Knapp v. Chevron USA

781 F.2d 1123 (1986)

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Knapp v. Chevron USA

United States Court of Appeals for the Fifth Circuit
781 F.2d 1123 (1986)

Facts

Chevron USA, Inc. (Chevron) (plaintiff) contracted with P.B.W., Inc. (defendant) for the latter to supply workers for Chevron’s offshore drilling platforms. The two companies entered into an agreement whereby P.B.W. would defend or indemnify Chevron in the case that a P.B.W. worker was injured on the job and sued Chevron for damages. Alton Knapp was a P.B.W. employee who worked on a Chevron platform off the coast of Louisiana. Knapp was injured when he fell from a safety net approximately 30 feet above the platform floor. Knapp filed a personal-injury suit against Chevron, and Chevron filed a third-party complaint against P.B.W. for defense or indemnification. The Louisiana Oilfield Indemnity Act (OIA), which was enacted before Chevron and P.B.W. formed their contract, provided that any negligence-related defense or indemnity provisions in oil and gas contracts would be unenforceable as against public policy. The district court found that Chevron was not negligent and allowed Chevron to pursue its defense claim to recover the costs of defending Knapp’s charges. P.B.W. appealed.

Rule of Law

Issue

Holding and Reasoning (Politz, J.)

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