Bass v. Phoenix Seadrill/78

749 F.2d 1154 (1985)

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Bass v. Phoenix Seadrill/78

United States Court of Appeals for the Fifth Circuit
749 F.2d 1154 (1985)

Facts

Ronnie Bass (plaintiff) was an employee on an offshore oil rig. Branham Industries, Inc. (Branham) designed the rig’s derrick, and Crown Rig Building Services, Inc. (Crown) built it. Phoenix Seadrill/78, Ltd. (Phoenix) (defendant) was Bass’s employer. A loose handle fell from a high platform and struck Bass, who was working on the rig’s floor, and Bass suffered severe injuries. Bass and Phoenix negotiated a settlement. In exchange for $210,000, Bass agreed to (1) release Phoenix from all liability, (2) share the proceeds with Phoenix of any future recovery from Branham or Crown (the rebate provision), and (3) grant Phoenix the right to veto any settlement agreement Branham or Crown might try to enter into with Bass (the veto provision). Bass was represented by counsel and expressed that he fully understood the terms of the settlement and its effects on his legal rights. Moreover, the settlement explained the effects of its provisions repeatedly and was written in plain, intelligible language. The district court voided the rebate and veto provisions of the settlement, finding that they were unfair to Bass and improperly deterred future settlements with Branham and Crown. The district court authorized the settlement as a mere release from liability in exchange for $210,000. Phoenix and Bass appealed.

Rule of Law

Issue

Holding and Reasoning (Randall, J.)

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