Opinion ID: 498401
Heading Depth: 1
Heading Rank: 4

Heading: Amoco's Indemnity Claims Against Beraud

Text: 38 Because the Melancons' suit against Amoco is barred by LHWCA Sec. 905(a) under the borrowed employee doctrine, Amoco is not liable to the Melancons for any damages for Mr. Melancon's injuries. As a result, the only claim Amoco now can assert against Beraud under Amoco's various indemnity theories is for the expense Amoco incurred in defending against the Melancon suit (attorney's fees, costs of defense, and related expenses). 39 We disagree with the district court that Amoco is not entitled to indemnity from Beraud under the terms of Provision 10 of its contract with Beraud. Although the issue of indemnity is controlled by Louisiana law, 18 the Louisiana Oilfield Indemnity Act, La.Rev.Stat.Ann. Sec. 9:2780, does not invalidate Amoco's indemnity claim based on this express indemnity provision in the Amoco-Beraud contract. The Louisiana Oilfield Indemnity Act invalidates 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.... Sec. 9:2780(A). In the case at bar, the Melancons alleged that the negligence and/or legal fault of the indemnitee, Amoco, caused Mr. Melancon's injuries. However, the Louisiana Supreme Court has held after certification from this Court that under the Louisiana Oilfield Indemnity Act [t]he allegations of the plaintiff's suit against the indemnitee are irrelevant to the indemnitor's obligation to pay. Rather it is the terms of the indemnity agreement which govern the obligations of the parties. Meloy v. Conoco, Inc., 817 F.2d 275, 280 (5th Cir.1987). Here there exists no holding that Amoco was negligent or at fault for Mr. Melancon's injuries. The case never reached the issue of Amoco's negligence because of the LHWCA's bar. For that reason Amoco is entitled to indemnity from Beraud for the costs of its defense. Provision 10 of the Amoco-Beraud contract so provides, and the Louisiana Oilfield Indemnity Act does not apply absent a finding of negligence or fault against Amoco. 40 Because we find that Amoco is entitled to indemnity from Beraud for the costs of its defense under Provision 10 of its contract with Beraud, we decline to explore Amoco's other theories of indemnity. Amoco is not entitled to the costs incurred in establishing its indemnity claim against Beraud. [T]he indemnitee may not recover those costs and expenses incurred simply establishing the indemnities [sic] right to indemnification from the indemnitors. State v. Laconco, Inc., 430 So.2d 1376, 1385 (La.App. 1 Cir. 1983); see also Dow Chemical Co. v. M/V ROBERTA TABOR, 815 F.2d 1037, 1046 (5th Cir. 1987). We remand to the district court for determination of Amoco's expenses in defending against the Melancon suit.