430 F. App'x 332
5th Cir.2011Background
- Martco contracted with Bruks to manufacture and supply equipment for Martco’s Oakdale plant; Mid-South Engineering prepared the designs and specifications used by Bruks.
- Bruks, acting as a third party, alleged that Mid-South provided faulty or late specifications on which Bruks relied, causing delays and defective equipment.
- Martco sued Bruks in Louisiana state court for redhibition, breach of contract, detrimental reliance, and negligence; the case was removed to the Western District of Louisiana.
- Bruks moved to implead Mid-South under Rule 14, seeking legal indemnity if Bruks was liable to Martco due to Mid-South’s design faults.
- The district court dismissed Bruks’s third-party indemnity claim as cognizable under Louisiana law, prompting Bruks’s appeal.
- The Fifth Circuit held that Bruks plausibly pleaded a Louisiana-law indemnity claim based on purely constructive/technical fault by Mid-South and reversed to allow further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bruks plausibly pleads legal indemnity under Louisiana law. | Bruks alleges Mid-South’s faulty designs caused its liability to Martco. | Mid-South contends Bruks cannot claim indemnity absent Bruks’ own fault. | Yes; the claim is plausible and survives Rule 12(b)(6). |
Key Cases Cited
- Bewley Furniture Co. v. Maryland Cas. Co., 285 So.2d 216 (La. 1973) (indemnity for unjust enrichment despite lack of direct fault)
- Nassif v. Sunrise Homes, Inc., 739 So.2d 183 (La. 1999) (implied indemnity when builder is constructively liable for faults of others)
- Minyard v. Curtis Products, Inc., 205 So.2d 422 (La. 1967) (third-party indemnity where manufacturer’s fault causes contractor’s damages)
- Gurtler, Hebert and Co. v. Weyland Machine Shop, Inc., 405 So.2d 660 (La. App. 4th Cir. 1981) (subcontractor may seek indemnity from architect despite lack of privity)
- Threlkeld v. Haskins Law Firm, 922 F.2d 265 (5th Cir. 1991) (indemnity defenses evaluated by potential constructive fault)
- Ducre v. Exec. Officers of Halter Marine, Inc., 752 F.2d 976 (5th Cir. 1985) (focus on nature and fault for indemnity feasibility)
- Hamway v. Braud, 838 So.2d 803 (La. App. 1st Cir. 2002) (indemnity limits when party is actually at fault)