*3 JONES, Bеfore KING, Judge, Chief JOLLY, DAVIS, WIENER, BARKSDALE, GARZA, BENAVIDES, STEWART, DENNIS, CLEMENT, PRADO, OWEN, ELROD, SOUTHWICK OCS, this is the situs water on the gable HAYNES, Judges.* Circuit controversy. DAVIS, Judge: Circuit EUGENE W. the focus-of-the-contract hold that We test appropriate test
I. controversy determining the situs of appeal question presented cases, that rule for adopt and we of a con- the resolution governs with the agree therefore what the circuit. We enforceability of here dispute, con- tractual the relevant judge trial that because act or omis- when the indemnity provision, majority that a contemplated tract *4 death, bod- causes the on performed sion work would contractor’s (hereafter, damage OCS, injury, property the this ily stationary platforms on “tort”) the contractual triggered which for the the relevant “situs” be deemed should wa- navigable on claim occurred indemnity indemnity dispute and because the instant Shelf Continental apply on the Outer to ter other factors lead us none of the that creates (“OCS”), contract law, but the Louisiana apply must any other we parties between indemnity obligation law. When to be of the work majority Act, Indemnity calls for Louisiana Oilfield La.Rev. (“LOLA”) on the stationary platforms 9:2780(A) on § renders Ann. Stat. applica- issue is the to this Central at issue unen- indemnity agreement OCS. Lands Shelf summary judg- the Outer Continental forceable, tion of so we affirm (“OCSLA”). Act, seq. et 43 U.S.C. Isle. in favor of Grand ment a tort that when law is clear II. FACTS OCS, as water on navigable occurs in- judgment action declaratory This to, stationary plat example, opposed dispute between indemnity an volves injured, mari form, and a non-seaman Seacor, two contractors and Grand Isle ensuing tort action applies time Company BP American Production parties. third against that worker (“BP”). contracting duties Isle’s Grand this same have of our cases Some maintenance of repair and involved the indemnity dispute contractual rule to a Seacor’s platforms, while BP’s offshore determine the tort to to the site of looked of work- transporting involved the duties controversy, step the first of the the situs its contractors. for BP and ers Instead deciding applies. what law case arises dispute tort, indemnity cases other to the site of looking in which incident April from to a foeus-of- amounts applied what have Neil, employee, Isle Denny a Grand looks to where test which the-contract SEA in a fall onboard the injured WV that most of contemplates IV, operat- a vessel owned majority of HORSE if a performed: bewill work of the acci- At the time ed Seacor. by the contract called for performance trans- dent, IV was OCS, HORSE the SEA stationary platforms is on platform his work Neil from porting purposes controversy situs of the is the contained platform the residential of the the law determining whether testimo- Deposition living quarters. his surrogate federal applies adjacent close was in the vessel ny indicated that work called for majority of the If a law. at platform residential proximity on navi- aboard vessels by the contract is * pate. partici- and did not Judge is recused Smith accident,
the time of the
it is
dispute
but
undis-
erns the
noting
that nothing
puted that neither Neil nor the SEA
in that
prohibits
indemnity
in physical
HORSE IV were
contact
agreement at issue here.
with
when the accident oc-
Shipyard,
Grand Isle
Inc. v. Seacor Ma
curred.
rine, LLC,
(5th
543 F.3d
257-58
Cir.
against
Neil filed suit
Seacor in the U.S. 2008) (hereinafter
(Panel)),
Grand Isle
va
District Court for the Southern District
cated,
(5th Cir.2009) (en
here;
905(b)
and
that
of the
indemnity
Isle’s
obligation
Seacor,
but
LHWCA is
to the case and
and
law
the LOIA do not apply,
prohibits enforcement
indemnity
of the
indemnity
agreement
is enforceable.
provision. Seacor filed its own cross
motion for summary judgment, main-
To determine whether OCSLA re
taining
general
that
maritime
gov- quired
application of state
law this dis-
Paragraph
14.07 reads:
casioned
or the
part
result in whole or in
defend,
fault,
sole,
agrees
negligence
Contractor [Grand Isle]
or
whether
indemnify,
concurrent,
company's
active,
release and hold
joint,
oth-
passive,
or
of com-
er contractors harmless in accordance with
pany's
any
other
entity
contractors or
other
provisions
(to
of this Article 14
person
or
or the
unseaworthiness of
extent such other Contractors execute cross
vessel.
provisions
substantially
indemnification
Group"
"Contractor
is defined in Paragraph
similar to those contained in this section
following
14.01.03
"the
per-
as
entities and
14.07)
claims,
against
from and
all
liabili-
individually
collectively:
sons
and
Contractor
ties, damages,
expenses
and
(including
Inc.,
Shipyard,
per
[Grand
preamble
Isle
attorney's
without limitation
and other
fees
Affiliates,
contract]
its subcon-
defense), irrespective
costs of
of insurance
Affiliates,
officers,
tractors
their
and the
coverages
14.07.01(1)
following:
for the
all
directors, employees, agents,
representa-
to, deaths,
injuries
persons
or illnesses of
”
tives of all of those entities ....
Group:
Contractor
... whether or not oc-
summary judgment
and denied
the three- motion
applied
the district court
pute,
at *6.
Court formu
motion. Id.
Supreme
that the
Seacor’s
test
part
Casualty &
v. Aetna
Rodrigue
lated
panel
and the
timely appealed,
Seacor
Co.,
Surety
395 U.S.
concluded that be-
panel
reversed.
have
We
L.Ed.2d 360
cause Neil’s accident occurred on vessel
cases, including Union
number of
in a
test
navigable water above the OCS and not
Engineer
PLT
Corp. v.
Petroleum
Texas
expressly covered under the
on a situs
(5th
Inc.,
1043, 1047
Cir.
895 F.2d
ing,
OCSLA,
indemnity dispute did not
(hereinafter PLT).
1990)
As we articulat
thus,
situs;
it was un-
arise on a covered
PLT,
for state law
Rodrigue test
ed the
and third
necessary to address
second
law, three
surrogate federal
apply
as
(Pan-
PLT
prongs of the
test. Grand Isle
“(1)
met:
The contro
must be
conditions
el),
panel
at 259-60. The
there-
543 F.3d
covered
arise on a situs
versy must
the LOIA could not
fore concluded
(i.e.
seabed,
artifi
the subsoil
law to void
apply
surrogate
temporarily
permanently or
cial structures
and it vacated and
agreement,
thereto).
(2) Federal maritime
attached
Id. at 263-64.
remanded on
basis.
(3)
of its own force.
must not
petition for re-
granted Grand Isle’s
We
inconsistent
law must not be
The state
hearing
important
en banc to address this
law.” Id.
with Federal
question of law.
Here,
court first considered
the district
controversy
arose
whether
*6
AND
III.
JURISDICTION
situs, i.e.,
stationary
aon
on an OCSLA
STANDARD OF
on the OCS as
or other location
platform
REVIEW
considering
In
in OCSLA.
provided for
condition,
court
the district
first PLT
this
jurisdiction pursuant
have
28
We
require
situs
that the OCSLA
determined
§
review de novo the
1291. “[W]e
U.S.C.
(1)
of the
the situs
ment was met because
granting [Grand
court’s order
district
indemnity agree
containing the
contract
summary
Gray’s]
Isle’s and
motion
upon the location
depends
at issue
ment
Rule 56 and
judgment under
is called
of the work
performance
where
the district court.”
standard as did
same
(2)
contract,
v.
In
Schs. Univ.
Cornerstone Christian
contemplated
BP
Isle and
between Grand
127, 133
League, 563 F.3d
terscholastic
to be
of the work was
that most
Cir.2009).
(5th
i.e.,
si-
covered
platforms,
BP
OCSLA
Inc. v. Sea
Shipyard,
Isle
tuses. Grand
IV. ANALYSIS
2874808,
Marine, LLC,
at *3
2007 WL
cor
above,
question
the critical
As indicated
(hereinafter
(E.D.La.2007)
Isle
Grand
applies.
law
is what
we must answer
(District)).2
found that the
The court also
depends on the
question
this
answer to
were
PLT conditions
second and third
to the uncon-
of the OCSLA
applicability
Accordingly, the dis
at *4-5.
met.
in PLT
particularly,
facts. More
Gray’s
tradicted
Isle’s and
granted
trict court
Grand
Texas,
"Thus,
Union
Wagner
under
well-
stated:
relied on a
The district court also
case,
met in the instant
Wagner
situs factor is
opinion,
reasoned district
McDermott, Inc.,
(W.D.La.1994),
required by the contract was
as the work
F.Supp. 1551
899
platform.” Id. at
(5th Cir.),
performed on an offshore
cert. de
79
20
F.3d
aff
'd.
appeals affirmed on an
nied,
court of
1556. The
136
U.S.
519
ground.
alternate
The district court
L.Ed.2d 246
terms,
one,
identify
we must
the “situs” of the
In
operator
tions.
a crane
on a sta-
controversy.
tionary platform was killed when the crane
collapsed
toppled
other,
In
over.
deciding
question
begin
In
with
the decedent was killed when he fell from
statute, OCSLA,
the governing
pro-
a derrick
stationary platform
above a
in pertinent part:
vides
platform.
the floor of the
The defendants
(2)(A)
they
appli-
To the extent that
are
argued that the Death
High
Seas
cable and not inconsistent with this sub-
Act,
(“DOHSA”),
§
seq.
U.S.C.
et
chapter or with other Federal laws and
applied;
sought application
survivors
regulations
Secretary
of the
now in ef-
Wrongful
Death Act. For
fect
adopted,
or hereafter
the civil and
cases,
Supreme
both
Court held that
adjacent State,
criminal laws
each
.of
because the
stationary
deaths occurred on
adopted,
now
effect or hereafter
platforms
on the Outer Continental
amended,
repealed
hereby
are
de-
Shelf—each a covered situs under OCS-
clared to be the law of the United States
LA—Louisiana
surrogate
as
portion
for that
of the subsoil and
through
Rodrigue,
OCSLA.
Shelf,
seаbed
the outer Continental
Thus,
U.S.
and artificial
S.Ct. 1835.
islands and fixed structures
be,
thereon,
action,
within
tort
Rodrigue
erected
which would
illustrates that
the area
requirement
of the State
its boundaries OCSLA situs
is met
if the
were extended seaward to the outer
tort
on a platform
occurs
or other OCSLA
margin of the outer Continental Shelf
covered
provided
situs
1333(a)(2)(A).
(2)(A).
1333(a)(1),
43 U.S.C.
equally
converse is
clear.
In a tort
Supreme
in Rodrigue
Court
stated
action, if the tort occurs on navigable wa
purpose
“[t]he
was to
[OCSLA]
(or
ter instead of a
fixed
other
body
define a
of law applicable to the
seabed),
structure
attached to the
*7
seabed,
subsoil,
and the fixed struc-
requirement
OCSLA situs
is not met. For
tures ... on the outer [sic] Continental
example,
Logistics, Inc. v. Tal
Offshore
355,
Shelf.”
contract
to be
For exam-
is met in this case” because the
ple, in Hollier v.
Texas Petroleum
Union
underlying incident occurred on an OCS-
(5th
662,
Cir.1992),
Corp., 972 F.2d
663-64
LA situs. See also Demette v. Falcon
between a boat
worker was crushed
Co., Inc.,
(5th
492,
Drilling
280 F.3d
498
stationary
platform
then drowned. Cir.2002) (finding that OCSLA situs exist-
wrongful
His survivors
death action
filed
ed for both a tort claim and the related
owners,
against
platform
and vessel
indemnity
distinguishing
claim—without
in turn
and the
owner
filed a between the two—because the accident
in-
third-party
seeking
demand
contractual
place
situs);
took
on OCSLA
Adams &
demnity.
underlying
Id. at 664. The
tort Milhollin,
supra note
at 54 (noting Holli-
settled, leaving only
claim
the contractual
Hodgen’s
er and
failure to look to the
indemnity claim
appeal.
to be decided on
situs).
contract for
following
Instead of
In analyzing
Id.
the situs element of the PLT in these contract cases
applying
test,
PLT
panel
Hollier
did not consid- general
principles,
we
tort
er or discuss the contract’s situs —where
principles and looked to the location of the
the work was
con-
under the
underlying incident for OCSLA situs.
exclusively
tract —but looked
to the situs
law, however,
Our case
requires us to
underlying
of the
incident.
664-65.
distinguish between a contractual indemni-
Likewise, in
v.
Drilling
Smith
Penrod
ty claim and
underlying
incident. For
(5th
Cir.1992),
Corp., 960 F.2d
458
instance,
Co.,
v.
Sumrall
Ensco Offshore
(an
underlying
drilling
incident
on a
(5th Cir.2002),
787 way knowing arise and thus no of which clarify this area and to this case to ation of among govern. of the conflict law will at least some resolve our cases. Using principles contract to establish claim recognize that the Once we dispute the situs of a contractual both in contract indemnity a claim based is for longstanding maintains the treating rule tort, in we see no reason to rather than indemnity separate contractual claims as analysis to determine where the tort apply underlying grants from tort claims and controversy arose. It makes contractual contracting parties greater a far measure a focus-of-the-contract more sense predictability stability allocating of and dispute— say that a contractual test risk. “controversy” the first condition under above, For the reasons set forth we hold the PLT test —arises under an OCSLA of that, by for majority determining of the work called the first condition of situs a PLT stationary platforms test, indemnity is on a the contract contractual (or other enumerated OCSLA situses.6 dispute) contractual claim other majority if a of arises on OSCLA situs ap- because it approach This is sounder performance for under con- called than tort principles rather plies stationary plat- tract' is to be Applying to a contract case. principles forms or other OCSLA situses enumerated the fortuitous loca- tort rules would allow 1333(a)(2)(A). in 43 U.S.C. It is immate- the si- tion of an accident to determine rial whether the incident that law—of a contrac- tus—and triggers obligation occurs on controversy. approach tual The tort-situs a navigable waters or on or other reliably parties commercial from prevents OSCLA situs. A number of our cases in their contractual ar- allocating risk have determined situs in a contractual in- they way have of rangements because no might demnity by looking case not at the focus of predicting where “controversies” denied, (5th Cir.1991), Co., reh’g F.2d it Drilling 26 Tul. Mar. L.J. 1054 ette v. Falcon case, (2002) (" panel practice companies 'In each new is a common contract- through comb a bewilder- of this court must ing to enter into con- for work in the oilfield rely upon ing array cases inconsistent they sign stages. Typically, first tracts in two reasoning hope finding an in the identical may place remain in a “blanket contract” ” Smith, (quoting F.2d at fact situation.’ Later, period they an extended of time. Milhollin, 461)); supra Adams & nоte performance spe- issue work orders for ("Presumably, lawyer now knows 100-01 work, usually incorporates the cific enforceable, indemnity at whether the issue of the blanket contract. As we said terms having completed analyses and the various Sons, & the contract consists of Davis where required determinations under the OCSLA. parts, two a blanket "contract followed however, highly likely, that the office It is order, interpreted later the two must be work empty aspirin bottle is now .... We can together.” lawyers everywhere hope that maritime take how well discrete, comfort in the fact that no matter Generally, each work order is for guidelines, they one adhere to the tests job. contrary relatively Unless a short-term every end the exercise will out of two at the intent is reflected the master contract ap- have a different answer as to what law order, determining situs in the work plies, and whether the is enforce- this, courts should ordi- contract case such as able.”); Engerrand, Kenneth G. Primer of narily to the location where the work look Shelf, 4 Remedies on the Outer Continental performed pursuant specific work to be Mar. L.J. Loy. long con- than the term blanket order rather *10 tract. & Sons v. Oil 6. As we discussed in Davis Gulf 313, (5th Cir.1990), Corp., 919 F.2d 315-17
788 (and contract, looking respect the but rather at where with to the extent to that extent) analysis the accident occurred which the “tort” was used in Many situs, claim.7 gave disagree rise to the those cases to determine we believe, cases, ultimately portion opin- of reach and overrule that of those those reasons, the correct result for other and ions.8 not, straightforward Judge
7.
dissent
that ”[s]ince
Garza's
stated
the federal court is
then,
agrees
position and
applying
with Seacor's
relies
the law of another
the
forum in
explained
sense,
We
this line of cases.
have
above
ordinary
princi-
usual
conflict of law
why we decline to follow these cases.
102-03,
ples have no relevance.” Id. at
92
adopts position
Judge
that
(emphasis
original).
Owen's dissent
S.Ct. 349
parties
experiencеd
neither of the
nor their
Corp.,
In
Co. v. Mobil Oil
Gulf Offshore
admiralty attorneys argued
473,
2870,
to the district
U.S.
101 S.Ct.
phasis Contractor agrees [Grand to de- may Isle] State law to this dis- fend, indemnify, release compa- pute and hold in one оf ways: two either ex proprio ny’s [e.g., [BP] other contractors vigore surrogate Seacor] or as federal law under provi- harmless accordance with the provision. OCSLA’s choice-of-law Louisi- (to sions of this Article 14 the extent ana law does not dispute this ex such other in- proprio Contractors execute cross vigore because Neil’s oc- demnification provisions substantially geographical offshore, curred eleven miles similar to those beyond contained this section well Louisiana’s territorial waters. 14.07) claims, 1301(b) against from and §§ all liabili- See (defining 43 U.S.C. coastal ties, damages, expenses (including bordering “boundaries” of a state the Gulf attorney’s without limitation fees and than Mexico as no farther three marine inju- miles) The location with Grand Isle. into the (3.45 geographical leagues in our deter- Gulf). critically important ry thus is applies to law If Louisiana whether, under incor- mination it is all, only because it is dispute at 1333(a)(2)(A), may be substi- surrogate porated govern federal law surrogate tuted as 1333(a)(2)(A). dispute. re- OCSLA’s matter, since the indemni- In instant have a geographical dispute that a quires *14 geograph- a provide does not ty agreement law for state in order OCS nexus with the 1333(a)(2)(A) OCS, § with the law. ical nexus surrogate federal as to be to the apply law used to state of an cannot be involves breach dispute here a “injury” occurred on ves- Neil’s dispute. incorporated within indemnity provision not con- high was sailing the seas that alleges sel Isle neither Grand the MMCSC. touching plat- a any way in nected or support of evidence presents nor to the any other situs attached that the form or summary judgment motion for nexus to confected, executed, any geographical OCS. written, Without MMCSC OCS, language of plain the although the And on the OCS. breached or 1333(a)(2)(A) of application our prevents § by Grand done work governs the MMCSC law, to federal (which surrogate as Louisiana pro- could platforms Isle on BP’s dispute. adjudication of the OCS), govern the dispute the the vide a nexus to on the work implicates this case nеither IV. other has connection
the
nor
platforms
fact
Accordingly,
mere
to the OCS.
as well as our
precedent,
Court
Supreme
within
involves a
dispute
that
that
confirms
jurisprudence,
own OCSLA
the OCS
implicate
not
the MMCSC does
in determin
pertinent inquiry
situs is
apply.
would
that OCSLA
such
governs
particular
a
ing
state law
whether
case,
early
Ro
important
An
dispute.
geo-
has no
contract itself
Because the
Co.,
Surety
Casualty &
OCS,
drigue
Aetna
look to
with
graphical nexus
352,
1835,
The Supreme
specifically rejected
Court
Nowhere in PLT did the court
a
discuss
the
argument
via
Rather,
“focus-of-the-contract” test.
in each that
and concluded
part PLT test
“con-
whether
first determined
court
under
given effect
law would be
Louisiana
a controver-
dispute namely,
troversy” in
—
1333(a)(2)(A)
injuries
oc-
nexus
because
a
contract —had
sy
the service
over
example,
For
that statutori-
on the OCS.
areas
curred
geographical
with the
F.2d
Drilling Corp.,
make
deter-
To
Penrod
ly comprise
OCS.
Smith
contract,
(5th Cir.1992),
mination,
examined
the court
fabri-
design,
employee
was to
work-
“PLT
a Penrod
which
under
was sustained
sys-
cate,
gas transportation
install
affixed to the
platform
an offshore
ing on
UTP,
owned
standing
from
on the
tem
employee
OCS.
coast.
off the
partners”
its
fencing
leaning on horizontal
platform,
gas
Because construction
to reach
in order
platform,
around
work for
line was
gathering
system
barge. adjacent
equipment
payment,
to tender
PLT failed
fell. The
worker
collapsed
fencing
loca-
inquiry on the
centered
situs
court
dis-
court determined
line.
gathering
tion
OCS, noting that
pute occurred
exactly fits
line
gathering
“the
found
is-
‘artificial
constitute
“[d]rilling platforms
de-
an ‘other
statutory definition of
1333(a)(1).” Id. at
under section
lands’
at-
temporarily
permanently
vice[ ]
“controversy” had
459. Because
... erected thereon
to the seabed
tached
1333(a)(2)(A)
OCS, §
re-
nexus with the
developing,
pro-
*16
or
...
purpose
for
surrogate
law as
application of state
quired
”
Id. at
therefrom.’
resources
ducing
indemnity dispute.
law over the
1333(a)(1)).
§
U.S.C.
(quoting
1047
43
Texas Pe
Similarly, in Hollier Union
loca-
Moreover,
“[t]he
found that
the court
(5th Cir.1992),
A number of at 1527. The Id. of the accident.” three- location indemnity disputes followed the ing court found Hollier “established when injury involved an sustained while in con- injured an worker is in contact with both a tact personnel with a basket on an OCS boat, platform and a the first factor of the platform Dennis court concluded thаt —the PLT test is satisfied.” Id. Because Hod- there an was OCSLA situs because the gen “in contact” with the via worker had “both physical and contractual swing rope when he inju- sustained his connection with platform.” Id. In ry deck, on the vessel’s so, the court found an doing the Dennis court unnecessarily present. Therefore, OCSLA situs Id. muddied the clear connection between “[ajssuming that properly physical Hollier states injury and in our situs the rule for the requirement situs in con- jurisprudence.
tractual namely, that the location cases”— Admittedly, as the Dennis court ac- of the accident correct situs to ana- knowledged, there is an alternative line of 1333(a)(2)(A) lyze purposes —OCSLA emerged cases that from application PLTs choice of law determined that Louisiana of a “substantial analysis work” to deter- govern law would indemnity dispute as mine the situs for OCSLA choice-of-law surrogate federal law injury because the purposes. For example, Wagner v. a geographical had nexus with the OCS. McDermott involved a worker who alleged- ly injuries suffered slipped when he vein,
In this same Dennis v. Bud’s Boat fell on the deck of a residential barge Rental, Inc., (E.D.La. F.Supp. to, adjacent but not part connected to or a 1997), of, concerned an dispute a platform. F.Supp. at 1552. This injuries over to a worker transferred via precipitated indemnity dispute personnel basket from a high vessel on the between the barge owner and several seas to a vessel moored to a plat work third-party defendants. The McDermott form. “[T]he accident occurred on the court first analysis considered situs *17 deck of a plaintiff Hollier, vessel as was in the act under a case that directly was vessel, of transferring to another but while analogous to the facts of indemnity the plaintiff was in physical contact with a dispute before it. Applying Hollier’s situs personnel basket to a analysis, attached crane on the court that the inquiry noted platform.” the Id. 950. Undertaking at a was “defined plaintiffs where the acci- PLT analysis pursuant to this court’s deci dent occurrеd” and acknowledged that un- Hodgen, sion in court geo standard, the found a der this ‘controversy’ “the did graphical nexus with the place the not take on an OCSLA situs.” Id. at platform because the personnel worker’s Accordingly, state law would not basket was attached to a 1333(a)(2)(A). crane affixed to apply § under platform. the Id. conclusion, Notwithstanding this The district court properly could have McDermott court purported then inquiry ended its situs there. It did not. the three factors of PLT test to arrive Instead, it noted “a trend to find OCSLA at a different It focused on outcome. situs where ‘the required by work the con- PLT court’s discussion of the “substantial performed tract was on an plat- offshore inquiry: work” situs require- situs “[T]he form’ if even situs is strictly, physically not ment could [also] be met when ‘the loca- McDermott, met.” (quoting Wagner Id. tions where the pursuant substantial work (W.D.La.1994)). F.Supp. to the contract was done were covered ” Based on this notably inapplica- Ignoring sitases.’ Id. that PLT dis- “trend” — it, ble to the facts of case before cussed inquiry work” in “substantial The “focus-of-the-con- Op. at 781. cuit.” dispute contract aof context service us to look work, require tract” test would not pipeline for subsea payment over that a contemplates contract indem- where injury for which an about dispute performed. to be majority of the work is contrary to sought nification was —and on holding majority Id. The bases Congress that admonishment Tállenürés inquiry, situs ex- PLTs breach-of-contract by the determined to be for situs meant work was the substantial amining “where by the controversy and not of the locale Therefore, according at 787. done.” Id. court district employee of the status —the indemnity “a majority, contractual inquiry dis- work” “substantial found the (or dispute) contractual any other claim determined court The district positive. majority if a an OCSLA situs arises on indemnity dispute was the situs under the called for con- performance by required OCS, the work “as stationary plat- performed tract to be is on an offshore contract situses enumerated other OCSLA forms or the district Consequently, Id. platform.” 1333(a)(2)(A).” § in 43 as sur- U.S.C. fоund Louisiana majority distinguishes Significantly, dis- law to rogate federal inquiry situs from the OCSLA this test pute.2 cases, simply look which would tort inquiry situs lines of OCSLA These two to determine the tort occurred where PLT emerging from indemnity disputes 1333(a)(2)(A) application of requires other. with each clearly in conflict are Id. at 781. state law. admittedly muddled jurisprudence resolution. Unfortu- in need of clear However, distinction between there is no by the proposed resolution now nately, the tort and OCSLA’s statutory re- follow the majority does states majority “[o]ur provision. 1333(a)(2)(A). quirements of distinguish requires ... us case law indemnity claim and a contractual
between
V.
But
Id. at 786.
underlying incident.”
Tallentire,
Rodrigue,
rule
nowhere
majority
Today,
proposes
new
does case law
jurisprudence
our
OCSLA
what it believes
to evaluate
consider the
demand
support or
is,
dispute. Under
in a contractual
situs
claim to be some-
situs of
rule,
*18
test
“the focus-of-the-contract
the
in-
than where
thing
in
determin-
other
appropriate
the
test
occurred,
justifica-
and
is no
there
controversy in contract
cident
of the
the situs
ing
Section
doing
so now.3
cir-
tion
cases,
rule for
that
the
adopt
and we
underly-
the
adopted the location of
solely
this court
this decision
2. This court affirmed
its
ing injury
the
situs
as
relevant
analysis whether maritime
of
its
1333(a)(2)(A)
v.
inquiry. Sumrall
Ensco
§
inquiry. See
respect to the situs
and not with
Cir.2002),
Co.,
(5th
Inc.,
20,
291 F.3d
McDermott,
Wagner
79 F.3d
v.
Offshore
cited
sweeping
majority
support its
Cir.1996)
judge’s
(5th
(adopting the district
jurisprudence, is not
about our OCSLA
claim
in
"holding that the contract is non-maritime
bearing on
case.
It
no
has
OCSLA
deciding
"assumfing] without
and
nature”
law to
extends state
to which OCSLA
extent
applies”).
OCSLA
[]
that
contract,
sounding
versus
and
in tort
actions
indeed,
implicate
all.
does not
case
Notably,
about “our
this statement
case's
that an
indemni-
noted
earlier
in
Sumrall
requiring a
distinction
tort-contract
law”
nature,”
in
dispute was “contractual
provision
fication
applying OCSLA's
Hollier,
underly-
distinguishing
from the
thereby
that
of
lengthy
discussion
after
comes
bar,
injury dispute at
which sounded
Smith,
ing
Hodgen,
cases which
1333(a)(2)(A)’s language plainly does not
platform
decedents wеre
workers.
Id. at
inquiry
invite an
into a contract’s “focus”
curs on the OCS. The majority takes extension OCSLA far beyond its pains to distinguish controlling Supreme intended locale to the accident in this precedent Court OCSLA in Rodrigue and simply case cannot be reconciled with Tallentire on the grounds that these were either the narrowly circumscribed area disputes tort rather than contractual dis- defined the statute or statutory putes, and therefore the situs of the tort prescription that the Act not be con- determined the However, OCSLA situs. strued to high seas which cov- affect nothing in either case calls for the distinc- er the Continental .... Shelf tion between tort and contract The character of the decedents as majority presently proffers. Rather, platform workers who special have a always focus has been on the situs of the relationship with the shore community controversy. simply special has no relevance to the resolution above, question
As
Rodrigue
applica-
discussed
concerned
tion
two
consolidated
OCSLA to this case.
wrongful death actions on
stationary platforms
attached
the OCS.
218-19,
Id. at
106 S.Ct.
(emphases
Since
platforms
these
were
clearly
situses
added).
delineated
part
of the OCS under
Supreme
Court
pinpointed
1333(a)(2)(A)(“artificial
§
islands and fixed
1333(a)(2)(A)’s
§
delineated geographical
thereon”),
structures erected
Supreme
area —“that portion of the subsoil and
Court
“injuries”
found that
occurred
Shelf,
seabed of the outer Continental
Rodrigue
OCS.
v. Aetna Cas. & artificial
islands
fixed structures erect-
Co.,
352, 360,
Sur.
395 U.S.
ed thereon” —to determine
nexus
U.S.C. by the under contract which the workers Tallentire, Notably, the Supreme were employed, in determining the actual Court rejected the argument that Instead, “situs” of the dispute. the Su- 1333(a)(2)(A) § required application of preme Court found OCSLA’s choice-of-law state law to the cause of action because provision the inapplicable because the location However, tort. Id. at 319. this distinction interpretation cerned an the of breadth of an support does not majority's present deci- indemnity impute and did not clause OCSLA's parse sion to out disputes tort and contract provision choice-of-law way. 1333(a)(2)(A) purposes. Sumrall con- PLT re- prong of the first Significantly, geographic no had injury simply the con- of where quires determination a the OCS. nexus with arose, is done. the work troversy not where pro- today nevertheless majority The situs— there is no OCSLA If that we find test a motes “focus-of-the-contract” controversy is, no nexus between status-based the same employs regrettably at PLT inquiry ends the OCS—our specifi- Tallentire analysis step one. which order on rejected. The work cally has no have us “focus” majority would required differ- PLT itself The facts injury pre- whatsoever connection present case from our inquiry ent was dispute. instant Neil cipitating contract. a service PLT involved because In injury. time of his not at work at case; no under- not an PLT was contem- a work order evaluating where Rather, as was involved. lying injury the work will be majority of plates it, pure was “a PLT majority describes majority relying is on performed, the invoices for unpaid to collect case under performing the workers status and to pipeline of a subsea the installment the OCSLA to determine that work order pipeline statutory lien impose a on support finds no analysis situs. Such at 785. Op. law.” under Louisiana 1333(a)(2)(A)’s situs Tallentire. Section analysis was PLT choice-of-law court’s location-based, trig- and if the inquiry is on by where the work necessarily informed OCS, off of the Tal- occurs gering incident because line was the subsea requires that our OCSLA choice-of- lentire the central that work payment for was there.4 In instant end inquiry com- logically other location dispute. No matter, incident occurred the triggering “controversy” over situs of the prises the IV, was HORSE the SEA board construc- pipeline payment breach of to, touching, Neil’s residen- close but not tion. disputes. party neither platform, tial fact physical nexus “injury” has no This situs be- those facts simply do not have We OCS; therefore, choice- OCSLA’s with the matter. in the instant fore us apply. does not of-law worker duty off as Neil was ferried to injured being while when he VI. location platform. The his residential he was on injury dispute: not in his as applies whether LOIA issue of Therefore, HORSE IV. the SEA board clear under OCSLA surrogate federal law the where no further than PLT, look we need decision ly implicates court’s this time of at the HORSE IV was the SEA controlling which sets forth Circuit’s inquiry. situs complete our Neil’s three-prong test. that this vessel do not contest above, parties inquiry the relevant As discussed in contact and not high seas PLTs was on appeal of this purposes for the Consequently, situs. an OCSLA controversy with or whether prong, “[t]he first 1333(a)(2)(A) permit does not by OCS ... on a situs covered arisefs] Petroleum, law, govern surrogate federal Corp. v. PLT LA.” Union Tex. Cir.1990). (5th dispute. of this adjudication Eng’g, 895 F.2d *20 force; 3) whether state applies of its own and majority proper agree the 4. We with PLT, analysis requires an in- law. See OCSLA choice-of-law conflicts with federal law 1) quiry areas: the situs into three F.2d at 1047. 2) law controversy; whether federal maritime Moreover, majority’s holding the im- whether a contract dispute occurs on an collapses step inquiry one properly PLTs OCS situs. An evaluation of where a con- (situs) (whether step into two federal mari- tract contemplates will performed work force) applies time law of its own to form a nеcessitates an analysis of specific work singular test based solely orders, on the “focus” of crew assignments, and whether dispute. the can properly We consider assignments these relate to the mission of “nature” MMCSC our the vessel on which the occurred. 1333(a)(2)(A) inquiry, Indeed, but in determining whether Neil’s in- two, step of PLT analysis to determine jury situs, occurred on an OCS the district whether federal governs. maritime law very relied on these factors: accident, At the time of the Davis & Sons v. Neil’s work Corp., Oil Gulf (5th day was complete, Cir.1990), 315-17 and he F.2d was elucidates proceeding to living quarters plat- proper determining test a whether work, form. Neil’s non-maritime, is maritime consisted a mainly repairs pertinent inquiry grating prong to the second repairs, performed was on platforms, the PLT test: whether federal maritime not vessels. relationship Neil’s sole applies to the contract of own force. the vessel “[wjhether was Notably, passenger; as he Davis states that did not contribute to the agreement orders, mission of the blanket and work read ves- any Further, sel in manner. together, do or do not constitute a mari- work tickets from April 7,May time contract 2005 to depends, does the charac- demonstrate that contract, performed terization of work other pursuant to the contract, performed nature and MMCSC was character of the rath- platforms, not on vessels. place er than on its per- of execution or (internal formance.” Id. at 316 quotation Shipyard, Grand Isle Inc. v. Seacor Ma omitted). marks citation To deter- rine, LLC, 06-1405, No. 2007 WL the “nature mine and character of the *3, at 2007 U.S. LEXIS Dist. at *9 contract,” analyzed Davis six factors: (E.D.La. 26, 2007). Sept. 1) [Wjhat does the specific work order Thus, to determine whether “substantial in effect at the injury provide? time of work” under the performed MMCSC was 2) [Wjhat work did the crew assigned situses, on OCS the district court looked to 3) under the work actually order do? specific work orders in effect at the time of [Wjas assigned the crew to work aboard injury, Neil’s the work Neil assigned was 4) [Tjo in navigable waters; vessel do, the extent Nеil’s work related to the what extent did the being work done IV, mission of the SEA HORSE Neil’s 5) relate the mission vessel? (if work, principal any) what work Neil [Wjhat was the principal work of the doing was at the time of the accident. 6) [Wjhat injured worker? and work is, That employed district court injured actually was doing worker inquiry, Davis to determine not whether injury? the time of maritime applies of its own contract, force to a but rather to come to These factors entail an inquiry into the conclusion that injured Neil was on the majority where of a contract’s work OCS situs. The majority adopts now essence, a “focus-of- district misplaced court’s Naws-factor —in inquiry, very the-contract” test analysis OCSLA situs and “agree[sj with majority proposes now to determine the district court that the dis- *21 the work It cannot overstated be situs on an OCSLA arose in this
pute case in- in the by the majority, contemplated MMCSC uncontested it is because factually legally and irrele- is the matter for under stant called all, work of the not inci- indemnity provision; the vant to was to [MMCSC] contract illness) death, triggers or Op. (injury, dent the OCS.” on stationary platforms is, there is no That indemnity provision. this conclu- majority reaches at 789. “focus of the where the analyze to injury that need that the notwithstanding sion i.e., the con- “where place, action is contract” takes the indemnification the basis of the work of most being per- contemplates tract any work wholly unrelated a discrete inci- when performed,” bewill under MMCSC. formed underlying injury precipitates dent —the — “nature and However, if we examine the simply The “work” indemnity dispute. an PLT at both the contract” of character a determination has no connection (whether (situs) step two one step arises on indemnity dispute whether then we applies), maritime trig- “work” did not the OCS because in- the two between the distinction erase factually and dispute. What ger the statute by both the required quiries indemnity provision legally relevant Indeed, any nor neither Davis PLT. covered “injury” employee to an is the de- controlling precedent our injury triggers This under the MMCSC. analysis mands “focus-of-the-сontract” Therefore, if the dispute. 1333(a)(2)(A)’s inquiry. Given situs af- occur on structure injury did not is at best that, majority’s new test situs, OCS, OCS there is no fixed to redundant, at irrelevant. worst In apply. law does not and Louisiana collapse these care not to must We take case, could provision Hodgen, In inquiry. distinct prongs two or ill- injury, death anywhere because to “short-circuit” this court declined hap- It so anywhere. ness could occur dis- solely analyzing the by inquiry situs away incident occurred pened that determining whether pute’s “focus” any recognized OCS situs. from applied. provision OCSLA’s choice-of-law F.3d Corp., 87 Hodgen v. Forest Oil VII. Cir.1996) (5th rejecting (specifically majority’s “focus-of-the-contract” inquiry rele- that “the only the assertion contract con- test, to where the arising “look[ing] of law matters vant to the choice will be of the work templates that most on the Out- activities out of oil exploration inter- disregards performed,” Tallentire’s was the status er Continental Shelf 1333(a)(2)(A), classi- non-maritime,” pretation §of re- contract as maritime locale,” “principally fies situs Domingue v. Ocean ferring reasoning the con- the work under “character” Co., F.2d 393 Drilling Exploration & Tallentire, 477 Logistics v. (5th Cir.1991)). Instead, tract. held that Hodgen Offshore 207, 219, 91 L.Ed.2d deciding whether U.S. test proper “[t]he purports provide test the rule of decision in provides stability” determin- three-part “predictability remains the an OCSLA case ing how As both OCSLA’s at 1526. PLT test.” However, demand, indemnity contracts. applies to 1333(a)(2)(A) test and the PLT predictability creates proposed test inquiry and the separate this court must “controversy” with only by equating indepen- evaluate situs and status work,” though the even “majority of dently. *22 all, work under the contract does when the “work” does not inform an the of an indemnity inform situs dis- indemnity dispute triggered by a discrete (the pute. Tautologically, by assuming the act underlying injury). At very the “majority least, of the work” is the definitive looking to the location of injury the situs test for choice of law in a contract for determining OCSLA situs in indemnity dispute, the “choice of law” is disputes determined is more precise given that an test, by by rather than thе statute. is a discrete event occurring in a specific location, and is the contractually Additionally, majority pro- fails to anticipated event that triggers application guidance application vide of its “focus- of the indemnity provision in first of-the-eontraet” test to future cases with place. importantly, More this is also the factual Apparently different situations. situs test by articulated Supreme (among “contract” the many contracts Court in Rodrigue and Tallentire. in dispute) involved this that we are meant analyzing to be ais work order rather than majority The fails to acknowledge itself, opinion MMCSC as the indicates when a arises dispute under the indemnity (“Unless in a footnote a contrary intent provision, (or the underlying “injury” illness) reflected the master contract and the death or longer is no merely a tort. order, determining work in a con- The situs “injury” becomes a contractual event this, tract case such as courts should ordi- as the act pursuant to which a contractor narily to look the location may where the work seek indemnification. The work con- is to performed pursuant to specific templated by the MMCSC in the instant work order rather than long term matter factually legally to irrelevant 6). blanket contract.” Id. at 787 n. But the indemnity Indeed, dispute. if the ma- opinion fails to address potential jority correctly applied truly their test and in this test’s challenges application. With- examined the “focus-of-the-contract” at is- specifics, out any sue, what comes off as a they would focus on precise pages test on the reporter our agreement, not a work order.
is, fact, an amorphous term for lower majority’s attempt to harmonize our litigants grapple courts and in fu- with OCSLA jurisprudence predictable with a order(s) ture cases. Whose work are we new accomplishes rule neither harmony Seacor’s, analyzing: party as the seeking nor predictability, and at comes the ex- indemnity, Isle’s, or Grand employ- pense of a proper interpretation injured er of the party? 1333(a)(2)(A)’s requirement. situs
Moreover, by “majori- what do we mean it, statute how outlines we are to ty”? Majority of hours worked? The ma- we would be remiss read more into it jority proportion of work designated than that.
the contract? Should we factor I Accordingly, dissent. number of employees involved make our determination? “majority” OWEN, Is the Judge, dissenting: Circuit prospective work retrospective in appli- Our court has considered this en case cation, or some combination thereof? banc in an bring effort to some least majority proffers this “majority uniformity predictability the law the work” standard without sufficient sub- regarding applicability Circuit stantiation how it is to be applied, let the Outer Continental Shelf Act Lands why (OCSLA)1 alone looking we are to be to work at to contractual provi- §§ et seq. 1. 43 U.S.C. *23 if law under OCSLA as federal be responsible a laudable and
sions. That law the federal a between in our there is conflict the confusion given undertaking, have parties respectfully I law. Because area. and state in this jurisprudence pertain that to the court the issues however, the test addressed submit, that broadly. Nor remand to analysis, too I would today sweeps such an adopts proceedings. test find further “majority-of-the-work” district does of OCS- provisions express in the support law, or federal
LA, applied as state law I law. federal common case are somewhat facts in this question: presents difficult This case are several contracts complicated because indemnity provision an law governs what involved, is seeking and Seacor that act omission or in a contract when to pursuant Isle from Grand tort claim oc- rise gave and BP Grand Isle a contract between on the Outer navigable water curred on Company. Seacor American Production (OCS), indemni- Shelf but Continental but is an that contract party not a in a contract obligation is contained ty beneficiary. third-party express be for work to primarily calls indemnify BP to agreed Isle with Grand OCS, al- stationary platforms on on contractors, such as of BP’s othеr each activities on contemplates though it also Seacor, by Grand Isle from made claims from It is not clear waters? navigable seeking indem- contractor employees me, Congress OCSLA, law at least to what BP with agreement nity had executed obligations govern contractual intended to to Grand extending reciprocal indemnity A number of circumstances. under these be- agreement service Isle. The master made, consid- can be as will be arguments BP, Isle and tween Grand below, tack to regarding the correct ered found, pro- at issue is indemnity provision take. third-party are that BP contractors vides today a choice- has fashioned The court indemnity agreement. beneficiaries on where the that turns of-law mechanism indemnity provisions are contained Similar performed. majority the work is Contract with Vessel Charter Seacor’s principles agree I that choice-of-law While BP. regard to under OCSLA with apply must agreement contem- Isle body one more than contracts which BP/Grand per- employees Isle will plates Grand apply, I would might substantive in the Gulf platforms work on fixed choice-of-law form common either Mexico, expressly provides it also but code Louisiana’s choice-of-law principles or transportation for Grand BP furnish will Supreme asked provisions. Court plat- the shore to employees from Isle questions in left unanswered Gulf Offshore Ac- and board forms3 and room offshore.4 as to whether Corp.2 v. Mobil Oil Co. ac- Isle contract cordingly, the law should law or state’s federal common BP/Grand 487-88, heliport designated shorebase [BP's] 2. 453 U.S. Work location.” the offshore L.Ed.2d 784 "Company shall provides: [BP] 4.Article 2.06 provides: otherwise 3. Article 2.04 "Unless Work at the provide room and board offshore writing, shall fur- agreed Company [BP] per- nish, [Grand Isle’s] transportation location for Contractor’s expense, cost and this Con- performing services under personnel, sonnel [Grand Isle’s] for Contractor's Company’s tract.” equipment, and materials between knowledges that activities undertaken in the-work tеst is the factor to be con- furtherance of the contract will occur both sidered if the contract is not a maritime navigable waters as well as on the contract and state law is not A platforms. offshore Grand Isle employ- inconsistent with federal law. injured ee was on Seacor’s vessel while in case, In the present the master service *24 transit between an platform offshore used agreement between BP and Grand Isle living quarters and the offshore plat- provides that
form on which he working. had been The performance whenever of this contract is employee Seacor, recovered from and Sea- in any way related to activity, maritime indemnity cor seeks from Grand Isle. general laws of maritime the United third-party While beneficiary indemnity govern States shall the validity, con- agreements may in every not obtain struction, interpretation, and effect of agreements even most pertaining to work contract, excluding any choice of the OCS, on platforms offshore it would law rules which would require otherwise many seem that OCS-related contracts will application of laws of any ju- other contemplate that activities undertaken in risdiction. furtherance of the contract will occur not Grand agreed Isle and BP that only on platforms, offshore but on or over navigable waters [i]n because the the event workers will maritime law is held to be necessarily have to inapplicable by traverse the OCS to a of competent ju- risdiction, reach platforms. offshore There are at the laws of the state of Okla- least two bodies of arguably (i) law that could homa apply, shall unless otherwise apply to provisions provided (ii) such con- in this applica- contract or general tracts: maritime law5or the law of tion of such to a particular provision law adjacent state applied as federal law. prevent would enforcement of pro- such It possible is also a that contract could call vision, in which case law for work on multiple platforms, some of provision to such shall any potentially be which are offshore one state and others applicable law that would allow enforce- offshore another. po- This increases the ment of said as written. tential sources of that might ap- law be majority-of-the-work The test means plied indemnity provisions. to The court’s that provisions choice-of-law ig- will be today decision reaches all such contracts. nored in a contract that covers activities in It is also single conceivable that a con- more than one area of the OCS as well as tract provide onshore, could for work in related high activities on the seas. For adjacent OCS, states that are not example, may a contract encompass work well as work on the OCS. The court’s platform on a offshore Louisiana and work decision appears reach to contracts in Texas, on platform another offshore a small of the percentage work parties may that specify Texas law will to occurs offshore. govern all issues. Applying the court’s test,
Another notable if majority, result court’s test majority, even slim gives is that it no effect to contractual Louisiana, the work is to be performed in provisions. choice-of-law majority-of- then govern Louisiana law will all aspects Tallentire, Logistics, 5. See Inc. v. perished ors of offshore who in a workers Offshore 207, 218-19, U.S. S.Ct. 91 L.Ed.2d helicopter being transported crash while from (1986) (holding admiralty jurisdic shore). platform an offshore properly tion was invoked in a suit surviv choice-of-law accepted generally though An law. as federal of the contract may differing law recognize principles occurred to a worker a contrac- may give rise of a contract.8 differing provisions Texas offshore indemnity, but tual claim selects test majority-of-the-work Lou- by substantive governed claim will be (excluding single of a state substantive (1) though even federal law law as isiana as bor- to serve principles) apply, would agreed Texas parties is- all cоntractual law for rowed (2) in an area offshore injury occurred sues. per- govern law will Texas Texas and the ma- (3) explain how court does not as federal injury claims sonal affect contrac- will applying Louisiana test jority-of-the-work courts to the Louisiana give property. effect Will *25 might not that tual relate claims LOLA)6 (or under Indemnity Act law re- Offshore and substantive rights contractual concern did not that facts similar attached to pipelines or garding structures area, rou- Outside OCS.7 one governed be on the the seabed OCS issues, such tine breach-of-contract or the structures though law even state’s occurred, whether a breach whether expanse a broad are found pipelines across dam- material, types of breach was adjacent to OCS, in areas some of the by Loui- available, governed would be ages Louisi- Texas, adjacent in to others areas though even as federal law siana law ana, Mississippi, or Alabama? Texas law would that agreed parties oc- work and substantial pres- of OCSLA application to the contract proper The Texas. offshore curred I but submit questions, ents difficult OCSLA, not in- enacting in did Congress, to appears test majority-of-the-work The well-recognized principles jettison tend even to obligations, contractual all apply to Seen from 9:2780(A). policies these states. of ferent § Ann. 6. La.Rev.Stat. having angle, factual each another may Inc., case Eunice, given a multi-state with See, contacts King Miller g., v. I.E. e. of regu- 11/21/07); strong in equally interest 07-167, have an not (La.App. 3 Cir. p. 6 case, only those but lating all issues in So.2d actually implicate policies in issues way. significant 8. See Restatement (Second) Laws of Conflict of sepa- is an ("Each issue-by-issue analysis is to receive issue so-called d This cmt. which be American integral it is one would all modern if feature rate consideration differently law rule methodologies local under and facilitates resolved potentially interested two more resolu- or individualized nuanced and a more states.”); art. see also One result problems. Ann. La. of conflicts Civ.Code tion d, provides: which cmt. might of dif- analysis be that the laws this different may applied to states be ferent analysis dépegage. (d) Issue-by-issue dispute. phenome- This in the same issues in first "issue” use of the term by its in conflicts literature is known non to fo- is intended of this Article paragraph Although dépeqage. infre- name French partic- choice-of-law-process on the cus the name, phe- this quently referred to actual there exists an as to which ular issue is now common occurrence nomenon a conflict exists When of laws. conflict official and has received United States issue, the court regard only one with Europe. does recognition This Article factual contacts focus should However, dépegage prohibit dépeqage. not issue. pertinent policies that are pursued its own sake. be not should regard more with exists a conflict When should unnecessary of the case splitting issue, be ana- issue should one each than avoided, especially when it results may be implicate each lyzed separately, since states. states, distorting policies of the involved may bring play dif- into different that determine what law govern par- will subsoil and seabed of the outer Conti- ticular contractual provisions. Shelf, Congress’s nental and artificial islands and goal enacting “provide OCSLA was to fixed thereon, structures erected which comprehensive and body familiar of law.”9 would be within the area of the State
its boundaries were extended seaward to
II
margin
outer
of the outer Continen-
,12
tal Shelf ...
starting point
in determining what
It
is this
of OCSLA that directs
requires
is the Act itself. Section
courts to
1333(a)(1)
apply federal law to the subsoil
provides that:
of,
and seabed
and artificial islands and
The Constitution and laws and civil and
on,
fixed
OCS,
structures
but to bor-
political jurisdiction of the United States
“applicable
row
and not inconsistent” state
are extended to the subsoil and seabed
law. OCSLA does
expressly
mention
of the outer Continental Shelf and to all
pertain
contracts that
to such artificiаl is-
islands,
artificial
and all installations and
lands and structures.
other
permanently
devices
or temporari-
ly
seabed,
may
attached
There are a
possible
number of
interpre-
*26
purpose
erected thereon for the
of ex-
tations of
applicability
OCSLA’s
to con-
for,
ploring
developing, or producing re-
tracts. The
question
first
that must be
therefrom,
any
sources
or
such installa-
answered is
Congress
whether
intended
(other
tion or other device
than a ship or
the extended geographic boundaries of ad-
vessel)
purpose
for the
of transporting
jacent states to
ap-
determine what law
resources,
such
to the same extent as if plies
contractual
touching
the outer Continental Shelf were an area
a structure within
particular
state’s ex-
jurisdiction
of exclusive Federal
boundaries,
located
tended
without
regard to
within a
....10
State
principles.
choice-of-law
Notably,
opinion
court’s
does not
geo-
conclude that
As the Supreme
stated,
Court has
“OCS-
graphic boundaries
are determinative.
LA declares the Outer Continental Shelf to
majority-of-the-work test,
Under the
a sin-
be an
jurisdic-
area of exclusive federal
gle state’s law will be selected even if the
tion.”11
provides
OCSLA further
that
contract pertains to
work more than one
the extent that they
applicable
[t]o
are
adjacent
state’s
area. The court has em-
and not inconsistent with this subchap-
ployed
test,
a but not one
ter or with other Federal laws and regu-
derived from “the normal choice-of-law
lations of the Secretary
now effect or
rules that the forum
apply.”13
would
adopted,
hereafter
the civil and criminal
adjacent State,
laws of each
However,
now ef-
geographic
boundary is
amended,
fect or
adopted,
hereafter
determinative,
or
remains,
then
question
repealed are declared to be the law of do courts look
geographic
location of
the United States for that portion of
gives
occurrence that
rise
Huson,
97, 103,
9. Chevron Oil Co. v.
404 U.S.
Corp.,
Co. v. Mobil Oil
Gulf Offshore
349,
473, 479,
(1971),
92 S.Ct.
U.S.
Court
observed that Louisiana law a contract.
In other areas
applied as federal law under
Supreme Court has recognized that differ-
personal injury
Indeed,
action.21
there
ent concepts apply in deciding what law
scant mention of the contractual
governs a contract as distinguished from a
indemnity provision.
Nor was
conten-
tort.23
example,
For
Supreme
Court
tion made in
that the indem-
Gulf Offshore
has said that
in determining whether a
nity provision was unenforceable under
contract
is a
contract,
maritime
“[t]he
Louisiana’s
Act,
Oilfield Indemnity
be- boundaries of admiralty jurisdiction over
cause the
in that case
occurred
opposed
contracts—-as
to torts or crimes—
1975, before the Louisiana law was enacted
being conceptual
spatial,
rather than
have
in 1981.22 The Supreme Court did not
always been difficult
to draw.”24 The
hold that courts are foreclosed from apply- Court explained, “To ascertain whether a
ing
adjacent
stаte’s
princi-
choice-of-law
one,
is a maritime
we cannot look
ples
adjacent
when the
state would consult
to whether a ship or other vessel was
its choice-of-law rules in deciding whether
involved in
dispute,
as we
would
a statutory provision should be applied to
putative maritime tort case.”25 “Nor can
render a
contractual
we simply look to the place of the con-
unenforceable.
tract’s formation or performance.”26 In
It
is unquestionably our obligation to
discussing the seminal decision of Kossick
Supreme
precedent
Court’s
Co.,27
United Fruit
said,
the Court
“It
That
faithfully.
does not mean that we
did not matter that
site of
the inade-
should unquestioningly assume that
quate
gave
treatment —which
rise to the
Court’s statements
in one context are
contract dispute
hospital
—was
binding precedent
other,
demonstrably
Rather,
land.”28
whether the contract was
different, contexts.
I respectfully submit
a maritime contract
turned on consider-
that we should not consider the Supreme
ations divorced from the location of the
Court’s conclusion that
prin-
treatment
that the
promised
shipowner
ciples
not apply
do
to tort actions as a provide to
injured
seaman.29
binding
determination
resort cannot
*28
be had to
principles
choice-of-law
in order
It would seem that some choice-of-law
to determine what substantive
governs
law
rules must
applied
be
to determine wheth-
481,
21.
Id. at
101 S.Ct.
Supreme
2870. Ry.
14, 23,
23.
Kirby,
S.
Co. v.
543 U.S.
Norfolk
subsequently
Court
Logis-
noted
385,
(2004).
125 S.Ct.
160
Offshore
L.Ed.2d 283
tics,
Tallentire,
207, 219,
Inc. v.
477 U.S.
106
2485,
(1986),
S.Ct.
32. Liepelt, Ry. Co. v. (citing & W. No
33. rfolk 755, 498, 490, 62 L.Ed.2d S.Ct. 100 U.S. 444 (1980)). 689
809 with a federal general- common-law rule regard law, With to Louisiana at least ly applicable to damages federal actions? one relatively recent appel- intermediate late court decision indicates that Louisiana question
We need answer this if only courts would first consult Louisiana law would not require that the choice-of-law Louisiana provisions code be- instruction given upon timely re- deciding fore if Louisiana’s Oilfield Indem- quest.37 nity Act eviscerates contractual indemni- It would necessary therefore seem ty agreement. In King v. I.E. Miller of determine there is federal common law Eunice, Inc., Wolf, Grey a corporation generally applicable to what determine law Texas, domiciled Miller, and I.E. a cor- so, governs contracts. If is that law incon- poration Louisiana, domiciled in entered sistent with Louisiana and if there ais into a agreement master service that con- conflict, does federal common displace reciprocal tained indemnity provisions and Louisiana law an In case? provided that Texas law apply would regard, I note that circuit have courts arising issue under the contract.40 concluded that a federal common law agreement contemplated work in four analysis choice-of-law should be conducted states, including Texas and Louisiana.41 A when the issue is a federal question,38 verbal work order was issued Grey that in the absence guidance of from Con- Wolf for work to be in Louisi- gress, courts have upon relied the Restate- ana, emplоyee, and its a Louisiana resi- (Second) ment of Conflicts of the Law dent, injured in the course of that of content federal common law.39 work42 due to I.E. Miller’s negligence.43 case, In present Louisiana is un- (I.E. corporation Miller) questionably adjacent state. But sought indemnity from corpora- the Texas Wolf). other patterns, fact determining “adja- (Grey tion The Louisiana court purposes cent deciding state” what held that applied Texas law refused governs a contractual provision pres- void the agreement under Loui- many ents of the same conundrums faced siana’s Indemnity Oilfield In reach- Act.44 attempting when to apply decision, geographic ing that the Louisiana court first boundaries. provisions contained 487-88, 37. Id. at 101 approach S.Ct. 2870. outlined in the Restatement (Second) Laws.”); Soc'y Conflict of Chan v. 1168, Unisys 38. Corp., See Gluck v. 960 F.2d Inc., Expeditions, (9th 123 F.3d 1297 (3d 1992); 1179 n. 8 Cir. v. Edelmann Chase 1997) ("Federal Cir. common law applies to Bank, N.A., Manhattan 861 F.2d 1294- choice-of-law determinations in based cases (1st Cir.1988); Corporación 95 de Venezolana admiralty on ... .... Federal common law Corp., Fomento v. Vintero Sales F.2d approach (Sec follows the of the Restatement (2d Cir.1980) ("This question ais ond) Laws.”). Conflicts appropriate case ... and it is that we federal common law choice of law rule 07-167, 11/21/07); p. (La.App. 3 Cir. ...."). So.2d Brasil, Lilly 39. See Eli Do Ltda. Fed. Ex- *30 41. Id. at 706. (2d press Corp., Cir.2007) 502 F.3d 81 ("[W]hen conducting a federal law common 42. Id. analysis, guidance choice-of-law absent from Congress, may consult the Restatement (Second) 43. Id. at 704. Laws.”); Huynh of Conflict of Bank, Chase Manhattan 465 F.3d 997 (9th Cir.2006) ("Federal common law follows 44. Id. at 707. subjected if consequences 3540,45 adverse minimal articles Code
in LouisiaNA Civil “Texas’ (b) law”52 and because that state’s article to to 3537,463515,47 comment and are (51.78%) contracts upholding of policy of half more than Slightly 3515.48 into far out- voluntarily entered freely and agree- master service the the work under oil- protecting policy of weighs Louisiana’s Texas, approxi- in performed ment was court also Louisiana, field subcontractors.”53 performed mately 30% was сoncerns, parochial candidly expressed its 17% approximately and indem- oilfield Louisiana’s explaining that Louisiana,49 although the and both Texas designed protect law was weight nity much give “not did court appellate subcontractors, in this and if enforced The court conclud- to this information.”50 a Louisiana case, prohibit would the is law relationship of Louisiana “that the ed obtaining from corporation from the relation- than party stronger to each court held that corporation.54 the a Texas party,”51 but to each ship of Texas the apply under law would Texas par- the because law because Texas applied as well as subject- parties’ to be expect justifiably “would ties the trial provision, of that in the absence suffer and would of Texas to the law ed applied to not impaired its law were ly if of other issues provision states: “All 45. That issue. by the that obligations governed are conventional evaluating by the upon by is determined That state clearly relied expressly chosen or law poli- relevant strength pertinence the and of law con- except the extent that parties, the (1) light of: states the cies of involved whose all policy of the state public the travenes parties to the relationship of each state the applicable under Arti- be law would otherwise (2) policies and dispute; and the and the cle 3537.” international of the interstate and needs upholding provides: including policies of systems, the Article 3537 46. parties and justified expectations of of the Title, provided in this Except as otherwise consequences that minimizing the adverse obligations gov- is conventional an issue of subjecting party to might the from follow policies by of the state whose law erned the than one state. law of more seriously its impaired if would be most applied to that issue. were not (b) provides: to Article 48. Comment evaluating determined That is identify poli- objective "the state whose pertinence of relevant strength and (1) seriously impaired if light policies of: be most in the would the involved states cies of [particular] state to not pertinent contacts of each were which, transaction, issue”, is, light including of its the state parties and formation, dispute per- relationship parties and and negotiation, place of contract, pertinent by policies rendered the location and its formance of contract, most serious place relationship, of would bear the object and social, economic, residence, domicile, other conse- legal, or business of and habitual nature, (2) pur- applied to that 1ype, quences its law were parties; contract; (3) policies issue. pose of the as the as well to in Article referred King, So.2d at 706. 49. orderly planning facilitating the policies of transactions, promoting multistate 2. Id. at n. 50. intercourse, protecting commercial by the imposition party from undue one 51. Id. at 706. other. provides: 47. Article 3515 52. Id. at 706-07 Book, provided in this Except as otherwise Id. at 707. with having a case contacts an issue in governed the law of other states policies would most serious- state whose *31 in voiding court erred indemni- governs mutual law provisions at issue. ty provision.55
This court has applied Louisiana’s IV provisions choice-of-law code as the initial majority-of-the-work court’s test is in step determining whether the Louisiana relatively easy provides and Indemnity Oilfield Act applied to render measure of predictability. These are com- indemnity provisions unenforceable at is- However, mendable attributes. the court’s opinion implicitly diversity sue in crafts a new case in federal com- injury- which the mon law choice-of-law rule to what decide had occurred Louisiana state waters.56 govern will a contract that has some lengthy analysis After a of the factors set connection with structures on or attached forth in Louisiana’s civil code provisions seabed OCS with the law, regarding choice of we concluded that seabed itself. Supreme Court has govern Louisiana law would the absence “Congress admonished that made clear and provision,57 provision filling in the ‘gaps’ in federal application of Texas law under the choice- law” that OCSLA, to be under of-law would violate Louisiana and that Congress “did not intend public policy expressed in the Oilfield federal fill courts ‘gaps’ those them- Indemnity consequently We re- selves creating new federal common Act.58 fused enforce the indemnity are to apply We the adjacent law.”60 provision.59 state’s law as federal to the extent law,61 existing precedent Because our does not it is not inconsistent with federal principles consider choice-of-law in a case I “majority-of-the-work” know of no law.62 in which may apply, parties test under federal even if federal com- questions have briefed the not that arise. mon law that is inconsistent with Louisiana I would remand to parties allow the state precedence law takes under OCS- the district court to consider further what LA.63 Id. needed.”); 55. body of state law was id. at 104 ("[T]he Appeals’ approach Court of [applying Energy 56. See Roberts v. Corp., Dev. 235 F.3d through admiralty laches doctrine law] (5th Cir.2000). inappropriate amounts creation of fed- law.”); eral ("Congress common spe- id. cf. 57. Id. at 943. cifically rejected uniformity spe- national cifically provided application for the of federal, 58. state, remedies which demand not limitation.”). statutes of Id. at 944.
59.
Co. v. Mobil
Corp.,
Oil
Huson,
97,
Gulf
60. Chevron Oil Co. v.
Offshore
404 U.S.
473, 487,
2870,
U.S.
101 S.Ct.
sfc ^ reasons, respectfully I foregoing
For the
dissent. LABOR RELATIONS
NATIONAL Petitioner,
BOARD, AD& SPECIAL PRINTING
SEAPORT INC., doing as Port
TIES, business Respon Specialties,
Printing Ad
dent.
No. 09-60088. Appeals, States Court of
United
Fifth Circuit.
Dec. goal.”). mity’ paramount as a law and remedy provided rowed rejected unifor- thereby 'specifically national
