contract containing an indemnity agreement ... should be read as a whole and its words given their plain meaning unless the provision is ambiguous.” Id. (quoting Weathersby v. Conoco Oil Co., 752 F.2d 953, 956 (5th Cir.1984)). “A court should construe an indemnity clause to cover all losses which reasonably appear to have been within the parties’ contemplation.” Weathersby, 752 F.2d at 956 (internal quotation omitted).

C. Analysis

At the outset, the court notes that it is effectively agreed between the parties that Marquette must defend and indemnify all claims against ACL for compensatory damages, except for gross negligence. Therefore, the court finds that the ordinary negligence and unseaworthiness claims are covered under the indemnity agreement and defense and indemnity are due to ACL as to Ladner’s negligence and seaworthiness claim. Further, ACL is entitled to costs, expenses and attorney’s fees for defending Ladner’s negligence and unseaworthiness claim, though it still must prove those costs and fees.

As to the gross negligence claims, the court must review the indemnity clause in the towing agreement. The relevant language is:

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106 F. Supp. 3d 844, 2015 A.M.C. 1296, 2015 U.S. Dist. LEXIS 57931, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marquette-transportation-co-gulf-inland-llc-v-unknown-potential-txsd-2015.