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2:20-cv-00858
E.D. La.
Feb 18, 2021
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Background

  • Turnkey Offshore Project Services, LLC sued Morrison Energy Group, LLC and Chet Morrison Contractors alleging breach of maritime contracts for removal of offshore platforms and sought unpaid invoices and fees under Louisiana's open account statute (La. R.S. § 9:2781).
  • Parties executed a Master Work Contract (MWC) in Aug. 2018 and a March 27, 2019 work order for removal of three platforms (HI‑A494 A, B, C).
  • The MWC/work order provided that Turnkey would cover weather costs except for named tropical storms and required documentation of costs via daily "tickets." Specific lump‑sum payments (and salvage credits) were listed for each platform.
  • Turnkey alleges delays and extra costs due to named storms (Imelda and Fernand) and third‑party dive work, invoiced Morrison a total of $1,410,961.50, and made written demand for payment on January 13, 2020.
  • Morrison moved to dismiss Turnkey’s open account claims and attorney‑fee demand under Rule 12(b)(6); the court evaluated whether the MWC/work order constituted an "open account" under Louisiana law.
  • The court held the MWC and work order set specific, fixed financial terms (no open line of credit and total cost not left undetermined) and therefore dismissed the state‑law open account claims and related attorney‑fee request.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the MWC/work order qualifies as an "open account" under La. R.S. § 9:2781 MWC contemplated ongoing debits, unfixed costs, and daily "tickets" for reimbursement, so it is an open account The MWC/work order set specific payment terms and fixed lump‑sum amounts; not an open line of credit Not an open account; claim dismissed
Whether ongoing dealings and ticketing created a running account subject to the open account statute Ongoing relationship and ticket system show running/current dealings and expectation of future adjustments Even with ongoing dealings, financial obligations were fixed by the work orders Running dealings insufficient to make it an open account
Entitlement to attorney's fees under La. R.S. § 9:2781 based on alleged unpaid balances Seeks attorney's fees because invoices remain unpaid and constitute an open account Fees unavailable because underlying account is not an open account under Louisiana law Attorney's‑fee claim denied with dismissal of open account claims

Key Cases Cited

  • Bell Atl. Corp. v. Twombly, 550 U.S. 544 (establishing the plausibility pleading standard)
  • Ashcroft v. Iqbal, 556 U.S. 662 (pleading standards; courts need not accept legal conclusions)
  • Cambridge Toxicology Group, Inc. v. Exnicios, 495 F.3d 169 (distinguishing contracts from open accounts)
  • Ormet Primary Aluminum Corp. v. Ballast Techs., Inc., [citation="436 F. App'x 297"] (factors for determining an open account)
  • Tri‑Par Elec. Supply, Inc. v. Cypress Bend Investments, LLC, 105 So.3d 1036 (total cost left open as hallmark of an open account)
  • Frank L. Beier Radio, Inc. v. Black Gold Marine, Inc., 449 So.2d 1014 (open account statute to be strictly construed)
  • Factor King, LLC v. Block Builders, LLC, 193 F. Supp. 3d 651 (analysis on whether total cost/price was left undetermined)
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Case Details

Case Name: Turnkey Offshore Project Services, LLC v. Morrison Energy Group, LLC
Court Name: District Court, E.D. Louisiana
Date Published: Feb 18, 2021
Citation: 2:20-cv-00858
Docket Number: 2:20-cv-00858
Court Abbreviation: E.D. La.
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    Turnkey Offshore Project Services, LLC v. Morrison Energy Group, LLC, 2:20-cv-00858