Opinion by Justice CARTER.
After a lengthy journey through the appellate courts, this case has found its way back to our Court. The facts of the underlying accident and indemnity dispute were summarized in the Texas Supreme Court decision that remanded this matter to the trial court. Sonat Exploration Co. v. Cudd Pressure Control, Inc., 271 S.W.3d 228 (Tex.2008).
Sonat Exploration Company and Cudd Pressure Control, Inc., were parties to a Master Service Agreement (MSA) that governed oil field services Cudd performed for Sonat. The Contract required each company to indemnify the other for claims by their respective employees. In October 1998, four Cudd employees, along with three other workers, were killed while working on one of Sonat's wells in Louisiana. When the families of the Cudd employees sued Sonat in Texas, Cudd refused Sonat's indemnity demand.
Sonat settled the wrongful death claims and sued Cudd for indemnity under the MSA. The trial court ruled on cross-motions that the indemnity provision was enforceable under Texas law. Because Cudd
Cudd appealed the 2001 judgment. During the course of the appeal, Cudd and Sonat entered into a Rule 11 agreement in October 2003 whereby Cudd "will not appeal the trial court's ruling that Texas law applies to the Master Service Agreement... and, in the event of remand, will not contend that any other state's laws apply to the MSA...." Also in accordance with the agreement, Sonat would dismiss with prejudice a separate suit against Cudd alleging the breach of an insurance procurement provision in the Contract.
While the Cudd/Sonat indemnity dispute was still on appeal here, Lumbermens Mutual Casualty Company (Cudd's excess liability carrier) filed a motion to intervene on appeal in order to raise the choice of law issue. This Court denied Lumbermens' motion to intervene. The Texas Supreme Court permitted the intervention after Lumbermens filed a petition for writ of mandamus "to raise on appeal the choice-of-law issue its insured abandoned...." In re Lumbermens Mut. Cas. Co., 184 S.W.3d 718, 729 (Tex.2006).
Lumbermens' intervention raised the choice of law issue, but Cudd avoided raising the issue as required by its Rule 11 agreement with Sonat. This Court then reversed the district court's judgment and held that Louisiana law applied to the MSA as urged by Lumbermens. Cudd Pressure Control, Inc. v. Sonat Exploration Co., 202 S.W.3d 901, 910 (Tex.App.-Texarkana 2006). The Texas Supreme Court affirmed this Court's choice of law holding. Sonat Exploration Co., 271 S.W.3d at 236. The Texas Supreme Court then remanded the indemnity dispute to the trial court "for further proceedings applying Louisiana law." Id. at 238.
After remand, Cudd filed its second amended answer in May 2009. Sonat claims this amended answer amounts to a withdrawal of Cudd's earlier affirmative defense (filed prior to the Rule 11 agreement) that "Louisiana's Oilfield Anti-Indemnity Statute bars Sonat's Indemnity claims." According to Sonat, Cudd's second amended answer makes no mention of "that affirmative defense under Louisiana law,"
After filing its second amended answer, Cudd filed a motion for summary judgment in July 2009, contending, among other things, that Sonat's negligence in causing the oil field blowout barred its indemnity claim under the LOAIA. In September 2009, Cudd filed its third amended answer, which included this additional affirmative defense: "Cudd pleads the effects of the applicable oilfield anti-indemnity statute as determined by the Texas Supreme Court."
Then, in January 2010, Lumbermens filed a petition in intervention which was stricken by the trial court in April of that year.
The trial court entered its order granting renewed summary judgment in favor of Cudd and denying Sonat's cross-motion for summary judgment. Sonat appeals
"When both sides move for summary judgment, as they did here, and the trial court grants one motion and denies the other, reviewing courts consider both sides' summary-judgment evidence, determine all questions presented, and render the judgment the trial court should have rendered." Gilbert Tex. Constr., L.P. v. Underwriters at Lloyd's London, 327 S.W.3d 118, 124 (Tex.2010) (citing Embrey v. Royal Ins. Co. of Am., 22 S.W.3d 414, 415-16 (Tex.2000)).
On appeal, Sonat claims the trial court erred in granting summary judgment in Cudd's favor because Cudd withdrew the affirmative defense of the LOAIA on remand after the Texas Supreme Court's 2008 ruling. Sonat further claims the trial court erred in denying Sonat's summary judgment on damages, attorney's fees and judicial interest. Finally, Sonat contends that Lumbermens was not an intervenor in the proceedings below, and if it was, the trial court erred in failing to strike Lumbermens' second petition in intervention.
Sonat agrees that on remand, both sides wanted the trial court to decide the case on summary judgment by resolving a single issue: could Cudd take advantage of the LOAIA, which meant Sonat would lose, or had Cudd waived its opportunity to assert the LOAIA, in which case Cudd would lose. Sonat's argument in the trial court and on appeal is surprisingly straightforward, given the complex history of this litigation. Sonat simply claims that even though the Texas Supreme Court determined that Louisiana law applies to this indemnity dispute, the LOAIA is an affirmative defense, which must be pled and proved. Sonat contends that because Cudd failed to plead this affirmative defense, it was not entitled to rely on its provisions to bar Sonat's indemnity claim.
The indemnity agreement here provides that:
The Texas Supreme Court determined Louisiana law applies to this indemnity
Id. at 238.
Sonat maintains that this anti-indemnity provision is an affirmative defense which must be pled and proved, likening this statute to a comparable Texas statute known as the Texas Oilfield Anti-Indemnity Act. TEX. CIV. PRAC. & REM.CODE §§ 127.001-.008 (Vernon 2011). In support of its assertion that the LOAIA is an affirmative defense that must be raised by an indemnitor, Sonat relies on Nerco Oil & Gas, Inc. v. M.R. Friday, Inc., 816 F.Supp. 429 (W.D.La.1993). In that case, Nerco, the oil field production unit operator, brought an action for indemnification against its subcontractor, M.R. Friday, Inc., for payments made by Nerco as a result of an explosion at a facility maintained by Friday on behalf of Nerco. Friday asserted that indemnification was prohibited by the LOAIA and filed a motion for summary judgment. After analyzing the application of the Act relative to the underlying facts, the court determined that the Act applied and granted summary judgment in favor of Friday. The question of whether the LOAIA is properly classified as an affirmative defense was not a contested issue; the only comment regarding this issue was this statement that "[t]he defendants have filed an answer asserting defenses, including the frequently litigated Louisiana Oilfield Anti-Indemnity Act." Id. at 430.
Sonat also relies on King v. I.E. Miller of Eunice, Inc., 970 So.2d 703, 704 (La. App. 3d Cir.2007) (referring to LOAIA as "affirmative defense"), and Duet v. Falgout Offshore, LLC, 757 F.Supp.2d 598, 607 (E.D.La. 2010) (LOAIA does not "automatically apply to invalidate the indemnity agreement" when parties contemplated subsequent trial as part of their settlement agreement to determine liability), in support of its position that the LOAIA is an affirmative defense. While none of these decisions hold that the LOAIA must be pled as an affirmative defense,
Assuming, without deciding, the LOAIA is an affirmative defense which must be pled,
We find that the LOAIA was sufficiently pled by Cudd. The record before this Court contains three answers filed by Cudd in response to Sonat's indemnity claims. Before the Rule 11 agreement, Cudd filed its first amended original answer in 2001. In that answer, Cudd asserted eighteen affirmative defenses, the seventh of which claims that "Louisiana's Oilfield Anti-Indemnity Statute bars Sonat's Indemnity claims." In 2009, Cudd filed its second amended answer, asserting eleven affirmative defenses. The fourth defense so asserted claims that "Sonat's fault caused and/or contributed to the blowout and/or injuries and, thus, Sonat is precluded from seeking indemnity." The second amended answer omitted the claim that "Louisiana's Oilfield Anti-Indemnity Statute bars Sonat's Indemnity claims." As a result of this omission, Sonat claims a waiver of the LOAIA.
Sonat acknowledges the filing of Cudd's third amended answer in 2009, alleging thirteen affirmative defenses. The fourth affirmative defense is restated verbatim as originally asserted in the second amended answer. Cudd's twelfth affirmative defense states that "Cudd pleads the effects of the applicable oilfield anti-indemnity statute as determined by the Texas Supreme Court." Sonat alleges that while the third amended answer pleads the benefit of the Texas Supreme Court's latest decision, it does not claim the benefit of the LOAIA, presumably because the Act is not mentioned by name.
Rule 94 of the Texas Rules of Civil Procedure provides, in part, that "[i]n pleading to a preceding pleading, a party shall set forth affirmatively accord and satisfaction, ..., payment, release, res judicata,..., waiver, and any other matter constituting an avoidance or affirmative defense." TEX.R. CIV. P. 94. It has long been held that the purpose of Rule 94 is to give the opposing party notice of the defensive issues to be tried. Land Title Co. of Dallas, Inc. v. F.M. Stigler, Inc., 609 S.W.2d 754, 756 (Tex.1980); In re P.D.D., 256 S.W.3d 834, 839 (Tex.App.-Texarkana 2008, no pet.); UMLIC VP LLC v. T & M Sales & Envtl. Sys., Inc., 176 S.W.3d 595, 609 (Tex.App.-Corpus Christi 2005, pet. denied). Moreover, we construe the petition liberally in favor of the pleader. UMLIC VP LLC, 176 S.W.3d at 609 (citing Stone v. Lawyers Title Ins. Corp., 554 S.W.2d 183, 186 (Tex.1977)). Pleading the effects of the "applicable oilfield anti-indemnity statute as determined by the Texas
Because Cudd raised the LOAIA as an affirmative defense in its third amended answer,
Cudd further maintains that the issue of whether it waived the LOAIA in its pleadings is irrelevant because the Texas Supreme Court remanded this case with the directive to apply Louisiana law. Because we find that Cudd affirmatively raised the LOAIA defense, we need not address the issue of whether the law of the case mandates the Act's application in the absence of a pleading asserting that defense.
Moreover, because we find the LOAIA defense was raised by Cudd, and was relied on by the trial court in entering summary judgment in its favor, the judgment of the trial court was correct. The trial court did not err in denying Sonat's cross-motion for summary judgment.
Sonat claims Lumbermens was not a party in the trial court because the trial court struck its first petition to intervene, and that ruling applied as the "law of the case" to Lumbermens' second petition in intervention. Sonat further contends that even if Lumbermens was a party below, the trial court erred in failing to strike Lumbermens' second petition in intervention because Lumbermens could not satisfy the requirements of a traditional intervention.
The issue of whether Lumbermens became a party by virtue of its second Rule 60
Both parties have urged that this is not a jurisdictional defect and that the judgment is final and appealable. Once again, the entire purpose for Lumbermens' appearance in this case from the outset was to ensure the Louisiana anti-indemnity statute was alleged. We have found that Cudd's pleadings placed that issue before the court; the trial court resolved the matter based on the Louisiana anti-indemnity statute as alleged by Cudd; consequently, Lumbermens' additional pleading of the same issue added nothing. Even if Lumbermens could be considered a party, the only allegation it presented was duplicative of Cudd's and the trial court fully and completely resolved the case based on Cudd's pleading. Under these circumstances, we find that the disposition of this issue effectively disposed of Lumbermens as a party. Kaigler v. Gen. Elec. Mortgage Ins. Corp., 961 S.W.2d 273, 276 (Tex. App.-Houston [1st Dist.] 1997, no writ) ("Issues and parties, however, are co-dependent: one could not exist without the other. If an order disposes of all issues in a case, then it necessarily disposes of all parties to a case, and vice versa."). We find the judgment is final and appealable, but we need not address whether the trial court erred in failing to strike the second petition for intervention, since Lumbermens' pleading was redundant, the trial court disposed of the only issue raised by Lumbermens, and Lumbermens' pleading had no effect on the judgment.
We affirm the judgment of the trial court.
In its supplemental answer (filed after the second intervention) Lumbermens pled:
The trial court determined that an application of the statute to these facts voided any indemnity between Sonat and Cudd.