Marathon Pipe Line Co. v. Drilling Rig Rowan/Odessa

761 F.2d 229 (1985)

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Marathon Pipe Line Co. v. Drilling Rig Rowan/Odessa

United States Court of Appeals for the Fifth Circuit
761 F.2d 229 (1985)

Facts

A drilling rig owned by Rowan Companies (Rowan) (plaintiff) damaged an underwater pipeline owned by Marathon Pipe Line Company (Marathon). The rig was a vessel traversing the Gulf of Mexico, and the pipeline was a fixed structure on the seabed off the coast of Louisiana. Marathon made reasonable efforts to repair the pipeline. However, a part made by HydroTech Systems, Inc. (HydroTech) (defendant) that was used in the repairs proved defective, leading to further damage. Marathon sued Rowan in district court for the full cost of the repair, including the extra costs attributable to the defective HydroTech part. Rowan agreed to a settlement in which it would pay the full cost. Rowan then sought indemnification under general maritime law from HydroTech for the portion of the costs attributable to the defective part. The district court held that because HydroTech’s liability to Marathon arose from state law rather than maritime law, Rowan could not demand indemnification from HydroTech. Rowan appealed.

Rule of Law

Issue

Holding and Reasoning (Rubin, J.)

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