Nabors Corporate Services, Inc. v. Northfield Insurance Co.

132 S.W.3d 90, 167 Oil & Gas Rep. 464, 2004 Tex. App. LEXIS 2384, 2004 WL 502938
CourtCourt of Appeals of Texas
DecidedMarch 16, 2004
Docket14-03-00285-CV
StatusPublished
Cited by30 cases

This text of 132 S.W.3d 90 (Nabors Corporate Services, Inc. v. Northfield Insurance Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nabors Corporate Services, Inc. v. Northfield Insurance Co., 132 S.W.3d 90, 167 Oil & Gas Rep. 464, 2004 Tex. App. LEXIS 2384, 2004 WL 502938 (Tex. Ct. App. 2004).

Opinion

OPINION

EVA M. GUZMAN, Justice.

In this declaratory judgment action, Pool Company Texas, Ltd., 1 (“Pool”) appeals the trial court’s grant of summary judgment dismissing Pool’s claims against Abraxas Petroleum Corporation (“Abrax-as”) and Northfield Insurance Company (“Northfield”). Specifically, Pool contends that: (1) the indemnity provision contained in the Master Service Agreement between Abraxas and Pool was void under the Texas Oilfield Anti-Indemnity Act (“TO-ALA”); 2 and (2) because Abraxas failed to *93 request reimbursement from Northfield under the Texas Property and Casualty Insurance and Guaranty Act (“TPCIGA”), 3 Pool paid a debt owed by Abraxas or Northfield and should be reimbursed. We affirm.

I. Statement of Facts and PROCEDURAL Background

In 1997, Abraxas hired Pool to perform work on an oil and gas lease owned and operated by Abraxas. As is customary in the oil and gas industry, Abraxas and Pool entered into a Master Service Agreement (the “Agreement”) which contained, in part, mutual indemnity provisions whereby each party agreed to indemnify the other for any claims or causes of action, without limit, for any injuries or death suffered by their respective employees. In the Agreement, each party also agreed to acquire insurance to cover these indemnity obligations 4 in accordance with the safe harbor provisions of the TOALA. 5 Pool’s general liability insurer was Reliance Insurance Company (“Reliance”) 6 and Abraxas was insured by Northfield.

In 1999, a Pool employee, Michael Carter, was fatally injured. Carter’s heirs and estate filed suit (the “Carter litigation”) against Abraxas, and other defendants not parties to this appeal, asserting negligence claims. When Abraxas presented the claim to Northfield, Northfield hired counsel to represent Abraxas; counsel, in turn, contacted Pool and demanded Pool defend and indemnify Abraxas in accordance with the Agreement. Pool agreed, subject to its right under Texas law to deny indemnification for any grossly negligent conduct by Abraxas or any award for punitive damages. Pool then hired counsel to defend Abraxas.

In September 2001, the Carter litigation was settled on behalf of Abraxas for $1,545,000. 7 However, prior to funding the settlement, Pool’s insurer, Reliance, became insolvent. 8 Suit was filed by the Carter plaintiffs against Abraxas to enforce the settlement agreement, and Abraxas looked to Pool by virtue of the indemnity provision contained in the Agreement. Pool contributed $1,000,000 to the settlement by Abraxas, reserving all rights and causes of action, then demanded reimbursement from Northfield. Consequently, Northfield filed this declaratory judgment action, asserting it did not owe any reimbursement to Pool. Pool filed counterclaims against Northfield and third-party claims against Abraxas, 9 alleging both parties had violated the TPCIGA and asserting claims for indemnity and unjust enrichment against both parties. Northfield filed a “Motion to Dismiss and/or Summary Judgment,” requesting the trial court dismiss Pool’s claims against Abraxas and Abraxas’s claims against Northfield in the event Abraxas *94 should be held liable to Pool for any reimbursement.

The trial court signed a final judgment granting Northfield’s motion and (1) dismissing with prejudice, Pool’s claims against Abraxas and Northfield; (2) dismissing without prejudice, Abraxas’s counterclaims against Pool; and (3) dismissing as moot, Abraxas’s cross-claims for reimbursement against Northfield. The trial court severed all other remaining claims to permit appeal of the judgment.

II. Analysis

A. Abraxas as Appellee

As an initial matter, Abraxas asserts it is an appellee in this proceeding and requests that we accept its brief as such. Abraxas argues it falls within the definition of “appellee” as that term is defined in Texas Rule of Appellate Procedure 3.1(c) because it is adverse to Pool and to Northfield and its direct interests are affected by the outcome of this appeal. Pool and Northfield do not contend that Abraxas is not a proper party to this appeal or otherwise contest Abraxas’s participation. 10

Rule of Appellate Procedure 3.1 defines an appellee as “a party adverse to an appellant.” Tex.R.App. P. 3.1(c). Here, the trial court’s final judgment dismissed Pool’s third-party claims against Abraxas, dismissed Abraxas’s original counterclaims against Pool, and dismissed Abraxas’s cross-claims against Northfield. The final judgment then places Abraxas in a position on appeal that is adverse to Pool and directly impacts Abraxas’s interests in the case. We conclude Abraxas falls within the definition of appellee contained in Rule 3.1 and thus, may participate in this appeal. 11 Accord Gray v. Allen, 41 S.W.3d 330, 331 (Tex.App.-Fort Worth 2001, no pet.) (noting that an appellee was not a proper party because the trial court did not render judgment against her and the appellant had not raised any issues on appeal involving her).

B. Standard of Review

Although Northfield’s motion was entitled “Motion to Dismiss and/or Summary Judgment,” in the motion Northfield primarily argued that there was no evidence to support Pool’s claims. Also, it appears the court’s judgment was rendered based on evidence outside the pleadings. Therefore, we construe Northfield’s motion as a no-evidence summary judgment motion and review it using a no-evidence summary judgment standard. See, e.g., Marts ex rel. Marts v. Transp. Ins. Co., 111 S.W.3d 699, 702 (Tex.App.-Fort Worth 2003, pet. denied).

After an adequate time for discovery, a party may move for summary judgment on the basis that there is no evidence of an essential element of the nonmovant’s cause of action. Tex.R. Crv. P. 166a(i). The motion must state the elements for which there is no evidence. Id.; Marts, 111 S.W.3d at 703. To defeat a no-evidence summary judgment motion, a party need only point out evidence that raises a genuine issue of material fact on the challenged elements. Tex.R. Civ. P. 166a(i) cmt.; Russo v. Smith Int’l, Inc., 93 S.W.3d 428, *95 433 (Tex.App.-Houston [14th Dist.] 2002, pet. denied).

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132 S.W.3d 90, 167 Oil & Gas Rep. 464, 2004 Tex. App. LEXIS 2384, 2004 WL 502938, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nabors-corporate-services-inc-v-northfield-insurance-co-texapp-2004.