Sea Robin Pipeline Co. v. Red Sea Group, Ltd.

919 F. Supp. 991, 163 A.L.R. Fed. 647, 1996 U.S. Dist. LEXIS 3453, 1996 WL 127880
CourtDistrict Court, W.D. Louisiana
DecidedMarch 19, 1996
DocketCivil Action No. 94-2107-L
StatusPublished
Cited by1 cases

This text of 919 F. Supp. 991 (Sea Robin Pipeline Co. v. Red Sea Group, Ltd.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sea Robin Pipeline Co. v. Red Sea Group, Ltd., 919 F. Supp. 991, 163 A.L.R. Fed. 647, 1996 U.S. Dist. LEXIS 3453, 1996 WL 127880 (W.D. La. 1996).

Opinion

RULING

NAUMAN S. SCOTT, District Judge.

Before the Court are Sea Robin Pipeline Company’s Motion for Summary Judgment, Harold McGee, Inc.’s Cross-Motion for Summary Judgment and Opposition to Sea Robin’s Motion for Summary Judgment, and Falgout Marine, Inc.’s Cross-Motion for Summary Judgment.

FACTS

The dispute before the Court arises from a contractual relationship between Sea Robin Pipeline Company (“Sea Robin”) and International Diving & Consulting Services, Inc. (“International Diving”). Sea Robin is the owner and operator of a 438-mile dual phase pipeline network located primarily in the Gulf of Mexico, offshore Louisiana.

In May of 1994, Sea Robin hired International Diving to perform certain abandonment procedures on two pieces of pipe within its integrated pipeline system located on the Outer Continental Shelf. Specifically, Sea Robin and International Diving entered into [994]*994a contract (“the Contract”) for the abandonment and removal of certain sections of two pieces of Sea Robin’s pipeline—its Ship Shoal Block 225 “C” Pipeline (“225 Pipeline”) and its East Cameron Block 270 “A” Pipeline (“270 Pipeline”). The 225 Pipeline and 270 Pipeline are 1.5 miles long and 12.8 miles long, respectively, and they both have 20-inch diameters. The 225 Pipeline extends from the Ship Shoal Block 225 “C” Platform owned by Sonat Exploration Company to a subsea tap connection with Sea Robin’s 20-inch pipeline in Ship Shoal Block 222. Sea Robin’s 270 Pipeline extends from the Pennzoil Exploration & Producing Company’s East Cameron Block 270 “A” Platform to Sea Robin’s junction platform in East Cameron Block 265.

Pursuant to the Contract, International Diving was obligated to pay its suppliers and subcontractors, and to keep the property upon whieh the work was performed free from all liens arising out of the performance of the work or materials furnished in conjunction therewith. Furthermore, International Diving was obligated to indemnify Sea Robin for all hens against its property and for all suits by its suppliers and subcontractors against Sea Robin. In addition, Section 16.1 of the Contract required International Diving to provide Sea Robin with a bond to assure that International Diving’s subcontractors and vendors would be paid. In accordance with this provision of the Contract, International Diving provided a bond (the “Bond”) issued by Red Sea Group, Ltd., acting through its agent, Individual Surety. The Bond bound Red Sea and Individual Surety to act as surety for all of International Diving’s obligations under the Contract, including, but not limited to, all claims of third parties and all other claims and liabilities which International Diving undertakes and agrees in the Contract to pay. The Bond also provided that all persons who have furnished labor or material for use in or about the Contract shall have a direct right of action upon this bond, subject to the obli-gee’s priority.

International Diving completed its work under the Contract in July of 1994. After-wards, Sea Robin received notice from some of International Diving’s suppliers and subcontractors that they had not received payment for services and/or supplies rendered in conjunction with work conducted on the pipeline. Among the suppliers and subcontractors that noted outstanding obligations are: Falgout Marine, Inc. (“Falgout”), Harold McGee, Inc. (“McGee”) and Neches-Gulf Marine, Inc., Neches-Gulf Offshore, Inc. and Neches-Gulf Ship Services, Inc. (collectively “Neches-Gulf’). Falgout provided a tug for towing services performed in connection with the abandonment procedures on Sea Robin’s 225 Pipeline and 270 Pipeline; McGee furnished a tank barge, tug and other equipment relating to its barging services for modification of Sea Robin’s 225 Pipeline and 270 Pipeline; and Neches-Gulf furnished various services and equipment to International Diving in connection with the abandonment of Sea Robin’s 270 Pipeline.

After receiving notification of the delinquencies, Sea Robin filed an action in November of 1994 seeking a declaratory judgment against Red Sea and Individual Surety to clarify their rights and obligations under the Bond. In the action, McGee and Falgout intervened, stating causes of action against the named defendants under rights created by the Bond, and against plaintiff, Sea Robin, on the grounds that the intervenors acquired a hen on, among other things, Sea Robin’s pipelines. In a separate action dated May 1995, Neehes-Gulf filed a claim against Sea Robin, also asserting a hen on Sea Robin’s pipelines. In both suits motions and cross-motions were made for summary judgment to determine the validity of the hens asserted against Sea Robin. The suits were consolidated, and the common question as to the validity of all the hens asserted against Sea Robin were before this Court. While the motions were pending, Sea Robin and Nech-es-Gulf settled their dispute, so now only the motions and cross-motions involving Falgout and McGee remain before this tribunal.

LEGAL ANALYSIS

The Federal Rules of Civil Procedure estabhsh the apphcable standard for summary judgment. Rule 56(c) of the rules requires the entry of summary judgment “if [995]*995the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(e). The requirement is that “there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986) (emphasis in original). A fact is “material” if proof of its existence or non-existence would affect the outcome of the lawsuit under the law applicable to the case. Id. at 248, 106 S.Ct. at 2510. An issue of material fact is “genuine” if the evidence is such that a reasonable jury might return a verdict for the non-moving party. Id. at 257, 106 S.Ct. at 2514-15. Once the party moving for summary judgment has satisfied its burden, then the non-moving party is required to go beyond the pleadings by way of affidavits, depositions, answers to interrogatories, etc., in order to demonstrate specific material facts which give rise to a genuine issue. Celotex Corp. v. Catrett, 477 U.S. 317, 324-25, 106 S.Ct. 2548, 2553-54, 91 L.Ed.2d 265 (1986); Anderson, 477 U.S. at 250, 106 S.Ct. at 2511. The burden demands more than a mere showing of some metaphysical doubt as to the material facts. It requires the non-moving party to advance “specific facts showing that there is a genuine issue for trial.” Matsushita Elec. Industrial Co. v. Zenith Radio Corp., 475 U.S. 574, 588, 106 S.Ct. 1348, 1356-57, 89 L.Ed.2d 538 (1986). If the non-moving party fails to meet its burden, then summary judgment must be entered in favor of the moving party as a matter of law.

I.

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919 F. Supp. 991, 163 A.L.R. Fed. 647, 1996 U.S. Dist. LEXIS 3453, 1996 WL 127880, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sea-robin-pipeline-co-v-red-sea-group-ltd-lawd-1996.