Justia U.S. 5th Circuit Court of Appeals Opinion Summaries

A Singapore-based company that supplies offshore vessels entered into a charter agreement with a Mexico-based marine oil and gas company. The agreement allowed the Mexican company to charter a vessel for eighteen months, with provisions for termination if payments were not made and an obligation to redeliver the vessel at the end of the term. After the charter expired, the Singaporean company alleged that the Mexican company failed to pay required fees and did not return the vessel, leading to arbitration in Singapore. The arbitrator awarded the Singaporean company damages and ordered the vessel’s return, but the Mexican company did not comply. Meanwhile, an email revealed that the Mexican company was set to receive a large refund from a third party, to be sent to a U.S. bank account in the name of a related U.S. entity.The Singaporean company filed suit in the United States District Court for the Southern District of Texas, seeking to attach the funds in the U.S. account as security for the arbitration award under federal maritime law and, later, Texas state law. The district court initially granted the writ of garnishment, but after limited discovery, vacated the writ, finding no evidence that the Mexican company owned the funds in the U.S. account. The district court also denied the plaintiff’s request for leave to amend its complaint to assert an alter ego theory, which would have permitted attachment based on state law.On appeal, the United States Court of Appeals for the Fifth Circuit held that the district court abused its discretion by failing to consider relevant evidence and legal standards regarding ownership and control of the funds. The appellate court also determined that the district court erred in denying leave to amend without adequate explanation. The Fifth Circuit vacated the district court’s order and remanded the case, instructing the district court to allow the plaintiff to amend its complaint. View "CH Offshore v. Mexiship Ocean" on Justia Law

Alberto Alvarado was employed through a temporary staffing agency and assigned to Jacintoport International, L.L.C. (JPI) for work as a longshoreman at the Port of Houston. On December 12, 2020, while descending a ladder into the cargo hold of the BBC Sapphire, a ship owned and operated by Briese Schiffahrts entities, Alvarado slipped due to poor lighting and condensation, falling about fifteen feet and sustaining serious injuries. Alvarado asserted that neither the ship’s crew nor JPI provided adequate warnings or instructions regarding the ladder’s condition and configuration.After the accident, Alvarado filed suit in state court against the BBC Sapphire’s owner/operator and JPI, alleging negligence and gross negligence under the Longshore and Harbor Workers’ Compensation Act (LHWCA). The defendants removed the case to the United States District Court for the Southern District of Texas. The BBC Sapphire moved for summary judgment, arguing there was no evidence of a breached duty under the LHWCA, while JPI argued that as Alvarado’s borrowing employer, its provision of workers’ compensation barred his negligence claim. The district court granted both motions for summary judgment.The United States Court of Appeals for the Fifth Circuit affirmed the district court’s judgment. The appellate court held that Alvarado failed to raise genuine disputes of material fact regarding the shipowner’s breach of the LHWCA’s turnover or active-control duties, as the hazards were either open and obvious or not under the shipowner’s active control at the relevant time. The court also concluded that JPI was Alvarado’s borrowing employer as a matter of law and, having secured workers’ compensation coverage for him, was shielded from negligence liability by the LHWCA’s exclusive-remedy provision. The Fifth Circuit affirmed the district court’s summary judgment in favor of both defendants. View "Alvarado v. Briese Schiffahrts" on Justia Law

A welder was injured while working on a launch site on the Mississippi River, operated by two closely related companies. The injury occurred when a defective hook, lacking a required safety latch, struck him during a crane operation, causing him to fall and sustain multiple injuries, including a fractured eye socket and a cervical disk injury. Over the following months, he underwent surgery and was prescribed pain medications. After his prescriptions ran out, he attempted to manage his pain with over-the-counter drugs, but ultimately died from an overdose of street fentanyl mixed with Xylazine, a non-prescribed animal tranquilizer.The estate of the deceased sued the two companies for personal injury under the Jones Act, general maritime law, and the Longshore and Harbor Workers’ Compensation Act (LHWCA) in the United States District Court for the Eastern District of Louisiana. After a bench trial, the district court found the companies liable for vessel negligence under the LHWCA, determining that the defective hook was an appurtenance of the vessel and the proximate cause of the initial injury. The court also found the two companies to be essentially the same entity and awarded damages to the decedent’s children and mother, including for wrongful death and loss of consortium.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed the district court’s findings for clear error and legal conclusions de novo. The Fifth Circuit held that while the defective hook was the proximate cause of the workplace injury, the ingestion of illegal drugs was a superseding cause of death, breaking the chain of causation from the workplace injury. The court reversed the award of damages stemming from the death and loss of consortium, concluding that the companies were not liable for the decedent’s death, and remanded for further proceedings. View "Bommarito v. Belle Chasse Marine Trans" on Justia Law

After Hurricane Laura damaged an offshore platform owned by Genesis Energy, Genesis contracted with Danos, LLC to perform repairs. To support the project, Genesis also chartered a vessel from a third party to house and transport the repair crew and equipment. During the course of repairs, a Danos employee was injured while being transferred from the platform to the vessel and subsequently sued Danos, Genesis, and the vessel owner. Genesis filed a crossclaim against Danos, seeking defense and indemnification under a 2008 Master Services Agreement, arguing that the contract required Danos to indemnify Genesis for such claims.The United States District Court for the Southern District of Texas reviewed cross-motions for summary judgment from Genesis and Danos. The district court determined that the contract between Genesis and Danos was not a “maritime contract” under the Outer Continental Shelf Lands Act (OCSLA) and relevant Fifth Circuit precedent, specifically In re Larry Doiron, Inc. As a result, Louisiana law applied, which rendered the indemnification provision unenforceable. The district court granted summary judgment in favor of Danos, denied Genesis’s motion, and dismissed Genesis’s crossclaim with prejudice. The court’s order was designated as a final judgment under Federal Rule of Civil Procedure 54(b), and Genesis appealed.The United States Court of Appeals for the Fifth Circuit reviewed the district court’s grant of summary judgment de novo. The Fifth Circuit held that the contract was not a maritime contract because the parties did not expect the vessel to play a substantial role in the completion of the repair work; its functions were limited to transportation, housing, and ancillary support, which are insufficient under the applicable legal standard. The Fifth Circuit affirmed the district court’s judgment, holding that Louisiana law applied and the indemnification provision was unenforceable. View "Genesis Energy v. Danos" on Justia Law

Fieldwood Energy LLC, an oil and gas company, contracted with Island Operating Company, Inc. (IOC) through a Master Services Contract (MSC) to provide workers for oil and gas production services on offshore platforms in the Gulf of Mexico. The MSC defined the work as “Lease Operators,” and a subsequent work order requested “A Operators” to perform tasks such as compliance testing and equipment checks on the platforms. The contract required Fieldwood to provide marine transportation for workers and equipment, which it did by hiring Offshore Oil Services, Inc. (OOSI) to transport IOC employees, including Tyrone Felix, to the platforms. Felix was injured while disembarking from OOSI’s vessel, the M/V Anna M, and subsequently made a claim against OOSI.OOSI filed a complaint for exoneration or limitation of liability in the United States District Court for the Eastern District of Louisiana. OOSI also sought indemnification from IOC under the MSC’s indemnity provision. IOC moved for summary judgment, arguing that Louisiana law, specifically the Louisiana Oilfield Anti-Indemnity Act (LOAIA), rendered the indemnity provision unenforceable. The district court agreed, finding that the MSC was not a maritime contract because vessels were not expected to play a substantial role in the contract’s performance, and thus Louisiana law applied. The court granted summary judgment for IOC on indemnity and insurance coverage, and later on defense costs after OOSI settled with Felix.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed the district court’s summary judgment de novo. The Fifth Circuit held that the MSC was not a maritime contract because neither its terms nor the parties’ expectations contemplated that vessels would play a substantial role in the contract’s completion. As a result, Louisiana law applied, and the LOAIA barred enforcement of the indemnity provision. The Fifth Circuit affirmed the district court’s summary judgment in favor of IOC. View "Offshore Oil Services, Inc. v. Island Operating Co." on Justia Law

In 2010, the British Petroleum Deepwater Horizon oil spill released crude oil into the Gulf of Mexico. Matthew Williams, the plaintiff, performed oil spill clean-up work in the Gulf that summer. On September 24, 2020, Williams was diagnosed with chronic pansinusitis, an inflammatory condition of the nasal passages. Williams filed a lawsuit against BP Exploration & Production Inc. and BP America Production Co., alleging that his condition was caused by exposure to oil, dispersants, and other chemicals during the cleanup work. Williams presented two expert witnesses, Dr. Michael Freeman and Dr. James Clark, to establish causation.The United States District Court for the Southern District of Mississippi reviewed the case. BP filed motions to exclude the expert reports under Federal Rule of Evidence 702 and Daubert, and subsequently filed a motion for summary judgment, arguing that Williams lacked admissible expert testimony to establish causation. The district court granted BP’s motions to exclude the expert testimonies and the motion for summary judgment, leading Williams to appeal the decision.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court upheld the district court’s exclusion of Dr. Freeman’s testimony, finding it unreliable as it did not properly apply the differential etiology approach. Similarly, the court found Dr. Clark’s testimony unreliable due to errors in his report, including references to another case and incorrect assumptions about benzene concentrations. Without admissible expert testimony, Williams could not establish specific causation, a necessary element in toxic tort cases. Consequently, the Fifth Circuit affirmed the district court’s grant of summary judgment in favor of BP. View "Williams v. BP Expl & Prod" on Justia Law

John Bludworth Shipyard, L.L.C. (JBS) performed nearly $3 million in services to combine three vessels into a single dredging unit for a project along the Gulf Coast. The vessels involved were the Captain Frank Bechtolt, the CIT-103, and the Idler Barge. T.W. LaQuay Marine, L.L.C., which owned the Idler Barge and leased the other two vessels, requested the work without the knowledge or consent of the owners, Manson Construction Company and Caillou Island Towing Company, Inc. JBS asserted maritime liens on each vessel for the services provided.The United States District Court for the Southern District of Texas denied JBS’s motion for interlocutory sale of the three-vessel unit and JBS’s motion for summary judgment to confirm the validity of its maritime liens. The court granted Caillou’s motion to vacate the arrest of the CIT-103, finding that JBS did not provide necessaries to the CIT-103 and that there were fact issues regarding the Bechtolt and the Idler Barge. The district court focused on the CIT-103’s old function, disregarding any new function that JBS’s work might have equipped it to perform.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the district court erred by considering only the CIT-103’s former function and not its new function after the alterations. The appellate court vacated the district court’s grant of Caillou’s motion to vacate the arrest of the CIT-103 and remanded for further proceedings to determine whether JBS’s work constituted necessaries for the CIT-103’s new function. The court dismissed for lack of jurisdiction the remainder of JBS’s appeal challenging the denial of its motions for summary judgment and interlocutory sale. View "Bludworth v. Manson Construction" on Justia Law

Talos ERT, L.L.C. (Talos) hired DLS, L.L.C. (DLS) to remove corroded piping from an oil-and-gas platform off the Louisiana coast. During the project, a 129-pound pipe fell and struck Walter Jackson, a DLS employee, resulting in his death. Jackson’s widow, Vantrece Jackson, and his son, Y.J., represented by his mother, Anika Warner, sued Talos for wrongful death. The suits were consolidated, and the case proceeded to trial.The jury found Talos 88% at fault for Jackson’s death and awarded significant damages to both plaintiffs. Y.J. was awarded $120,000 in special damages and $20,000,000 in general damages. Mrs. Jackson was awarded $987,930 in special damages and $6,600,000 in general damages. Talos filed a renewed motion for judgment as a matter of law (JMOL) and alternatively moved for a new trial or remittitur. The district court denied the JMOL and new trial motions but granted a partial remittitur, reducing Y.J.’s general damages to $4,360,708.59 and Mrs. Jackson’s to $5,104,226.22. Plaintiffs declined a new trial on damages.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the district court’s denial of Talos’s renewed JMOL motion, finding sufficient evidence to support both theories of liability: vicarious liability and independent negligence. The court also upheld the denial of a new trial on liability, noting the jury’s verdict was supported by the evidence.Regarding damages, the court found no abuse of discretion in the district court’s application of the maximum recovery rule for Y.J.’s award, using a factually similar case, Rachal v. Brouillette. However, the court vacated Mrs. Jackson’s general damages award and remanded for redetermination of remittitur, as the district court’s comparison case, Zimko v. American Cyanamid, was not factually similar. The court found no plain error in the alleged prejudicial statements made by Plaintiffs’ counsel during the trial. View "Warner v. Talos ERT" on Justia Law

Great Lakes Dredge & Dock Company (Great Lakes) sought a letter ruling from the U.S. Customs and Border Protection (CBP) regarding the application of the Jones Act to its offshore wind farm project. CBP's initial ruling required Jones Act-qualified vessels for transporting scour protection rock from U.S. points to the Outer Continental Shelf (OCS). However, a modified ruling stated that the first delivery of rock to the OCS did not require a Jones Act-qualified vessel, but subsequent deliveries did. Great Lakes appealed this modified ruling, which CBP denied.Great Lakes then filed a lawsuit in the Southern District of Texas, claiming the modified ruling was contrary to law and would expose its planned Jones Act-compliant vessel to unlawful competition. The American Petroleum Institute (API) intervened, arguing that Great Lakes lacked standing as it had no actual or imminent injury. The district court agreed with API and dismissed the case, finding Great Lakes' injury hypothetical since it did not have a vessel capable of handling the Vineyard Project and no current contract for the project.The United States Court of Appeals for the Fifth Circuit reviewed the case. Great Lakes argued it had competitor standing due to the potential for increased competition from foreign vessels. However, the court found no evidence of actual or imminent increased competition, as the Vineyard Project was completed and there was no indication that future projects would source rock from U.S. points. The court also rejected CBP's argument that the ruling applied to identical future projects, as there was no record evidence of such projects involving U.S.-sourced rock.The Fifth Circuit affirmed the district court's judgment, concluding that Great Lakes lacked standing to challenge the CBP's modified ruling. View "Great Lakes Dredge v. Magnus" on Justia Law

A&T Maritime Logistics, Inc. had an insurance contract with RLI Insurance Company and a bareboat charter agreement with Alexis Marine, L.L.C. While operating the M/V Uncle John, a vessel owned by Alexis Marine, A&T Maritime caused the ship to allide with an embankment. Believing the damage to be minimal, A&T Maritime did not take immediate action. After a lawsuit was filed, RLI was notified of the claim. A&T Maritime and Alexis Marine sought defense and indemnification from RLI, which denied coverage under the insurance contract. The district court upheld RLI's denial of coverage on summary judgment, finding that RLI was prejudiced by the delayed notice.The United States District Court for the Eastern District of Louisiana initially denied A&T Maritime's and Alexis Marine's motions for partial summary judgment seeking reimbursement for defense costs, noting that the policy did not include a duty to defend. The Champagnes, who had purchased the damaged property, settled their claims for $200,000, funded solely by Alexis Marine. RLI then moved for summary judgment, arguing that the Uncle John was not covered under the policy. The district court disagreed but granted partial summary judgment to RLI, holding that the prompt notice requirements were breached and RLI was prejudiced.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The court held that RLI was actually prejudiced by the delayed notice from both A&T Maritime and Alexis Marine, as the damage worsened over time and the opportunity to settle for a lower amount was lost. Consequently, the denial of coverage for both A&T Maritime and Alexis Marine was appropriate. The court also concluded that RLI had no duty to reimburse defense costs, as indemnification depended on coverage, which was voided due to the breach of the prompt notice requirement. View "A&T Maritime Logistics v. RLI Insurance Co." on Justia Law