Westlake Petrochemical Co. v. TMG Industrial Services, Inc.

861 So. 2d 213, 3 La.App. 3 Cir. 0451, 2003 La. App. LEXIS 2641, 2003 WL 22245555
CourtLouisiana Court of Appeal
DecidedOctober 1, 2003
DocketNo. 03-451
StatusPublished

This text of 861 So. 2d 213 (Westlake Petrochemical Co. v. TMG Industrial Services, 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
Westlake Petrochemical Co. v. TMG Industrial Services, Inc., 861 So. 2d 213, 3 La.App. 3 Cir. 0451, 2003 La. App. LEXIS 2641, 2003 WL 22245555 (La. Ct. App. 2003).

Opinion

hGREMILLION, Judge.

The plaintiffs, Westlake Petrochemical Corporation and its insurers, Zurich American Insurance Company and AIC (West-lake), appeal the judgment of the trial court granting summary judgment in favor of the defendants, TMG Industrial Services, Inc., The Meyer Group, LLC, and their insurers, United National Insurance Company and Evanston Insurance Company, and dismissing the claims against them with prejudice. For the following reasons, we find that the grant of summary judgment was improper and remand the matter for further proceedings.

FACTS

On March 14, 2000, The Meyer Group entered into a contract with Westlake to construct a steam letdown and desuper-heat station in its Petro II unit. While The Meyer Group was in the process of constructing the station on April 5, 2000, Westlake experienced a power outage which led to the involuntary shutdown of its ethylene furnaces.

On March 20, 2001, Westlake filed a petition for damages alleging that the shutdown resulted from the actions of Michael Deshotel, an employee of The Meyer Group. Named as defendants were TMG Industrial Services, Inc., The Meyer Group, United National, and Evanston. In its petition, Westlake alleged:

TMG’s agents and employees caused the April 4, 2000 power outage when they were working in WPT’s facility and were in the process of pulling pipe through a pipe rack. At the time of the outage, Mike Deshotel, a TMG employee who was working alone in the area, was standing on a steel beam directly above the stanchion which contained [an uninterrupted power switch]. While on the steel beam approximately twenty feet above the UPS switch, Mr. Deshotel deliberately dropped a rope, chain and come-along, which struck and turned off the UPS switch. This, in turn, immediately shut off all power to WPT’s ethylene furnaces causing the furnaces to immediately and | ¡¡involuntarily shut down. As a result, WPT sustained property damages to its facility as well as business interruption losses, including loss of production and loss of business revenue and profits.

Westlake further alleged that Zurich, who provided insurance coverage for some of [215]*215the damage it suffered, was subrogated to its rights in the amount of damages paid pursuant to its claim. Westlake alleged three causes of action against the defendants: breach of contract, negligence, and direct action against insurers. TMG, The Meyer Group, United National, and Ev-anston all answered this petition. In a First Supplemental Petition for Damages, Westlake amended its petition to add:

5A
At all times referenced herein, TMG Industrial Services, Inc. and The Meyer Group, L.L.C. were organized, controlled and operated in a manner so as to constitute a single business enterprise and/or alter egos of one another.

After more procedural maneuvering, TMG, The Meyer Group, United National, and Evanston filed the motions for summary judgment which are the subject of this appeal. The motions allege that the March 14, 2000 contract was the obligation of The Meyer Group, a separate juridical entity, and does not affect TMG. It further alleges that the contract does not clearly and unambiguously require The Meyer Group to provide contractual indemnification under the facts at issue, and that all of the defendants are entitled to summary judgment on the issue of damages suffered by Westlake. Following a hearing on the motion, the trial court issued judgment in favor of all of the defendants, dismissing with prejudice all of Westlake’s claims against them. It further designated the judgment as a final judgment. This appeal by Westlake followed.

|..ISSUES

Westlake raises four assignments of error on appeal. It argues that:

1.The trial court erred in resolving a disputed material fact by determining that a contract attachment was not part of the contract.
2. The trial court erred in interpreting paragraph eleven of the contract attachment by reading out the plain written words of the contract.
3. The trial court erred in resolving disputed material facts by weighing the evidence, making credibility determinations, and taking judicial notice of matters outside the summary judgment record.
4. The trial court violated La.Civ.Code P. art. 966(D) by granting summary judgment within ten days of the scheduled trial.

SUMMARY JUDGMENT

The standard of review in summary judgment cases is well settled, as is the fact that summary judgment is now favored pursuant to La.Code Civ.P. art. 966. Pursuant to Article 966(C)(2), if the mover will not bear the burden of proof at trial, then he is only required to “point out to the court that there is an absence of factual support for one or more elements essential to the adverse party’s claim, action, or defense.” Upon this showing, the burden then shifts to the adverse party to produce evidence establishing “that he will be able to satisfy his evidentiary burden of proof at trial.” Id. The threshold question in reviewing a trial court’s grant of summary judgment is whether a genuine issue of material fact remains. Kumpe v. State, 97-386 (La.App. 3 Cir. 108/97), 701 So.2d 498, writ denied, 98-0050 (La.3/13/98), 712 So.2d 882.

| ¿CONTRACT ATTACHMENT

In its first assignment of error, Westlake argues that the trial court erred in resolving a disputed material fact by finding that an attachment was not part of the March 14, 2000 contract.

[216]*216In support of their motion with regard to this issue, TMG, The Meyer Group, United National, and Evanston introduced copies of both the contract and the attachment. The contract provides:

This agreement, effective as of March 12, 2000, is made and entered into by and between Westlake Petrochemicals Corporation, whose address is 900 Hwy 108, Sulphur, LA 70663, herein called “Company”, and The Meyer Company LLC, whose address is 917 Sampson Street, Westlake, LA 70669, herein called “Contractor”.
WITNESSETH
In consideration of the mutual covenants herein contained, Company and Contractor agree, promise, and obligate themselves as follows:
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8.0 Attachments
All work shall be performed in strict accordance with the following attachments, attached hereto as a part of this Contract.
A. Contract Terms and Conditions This agreement supersedes any prior agreement oral or written between subscriber and Westlake Petrochemicals Corporation.
This agreement shall be controlling regardless of any other purchase orders that are in conflict with this agreement.

Attached to the contract is a document entitled “ATTACHMENT ‘A,’ WEST-LAKE GROUP of COMPANIES, CONTRACT TERMS AND CONDITIONS, |[AGREEMENT # WGC-0205.” The attachment consists of four pages of terms and conditions, and it is signed by David J. Fontana, Secretary/Treasurer of TMG Industrial Services, on June 2, 1998, and by Richard Gaudet, Senior Buyer for West-lake, on May 28,1998.

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Bluebook (online)
861 So. 2d 213, 3 La.App. 3 Cir. 0451, 2003 La. App. LEXIS 2641, 2003 WL 22245555, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westlake-petrochemical-co-v-tmg-industrial-services-inc-lactapp-2003.