Phillips Petroleum Co. v. Liberty Services, Inc.

704 So. 2d 890, 97 La.App. 3 Cir. 758, 1997 La. App. LEXIS 2853, 1997 WL 757984
CourtLouisiana Court of Appeal
DecidedDecember 10, 1997
DocketNo. 97-758
StatusPublished
Cited by2 cases

This text of 704 So. 2d 890 (Phillips Petroleum Co. v. Liberty Services, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips Petroleum Co. v. Liberty Services, Inc., 704 So. 2d 890, 97 La.App. 3 Cir. 758, 1997 La. App. LEXIS 2853, 1997 WL 757984 (La. Ct. App. 1997).

Opinion

I THIBODEAUX, Judge.

Liberty Services, Inc. seeks review of the trial court’s grant of summary judgment in favor of Phillips Petroleum Company. This appeal arises out of a suit filed by Phillips Petroleum against Liberty Services to enforce the indemnification provision of their contract. The Louisiana Oilfield Indemnity Act (LOIA), La.R.S. 9:2780, requires a judicial determination that an indemnitee is either free from negligence or fault (strict liability) for death or bodily injury to persons, before ^contractual indemnity clauses such as the one at issue can be enforced. On a previous appeal, this court remanded this case to the trial court so that it could make a determination regarding Phillips’ negligence or fault. Phillips Petroleum Co. v. Liberty Servs., Inc., 95-124 (La.App. 3 Cir. 5/31/95), 657 So.2d 405, writ denied, 95-1650 [892]*892(La.10/27/95), 661 So.2d 1354. On remand, the trial judge granted a motion for summary judgment in favor of Phillips after finding that there was no genuine issue of material fact regarding Phillips’ freedom from negligence, thus rendering the contractual indemnification provision effective. Liberty now requests our review of this ruling. We conclude that Phillips met its burden of proving the absence of an element essential to Liberty’s claim of negligence, while Liberty failed to prove the existence of any material issue of fact that would support a finding of negligence. Therefore, we affirm the trial court’s grant of summary judgment in favor of Phillips Petroleum.

I.

ISSUES

The issues presented for review are:

1) whether the law of the case doctrine bars this court from reviewing Phillips’ argument regarding freedom from negligence;
2) whether Phillips met its burden of proving the absence of a material issue of fact regarding its freedom from negligence; and
3) whether Liberty presented evidence establishing the existence of a genuine issue of material fact as to the dispute.

J3II.

FACTS

Phillips Petroleum entered into a contract with Liberty Services in which Liberty was to provide labor services to Phillips on an as-needed basis. The contract contained an indemnity provision which stated in pertinent part:

Contractor shall defend, indemnify and hold harmless Company from any and all claims, judgments, losses, expenses and any costs related thereto (including but not limited to court costs and attorneys’ fees) for damages to or loss or defect of Contractor’s property and for personal injury to or death of Contractor’s employees (including Contractor where Contractor is sole proprietor) or invitees.

On April 12, 1989, two Liberty employees filed suit against Phillips and other defendants, seeking damages for alleged injuries sustained as a result of their exposure to fumes, smoke and asbestos dust while removing asbestos insulation with cutting torches on a Phillips platform from April 13, 1988 through April 15,1988. All defendants were granted summary judgments and dismissed from the suit after submitting evidence that revealed the employees did not suffer any injuries as a result of exposure to asbestos. Thereafter, Phillips sought to enforce the indemnification provision of its contract with Liberty and filed an action for recovery of expenses, court costs, and attorney fees incurred in defending the suit.

The trial judge ruled in favor of Liberty and dismissed Phillips’ suit for indemnification after reviewing cross-motions for summary judgment submitted by both parties. The trial court held that La.R.S. 9:2780, the Louisiana Oilfield Indemnity Act (LOIA), precluded recovery pursuant to a contractual indemnification agreement of the sort at issue unless there had been a judicial determination that the indemnitee (Phillips) is free from negligence or fault. As there had been no such|4finding by the trial court, but only a dismissal of the claim against Phillips by summary judgment, the trial judge dismissed Phillips’ claim for indemnification.

Phillips appealed the decision, disputing the trial court’s interpretation of the LOIA. This court interpreted the statute and then remanded the case to allow Phillips the opportunity to establish freedom from fault or negligence. We held that the LOIA does not preclude one seeking indemnification from proving freedom from negligence or fault in a separate action. Phillips, 657 So.2d at 409. In addition, we stated that the pivotal factor in determining whether indemnification is available is that of causation of the accident involved; the fact that an indemnitee might have a legal defense to the claim, as in this case, does not preclude the need to determine fault in causing the accident. Id.

On remand, Phillips argued that it was entitled to summary judgment as a matter of law because there was no genuine issue of [893]*893material fact as to Liberty’s liability for its attorney fees and expenses. Phillips reurged its prior argument regarding the absence of damages to the employees, and presented the same evidence that it had previously used to receive a dismissal via summary judgment in the action brought against it by the employees. Phillips contended that it was entitled to summary judgment because it had established that the employees had not been injured, therefore proving the absence of an element essential to Liberty’s claim of negligence. Phillips stated that based upon this, it could not be found negligent and was entitled to indemnification.

Liberty argued in its Memorandum in Opposition to the Motion for Summary Judgment that Phillips had not been successful in establishing the absence of a genuine issue of material fact regarding its negligence. First, Liberty stated that Phillips’ reliance on its previous dismissal by summary judgment did not prove |,-¡freedom from negligence because this court held that a dismissal pursuant to a legal defense was insufficient to make this determination. Liberty cited our language in Phillips in which we stated:

We recognize that a litigant may be negligent or otherwise at fault in causing an accident and yet have no legal liability for tort damages because of a specific legal defense. The application of the “borrowed employer” doctrine and its relationship to the LHWCA is an example of such a situation. Additionally, a litigant may be negligent or otherwise at fault in causing an accident but have no further liability because the plaintiff is unable to establish that he suffered any damage as a result of the accident. Thus, it matters not which reason the trial court used in granting the motion for summary judgment herein.

Id. at 409.

Secondly, Liberty stated that Phillips’ reliance on its previous dismissal by summary judgment was without merit because the evidence it introduced at that time, and that it was relying on for a second time, only established the absence of injuries related to exposure to asbestos. Liberty argued that there existed evidence that the employees suffered symptoms caused by the burning of other substances, and Phillips, in ordering the employees to cut the insulation and wrappings, could have been liable for those injuries caused by smoke and/or dust inhalation unrelated to asbestos.

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Bluebook (online)
704 So. 2d 890, 97 La.App. 3 Cir. 758, 1997 La. App. LEXIS 2853, 1997 WL 757984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-petroleum-co-v-liberty-services-inc-lactapp-1997.