Knapp v. Chevron USA, Inc.
| Decision Date | 04 February 1986 |
| Docket Number | No. 84-3399,84-3399 |
| Citation | 781 F.2d 1123 |
| Parties | Alton P. KNAPP, Jr., Plaintiff-Appellant, v. CHEVRON USA, INC., Defendant Third Party Plaintiff-Appellee, v. P.B.W., INC., National Security Fire & Casualty Company, and Integrity Insurance Company, Third Party Defendants-Appellants. |
| Court | U.S. Court of Appeals — Fifth Circuit |
Neblett, Beard & Arsenault, Richard W. Beard, Herman M. Savoie, Jr., Alexandria, La., for Knapp.
Adams & Reese, Mark J. Spansel, Deborah B. Rouen, New Orleans, La., for P.B.W. and Nat. Sec.
M. Kay Guidry, Plaquemine, La., for Integrity Ins.
Milling, Benson, Woodward, Hillyer, George B. Jurgens, III, New Orleans, La., for Chevron USA.
Appeals from the United States District Court for the Eastern District of Louisiana.
Before BROWN, POLITZ, and JOLLY, Circuit Judges.
In this appeal we consider, inter alia, the validity of the Louisiana Oilfield Indemnity Act of 1981, La.R.S. 9:2780, and its application to an indemnification agreement executed by Chevron USA and P.B.W., Inc. (PBW). Alton P. Knapp, an employee of PBW, filed suit against Chevron for personal injuries sustained in a fall from a safety net while he was painting one of Chevron's offshore platforms. Knapp's claims against Chevron were based on allegations of negligence and strict liability. Invoking a contractual indemnity agreement, Chevron filed a third-party action against PBW and its insurers.
Perceiving no genuine issue of fact, finding Chevron free of negligence, and finding that the asserted rules of strict liability did not apply, the district court rendered summary judgment in favor of Chevron. By consent, the matter was then referred to a magistrate who rendered judgment holding PBW and its insurers liable to Chevron for the costs of defense of the suit.
Knapp was a member of a PBW crew dispatched to blast and paint one of Chevron's offshore production platforms. On July 1, 1982, while Knapp was standing in a safety net approximately 30 feet above the platform floor, a stabilizing rope on the net either broke or became unfastened. Knapp fell, sustaining serious injuries.
Safety nets are routinely used in PBW's blasting and painting operations. The nets and accompanying gear are provided, installed, moved, and removed by PBW. Typically, the nets are attached to the platforms by metal cables, clamps, and bolts, and are secured by several stabilizing ropes. At the time of Knapp's accident, the net he was using had only one stabilizing rope.
The district court found no evidence of negligence on the part of Chevron. Applying Louisiana law, the court concluded that the net was not an appurtenance of the platform. This conclusion vitiated the claim of strict liability and led to the dismissal of Knapp's complaint. Chevron moved for summary judgment against PBW for costs of defense under its contractual indemnity agreement, executed May 5, 1982, which provided:
Contractor [PBW] agrees to defend and hold Company [Chevron] indemnified and harmless from and against any loss, expense, claim or demand for:
(a) Injury to or death of Contractor's employees or for damages to or loss of Contractor's property in any way arising out of or connected with the performance by Contractor of services hereunder; and
(b) Injury to or death of, third persons or the employees of Company, or for damages to or loss of property of Company or of third persons, in any way arising out of or connected with performance by contractor of services hereunder, unless caused solely by the negligence of Company; provided that if such injury, death, damage or loss is caused by the joint or concurrent negligence of Contractor and Company, each shall be liable for one-half of the loss, expense, claim, or demand resulting therefrom.
Prior to execution of the indemnity agreement, the Louisiana Legislature enacted the Oilfield Indemnity Act of 1981, Acts 1981, No. 427, Sec. 1, effective September 11, 1981, which provides in pertinent part:
A. The legislature finds that an inequity is foisted on certain contractors and their employees by the defense or indemnity provisions, either or both, contained in some agreements pertaining to wells for oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, to the extent those provisions apply to death or bodily injury to persons. It is the intent of the legislature by this Section to declare null and void and against public policy of the state of Louisiana any provision in any agreement which requires defense and/or indemnification, for death or bodily injury to persons, where there is negligence or fault (strict liability) on the part of the indemnitee, or an agent or employee of the indemnitee, or an independent contractor who is directly responsible to the indemnitee.
B. Any provision contained in, collateral to, or affecting an agreement pertaining to a well for oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, is void and unenforceable to the extent that it purports to or does provide for defense or indemnity, or either, to the indemnitee against loss or liability for damages arising out of or resulting from death or bodily injury to persons, which is caused by or results from the sole or concurrent negligence or fault (strict liability) of the indemnitee, or an agent, employee, or an independent contractor who is directly responsible to the indemnitee.
In granting Chevron summary judgment against PBW, the magistrate was of the opinion that since Chevron was found free of negligence and not responsible under a strict liability theory, La.R.S. 9:2780 did not bar recovery of the costs of defense. The magistrate awarded attorneys' fees and litigation expenses. We affirm the judgment dismissing Knapp's claims against Chevron. We reverse the judgment granting Chevron attorneys' fees and costs.
Although noting the negligence issue, Knapp principally contends on appeal that the district court erred in rejecting his strict liability claim. The Louisiana Civil Code imposes strict liability on the owner of a building. Article 2322 of the Code provides:
The owner of a building is answerable for the damage occasioned by its ruin, when this is caused by neglect to repair it, or when it is the result of a vice in its original construction.
Imposition of liability under this article requires that there be: (1) a building, (2) owned by the defendant, (3) in "ruin" either from a vice in its original construction or from a failure of repair. Olsen v. Shell Oil Co., 365 So.2d 1285 (La.1978).
A fixed drilling platform is a building within the intendment of this rubric. Id. The duties imposed by the article extend to the building and its appurtenances. As the Supreme Court of Louisiana observed in Olsen, 365 So.2d at 1291, quoting Cothern v. LaRocca, 255 La. 673, 232 So.2d 473, 477 (La.1970), " 'necessary appurtenances to structures and movables made immovable by attachment, which are defective or have fallen into ruin, also may be included within that term "building" ' for purposes of the building-owner's delictual responsibility under Article 2322."
Knapp maintains that the safety net was an appurtenance of the drilling platform. This argument misperceives Louisiana law. As we recently observed in Steele v. Helmerich & Payne Intern. Drilling Co., 738 F.2d 703, 705 (5th Cir.1984), after reviewing controlling Louisiana precedents:
In determining whether an attachment is an appurtenance of a building the two general considerations are: how securely the addition is attached to the building and the degree of permanence the parties intend for the addition.
In the case before us, the net fails on both points. It was brought to the platform by PBW for use during the painting and was removed thereafter, along with PBW's other equipment. It was attached to the platform by two cables, fastened by readily removable clamps. The stabilizer rope was tied to the net and to a convenient point on the platform. There was no permanence of attachment either apparent or intended. These facts are very similar to the factual scenario in Steele wherein we found that a "stabbing board" was not an appurtenance of the drilling platform at issue there:
[T]he stabbing board was a part of the specialized equipment brought aboard defendant's rig by plaintiff's employer, Weatherford-Lamb. The stabbing board was to be attached to the derrick only for the duration of the Weatherford-Lamb casing job.... Upon completion of its casing job, Weatherford-Lamb intended to transport the stabbing board, along with its other equipment, to the next job.
Id. The safety net involved in Knapp's accident was not an appurtenance of the platform. Chevron was therefore not subject to the strict liability provision of La.Civ.Code art. 2322, and summary judgment on this issue was proper.
Knapp alleged and now argues that Chevron's negligence contributed to the accident. He alleged that a Chevron employee assisted in the improper rigging of the net and that a Chevron supervisor was in the area and either failed to notice the inadequate rigging or failed to warn him. The district court found no evidence in support of these allegations. We find none, for the evidence is to the contrary. The party opposing a motion for summary judgment may not rely simply on the allegations of his pleadings but must establish a genuine issue of material fact by countering competent evidence offered by the moving party with like evidence. White v. United Parcel Service, 692 F.2d 1 (5th Cir.1982). Knapp failed to meet this burden. Summary judgment on this issue was also appropriate.
The most serious issue presented by this appeal relates to the obligation of PBW to defend Knapp's suit against Chevron. The magistrate found that PBW was...
To continue reading
Request your trial
-
Hodgen v. Forest Oil Corp.
...We find nothing in the LOIA inconsistent with federal law. Although we have traveled this ground before, see Knapp v. Chevron USA, Inc., 781 F.2d 1123, 1130-31 (5th Cir.1986), A & A makes a complex argument that in essence asks us to apply the holding of Voisin v. O.D.E.C.O. Drilling Co., 7......
-
Newton v. Parker Drilling Mgmt. Servs., Ltd.
...law because it was inconsistent with federal law. Id. at 1528. The Fifth Circuit, relying on its prior decision in Knapp v. Chevron USA, Inc. , 781 F.2d 1123 (5th Cir. 1986), summarily rebuffed this contention. Hodgen , 87 F.3d at 1528. Knapp concluded that because the 1984 amendments to th......
-
Carney v. Marathon Oil Co., Civ. A. No. 83-2517.
... ... , Woodward, Hillyer, Pierson & Miller, New Orleans, La., for McDermott, Inc ... John A. Bernard and Joseph L. Lemoine, Jr., ... See Knapp v. Chevron, USA, Inc., 781 F.2d 1123, (5th Cir.1986); Sullen v. Missouri ... ...
-
Graham v. Milky Way Barge, Inc.
...of the indemnitee unless the intent of the parties to provide that indemnification is clear and express." Knapp v. Chevron U.S.A., Inc., 781 F.2d 1123, 1127-28 (5th Cir.1986). Taylor's original pleading asserted only that he was an employee of LOS and he was caused injury by the negligence ......
-
Chapter 14 MASTER SERVICE AGREEMENTS AND RISK ALLOCATION: IN WHOSE GOOD HANDS ARE YOU?
...43 U.S.C.A . 1349(b) (1986); Campbell v. Sonat Offshore Drilling, Inc., 979 F.2d 1115(5th Cir. 1992). [100] Knapp v. Chevron USA, Inc., 781 F.2d 1123 (5th Cir. 1986) (LOIA not inconsistent with federal law); Hodgen v. Forest Oil Corp., 87 F.3d 1512, 1528 (5th Cir. 1996) (same). [101] 208 F.......
-
Transferring risk by contractual indemnity: a view from oil and energy.
...insurance broker can result in unintentional uninsured (or insured) obligations. One must always proceed with caution in this area. (1.) 781 F.2d 1123 (5th Cir. (2.) 477 F.2d 361 (5th Cir. 1973). (3.) 711 F.2d 602 (5th Cir. 1983). (4.) Melancon v. Amoco Production Co., 834 F.2d 1238, 1248 (......
-
DOWN WITH THE DEVIL: THE RISE AND FALL OF SUBSTANTIAL NEXUS.
...Martin, Unraveling the Tangled Web, citing H.R. Rep No. 95-1474, at 81. (1978) (Conf. Rep.). (52) See, e.g., Knapp v. Chevron USA, Inc., 781 F.2d 1123 at 1130 (5 (th) Cir. Ct. App.) (1986). (53) 43 U.S.C. [section] 1333(b). (emphasis added). (54) Longshore and Harbor Worker's Compensation A......