Sonat Exploration Co. v. Cudd Pressure Control, Inc.
340 S.W.3d 570
| Tex. App. | 2011Background
- Sonat and Cudd entered into a Master Service Agreement governing oil field services with mutual indemnity obligations.
- In 1998, four Cudd employees were killed on Sonat’s Louisiana well; families sued Sonat in Texas; Cudd contested Sonat’s indemnity demand.
- Trial court ruled the indemnity provision enforceable; damages and fees were determined ($20.7 million plus fees and interest).
- On appeal, Rule 11 agreement limited issues; Lumbermens sought intervention to raise a choice-of-law issue; Texas Supreme Court remanded for Louisiana-law application.
- Remand proceedings focused on whether LOAIA (Louisiana Oilfield Anti-Indemnity Act) barred Sonat’s indemnity claim and whether Cudd’s pleadings preserved that defense.
- Cudd filed multiple amended answers; on remand, Cudd asserted LOAIA as a defense, and Sonat moved for and against summary judgment based on Sonat’s fault in the blowout.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether LOAIA was properly raised and preserved | Sonat argues LOAIA is an affirmative defense that required pleading and preservation, which Cudd failed to do before remand. | Cudd contends LOAIA was pled (third amended answer) and notice given; the defense is preserved despite Rule 11 agreement. | LOAIA was sufficiently pled; waiver not shown; defense upheld for summary judgment reliance. |
| Whether LOAIA applies after remand to bar indemnity | Sonat asserts LOAIA cannot apply because Texas Supreme Court remand directed Louisiana law and LOAIA-specific bar was not properly invoked. | Cudd relies on LOAIA as determined applicable by the Texas Supreme Court; remand authorized its application. | LOAIA applies as determined on remand; indemnity barred where Sonat bears fault under LOAIA. |
| Impact of Lumbermens' intervenor status | Sonat argues Lumbermens’ intervention was improper and unnecessary, potentially affecting finality. | Lumbermens’ intervention was duplicative; the trial court’s judgment did not rely on Lumbermens' pleadings. | Intervention issues moot; judgment final and appealable; Lumbermens’ pleading had no effect on the outcome. |
Key Cases Cited
- Sonat Exploration Co. v. Cudd Pressure Control, Inc., 271 S.W.3d 228 (Tex. 2008) (remand for Louisiana-law application in indemnity dispute)
- In re Lumbermens Mut. Cas. Co., 184 S.W.3d 718 (Tex. 2006) (allowing intervention to raise choice-of-law issue on appeal)
- Sonat Exploration Co. v. Cudd Pressure Control, Inc., 202 S.W.3d 901 (Tex. App.—Texarkana 2006) (choice of law applying Louisiana law to indemnity dispute)
- Gilbert Tex. Constr., L.P. v. Underwriters at Lloyd's London, 327 S.W.3d 118 (Tex. 2010) (summary judgment evidence and standard; law-of-the-case considerations)
- Land Title Co. of Dallas, Inc. v. F.M. Stigler, Inc., 609 S.W.2d 754 (Tex. 1980) (affirmative defenses and pleading notice under Rule 94)
