Guidry v. Halliburton Geophysical Services, Inc.

• Decision Date: 06 November 1992
• Docket Number: No. 92-4463,92-4463
• Citation: 976 F.2d 938
• Parties: Anthony G. GUIDRY, Plaintiff-Appellant, v. HALLIBURTON GEOPHYSICAL SERVICES, INC., Edison Chouest Offshore, Inc., and Galliano Marine Services, Defendants-Appellees. Summary Calendar.
• Court: U.S. Court of Appeals — Fifth Circuit

Page 938

976 F.2d 938

1994 A.M.C. 301

Anthony G. GUIDRY, Plaintiff-Appellant, v. HALLIBURTON GEOPHYSICAL SERVICES, INC., Edison Chouest

Offshore, Inc., and Galliano Marine Services,

Defendants-Appellees.

No. 92-4463

Summary Calendar.

United States Court of Appeals, Fifth Circuit.

Nov. 6, 1992.

J.B. Jones, Jr. and Jennifer Jones Bercier, Jones, Jones & Alexander, Cameron, La., for plaintiff-appellant.

Hollis Horton, Orgain, Bell & Tucker, Beaumont, Tex. and Frank E. Billings, Billings & Solomon, Houston, Tex., for defendants-appellees.

Appeal from the United States District Court for the Eastern District of Texas.

Before HIGGINBOTHAM, SMITH, and DeMOSS, Circuit Judges.

PATRICK E. HIGGINBOTHAM, Circuit Judge:

Anthony G. Guidry appeals from the district court's order enforcing the settlement reached by Guidry and defendants Halliburton Geophysical Services, Inc., Edison Chouest Offshore, Inc., and Galliano Marine Services. Guidry contends that the district court erred in finding that the settlement agreement precluded any future claim for maintenance. We affirm.

I.

Anthony Guidry became ill in the course of performing his duties on the R/V Sea Star during the summer of 1990. Guidry's illness was diagnosed as pneumonia and he remained in England for treatment. Upon returning to the United States, Guidry's physicians found that his pneumonia had been cured. Guidry later developed osteomyelitis, however, which his doctor attributed to the pneumonia. On July 3, 1991, Guidry brought suit in United States District Court for the Eastern District of Texas against Galliano Marine Service, his employer, Edison Chouest Offshore, Inc., owner of the vessel, and Halliburton Geophysical Services, Inc., charterer of the vessel. Guidry sought personal injury damages as well as maintenance and cure under the Jones Act and general maritime law.

The case went to trial on February 5, 1992. At the close of Guidry's case, Judge Parker urged settlement. During a meeting in chambers, the parties reached an agreement in the presence of Judge Parker. This discussion was not recorded. Guidry's counsel announced the terms of the settlement in open court on February 6. Counsel indicated that the parties had settled the seaworthiness claims, with the defendants agreeing to pay Guidry $125,000. Guidry's counsel then spoke of the claims reserved under the agreement. He first stated that the "settlement does not in any manner affect the Plaintiff's rights under the general maritime law for maintenance and cure. His claim for maintenance and cure is totally unaffected by this settlement." The following exchange then took place:

[Guidry's counsel]: And it is Plaintiff's understanding that it is the opinion of counsel for the Defendant that insofar as this man's osteomyelitis of the chest area, that this--that future payments will be paid either under the provisions--paid in accordance with--or paid under the obligation of maintenance and cure--under the cure obligation or paid by the hospitalization insurance.

The Court: As I understand it there is some question about whether payment to date have been covered by hospitalization policy which may or may not remain in effect.

[Defense Counsel]: That is true, Your Honor.

The Court: Is that right?

[Defense Counsel]: That is true.

The Court: Because plaintiff is no longer an employee, and there may be a question depending on the provisions of the policy, whether they continue to cover him. If they do not continue to cover him, then his claim for cure for the osteomyelitis is unaffected by the settlement, is that a fair statement?

[Defense Counsel]: That is a fair statement, Your Honor.

The Court: All right.

The district court dismissed the case without prejudice by reason of settlement on February 10, retaining jurisdiction to reopen the action upon a showing that the settlement had not been completed.

Guidry received funds and closing papers from defendants on March 10. The release reserved only Guidry's claim for cure. Guidry questioned the release's failure to reserve future claims for maintenance and filed a motion to enforce the settlement on March 27. After a conference among the district court and counsel (also unrecorded), the court found that the settlement reserved Guidry's cure claim but precluded any future claim for maintenance. The court ordered the settlement to be enforced in accord with this finding. Guidry has appealed to this court.

II.

The parties disagree on the appropriate standard of review. Guidry contends that the district court's interpretation of the settlement agreement should be reviewed de novo. The defendants argue that we may reverse only if we find that the district court's reading is clearly erroneous. We agree with defendants that the oral settlement's ambiguity makes clear error review proper.

A settlement agreement is a contract. In re Raymark Indus., Inc., 831 F.2d 550, 553 (5th Cir.1987). A district court's interpretation of an unambiguous contract is a question of law, subject to de novo review. LTV Educ. Systems, Inc. v. Bell, 862 F.2d 1168, 1172 (5th Cir.1989); Raymark, 831 F.2d at 553. This standard applies to all unambiguous contracts, oral as well as written. FDIC v. Mmahat, 960 F.2d 1325, 1328 (5th Cir.1992). Where an agreement is ambiguous, such that its construction turns on a consideration of extrinsic evidence, the district court's interpretation is reviewed for clear error. National Union Fire Ins. Co. v. Circle, Inc., 915 F.2d 986, 989 (5th Cir.1990); Raymark, 831 F.2d at 553. The initial determination that the ambiguous nature of a contract warrants the introduction of extrinsic evidence is itself a question of law. Circle, 915 F.2d at 989.

The district court apparently found the oral settlement ambiguous and...