St. Amant v. Glesby-Marks Corp.

• Decision Date: 12 October 1988
• Docket Number: No. 88-CA-253,GLESBY-MARKS,88-CA-253
• Parties: James R. ST. AMANT v.CORPORATION. 532 So.2d 963
• Court: Court of Appeal of Louisiana — District of US

Page 963

532 So.2d 963

James R. ST. AMANT v. GLESBY-MARKS CORPORATION.

No. 88-CA-253.

532 So.2d 963

Court of Appeal of Louisiana, Fifth Circuit.

Oct. 12, 1988.

Rehearing Denied Nov. 17, 1988.

Pierre F. Gaudin, Gretna, for plaintiff-appellee James R. St. Amant.

Keith Contreary, Windhorst, Gaudry, Talley & Ranson, Harvey, for defendants-appellees Seascope Inc. and Zurich Ins. Co.

Wood Brown, III, Gus A. Fritchie, III, Robert E. Durgin, Montgomery, Barnett, Brown, Read, Hammond & Mintz, New Orleans, for defendant-appellant Glesby-Marks Corp.

Ronald A. Johnson, Bettye A. Barrios, Johnson & McAlpine, New Orleans, for defendants-appellees Certain Underwriters at Lloyd's and Certain Institute of London Companies.

Before CHEHARDY, KLIEBERT and GRISBAUM, JJ.

KLIEBERT, Judge.

Plaintiff, James R. St. Amant, an employee of Seascope, Inc., filed suit for an injury to his right hand sustained during the course of his employment while operating a hydrostatic well testing unit leased from defendant, Glesby-Marks Corporation. Defendant filed a third party demand against Seascope, Inc. and Zurich Insurance Company in an attempt to enforce an indemnity clause in the lease contract. Seascope, Inc. raised the aegis of the Louisiana Oilfield Indemnity Act (LSA-R.S. 9:2780) and successfully moved for a summary judgment dismissing the third party demand. Glesby-Marks appealed. For the reasons assigned we affirm the ruling of the trial court.

Defendant's indemnity claim was based on paragraph 8 of the lease agreement, which provided:

"INDEMNITY: Without limiting any of the other terms hereof and in addition to any insurance obtained pursuant to Section 11, Lessee does hereby assume liability for and agrees to indemnify, protect, save, keep and hold harmless Lessor, its successors and assigns, from and against any and all losses, damages, injuries, claims, liabilities, demands and expenses (including attorney's fees and other legal expenses, whether or not a lawsuit or other form of judicial proceedings are instituted by or against Lessor, its successors or assigns) of or on account of the possession, use, operation, maintenance, storage, condition (including, without limitation, latent or other defects and whether or not discoverable by Lessor) or operation of any item of Equipment leased hereunder and by whomever used, stored or operated during the term of this Agreement. The indemnity and assumptions of liability in this Section 8 shall survive the termination of this Agreement."

The trial judge found the indemnity clause was invalid and unenforceable. His decision was based on the Louisiana Oilfield Indemnity Act, LSA-R.S. 9:2780, which provides in pertinent part as follows:

"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...