Stockstill v. Petty Ray Geophysical, Division of Geosource, Inc.

888 F.2d 1493
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 29, 1989
DocketNo. 88-3701
StatusPublished
Cited by1 cases

This text of 888 F.2d 1493 (Stockstill v. Petty Ray Geophysical, Division of Geosource, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stockstill v. Petty Ray Geophysical, Division of Geosource, Inc., 888 F.2d 1493 (5th Cir. 1989).

Opinion

PER CURIAM:

I. Proceedings Below

Terry Wayne Stockstill was injured while unloading seismic equipment from a barge, the BB-300. He sued his employer — Petty Ray Geophysical a division of Geosource, Inc. (Geosource); the vessel owner — Thomas A. Blankenship d/b/a B & B Operators (B & B); and various other defendants under the Jones act and general maritime law. Stockstill and Geosource settled prior to trial which left only Geosource’s cross-claims and B & B’s third party claim to be adjudicated. Geosource’s cross-claims against Doerle’s Quarterboats and its two insurers — First Horizon Insurance Company and Covenant Mutual Insurance Company — were dismissed on summary judgment.

[1495]*1495Geosource also cross-claimed against B & B. B & B agreed to have its P & I insurance policy endorsed to name Geo-source as an additional insured. Since B & B failed to do so, Geosource argues that B & B must stand in the shoes of the P & I insurer. B & B made a third party demand against its insurance agent — Bayly, Martin and Fay of Louisiana, Inc. (BMF). B & B claims that BMF failed to endorse B & B’s P & I insurance to include Geosource as an additional insured. B & B argues that if it is liable to Geosource, BMF is liable to it.

Before trial, Geosource and B & B stipulated to the following facts: (1) Stockstill was employed by Geosource as a Jones Act seaman and he was a member of the crew of a fleet of vessels including the barge BB-300; (2) Stockstill’s injury aboard the barge was caused solely by the negligence of a fellow employee, Sandidge; (3) the barge was not unseaworthy; (4) B & B was not negligent; and (5) the amount of money owed Geosource after it settled with Stockstill.

The district court held that B & B was not liable to Geosource and that BMF, therefore, was not liable to B & B. Geo-source filed a notice of appeal from the dismissal of its claim against B & B. B & B did not file a notice of appeal from the dismissal of its claim against BMF. BMF contends that B & B may not appeal this determination because it failed to file a notice of appeal and that Geosource has no standing to appeal this dismissal because it never filed a claim against BMF.

The parties raise two issues. In Part II of this opinion we reverse the district court and hold that B & B is liable to Geosource. In Part III we grant BMF’s motion to be dismissed from this appeal. We remand the case to allow the district court to enter a judgment fixing the damages which B & B owes Geosource.

II. P & I Insurance

The district court relied on Lanasse v. Travelers Ins. Co., 450 F.2d 580 (5th Cir.1971), cert. denied, 406 U.S. 921, 92 S.Ct. 1779, 32 L.Ed.2d 120 (1972) to hold that B & B was not liable to Geosouree. In Lanasse the plaintiff was hurt while unloading cargo from a vessel to an offshore platform. The accident was caused solely by the negligence of the crane operator on the platform. The plaintiff sued the owner of the platform, who was also the charterer of the vessel on which the plaintiff was hurt, and the owner of the vessel. The charterer cross-claimed against the vessel owner on the ground that the owner’s P & I insurance named the charterer as an additional insured. We noted that a P & I policy only provides coverage if liability flows from the insured’s status as vessel owner. Id. at 584. Since the vessel and her crew were not responsible for the accident, the charterer was not liable as a vessel owner and, therefore, there was no P & I coverage. See also Texas Eastern Trans, v. McMoran Offshore Explor., 877 F.2d 1214, 1227-28 (5th Cir.1989); Smith v. Tenneco Oil Co., 803 F.2d 1386 (5th Cir.1986); and Gryar v. Odeco, Inc., 719 F.2d 112 (5th Cir.1983).

The district court reasoned that the instant case was squarely governed by La-nasse. The court found that neither Stockstill nor Sandidge were crew members of the BB-300 at the time of the accident. The accident was caused by San-didge and since he was not a member of the crew of the barge, it did not occasion the accident. Since the barge had nothing to do with the accident, Geosource was not liable as owner of the vessel, and, therefore, Geosource would not have been covered by B & B’s P & I insurance.

The district court’s finding that neither Stockstill nor Sandidge were members of the crew of the BB-300 may not be disturbed on appeal unless it is clearly erroneous. Fed.R.Civ.P. 52(a). It is clear, however, that Stockstill and Sandidge were members of the crew of the BB-300. The parties stipulated that Stockstill was a member of the crew of a fleet of vessels which included the barge. This stipulation is plainly supported by the record. Stocks-till, therefore, was a crew member of the BB-300. Sandidge did the same work as [1496]*1496Stockstill.1 Sandidge, therefore, was a member of the barge’s crew and the vessel caused the accident.

Simply showing that the vessel caused the accident does not end our inquiry. Geosource must also show that its liability flows from its status as vessel owner. Geosource operated the BB-300 as a bare-boat or demise charterer and, therefore, may be considered a vessel “owner” for the purposes of P & I coverage. See Helaire v. Mobile Oil Co., 709 F.2d 1031 (5th Cir.1983) and G. Gilmore and C. Black, The Law of Admiralty 4-23 (2d ed. 1975).

Provision 7(B) of the charter agreement states “All insurance ... shall name the charterer as an additional insured.” B & B, of course, never had its P & I insurance endorsed to name Geosource as an additional assured. Since B & B breached its agreement to do so, it must provide such coverage to Geosource. See Klepac v. Champlin Petroleum Co., 842 F.2d 746 (5th Cir.1988) (per curiam); Ogea v. Loffland Bros. Co., 622 F.2d 186, 189 (5th Cir.1980); and Stewart v. Cran-Vela Rental Co., 510 F.2d 982 (5th Cir.1975).

B & B has no defense to this claim. Provision 7(A)(iii) of the charter agreement states that the vessel owner, B & B, must obtain P & I insurance “in an amount not less than $500,000 per vessel per occurrence.” Stockstill’s claim was settled for $250,000 which is well within the agreed upon policy limits.

III. Fed.R.App.P. 4(a)(3)

No notice of appeal was filed as to the district court’s dismissal of B & B’s claims against BMF. Once Geosource filed its notice of appeal, B & B had fourteen days in which to file its appeal under Fed. R.App.P.

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