Walker v. Braus

Armogene Braus (defendant) owned three boats that he rented out by verbal agreement on a day-rate basis to various companies. Terra Resources, Inc. (Terra) acquired a Louisiana oil-and-gas field and sent Harold DeLeon to oversee the field. DeLeon was the only full-time Terra employee assigned to Louisiana. Terra, through DeLeon, began using Braus’s boat-rental service. Although DeLeon sometimes drove the boat, Braus mainly drove the boat and was free to charter his vessel to anyone else when Terra was not using it. The verbal agreement between Braus and Terra provided that Braus had total responsibility for upkeep and maintenance, breakdowns, and insurance on his boats. The daily rate depended on whether Braus operated the boat, and Terra paid for the fuel. In January, Braus submitted a time-charter invoice for use of his boat and himself as operator. A few days later, while Braus was transporting four Terra workers to the field, Wade Trahan collided with Braus’s boat while speeding in his boat. Trahan died in the accident. Sharon Walker (plaintiff), Trahan’s widow, sued for damages. The court found Terra 20 percent negligent in the accident and Trahan 80 percent negligent. The court decision said nothing about Braus but found that Terra was a demise charterer with responsibility for the accident. Terra appealed, arguing that it was not a demise charterer of Braus’s vessel.