ONEOK Rockies Midstream, L.L.C. v. Great Plains Technical Services Inc.

CourtDistrict Court, N.D. Oklahoma
DecidedMay 27, 2022
Docket4:20-cv-00580
StatusUnknown

This text of ONEOK Rockies Midstream, L.L.C. v. Great Plains Technical Services Inc. (ONEOK Rockies Midstream, L.L.C. v. Great Plains Technical Services Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ONEOK Rockies Midstream, L.L.C. v. Great Plains Technical Services Inc., (N.D. Okla. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OKLAHOMA ONEOK ROCKIES MIDSTREAM, L.L.C., ) ) Plaintiff, ) ) v. ) Case No. 20-CV-0580-CVE-SH ) GREAT PLAINS TECHNICAL ) SERVICES INC., ) ) ) Defendant. ) OPINION AND ORDER Before the Court are defendant Great Plains Technical Services Inc.’s motion for partial summary judgment (Dkt. # 31)1; plaintiff ONEOK Rockies Midstream, L.L.C.’s response (Dkt. # 44); defendant’s reply (Dkt. # 59); plaintiff’s motion in limine (Dkt. # 39); defendant’s response to plaintiff’s motion in limine (Dkt. # 63); defendant’s motion in limine (Dkt. # 40); plaintiff’s response to defendant’s motion in limine (Dkt. # 61); and defendant’s reply as to its motion in limine (Dkt. # 70). This case arises from a July 8, 2018 fire at plaintiff ONEOK Rockies Midstream, L.L.C.’s (ONEOK) gas plant, which plaintiff alleges was caused by a faulty electric motor repair performed by defendant Great Plains Technical Services Inc. (Great Plains). On October 8, 2020, plaintiff filed a petition in the District Court of Tulsa County, Oklahoma alleging four claims for relief: negligence (count 1); breach of implied warranty (count 2); breach of contract (count 3); and breach of express warranty (count 4). Dkt. # 2-2. On November 12, 2020, this case was properly removed to federal 1 The Court notes that defendant filed an unredacted version of its motion for partial summary judgment (Dkt. # 33). For purposes of this opinion and order, the Court will cite to the unredacted version. court as there is complete diversity between the parties and the amount in controversy is greater than $75,000. Dkt. # 2, at 2-3; see also 28 U.S.C. § 1332. On September 7, 2021, defendant moved for partial summary judgment on two issues as to the interpretation of certain portions of the master service agreement (MSA) between plaintiff and defendant, and on plaintiff’s claim for breach of

express warranty (count 4). Dkt. # 33. I. The following facts are not in dispute: plaintiff ONEOK is “a midstream service provider” in the business of “gathering, processing, stor[ing], and transport[ing] natural gas.” Dkt. # 33, at 2; Dkt. # 44, at 2. As part of its business, ONEOK owns and operates the Stateline Gas Plant in North Dakota, which “utilizes compressors powered by turbines and electric motors[.]” Dkt. # 33, at 2; Dkt. # 44, at 2. Defendant Great Plains is “generally in the business of providing repair services for

motors and other individual equipment.” Dkt. # 33, at 2; Dkt. # 44, at 2. On or around June 30, 2014, ONEOK and Great Plains executed an MSA “for Great Plains to provide services to ONEOK.” Dkt. # 33, at 2; Dkt. # 44, at 2. The MSA “and the rights and duties of the parties arising out of this [MSA] shall be governed by and construed in accordance with the laws of the State of Oklahoma”; and “the parties agree that [any legal action] shall be commenced and prosecuted in the courts of Tulsa County, Oklahoma, or in the United States District Court for the Northern District of Oklahoma.” Dkt. # 33-1, at 16 (MSA). Section 7 of the MSA states, in pertinent part:

7. Indemnification and Waiver of Liability. (a) General Indemnity: [Great Plains] agrees to defend, protect, indemnify and hold harmless [ONEOK] . . . from every kind or character of damages, losses (including death), liabilities (including taxes, liens), expenses, character of damages, demands or claims, judgments, orders, or decrees, including any and all costs and fees . . . to the extent arising from any cause whatsoever growing out of or incident to the 2 strict liability, intentional misconduct, illegal acts, negligent acts or omissions of [Great Plains] . . . or [Great Plains’] failure to perform under this agreement. Id. at 6. Section 7 further provides that Great Plains “shall not be required to pay, reimburse, or hold [ONEOK] indemnitees harmless from any loss or damage to the extent that it is finally adjudicated in a court of competent jurisdiction that such claims are caused by any intentional misconduct, illegal acts, negligent acts or omissions” of ONEOK or the ONEOK indemnitees. Id. Section 8 of the MSA, which contains limitations of liability as between ONEOK and Great Plains, states, in pertinent part:

except for liability arising out of breach of confidentiality obligations . . . or liability for indemnification set forth in this agreement, including section 7, neither [ONEOK] . . . nor [Great Plains] shall be liable to the other for any indirect, consequential, special, incidental, punitive, or similar damages, including but not limited to lost profits, arising out of or in connection with such party’s performance of or failure to perform its obligations hereunder[.] Id. (emphasis added). Finally, section 13 of the MSA, the express warranties, states: (a) [Great Plains] expressly warrants that it has knowledge, familiarity, experience, equipment and fully trained personnel to perform the [w]ork, and that the [w]ork provided under this [a]greement and the [w]ork [o]rder shall be provided expeditiously and in a good and workmanlike manner in accordance with the highest industry standards. Any [w]ork not so rendered shall be promptly retendered at no cost to [ONEOK]. (b) [Great Plains] expressly warrants the [w]ork and/or any [m]aterials that it or its subcontractors have furnished hereunder for one (1) calendar year from [ONEOK’s] acceptance of the [w]ork[.] . . . (e) [Great Plains] expressly warrants that its [w]ork and any [m]aterials shall conform to this entire [a]greement and to the specifications, drawings, samples or other decsriptions upon which this [a]greement is based, that [m]aterials and equipment shall be fit and sufficient for the purpose intended, merchantable, of new, good material and workmanship, and free from defect. Inspection, test, acceptance or use of the finished [w]ork or [m]aterials provided hereunder shall not affect [Great Plain’s] obligation under this warranty, and such warranties shall survive inspection, test, acceptance and use. . . . 3 Id. at 9 (emphasis added). In 2017, after experiencing problems with two motors at its Stateline Gas Plant, ONEOK “sent the two motors to Great Plains for evaluation and advice, and ultimately requested that Great Plains repair one of them.” Dkt. # 33, at 3; Dkt. # 44, at 3. Great Plains performed a repair on one

of the motors and returned the motor to ONEOK on May 11, 2017.2 Dkt. # 33, at 3, 5; Dkt. # 44, at 3, 4. On July 8, 2018, over a year later, “there was a fire at the ONEOK Stateline Gas Plant,” which ONEOK alleges is “due to [Great Plains’] alleged faulty repair of the shaft of one of the electric motors.” Dkt. # 33, at 3; Dkt. # 44, at 3. Consequently, ONEOK filed suit “seek[ing] recovery under theories of negligence, breach of implied warranty, breach of contract, and breach of express warranty.” Dkt. # 33, at 3; Dkt. # 44, at 3. ONEOK “claims property damage in an

amount exceeding $13,000,000 and business interruption charges exceeding $6,500,000.” Dkt. # 33, at 3; Dkt. # 44, at 3. Further, plaintiff states in its petition, “[p]laintiff hereby gives notice to the Court and all parties concerned that the [u]nderwriters on the policy of insurance issued to ONEOK and which insured the loss are real parties in interest. . . . Pursuant to their subrogation rights under the insurance policy . . . [u]nderwriters and ONEOK have brought this lawsuit.”3 Dkt. # 2-2, at 7.

2 The Court notes that ONEOK disputes that it “accepted” Great Plains’ repair on its motor, Dkt. # 44, at 4; however, the parties do not dispute that a repair was performed on one of the motors, which Great Plains returned to ONEOK on May 11, 2017. 3 The Court notes that subrogation and indemnification are distinct.

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

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Adler v. Wal-Mart Stores, Inc.
144 F.3d 664 (Tenth Circuit, 1998)
Fretwell v. Protection Alarm Co.
1988 OK 84 (Supreme Court of Oklahoma, 1988)
DENCO BUS LINES, INC. v. Hargis
1951 OK 11 (Supreme Court of Oklahoma, 1951)
Blythe v. University of Oklahoma
2003 OK 115 (Supreme Court of Oklahoma, 2003)
Pitco Production Co. v. Chaparral Energy, Inc.
2003 OK 5 (Supreme Court of Oklahoma, 2003)
Yousuf v. Cohlmia
741 F.3d 31 (Tenth Circuit, 2014)
Silverstein v. Federal Bureau of Prisons
559 F. App'x 739 (Tenth Circuit, 2014)
Kendall v. Watkins
998 F.2d 848 (Tenth Circuit, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
ONEOK Rockies Midstream, L.L.C. v. Great Plains Technical Services Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/oneok-rockies-midstream-llc-v-great-plains-technical-services-inc-oknd-2022.