Wagner v. McDermott, Inc.

899 F. Supp. 1551, 1994 U.S. Dist. LEXIS 20769, 1994 WL 852282
CourtDistrict Court, W.D. Louisiana
DecidedDecember 19, 1994
DocketCiv. A. 93-0715
StatusPublished
Cited by11 cases

This text of 899 F. Supp. 1551 (Wagner v. McDermott, Inc.) 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
Wagner v. McDermott, Inc., 899 F. Supp. 1551, 1994 U.S. Dist. LEXIS 20769, 1994 WL 852282 (W.D. La. 1994).

Opinion

REASONS FOR JUDGMENT

Background

DOHERTY, District Judge.

Mark Wagner was employed by Landry Enterprises, Inc. (“Landry”) as a welder. At the time of Wagner’s accident, Landry loaned Wagner out to Capital Welding & Fabrication, Inc. (“Capital”), who had a Blanket Subcontractor’s Agreement with McDer-mott, Inc. McDermott made a “call out” under this agreement to Capital for laborers to perform welding on a McDermott offshore platform. This Court assumes that because there was no place to sleep or eat on the platform, Wagner slept and ate his meals on a McDermott derrick barge which was adjacent to the platform. No specific reference to this housing arrangement was made in either the Blanket Subcontractor’s Agreement or the call out. 1 Wagner allegedly suffered injuries when he slipped and fell on the deck of the barge as he was headed to its restroom facilities.

Wagner filed suit against McDermott, Landry, and/or Capital all under the Jones Act. He also filed an unseaworthiness claim against McDermott as vessel owner alleging he was a seaman. In the alternative, Wagner asserted a 905(b) claim under the Long-shore & Harbor Workers’ Compensation Act against McDermott as owner of the vessel for vessel negligence. Finally, he asserted in the alternative a general maritime law claim against McDermott as vessel owner. By third party complaint, McDermott filed suit against Capital, Capital’s insurers, Store-brand Insurance Company U.K. Ltd. (“Store-brand”) and Commercial' Union Insurance Company (“Commercial Union”), and Landry pursuant to the Declaratory Judgment Act, 28 U.S.C. § 2201. McDermott seeks a judgment declaring that it is entitled to contractual defense and indemnity under the terms of the “Blanket Subcontractor’s Agreement” between it and Capital and/or Landry.

Capital, Landry, and Storebrand filed motions for summary judgment seeking dismissal of plaintiffs claims based-on his status as a seaman. The Court granted those motions upon finding that Wagner was not a seaman. (Memorandum Ruling, October 18, 1994). Capital, Landry, Storebrand, Commercial Union, and McDermott filed motions for summary judgment as to McDermott’s contractual claim. The Court was informed that the primary injury claim settled, so that only the contractual claims asserted by McDer-mott remain. The Court denied the remaining outstanding motions for summary judgment as to McDermott’s contractual claim, and the remaining parties jointly moved the Court for a final ruling on the merits based upon the evidence and briefs submitted. The Court finds that it has jurisdiction over McDermott’s contractual claim under its supplemental jurisdiction, 28 U.S.C. § 1367, and under its admiralty jurisdiction, 28 U.S.C. § 1333.

Thus, this Court’s judgment concerns only the contractual claims McDermott has as *1553 serted against Landry, Capital, Commercial Union, and Storebrand. The issues before this Court present a unique and legally interesting question which this Court has not found to have been fully addressed by any court.

McDermott’s Contractual Claims for Defense and Indemnity

McDermott argues that the “Blanket Subcontractor’s Agreement” it executed with Capital and/or Landry 2 is maritime in nature or is governed by the LHWCA in its entirety. McDermott maintains that in neither ease does Louisiana law apply to void the indemnity provision contained in the contract. McDermott asserts that “the clearest reason McDermott is entitled to indemnity for which it contracted is found in a clear reading of § 905(c) of the LHWCA along with the contract at issue in this case.” (McDermott’s trial outline, p. 5) Section 905(c) provides in pertinent part:

(c) Outer Continental Shelf

In the event that the negligence of a vessel causes injury to a person entitled to receive benefits under this Chapter by virtue of section 1333 of Title 43 [the OCSLA], then such person, or anyone otherwise entitled to recover damages by reason thereof, may bring an action against such vessel in accordance with the provisions of subsection (b) of this section. Nothing contained in subsection (b) of this section shall preclude the enforcement according to its terms of any reciprocal indemnity provision whereby the employer of a person entitled to receive benefits under this chapter by virtue of section 1333 of Title 43 and the vessel agree to defend and indemnify the other for cost of defense and loss or liability for damages arising out of or resulting from death or bodily injury to their employees.

Capital, Landry, Storebrand, and Commercial Union argue that the blanket subcontractor’s agreement is a non-maritime contract and that the Louisiana Oilfield Indemnity Act (LOIA) 3 applies by way of the non-maritime contract which is governed by Louisiana law as the land based law applicable to the non-maritime contract or by way of the Outer Continental Shelf Lands Act. 4 They argue further that the LOIA invalidates the indemnity provision at issue.

The indemnity provision in the contract provides:

VIII. A. Subcontractor shall protect, defend, indemnify and hold harmless McDermott, its employees, officers and agents, against all claims, demands or causes of action by Subcontractor, Subcontractor’s employees, officers or agents or their successors-in-interest for personal injury or death or property damage or destruction arising out of or in any way related to the performance by Subcontractor of any work covered hereby or by the failure of Subcontractor so to perform, howsoever such personal injury or death or property damage or destruction is caused, including the sole or concurrent fault or negligence of McDermott, its employees, *1554 officers or agents and/or the unseaworthiness of vessels which are owned, operated or chartered by McDermott regardless of whether said unseaworthiness pre-existed the execution of the Agreement.
B.

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

Related

Grand Isle Shipyard Inc. v. SEACOR MARINE, LLC.
589 F.3d 778 (Fifth Circuit, 2009)
Becker v. Tidewater, Inc.
581 F.3d 256 (Fifth Circuit, 2009)
Mears v. Commercial General Liability Insurer
926 So. 2d 754 (Louisiana Court of Appeal, 2006)
Fontenot v. Southwestern Offshore Corp.
771 So. 2d 679 (Louisiana Court of Appeal, 2000)
Dennis v. Bud's Boat Rental, Inc.
987 F. Supp. 948 (E.D. Louisiana, 1997)
Hodgen v. Forest Oil Corp.
87 F.3d 1512 (Fifth Circuit, 1996)
Wagner v. McDermott, Inc.
79 F.3d 20 (Fifth Circuit, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
899 F. Supp. 1551, 1994 U.S. Dist. LEXIS 20769, 1994 WL 852282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wagner-v-mcdermott-inc-lawd-1994.