Opinion

Luther Charles v. Transcontinental Gas Pipeline, LLC

Court
Louisiana Court of Appeal
Filed
Mar 12, 2025
Cited by
0 cases
Authority
More cited than 39.8%

The opinion

STATE OF LOUISIANA

COURT OF APPEAL, THIRD CIRCUIT

24-405

LUTHER CHARLES

VERSUS

TRANSCONTINENTAL GAS PIPELINE, LLC, ET AL.

**********

APPEAL FROM THE

TWENTY-SEVENTH JUDICIAL DISTRICT COURT

PARISH OF ST. LANDRY, NO. 20-C-3122-B

HONORABLE JAMES PAUL DOHERTY JR., DISTRICT JUDGE

**********

GUY E. BRADBERRY

JUDGE

**********

Court composed of Shannon J. Gremillion, Charles G. Fitzgerald, and Guy E.

Bradberry, Judges.

AFFIRMED.

Nicholas A. Blanda

Jason A. Weaver

Anderson Blanda & Saltzman

2010 West Pinhook Road

Lafayette, Louisiana 70508

(337) 233-3366

COUNSEL FOR PLAINTIFF/APPELLANT:

Luther Charles

John F. Jakuback

Forrest E. Guedry

Amanda Collura-Day

Kean Miller LLP

Post Office Box 3513

Baton Rouge, Louisiana 70821-3513

(225) 387-0999

COUNSEL FOR DEFENDANTS/APPELLEES:

Transcontinental Gas Pipeline Company, LLC

The Williams Companies, Inc.

Trevor C. Davies

Michael L. Ballero

Wanek Kirsch Davies LLC

1340 Poydras Street, Suite 2000

New Orleans, Louisiana 70112

(504) 324-6493

COUNSEL FOR DEFENDANT/APPELLEE:

Tucker Energy Solutions, LLC

Ryan T. Morrow

9100 Bluebonnet Centre Boulevard, Suite 300

Baton Rouge, Louisiana 70809

(337) 244-0030

COUNSEL FOR DEFENDANTS/APPELLEES:

Blue Fin Services, LLC

Gate Holdings, LLC

Blue Fin Rental and Completion Services, LLC

Liberty Mutual Insurance Company

Brad J. Brumfield

Post Office Box 7217

London, Kentucky 40742

(225) 923-7393

COUNSEL FOR DEFENDANTS/APPELLEES:

Blue Fin Services, LLC

Gate Holdings, LLC

Blue Fin Rental and Completion Services, LLC

Liberty Mutual Insurance Company

D. Scott Rainwater

George O. Luce

Taylor, Wellons, Politz & Duhe, LLC

4041 Essen Lane, Suite 500

Baton Rouge, Louisiana 70809

(225) 387-9888

COUNSEL FOR DEFENDANT/APPELLEE:

Blue Fin Services, LLC

Alexis Polk Joachim

Pipes Miles Beckman, LLC

1100 Poydras Street, Suite 3300

New Orleans, Louisiana 70163

(504) 322-7070

COUNSEL FOR DEFENDANT/APPELLEE:

Liberty Mutual Fire Insurance Company

Pierre M. Legrand

Legrand Law Firm, LLC

2450 Severn Avenue, Suite 206

Metairie, Louisiana 70001

(504) 304-9499

COUNSEL FOR DEFENDANT/APPELLEE:

Hydrochem, LLC

Daniel C. Palmintier

Assistant Attorney General

Louisiana Department of Justice

Office of the Attorney General

556 Jefferson Street, 4th Floor

Lafayette, Louisiana 70501

(337) 262-1700

COUNSEL FOR DEFENDANT/APPELLEE:

Louisiana Department of Wildlife and Fisheries

Aldric C. Poirier, Jr.

David B. Parnell, Jr.

Blue Williams, LLC

1060 West Causeway Approach

Mandeville, Louisiana 70471

(985) 626-0058

COUNSEL FOR DEFENDANT/APPELLEE:

Old Republic General Insurance Company

Thomas Kent Ledyard Morrison

Phelps Dunbar, LLP

365 Canal Street, Suite 2000

New Orleans, Louisiana 70130-6534

(504) 566-1311

COUNSEL FOR DEFENDANT/APPELLEE:

Indian Harbor Insurance Company

David I. Clay, II

Degan, Blanchard & Nash, APLC

400 Poydras Street, Suite 2600

New Orleans, Louisiana 70130

(504) 529-3333

COUNSEL FOR DEFENDANT/APPELLEE:

Indian Harbor Insurance Company

Peter F. Caviness

Falgoust and Caviness, LLP

505 South Court Street

Opelousas, Louisiana 70570-5001

(337) 942-5812

COUNSEL FOR DEFENDANT/APPELLEE:

Thisco Partnership

BRADBERRY, Judge.

Defendants Transcontinental Gas Pipeline Company, LLC and The Williams

Companies, Inc. (collectively “Williams”) filed a motion for summary judgment,

alleging statutory employer immunity. Defendant Tucker Energy Solutions, LLC

(Tucker) also filed a motion for summary judgment on the same issue. The trial

court granted the motions for summary judgment, finding Defendants were the

statutory employers of Plaintiff Luther Charles, and therefore, were immune from

tort liability, pursuant to La.R.S. 23:1061, and dismissed the case against them with

prejudice. Luther Charles now appeals both judgments. For the following reasons,

we affirm.

FACTS AND PROCEDURAL HISTORY

On August 22, 2019, Luther Charles was injured in a workplace accident

while he was in the course and scope of his employment with Hydrochem, LLC. Mr.

Charles was driving a water truck on a narrow levee road located within the

Thistlethwaite Wildlife Management area in Washington, Louisiana, when his truck

rolled off the road, resulting in his injuries. At the time, he was transporting water

from a nearby lake to a pipeline facility referred to as Station 54, which is owned by

Williams.

The Station 54 facility was being serviced in accordance with a contract

entered into by Williams and Tucker (the Williams-Tucker Contract) on July 8,

2019. Tucker served as the general contractor on the construction project. It had an

existing contractual relationship with Blue Fin Services, LLC (Blue Fin) in the

form of a Master Service Agreement (MSA) dated March 21, 2018, to provide

services in furtherance of work performed on the Station 54 project. Blue Fin then

hired Hydrochem to perform certain work on Station 54. Hydrochem was the

direct employer of Mr. Charles.

Mr. Charles filed suit against multiple Defendants, including Williams and

Tucker, for injuries he sustained as a result of the vehicle accident. In response,

Williams and Tucker filed separate motions for summary judgment, wherein they

both alleged that they were the statutory employer of Mr. Charles and, as such, were

immune from tort liability in this case. The motions for summary judgment were

heard on March 4, 2024. The trial court granted the motions, finding Williams and

Tucker were immune from tort liability as the statutory employers of Mr. Charles

pursuant to La.R.S. 23:1061 and dismissing Mr. Charles’s claims against them with

prejudice.

Mr. Charles now appeals.

ASSIGNMENTS OF ERROR

1. Given the evidentiary record before the trial court, it erred in holding

that [Williams] and [Tucker] were the statutory employers of the

Plaintiff on the day in question.

2. Given the evidentiary record before the trial court, it erred in

dismissing all claims asserted by Plaintiff against Defendants,

[Williams] and [Tucker].

LAW AND DISCUSSION

I. Standard of Review

Appellate courts review the grant of a motion for summary judgment by the

trial court using a de novo review standard. Litel Expls., LLC v. Aegis Dev. Co.,

LLC, 21-741 (La.App. 3 Cir. 4/6/22), 337 So.3d 940, writ denied, 22-756 (La.

9/27/22), 346 So.3d 787. “Summary judgment is proper ‘if the motion,

memorandum, and supporting documents show that there is no genuine issue as to

material fact and that the mover is entitled to judgment as a matter of law.’” Walker

2

v. Zurich Am. Ins. Co., 24-232, pp. 2–3 (La.App. 3 Cir. 9/4/24), 394 So.3d 310, 313

(quoting La.Code Civ.P. art 966(A)(3)), writ denied, 24-1223 (La. 12/27/24), 397

So.3d 1215.

II. Statutory Employer Status

Williams and Tucker claim that they are the statutory employers of Mr.

Charles and are, therefore, immune from tort liability in accordance with La.R.S.

23:1061(A). Louisiana Revised Statutes 23:1061(A) sets forth the concept of

statutory employer, stating:

(1) Subject to the provisions of Paragraphs (2) and (3) of this

Subsection, when any “principal” as defined in R.S. 23:1032(A)(2),

undertakes to execute any work, which is a part of his trade, business,

or occupation and contracts with any person, in this Section referred to

as the “contractor”, for the execution by or under the contractor of the

whole or any part of the work undertaken by the principal, the principal,

as a statutory employer, shall be granted the exclusive remedy

protections of R.S. 23:1032 and shall be liable to pay to any employee

employed in the execution of the work or to his dependent, any

compensation under this Chapter which he would have been liable to

pay if the employee had been immediately employed by him; and where

compensation is claimed from, or proceedings are taken against, the

principal, then, in the application of this Chapter reference to the

principal shall be substituted for reference to the employer, except that

the amount of compensation shall be calculated with reference to the

earnings of the employee under the employer by whom he is

immediately employed. For purposes of this Section, work shall be

considered part of the principal’s trade, business, or occupation if it is

an integral part of or essential to the ability of the principal to generate

that individual principal’s goods, products, or services.

(2) A statutory employer relationship shall exist whenever the

services or work provided by the immediate employer is contemplated

by or included in a contract between the principal and any person or

entity other than the employee’s immediate employer.

(3) Except in those instances covered by Paragraph (2) of this

Subsection, a statutory employer relationship shall not exist between

the principal and the contractor’s employees, whether they are direct

employees or statutory employees, unless there is a written contract

between the principal and a contractor which is the employee’s

immediate employer or his statutory employer, which recognizes the

principal as a statutory employer. When the contract recognizes a

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statutory employer relationship, there shall be a rebuttable presumption

of a statutory employer relationship between the principal and the

contractor’s employees, whether direct or statutory employees. This

presumption may be overcome only by showing that the work is not an

integral part of or essential to the ability of the principal to generate that

individual principal’s goods, products, or services.

In Allen v. State ex rel. Ernest N. Morial-New Orleans Exhibition Hall

Authority, 02-1072, pp. 5–8 (La. 4/9/03), 842 So.2d 373, 377–79 (footnote omitted)

(alteration in original) (emphasis added), the Louisiana Supreme Court discussed the

purpose of enacting workers’ compensation legislation, explaining:

Workers’ compensation legislation was enacted in the early

decades of the twentieth century, not to abrogate existing tort remedies

that afforded protection to workers, but to provide social insurance to

compensate victims of industrial accidents because it was widely

believed that the limited rights of recovery under tort law were

inadequate to protect these individuals. Roberts v. Sewerage and Water

Board of New Orleans, 92–2048 (La.3/21/94), 634 So.2d 341, 345,

citing Boggs v. Blue Diamond Coal Co., 590 F.2d 655 (6th Cir.1979).

The legislation reflects a compromise between the competing interests

of employers and employees: the employer gives up the defense it

would otherwise enjoy in cases where it is not at fault, while the

employee surrenders his or her right to full damages, accepting instead

a more modest claim for essentials, payable regardless of fault and with

a minimum of delay. Id.

The legislatures that adopted the early workers’ compensation

acts feared that employers would attempt to circumvent the absolute

liability those statutes imposed by interjecting between themselves and

their workers intermediary entities which would fail to meet workers’

compensation obligations. Frank L. Maraist and Thomas C. Galligan,

Jr., The Employer’s Tort Immunity: A Case Study in Post–Modern

Immunity, 57 La.L.Rev. 467, 488 (1997). To assure a compensation

remedy to injured workers, these legislatures provided that some

principals were by statute deemed, for purposes of liability for workers’

compensation benefits, the employers of employees of other entities. Id.

The legislative approaches to what is commonly referred to as the

“statutory employer” doctrine varied.

Louisiana adopted a broad version of the statutory employer

doctrine. The Louisiana Act expressly extends the employer’s

compensation obligation and its corresponding tort immunity to

“principals.” . . .

….

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It has long been recognized that these provisions present

alternative bases for imposing the workers’ compensation obligation on

entities that are not direct employers. See, 14 Wex S. Malone & H.

Alston Johnson, III, Louisiana Civil Law Treatise: Workers’

Compensation Law and Practice § 364 at 173 (2002) (“[T]here are

alternative bases for the compensation obligation in La. R.S. 23:1061,

so as to make the availability of the compensation remedy broad enough

to cover two different methods of doing business.”). A “principal” (or

statutory employer) for purposes of the Act is any person who

undertakes to carry out any work which is a part of his trade, business

or occupation by means of a contract with another (the “trade, business

or occupation” defense); or, any person who has contracted to perform

work and sub-lets any portion to another (the “two contract” theory of

the statutory employer defense). Wex S. Malone, Principal’s Liability

for Workmen’s Compensation to Employees of Contractor, 10

La.L.Rev. 25, 27 (1949). As to the “two contract” theory of the statutory

employer defense, it is irrelevant whether the subcontractor’s work is

part of the work ordinarily performed by the principal. In fact, the law

presumes the contract to be within the trade, business or occupation of

the principal. See, Berry [v. Holston Well Serv., Inc.], 488 So.2d [934

(La. 1986,] (and cases cited therein). The “two contract” defense

applies when: (1) the principal enters into a contract with a third

party; (2) pursuant to that contract, work must be performed; and

(3) in order for the principal to fulfill its contractual obligation to

perform the work, the principal enters into a subcontract for all or

part of the work performed. Id.; Beddingfield v. Standard

Construction Company, 560 So.2d 490, 491–492 (La.App. 1 Cir.1990);

Aetna Casualty and Surety Company v. Schwegmann Westside

Expressway, Inc., 516 So.2d 412, 413 (La.App. 1 Cir.1987).

There are two ways in which a principal can become a statutory employer: (1)

the principal can contract with another for the execution of work that is part of the

principal’s trade, business or occupation; or (2) the principal can contract with

another to perform all or any part of the work which the principal is contractually

obligated to perform. Rosier v. H.A. Lott, Inc., 563 So.2d 1321 (La.App. 3 Cir.),

writ denied, 568 So.2d 1058 (La.1990). “The latter situation is commonly referred

to as the ‘two-contract’ statutory employment defense to tort actions.” Id. at 1323.

Mr. Charles argues that Williams and Tucker cannot carry their burden that

they are his statutory employers under the two-contract theory of statutory employer

tort immunity in accordance with La.R.S. 23:1061(A)(2). It is Williams’s position

5

that it is a statutory employer under the first way—the principal can contract with

another for the execution of work that is part of the principal’s trade, business or

occupation. Specifically, Williams argues that it is a principal who entered into a

contract with Tucker to test the integrity of the facilities that Williams uses in storing

and transporting natural gas. Storing and transporting natural gas to end users across

the country is part of Williams’s trade, business, or occupation, and the work

contemplated in the Williams-Tucker contract is an integral part of Williams’s

ability to generate its goods, products, or services. See La.R.S. 23:1061(A)(3).

Mr. Charles points out that Williams cannot be his statutory employer in this

way “unless there is a written contract between the principal and a contractor which

is the employee’s immediate employer or his statutory employer, which recognizes

the principal as a statutory employer.” La.R.S. 23:1061(A)(3). It is undisputed that

Hydrochem does not have a written contract with either Williams, Tucker, or Blue

Fin. However, Williams does have a written contract with Tucker. Therefore,

pursuant to La.R.S. 23:1061(A)(3), Williams, as the principal, can be considered the

statutory employer of Mr. Charles if Tucker is determined to be Mr. Charles’s

statutory employer.

When entering into the respective contracts in this case, Defendants

contemplated the statutory employer status of the companies. Article 15 of the

Williams-Tucker Contract addresses the issue of statutory employers. It states, in

pertinent part (emphasis added):

For Work in the state of Louisiana, in all cases where [Tucker’s]

employees (defined to include [Tucker’s] direct, borrowed, special, or

statutory employees) are covered by the Louisiana Worker’s

Compensation Act, La Rev. Stat. Ann. 23:1021 et seq., [Williams] and

[Tucker] agree that pursuant to Section 23:1061 (A) (1) all Work

performed by [Tucker] and its employees under the terms and

conditions of this Contract is an integral part of [Williams’s] ability to

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generate its goods, products and services. Additionally, [Williams] and

[Tucker] agree that for purposes of Section 23:1061 (A) (3) [Williams]

is the principal or statutory employer of [Tucker’s] employees.

Irrespective of [Williams’s] status as the statutory employer or special

employer of [Tucker’s] employees, Section 23:1031(C), [Tucker] shall

remain primarily responsible for the payment of Louisiana Worker’s

Compensation benefits to its employees, and shall not be entitled to

seek contribution for any such payments from [Williams].

The MSA has similar language included that applies to Tucker and Blue Fin.

It states:

In all cases where BLUE FIN’S employees (including BLUE FIN’S

borrowed, direct, special, or statutory employees) are covered by the

Louisiana Worker’s Compensation Act, La. Rev. Stat. 23:1021 et seq,

BLUE FIN and [Tucker] agree that the Work performed by BLUE FIN

and its employees pursuant to this Contract or Agreement is an integral

part of and is essential to the ability of BLUE FIN to generate BLUE

FIN’s Goods or Services. BLUE FIN and [Tucker] expressly agree that

while BLUE FIN and any of its employees, agents, or BLUE FINs are

performing Work under this Contract that BLUE FIN will be

considered a Statutory Employer within the meaning set forth in La.

Rev. Stat. 23:1061 and those employees, agents, and employees of

BLUE FIN (herein after called “Statutory Employee”) shall be

considered a Statutory Employee as the meaning is set forth in La. Rev.

Stat. 23:1061.

“When the contract recognizes a statutory employer relationship, there shall

be a rebuttable presumption of a statutory employer relationship between the

principal and the contractor’s employees, whether direct or statutory employees.”

La.R.S. 23:1061(A)(3).

Mr. Charles focuses his argument on the MSA between Tucker and Blue Fin.

The MSA was executed to be a standing agreement between Tucker and Blue Fin

governing work to be performed in the future by Blue Fin for Tucker. It is under

this MSA that Tucker hired Blue Fin to perform work on the Station 54 facility.

Mr. Charles first argues that the MSA does not mandate either party to

perform work—the second prong necessary to satisfy the two-contract defense. He

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maintains that the MSA does not define the particular work Tucker hired Blue Fin

to perform nor does it bind Blue Fin to actually perform work.

Mr. Charles cites Fee v. Southern Packaging, Inc., 18-1364, 18-1365 (La.App.

1 Cir. 5/24/19), 277 So.3d 787, for the proposition that the contract must obligate

the performance of work. In Fee, the plaintiff was injured in the course and scope

of his employment with a logging company. The logging company was hired by a

timber dealer to harvest timber from certain land. Southern Packaging had a timber

deed from the family that owned the land, which had an option to harvest the timber

within two years. Southern then hired the timber dealer. The insurer of the logging

company went bankrupt, prompting the plaintiff to file a claim in Workers’

Compensation Court (WCC) against the timber dealer and Southern Packaging,

alleging that they were both his statutory employers. The appellate court affirmed

the WCC’s decision that the timber dealer was not the statutory employer of the

plaintiff, finding that the timber dealer was merely a middleman hired to serve as the

banker to facilitate the movement of funds between Southern Packaging and the

logging company. However, the appellate court reversed the WCC’s ruling that

Southern Packaging was the statutory employer of the plaintiff. In finding that

Southern Packaging was not the statutory employer of the plaintiff, the appellate

court found that Southern Packaging and the family that owned the land agreed to a

purchase price of the timber with a right to harvest; however, Southern Packaging

was not obligated to harvest the timber.

The appellate court in Fee explained that “[t]he purpose behind the two

contract theory is to establish a compensation obligation on the part of the principal

who contractually obligates itself to a party for the performance of work and who

8

then subcontracts with intermediaries whose employees perform any part of that

work.” Id. at 798.

The Fee case is distinguishable from the present case in that the contract at

issue there was an option to harvest timber. The MSA between Tucker and Blue Fin

is a standing agreement similar to the one found in Allen, 842 So.2d 373. In Allen,

the New Orleans Convention Center entered into a long-term contract with Aramark

to provide catering services for conventions and other events. Approximately five

years later, the convention center entered into a contract with ACE Hardware

Corporation to provide a venue for their convention. While the issue in Allen was

whether there is a temporal requirement to the two-contract defense (there is not),

the appellate court found:

[N]o reason has been advanced, nor can we fathom one, to support a

finding that a principal who has a long-standing agreement with a

supplier to provide labor and/or services in connection with jobs for

which the principal contracts should be treated differently, for the

purposes of the compensation obligation, than one who enters separate

contracts with the supplier after first contracting with a third party to

perform certain work.

Id. at 382.

As such, a standing agreement like the MSA in this case is acceptable as one

of the contracts in the two-contract defense theory. We reject Mr. Charles’s position

that additional documentation is required regarding who, what, when, and price

when the MSA is invoked as a contract. The MSA states:

BLUE FIN is engaged in the business of performing oilfield services

and in the course of such activity, regularly and customarily enters into

contracts with companies and individuals to perform work and/or

provide services, equipment, machinery, materials or supplies, all of

which is defined to be the Work (‘Work’).

The MSA goes on to discuss the Work throughout the contract including in

paragraph three entitled “Performance of the Work.” Plaintiff also contends that the

9

MSA does not obligate Tucker to hire from Blue Fin or for Blue Fin to accept the

work. While true, in the present case, it is clear that Tucker did hire Blue Fin and

Blue Fin did accept the work. In so doing, the MSA served as the binding document

between the parties. This argument has no merit.

Mr. Charles next argues that the scope of the work contemplated by Tucker

and Blue Fin is too ambiguous. Specifically, he contends the MSA states that Blue

Fin is in the business of “performing oilfield services,” and it does not utilize the

words “hydrotesting,” pipelines,” or “water.” Mr. Charles maintains that this is fatal

to Defendants’ claims that they are the statutory employers of Mr. Charles because

there is ambiguity as to whether the hydrotesting performed by Blue Fin is

considered “oilfield services.” Further, Mr. Charles notes that in a previously filed

motion for summary judgment, Tucker argued that the Williams-Tucker contract

met the definition of a construction contract under the Louisiana Anti-Indemnity Act

(LAIA). This runs counter to Tucker’s claim in its current motion for summary

judgment that the MSA is an oilfield services contract, according to Mr. Charles. He

argues that this discrepancy creates a genuine issue of material fact as to whether Mr.

Charles was providing oilfield services or construction services on the day of the

accident.

In support of his argument, Mr. Charles cites LFI Fort Pierce, Inc. v. Acme

Steel Buildings, Inc., 16-71 (La.App. 3 Cir. 8/17/16), 200 So.3d 939, writ denied,

16-1684 (La. 11/29/16), 210 So.3d 804, for the proposition that the scope of the work

must be more detailed. In LFI Fort Pierce, Inc., the plaintiff was operating a scissor-

lift on a construction site when an accident occurred. The plaintiff was a direct

employee of LFI, a temporary staffing company who provides workers for lease to

other companies. Acme was a subcontractor on the construction site, performing

10

work for the general contractor CC & D. Acme had contracted with LFI for

temporary labor in furtherance of its contract with CC & D. As a result of the

accident, LFI and its workers’ compensation insurer paid workers’ compensation

benefits to the plaintiff. LFI and its insurer then filed a petition for damages against

Acme and its insurer for reimbursement of the benefits paid to the plaintiff. The

defendants filed a motion for summary judgment, arguing that Acme is the statutory

employer of the plaintiff, and, therefore, they are immune from tort liability arising

out of this accident. The trial court agreed with the defendants and dismissed the

claims against them. LFI and its insurer appealed.

LFI and its insurer asserted that there were genuine issues of material fact

regarding Acme’s statutory employer status. The appellate court first looked at the

contracts between the parties. There was no written contract between CC & D and

Acme.

In order to establish a contract, the appellate court looked at the evidence

submitted by Acme, which included excerpts from a deposition with an Acme

representative and a purchase order. The representative stated that the agreement

between CC & D did not discuss whether temporary labor would be used, but Acme

knew that it would need to hire additional labor in order to complete the work. Next,

the appellate court looked at the contract between Acme and LFI. This contract was

evidenced by a credit application and a work order ticket. It “stated that LFI is a

‘Temporary Employment Service, which hires its own employees and assigns them

to customers to support or supplement the customer’s work force.’” Id. at 947.

Nothing in this contract specified that it was “for the performance of any of the jobs

or services that Acme had contracted with CC & D to provide.” Id. The appellate

court found “that the contract between CC & D and Acme is ambiguous as to

11

whether or not it included or contemplated the services or work that LFI provided to

Acme (i.e. temporary labor).” Id. Therefore, they found that genuine issues of

material fact existed as to whether Acme was the statutory employer of the plaintiff.

LFI Fort Pierce, Inc. is distinguishable from the case before us. LFI was

providing general laborers to Acme, rather than specialized workers. The contract

between LFI and Acme was a general contract that could have applied to any trade

or business. In the present case, the Williams-Tucker contract is entitled

“FACILITY MOIDIFICATIONS AND INTEGRITY ASSESSMENT

HYDROTEST.” Tucker utilized the Blue Fin MSA in furtherance of its contract

with Williams for hydrotesting, amongst other things. Blue Fin then hired

Hydrochem, who is in the business of hauling water to jobsites for hydrotesting. We

find that this direct line of contracts is not ambiguous. The contracts were clearly

entered into in the furtherance of the Williams-Tucker contract for hydrotesting at

the Station 54 facility.

Additionally, the court in LFI Fort Pierce, Inc. found genuine issues of

material facts existed because the CC & D contract with Acme was ambiguous as to

whether temporary labor would be used. In the present case, the Tucker-Blue Fin

MSA contemplated Blue Fin’s use of a third party to complete the work it was hired

to do. There is specific language included in the MSA about Blue Fin’s statutory

employer status, which can only be applicable if Blue Fin hired a third party to

complete the work. We find LFI Fort Pierce, Inc. inapplicable to the case at bar.

We disagree with Charles’s argument that, because Tucker argued in a

previous motion that the Williams-Tucker contract is a construction contract for the

purposes of the LAIA, Tucker cannot now argue that it is an oilfield services contract.

The title of the contract explains that it was entered into for the purpose of facility

12

modifications (construction contract) and hydrotesting (oilfield services contract).

There is no reason given by Mr. Charles as to why the contract must be regarded as

one or the other, and we can think of none. For the reasons stated above, we do not

find that the scope of the work contemplated by Tucker and Blue Fin is ambiguous.

Finally, Mr. Charles argues that the second contract in the two-contract theory

is missing, and consequently, Tucker is barred from invoking the two-contract

theory. The second contract to which Mr. Charles is referring is the contract between

Blue Fin and Hydrochem. It is undisputed that a written contract does not exist

between these two parties. However, there is no requirement that the contracts used

to satisfy the two-contract theory must be in writing. See Rasmussen v. Mann’s

Const. Co., 08-987 (La.App. 3 Cir. 2/4/09)(2009 WL 250905)(unpublished opinion).

Again, Mr. Charles relies on LFI Fort Pierce, Inc., this time for the

proposition that Tucker has not provided proper documentation to prove a second

contract exists. Mr. Charles states in brief that the court in LFI Fort Pierce, Inc.

found “that given the type of documents offered and the testimony presented to the

Court, there was a genuine issue of material fact and summary judgment was not

appropriate.” This is a misrepresentation of the holding. In fact, the court explains

that Acme submitted deposition testimony and a purchase order in order to establish

a contract between CC & D and Acme. The appellate court does not state that this

evidence is insufficient. Rather, the court stated “that the contract between CC &

D and Acme is ambiguous[.]” LFI Fort Pierce, Inc., 200 So.3d at 947 (emphasis

added). Clearly, the court found that a contract did exist but found summary

judgment was inappropriate on other grounds that we have already stated do not

apply to this case.

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In the present case, similar evidence was presented to establish a contract

between Blue Fin and Hydrochem. This evidence included the deposition testimony

of Victor Russell, Blue Fin’s project manager, emails regarding the starting date and

cost of the work, and waybills and purchase orders about specific loads of water

hauled. We find this evidence sufficiently establishes a contract between Blue Fin

and Hydrochem.

After reviewing the contracts, evidence and law related to this case, we find

that the requirements of the two-contract defense have been satisfied, and Tucker is

the statutory employer of Mr. Charles. It follows that Williams is also the statutory

employer of Mr. Charles since Williams is a principal that entered into a written

contract with Tucker, who we have determined to be Mr. Charles’s statutory

employer. La.R.S. 23:1061(A)(3).

DECREE

The judgments of the trial court are affirmed. Costs of this appeal are assessed

to Luther Charles.

AFFIRMED.

14

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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