NEW ORLEANS (LN) — U.S. District Judge Wendy B. Vitter on Friday granted partial summary judgment for Texas Petroleum Investment Company in a dispute stemming from an April 2024 allision, holding that Louisiana law applies to the parties' contract and barring The Production Group, LLC from seeking non-contractual indemnity or contribution.
The ruling resolves a threshold choice-of-law battle in a limitation of liability action arising from an incident on the inland waters of Plaquemines Parish. David Hayes, a production operator furnished by The Production Group, was piloting a small aluminum-hull crew boat owned by TPIC when it struck a submerged obstruction during a routine shift change. George Walcott, a steward aboard the vessel employed by Taylors International Services, was injured in the collision.
The Production Group sought complete non-contractual indemnity and contribution from TPIC, arguing that TPIC’s negligence contributed to the event. TPIC moved to dismiss those claims, asserting that the Master Services Agreement’s choice-of-law clause mandated the application of Louisiana law, which prohibits non-contractual indemnity among joint tortfeasors with actual fault.
The Production Group argued the contract was maritime in nature, which would trigger general maritime law rather than the Louisiana Oilfield Anti-Indemnity Act. They contended that the agreement contained maritime-specific provisions, including vessel-related risk allocations, and that the allision occurred on navigable waters.
Judge Vitter denied The Production Group’s motion for partial summary judgment on maritime contract classification as moot, ruling that Louisiana law applies regardless of whether the contract is classified as maritime or non-maritime. She found the choice-of-law provision valid under both state and federal maritime principles because Louisiana has a substantial relationship to the transaction. TPIC owns the fixed platform where the work was performed, the allision occurred in Louisiana territorial waters, and The Production Group is a Louisiana limited liability company.
Under Louisiana law, Judge Vitter wrote, tort indemnity is available only when the party seeking indemnification is solely constructively or derivatively at fault. Because The Production Group alleged that TPIC’s "faults, negligent acts, omissions or culpable conduct" caused the injuries, the indemnitee’s fault was active, not passive.
"Because the fault alleged against the would-be indemnitee is actual or active, tort indemnity is unavailable," Judge Vitter wrote.
The judge also denied The Production Group’s claim for contribution, noting that Louisiana Civil Code Article 2324 abolishes solidary liability among non-intentional tortfeasors. Without an intentional tort claim, the parties cannot be held jointly liable, rendering contribution unavailable.
Judge Vitter noted that The Production Group is not without recourse, as comparative fault principles apply. Under Louisiana law, each party will bear the percentage of fault assigned to it by the factfinder.
In a separate order, Judge Vitter denied TPIC’s motion for summary judgment on contractual indemnity claims, finding the issue premature under the Louisiana Oilfield Anti-Indemnity Act until liability is adjudicated.