Silverman v. MIKE ROGERS DRILLING CO., INC.

34 So. 3d 1099, 2010 La. App. LEXIS 1006, 2010 WL 1462869
CourtLouisiana Court of Appeal
DecidedApril 14, 2010
Docket45,119-CA
StatusPublished
Cited by3 cases

This text of 34 So. 3d 1099 (Silverman v. MIKE ROGERS DRILLING CO., 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
Silverman v. MIKE ROGERS DRILLING CO., INC., 34 So. 3d 1099, 2010 La. App. LEXIS 1006, 2010 WL 1462869 (La. Ct. App. 2010).

Opinion

GASKINS, J.

hln this tort suit brought by an oilfield worker, the defendant/oilfield contractor whose employee allegedly injured the plaintiff appeals from the trial court’s granting of an exception of no cause of action in favor of the oil company against whom it filed a third-party demand for indemnification. Mike Rogers Drilling Company, Inc. (“Rogers”), the defendant/oilfield contractor, contends that the trial court incorrectly applied the provisions of the Louisiana Oilfield Anti-Indemnity Act, which was designed to protect oilfield contractors, to instead penalize it by denying it indemnity under the terms of a negotiated contract with the oil company. We affirm the trial court judgment.

FACTS

The plaintiff, Samuel Silverman, Jr., was an employee of BJ Services Company, which had been hired by Bass Enterprises Production Company (“Bass”) to provide services on an oil well Bass had drilled in Caddo Parish. Bass had also contracted with Rogers to perform other services on the oil well.

The drilling bid proposal and daywork drilling contract between Bass (as “Operator”) and Rogers (as “Contractor”) included the following relevant provisions:

Paragraph 14.9
Operator’s Indemnification of Contractor: Operator shall release contractor of any liability for, and shall protect, defend and indemnify Contractor from and against all claims, demands, and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party or parties, arising in connection herewith....
|2Paragraph 18
GOVERNING LAW: The Contract shall be construed, governed, interpreted, enforced and litigated, and the rela *1101 tions between the parties determined in accordance with the laws of Arkansas.

In July 2005, Silverman allegedly sustained a knee injury when a hoist operator employed by Rogers dropped a cement head that pinned Silverman’s knee against the derrick. In June 2006, Silverman filed suit against Rogers for the injuries he allegedly sustained due to the negligence of its hoist operator. In August 2008, Rogers filed a third-party demand against Bass. It alleged that at the time of the accident it was operating under its contract with Bass which provided for Bass to indemnify Rogers against claims by Bass’ employees or contractors, including agents, consultants or subcontractors.

In October 2008, Bass filed an answer and a third-party demand, as well as peremptory exceptions of no cause of action and prescription. Bass alleged that the indemnity provision sued upon was in violation of La. R.S. 9:2780 and against public policy. It also asserted a third-party demand against BJ Services for its role in the accident and sought indemnification from it pursuant to the contract between them. As to its exceptions, Bass again asserted violation of the provisions of La. R.S. 9:2780 on the exception of no cause of action and untimely filing of suit under La. C.C. art. 3492 and La. C.C.P. art. 1067 on the exception of prescription.

The exception of no cause of action was argued and submitted on May 4, 2009. The trial court issued reasons for judgment sustaining the exception on May 6, 2009. The court found that La. R.S. 9:2780 was | ^.applicable to Rogers and Bass and that the statute prohibited the language in contractual provision 14.9 requiring Bass to indemnify Rogers as contrary to public policy. Also noting that under La. C.C. art. 3540, contractual choice of law controls except to the extent that law contravenes the public policy of the state, the court found paragraph 18 of the contract stating that Arkansas law applied was unenforceable. Since the third-party claim by Rogers was a pure claim for indemnification and was predicated on two contractual provisions violative of Louisiana public policy, the trial court concluded that Rogers had no cause of action against Bass. Judgment in conformity with these reasons was signed the same day, dismissing Rogers’ third-party demand with prejudice. In a supplemental judgment, the court certified the prior judgment as a final appealable judgment.

Rogers appealed. The plaintiff filed a brief stating that he takes no position on the issue on appeal.

LOUISIANA OILFIELD ANTI-INDEMNITY ACT

Law

In reviewing a trial court’s ruling sustaining an exception of no cause of action, the appellate court conducts a de novo review because the exception raises a question of law and the trial court’s decision is based only on the sufficiency of the petition. Gipson v. Fortune, 45,021 (La.App.2d Cir.1/27/10), 30 So.3d 1076; Wakefield v. Kyle, 44,317 (La.App.2d Cir.5/13/09), 12 So.3d 468.

La. R.S. 9:2780, which is known as the Louisiana Oilfield Anti-Indemnity Act (“LOAIA”), provides, in relevant part:

14A. The legislature finds that an inequity is foisted on certain contractors and their employees by the defense or indemnity provisions, either or both, contained in some agreements pertaining to wells for oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, to the extent those provisions apply to death or bodily injury to persons. It is the intent of the legislature by this Section to declare null *1102 and void and against public policy of the state of Louisiana any provision in any agreement which requires defense and/or indemnification, for death or bodily injury to persons, where there is negligence or fault (strict liability) on the part of the indemnitee, or an agent or employee of the indemnitee, or an independent contractor who is directly responsible to the indemnitee.
B. Any provision contained in, collateral to, or affecting an agreement pertaining to a well for oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, is void and unenforceable to the extent that it purports to or does provide for defense or indemnity, or either, to the indemnitee against loss or liability for damages arising out of or resulting from death or bodily injury to persons, which is caused by or results from the sole or concurrent negligence or fault (strict liability) of the indemnitee, or an agent, employee, or an independent contractor who is directly responsible to the indem-nitee.
C.

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Bluebook (online)
34 So. 3d 1099, 2010 La. App. LEXIS 1006, 2010 WL 1462869, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silverman-v-mike-rogers-drilling-co-inc-lactapp-2010.