This matter is on remand from the Louisiana Supreme Court.
Defendants/Appellants, Entergy Louisiana, LLC, Stewart Interior Contractors, LLC, and Carl E. Woodward, LLC, all appeal the dismissals of their cross-claims resulting from the granting of motions for summary judgments from the 24th Judicial District Court, Parish of Jefferson.
In the aftermath of Hurricane Katrina, Carl E. Woodward, LLC ("Woodward"), general contractor, entered into a construction contract with Eagle Enterprises of Jefferson, Inc., owner of Walgreens Shopping Center located at 7100 Veterans Memorial Boulevard, Metairie, Louisiana. Woodward subcontracted with Stewart Interior Contractors, LLC ("Stewart") to install framing and exterior sheetrock. In order to assist with the labor, Stewart entered into a "Temporary Labor Contract" subcontracting with Landaverde Construction, LLC ("Landaverde") for personnel to work with Stewart.
Plaintiff Moreno was an employee of Landaverde and was working at the Walgreens job site when he was injured while near an overhead power line. Moreno filed suit against Entergy Louisiana, LLC ("Entergy"), Woodward, Stewart, and several others.
Stewart filed a claim against Landaverde and its commercial liability insurer, Western World Insurance Company ("Western World"), alleging liability arising out of a contractual indemnity clause in the "Temporary Labor Contract" between Stewart and Landaverde.
Entergy filed third-party demands against Stewart, Landaverde and Woodward, alleging that the third-party defendants were liable to Entergy for indemnity, pursuant to the Louisiana Overhead Power Line Safety Act ("OPLSA").
Motions for summary judgment were filed by several of the parties, and in a series of judgments, the trial court ruled in favor of the third-party defendants, dismissing Entergy's claims for indemnity against them. The trial court also granted judgment in favor of Landaverde and Western World, dismissing Stewart's claim against them for indemnity.
Both Entergy and Stewart appealed. This Court found that the causes of action asserted were premature, as the parties filing the claims had not yet been cast in judgment and therefore their claims did not state a cause of action. This Court rendered judgment dismissing the claims of the parties without prejudice.
Both Entergy and Stewart sought writs in the Supreme Court. On review, the Supreme Court found that this Court erred in creating an "exception of no cause of action based on prematurity" and then supplying this exception on its own motion. The Supreme Court reversed the judgment of this Court and remanded the matter for consideration of pretermitted issues not addressed in the original opinion.
A fact is material if it potentially insures or precludes recovery, affects a litigant's ultimate success, or determines the outcome of the legal dispute. A genuine issue is one as to which reasonable persons could disagree; if reasonable persons could reach only one conclusion, there is no need for trial on that issue and summary judgment is appropriate. Hines v. Garrett, 04-0806 (La.6/25/04), 876 So.2d 764, 765; Smith v. Our Lady of the Lake Hosp., Inc., 93-2512 (La.7/5/94), 639 So.2d 730, 751.
On appeal, summary judgments are reviewed de novo. An appellate court asks the same questions as the district court in determining whether summary judgment is appropriate—whether there is any genuine issue of material fact, and whether the mover is entitled to judgment as a matter of law. Smith, 639 So.2d at 750.
Furthermore, the issue in this case involves the interpretation of the Overhead Power Line Safety Act, LSA-R.S. 45:141-144. Thus, the issue in this case is a question of law, subject to review by the appellate court under a de novo standard of review. Broussard v. Hilcorp Energy Co., 09-0449 (La.10/20/09), 24 So.3d 813, 816.
Finally, we note that in his concurrence in this case, Justice Victory contends that the issue of Entergy's liability is ripe for determination. He states that"... a clear reading of La. C.C.P. arts. 1111-1116 demands that the third party demand is not premature." Moreno, supra, 62 So.3d at 708.
In his petition, plaintiff alleged that Entergy's power lines were not compliant with applicable safety codes, regulations and requirements, and that this non-compliance was a contributing cause of the accident.
Entergy filed its third party demands against Landaverde, Stewart and Woodward based upon the indemnity provisions of LSA-45:144(A) which provides:
In stating its third-party demand, Entergy contended that prior to the incident, Woodward contacted it and asked that it relocate the electrical power lines to provide clearance for the construction project. Entergy prepared the plans for relocation, and contacted Woodward for approval, for which it was waiting at the time the accident occurred. Entergy stated that Woodward indicated that no work would be performed until after the power line was removed. Entergy further contended that neither Woodward, Stewart or Landaverde notified it of the work to be performed (moving the scaffolding) at least 48 hours prior to its start. At the hearing on the motion for summary judgment, counsel for Entergy admitted that Entergy had stated that the scaffolding needed to be moved.
The trial court granted the motions for summary judgment filed by Landaverde, Stewart and Woodward. The summary judgments dismissed Entergy's third-party demands against Landaverde, Stewart and Woodward with prejudice on the basis that Entergy did not have indemnity rights pursuant to the OPLSA.
Appellees contend that the intent of the OPLSA is to provide that Entergy be reimbursed for direct damages if there is noncompliance with the Act, and not to indemnify Entergy for its own acts of negligence, including any tort damages for which Entergy might be liable to Moreno.
The issue of whether or not the statute requires that Entergy be indemnified for its own acts of negligence appears to be res nova.
The Louisiana Supreme Court has stated that:
Red Stick Studio Development, L.L.C. v. State ex rel. Dept. of Economic Development, 10-0193 (La.1/19/11), 56 So.3d 181, 187-188, citing M.J. Farms, Ltd. v. Exxon Mobil Corp., 07-2371 (La.7/1/08), 998 So.2d 16, 27 (internal citations omitted).
In this case, Entergy would have this Court rule that it is entitled to indemnity for its own acts of negligence. We do not believe that the legislature intended such a result. We are supported in this conclusion
In addition, it is clear from the committee discussion of House Bill 932, 2001 (enacted as the OPLSA) that the legislature did not intend that Entergy's liability be transferred in the event of its own negligence. At the committee hearing, a representative of the Association of General Contractors voiced concern specific to the provision for indemnity, arguing that it would create indemnity for a utility's own negligence, stating that "[This bill is] way too broad and creates and shifts liability where it just should not occur." A power company representative responded that, "This bill does not shift responsibility. The utility company remains liable for the utmost degree of care for the safety of people." This representative also stated that "So no responsibility is taken away from the utility. The utility is still liable. There is no liability shift. There is no strict liability. It's just if you knowingly violate the law and choose not to be safe then you would have to indemnify."
We are also supported in our conclusions by consideration of other provisions of Louisiana law. For example, LSA-R.S. 9:2780 of the Oilfield Indemnity Act nullifies any provision in any agreement to which the statute is applicable in which that provision requires defense and/or indemnification where there is any negligence or fault on the part of the indemnitee. Meloy v. Conoco, Inc., 504 So.2d 833 (La.1987).
In addition, although a party may contract for indemnity for liability for its own acts of negligence, that contractual provision for indemnity must be strictly construed and must be an express and unequivocal statement that a party is to be indemnified for that party's own negligence. Boykin v. PPG Industries, Inc., 08-0117 (La.App. 3 Cir. 6/18/08), 987 So.2d 838, writ denied, 08-1635, 08-1640 (La.10/31/08), 994 So.2d 537, citing Perkins v. Rubicon, Inc., 563 So.2d 258 (La.1990).
Finally, we are of the opinion that under Louisiana's system of comparative fault tort law, Entergy's liability to plaintiff is limited to its percentage of fault for its own acts of negligence contributing to the accident. To the extent that comparative fault can be assessed against the third-party defendants, Entergy would not be liable for that proportionate share, and would not require indemnification.
Accordingly, we find no error in the trial court's rulings in favor of Woodward, Stewart and Landaverde, dismissing Entergy's cross-claims/third-party demands for indemnity with prejudice.
Woodward appeals the grant of Western World's summary judgment against it, which found that Western World provided no coverage to Woodward under Western World's CGL policy issued
The procedural history is as follows. As a result of Entergy's third-party demand against Woodward, Woodward filed a cross-claim against Landaverde and a third-party demand against Western World, claiming that the temporary labor contract between Landaverde and Stewart "included an indemnification clause requiring Landeverde [sic] to defend, indemnify and save and hold Stewart and any property owner, general contractor and/or any other party Stewart was working with or for, contractually or otherwise, harmless from any and all claims asserted against Stewart and its general contractor by any person involving the work performed by Landeverde [sic] and/or its employees."
On May 4, 2009, Western World filed a motion for summary judgment against Woodward, averring that it did not owe any coverage to Woodward vis-à-vis Woodward's cross-claim against Landaverde. On this same date, Western World filed a motion for summary judgment against Stewart, which set forth arguments similar to those arguments it asserted against Woodward. On July 8, 2009, the trial court granted Western World's motion for summary judgment against Woodward, and further granted Landaverde's oral motion for summary judgment against Woodward with regard to Woodward's cross-claim.
Woodward notes that its summary judgment against plaintiff Moreno was granted, which held that Woodward is Moreno's statutory employer, and thus all of Moreno's tort claims against Woodward were dismissed with prejudice. This judgment has not been appealed. Woodward argues, therefore, that because it is Moreno's statutory employer, Entergy will be unable to seek contribution from Woodward if Entergy is ultimately found liable to Moreno. This appeal by Woodward, therefore, is brought in an "abundance of Caution" in the event that this Court finds that Woodward owes indemnification to Entergy under the OPLSA.
Western World argues on appeal, however, that the basis for its motion for summary judgment against Woodward was the "employer's liability" exclusion contained in the commercial general liability policy issued to Landaverde, which precluded coverage for bodily injury to an employee of the insured ("which arose out of and in the course of employment by the insured, and any obligation to share damages with or repay someone else who must pay damages because of the injury.") Western World points out that the damages sought in this case are for bodily injury to Moreno, an employee of the insured Landaverde. Western World further notes that Woodward's appellate brief does not address the "employer's liability" exclusion, which was the basis for its motion against Woodward, nor does it attempt to address any provision of or coverage provided by the policy. What Woodward did in the trial court, and does on appeal, is attempt to cast the damages sought in this case (plaintiff Moreno's damages) as damages to itself (its contingent liability to Entergy under the OPLSA, and/or Woodward's court cost of defense in this suit), a position that the trial court rejected.
However, it is clear that the exclusion in Western World's CGL policy applies in this case. Louisiana courts have upheld similar exclusion under similar facts, recognizing that the stated purpose of a CGL policy is to provide coverage for injuries to third persons only, not to provide coverage for injuries sustained by employees. Because there is no coverage to
Accordingly, the grant of summary judgment in favor of Western World and against Woodward is affirmed.
Finally, Woodward's cross-claim against Landaverde seeks indemnification from Landaverde, pursuant to the indemnification clause of the Temporary Labor Contract between Stewart and Landaverde, in the event Woodward is found liable to Entergy under the OPLSA. Because we find that Woodward owes no indemnity to Entergy under the OPLSA, this issue is moot.
Lastly, Stewart appeals the trial court's ruling dismissing its claims against Landaverde and Western World, in which it seeks indemnification should it be found liable to Entergy under the OPLSA. Again, because we find that Stewart owes no indemnity to Entergy under the OPLSA, this issue is moot.
For the above discussed reasons, the rulings of the trial court dismissing Entergy's claims against Landaverde, Stewart and Woodward, and dismissing Woodward's claims against Western World are affirmed. Also, Woodward's cross-claim against Landaverde and Stewart's claims under appeal against Landaverde and Western World are dismissed as moot.
JOHNSON, J., dissents with reasons.
JOHNSON, J., dissents with reasons.
I, respectfully, disagree with the majority opinion that the Louisiana Supreme Court intended for us to review the merits of this appeal for two reasons. First, the Supreme Court's opinion simply addressed the procedural faults with this Court's original opinion. The Supreme Court reversed and remanded the case to this Court for consideration of the issues that were not addressed because of the improper dismissals. Second, the pretermitted issues referred to in the Louisiana Supreme Court opinion were the issues regarding the granting of several Motions for Summary Judgment by the trial court. The merits of a case are not considered on a Motion for Summary Judgment. (See, JSB Interests, LLC v. Hanover Ins. Co., 10-487, p. 10 (La.App. 5 Cir. 3/9/11); 62 So.3d 211, where this Court found, "It is not the function of the trial court on a motion for summary judgment to determine or even inquire into the merits of the issues raised, for the weighing of conflicting evidence has no place in summary judgment procedure.") Even on de novo review and reviewing the issues as the trial court would, I opine that we are procedurally barred from determining the merits of this case and are outside of our jurisdiction.
Assuming that the merits of the case were properly before us, I dissent from the majority opinion for the following reasons.
Entergy, through its cross-claims against Stewart, Landaverde and Woodward, alleged the OPLSA provisions were violated by its co-defendants due to lack of proper notice of the commencement of the work, and they were the "persons responsible" for Moreno's injuries. As a result, Entergy averred it is entitled to be indemnified, pursuant to LSA-R.S. 45:144 of the
LSA-R.S. 45:143 provides, in pertinent part,
LSA-R.S. 45:144 further provides, in pertinent part,
After reading LSA-R.S. 45:143 in conjunction with LSA-R.S. 45:144, it is clear and unambiguous that persons who violate the notice requirements are considered as the "persons responsible" for the result of the physical or electrical contact and are liable to the owner or operator of the high voltage line for all damages, costs, or expenses incurred by the owner or operator as a result of the contact. Simply put, if Stewart, Landaverde and Woodward violated LSA-R.S. 45:143, Entergy should be entitled to indemnification for the damages resulting from the physical or electrical contact of Moreno with the high voltage line pursuant to LSA-R.S. 45:144. If Stewart, Landaverde and Woodward did properly notify Entergy and are not in violation of LSA-R.S. 45:143, then Entergy is not entitled to indemnification for the damages resulting from the physical or electrical contact of Moreno with the high voltage line. Because the statutes are clear and unambiguous and their applications do not lead to absurd consequences, there is no need for this Court to search
Additionally, I disagree that the conclusions of the majority opinion are supported by LSA-R.S. 9:2780 of the Oilfield Indemnity Act. In the Act, the legislature specifically stated its intent that certain indemnification provisions are null and void and against public policy. In the OPLSA, the legislature could have very well included restrictions that limit the extent of damages, costs, or expenses incurred by the owner or operator. However, the legislature did not apply the restrictions of LSA-R.S. 9:2780 to the OPLSA, and I believe that was purposefully done.
Because the trial court did not determine whether Stewart, Landaverde and Woodward were "persons responsible" in violation of LSA-R.S. 45:143, I opine summary judgment is not the proper procedural mechanism to dispose of that genuine issue of material fact of Entergy's cross-claims. Therefore, I would find the trial court erred in granting the motions for summary judgment of Stewart, Landaverde and Woodward against Entergy and reverse the dismissals of Entergy's cross-claims.
On appeal, Stewart alleges that the trial court erroneously granted the motion for summary judgment by Landaverde, which dismissed its cross-claim, because Stewart is entitled to seek indemnity from Landaverde pursuant to the contract indemnity clause in the "Temporary Labor Contract" because Landaverde's employees were negligent in causing the accident. Additionally, Stewart alleges that the trial court erroneously granted Western World's motion for summary judgment, which dismissed its third-party demand, because the "Temporary Labor Contract" between Western World's insured, Landaverde, and Stewart is an "Insured Contract" under the terms of Western World's insurance policy.
Stewart contends that the indemnity agreement at issue is valid and enforceable and specifically states that 1) Landaverde must indemnify Stewart for negligent acts of Landaverde's employees, which would include Moreno; and/or, 2) Landaverde must indemnify Stewart for damages, losses, etc. arising out of the use of Stewart's equipment, tools and scaffolding.
Section 1 entitled "Indemnification" of the "Temporary Labor Contract" provides, in pertinent part:
On its face, this contract, which was signed by representatives from both sides, provides for Stewart's indemnity from Landaverde for any and all losses, damages and liability claims, demands, suits, causes of action and costs of expenses resulting from injury. Stewart's cross-claim asserted that it is entitled to recover all costs from Landaverde pursuant to the terms of the contract. As such, I would find the trial court erred in dismissing Stewart's cross-claim against Landaverde and find there is a genuine issue of material fact remaining as to whether Stewart can be indemnified by Landaverde in the event Stewart is found liable in this matter. Therefore, I would reverse the trial court's dismissal of Stewart's cross-claim against Landaverde.
Stewart avers that Western World's general liability policy insuring Landaverde provides coverage for negligent acts committed by Landaverde's employees because the "Temporary Labor Contract" is an "Insured contract" under the terms of the policy.
Under the "Exclusions" section of Western World's "Commercial General Liability Coverage Form," it provides, in pertinent part:
Further, under "Section V-Definitions", the policy provides,
9 "Insured contract" means:
The trial court in this matter granted Western World's motion for summary judgment against Stewart and dismissed all claims made by Stewart against Western World with prejudice. The trial court held there was no coverage provided by the Western World policy of insurance for any claims made by Stewart against Landaverde. However, I disagree with that finding.
The "Temporary Labor Contract" between Stewart and Landaverde states that Stewart could be indemnified by Landaverde for any and all losses, damages and liability claims, demands, suits, causes of action, and costs of expenses resulting from injury and liability arising from or in connection with any acts or omissions of or the use of scaffolding. The "Temporary
In this matter, I would hold that there is a remaining genuine issue of material fact as to whether Stewart is liable under a tort liability and would be subject to indemnification from Landaverde and Western World. Therefore, I would reverse the trial court's grant of Western World's motion for summary judgment against Stewart.
After a hearing on the merits, the trial court granted Landaverde's motion for summary judgment and dismissed all of the claims made by Woodward with prejudice. I disagree with the trial court and would find that the same provisions that apply to Stewart under the "Temporary Labor Contract" also apply to Woodward as a general contractor and/or other party as described in the contract as who the "client" is working with or for. In consequence, I would reverse the trial court's grant of Landaverde's motion for summary judgment against Woodward.
The trial court dismissed Woodward's cross-claim against Western World and held that no coverage is provided by the Western World policy of insurance for any of the claims by Woodward against Landaverde. Because I would reverse the trial court's dismissal of Woodward's cross-claim against Landaverde, I would also reverse the trial court's grant of Western World's motion for summary judgment against Woodward and find there is a remaining genuine issue of material fact as to whether Woodward is liable under a tort liability and would be subject to indemnification from Western World.
Based upon the foregoing reasons, I would reverse the trial court's granting of the motions for summary judgment and the dismissals of the cross-claims of Entergy Louisiana, LLC, against Carl E. Woodward, LLC, Stewart Interior Contractors, LLC, and Landaverde Construction, LLC; the dismissal of Stewart Interior Contractors, LLC's cross-claim against Landaverde Construction, LLC and the third-party claim against Western World Insurance Company; and, the dismissal of Carl E. Woodward, LLC's cross-claim against Landaverde Construction, LLC and Western World Insurance Company. Additionally, I would remand the matters to the trial court for further proceedings.