Underwriters at Lloyd'S Syndicate 1036 v. Danos & Curole Marine Contractors, L.L.C.

149 So. 3d 877, 14 La.App. 3 Cir. 375, 2014 La. App. LEXIS 2350, 2014 WL 4851884
CourtLouisiana Court of Appeal
DecidedOctober 1, 2014
DocketNo. 14-375
StatusPublished

This text of 149 So. 3d 877 (Underwriters at Lloyd'S Syndicate 1036 v. Danos & Curole Marine Contractors, L.L.C.) 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
Underwriters at Lloyd'S Syndicate 1036 v. Danos & Curole Marine Contractors, L.L.C., 149 So. 3d 877, 14 La.App. 3 Cir. 375, 2014 La. App. LEXIS 2350, 2014 WL 4851884 (La. Ct. App. 2014).

Opinion

THIBODEAUX, Chief Judge.

|,An employee of Danos & Curóle Marine Contractors, L.L.C. was injured while working on a fixed platform that was owned and operated by Badger Oil Corpo[879]*879ration on the Outer Continental Shelf (“OCS”) off the coast of Texas. The employee’s injury occurred as he attempted to swing from the platform to a utility vessel owned and operated by Kevin Gros Offshore, L.L.C.

The employee filed suit against both Badger Oil and Kevin Gros, seeking damages for negligence. Pursuant to a Master Service Agreement (“MSA”) between Kevin Gros and Badger Oil, Kevin Gros demanded that Badger Oil defend and indemnify it against the employee’s claims. In response, Badger Oil sought defense and indemnity from Danos & Curóle for its contractual liability to Kevin Gros pursuant to a separate MSA between Badger Oil and Danos & Curóle. Danos & Curóle denied this demand, contending that the language of the MSA between Badger Oil and Danos & Curóle does not explicitly require Danos & Curóle to defend and indemnify Badger Oil against its contractual obligations to third parties.

At a hearing on cross motions for summary judgment, the trial court granted summary judgment in favor of Badger Oil and its insurer, Underwriters at Lloyd’s Syndicate 1036 (“Underwriters”), and denied the cross motions of Danos & Curóle and its insurer, Gray Insurance Company, reasoning that the expansive language in the MSA between Badger Oil and Danos & Curóle extended indemnity protection beyond tort liability to contractual liability with third parties. The trial court further noted that although the parties stipulated that Texas law governed the interpretation of MSA, it would not make a specific finding as to |2whether Texas law or general maritime law applies, as the contract interpretation would be the same under either body of law. For the following reasons, we amend the trial court’s judgment in part, finding that Texas law governs the interpretation of the MSA. We further reverse the trial court’s granting of summary judgment in favor of Underwriters and Badger Oil and grant summary judgment in favor of Danos & Curóle and Gray, dismissing all claims with prejudice.

I.

ISSUES

We shall consider:

(1) whether general maritime law or Texas law governs the interpretation of the MSA between Badger Oil and Danos & Curóle; and
(2) whether the trial court erred in granting summary judgment in favor of Underwriters and Badger Oil and denying the cross motions for summary judgment filed by Danos & Curóle and Gray.

II.

FACTS AND PROCEDURAL HISTORY

Thao Nguyen, an employee of Danos & Curóle, was injured while working as a blast/paint superintendent on an OCS fixed platform that was owned and operated by Badger Oil off the coast of Texas. Specifically, Mr. Nguyen’s injury occurred as he attempted to swing via swing rope from the platform to a utility vessel owned and operated by Kevin Gros.

After the incident, Mr. Nguyen filed suit against both Badger Oil and Kevin Gros, seeking damages for negligence. Badger Oil subsequently demanded that Danos & Curóle and its insurer, Gray, defend and indemnify Badger Oil for |sMr. Nguyen’s tort claims pursuant to the terms of the MSA between Badger Oil and Danos & Curóle. Specifically, Badger Oil relied on Section 7(a) of the MSA in making its demand, which stated:

7. Indemnity Obligations

[880]*880a. [Danos & Curóle] releases [Badger Oil] from any liability to [Danos & Cu-role] for, and [Danos & Curóle] shall protect, defend, indemnify and hold harmless [Badger Oil], its principals, subsidiaries and related or affiliated companies, and its and their directors, officers, employees, agents, servants and underwriters (hereinafter referred to as “[Badger Oil] indemnitees”), from and against any and all claims, demands, causes of action and lawsuits of every kind and character (whether meritorious or not) brought by any person or entity, and all related losses, damages, costs and expenses, including attorneys fees and court costs, for personal injury, death, disease or illness, whenever occurring, suffered or incurred by [Danos & Curóle], its subcontractors and vendors, and the directors, officers, employees, agents and servants of any of them, arising out of or in any way directly or indirectly related to the work rendered under this MSA by [Danos & Curóle], howsoever caused, including the unseaworthiness or unairworthiness of any craft, or the negligence (whether sole or concurrent, active or passive) or other legal fault (including strict liability) of any of the [Badger Oil] indemnitees, excepting only [Badger Oil’s] gross negligence or willful misconduct.

Considering Gray was the insurer of Da-nos & Curóle, Badger Oil further relied on Section 6(f) of the MSA in making its demands against Gray, contending it is entitled to additional insured status:

f. With respect to all policies of insurance, [Danos & Curóle] shall furnish evidence that [Danos & Curole’s] underwriters waive all rights of subrogation against [Badger Oil] and its underwriters. [Danos & Curóle] shall also furnish evidence that [Badger Oil] is named as an additional assured in all policies of insurance, with the exception of the Workmen’s Compensation policy, and that [Badger Oil] is named as an additional assured in the Comprehensive General Liability and the Automobile Public Liability policies of insurance. However, in no event shall [Badger Oil] receive the benefit of [Danos & |4Curole’s] insurance by additional assured status, waiver of subrogation, or otherwise for [Badger Oil’s] indemnity obligations hereunder or for obligations of any nature not arising under this MSA.

Danos & Curóle, along with Gray, accepted these demands.

Pursuant to a completely separate MSA between Kevin Gros and Badger Oil, Kevin Gros demanded that Badger Oil defend and indemnify it against Mr. Nguyen’s tort claims. In response, Badger Oil sought defense and indemnity from Danos & Cu-róle for its contractual liability to Kevin Gros pursuant to Section 7(a) of the MSA between Badger Oil and Danos & Curóle. Danos & Curóle denied this demand, contending that the language of Section 7(a) does not explicitly require Danos & Curóle to defend and indemnify Badger Oil against its contractual obligations to third parties.

After Underwriters and Badger Oil initially petitioned for declaratory judgment, they filed a Motion for Summary Judgment, seeking a ruling that Danos & Cu-róle and Gray must defend and indemnify Underwriters and Badger Oil against the contractual claims of Kevin Gros.1 Underwriters and Badger Oil also sought reimbursement for costs and attorney [881]*881fees incurred in prosecuting their claims for defense and indemnity. In response, both Danos & Curóle and Gray filed cross motions for summary judgment seeking dismissal of the claims for defense and indemnity against the contractual claims of Kevin Gros.

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

Related

Breaux v. Halliburton Energy Services
562 F.3d 358 (Fifth Circuit, 2009)
Grand Isle Shipyard Inc. v. SEACOR MARINE, LLC.
589 F.3d 778 (Fifth Circuit, 2009)
Rodrigue v. Aetna Casualty & Surety Co.
395 U.S. 352 (Supreme Court, 1969)
Davis & Sons, Inc. v. Gulf Oil Corporation
919 F.2d 313 (Fifth Circuit, 1991)
Valence Operating Co. v. Dorsett
164 S.W.3d 656 (Texas Supreme Court, 2005)
Brown v. Drillers, Inc.
630 So. 2d 741 (Supreme Court of Louisiana, 1994)
Gulf Insurance Co. v. Burns Motors, Inc.
22 S.W.3d 417 (Texas Supreme Court, 2000)
Wooley v. Lucksinger
14 So. 3d 311 (Louisiana Court of Appeal, 2009)
Simien v. Medical Protective Co.
11 So. 3d 1206 (Louisiana Court of Appeal, 2009)
Hines v. Garrett
876 So. 2d 764 (Supreme Court of Louisiana, 2004)
LaFleur v. Hollier Floor Covering, Inc.
774 So. 2d 359 (Louisiana Court of Appeal, 2000)
Supreme Services v. Sonny Greer, Inc.
958 So. 2d 634 (Supreme Court of Louisiana, 2007)
Wooley v. Lucksinger
61 So. 3d 507 (Supreme Court of Louisiana, 2011)
Borden-Aicklen Auto Supply Co. v. Folse Service Station
6 La. App. 1 (Louisiana Court of Appeal, 1927)
Knapp v. Chevron USA, Inc.
781 F.2d 1123 (Fifth Circuit, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
149 So. 3d 877, 14 La.App. 3 Cir. 375, 2014 La. App. LEXIS 2350, 2014 WL 4851884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/underwriters-at-lloyds-syndicate-1036-v-danos-curole-marine-lactapp-2014.