Weeks Marine, Inc. v. United States of America
Filing
24
MEMORANDUM OPINION AND ORDER denying 19 MOTION for Summary Judgment, granting 20 MOTION for Summary Judgment (Signed by Judge Sim Lake) Parties notified. (aboyd, 4)
United States District Court
Southern District of Texas
ENTERED
October 31, 2017
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
WEEKS MARINE, INC.,
David J. Bradley, Clerk
§
§
§
§
Plaintiff,
v.
CIVIL ACTION NO. H-16-3642
§
§
§
§
§
UNITED STATES OF AMERICA,
Defendant.
MEMORANDUM OPINION AND ORDER
Pending before the court are Plaintiff Weeks Marine,
("Weeks Marine") Motion for Summary Judgment
Inc.'s
("Plaintiff's MSJ")
(Docket Entry No. 19) and defendant The United States of America's
("United States") Motion for Summary Judgment ("Defendant's MSJ")
(Docket Entry No. 20).
For the reasons stated below, Plaintiff's
Motion for Summary Judgment will be denied and Defendant's Motion
for Summary Judgment will be granted.
I.
Weeks
Marine
and
the
Contango Operators,
Inc.
Marine,
Supp.
Inc.,
9 F.
Background
United States were
v.
action
forms
judgment.
the
basis
Contango
for
in
United States of America and Weeks
3d 735
F. App'x 281 (5th Cir. 2015)
co-defendants
(S.D.
Tex.
2014),
aff'd,
(the "Underlying Litigation").
the
Operators,
pending
Inc.
motions
("Contango")
for
613
That
summary
filed
an
application for a permit to construct a natural gas pipeline in the
Gulf of Mexico with the Regulatory Division of the United States
Army Corps of Engineers ("the Corps").
a
permit to construct a
The Corps granted Contango
pipeline across
Channel" in November of 2007.
the
"Atchafalaya Pass
Information concerning the proposed
placement of the Contango pipeline across the Atchafalaya Pass
Channel was not forwarded by the Regulatory Division of the Corps
to the Waterways Division of the Corps.
The Waterways Division
provides the locations of submarine pipelines to the engineers who
prepare dredging contracts for Corps-maintained channels.
After
completing
the
pipeline
in April
of
2008
Contango
provided as-built drawings that illustrated the intersection of the
pipeline
and
the
Atchafalaya
Pass
Channel
to
the
Minerals
Management Service ( "MMS") , the National Ocean Service ("NOS") , and
the United States Coast Guard
(the "Coast Guard").
within the Corps received the as-built drawings.
No division
In April of 2009
the Corps solicited bids on a contract to dredge the Atchafalaya
Pass Channel.
Corps engineers prepared project specifications that
were provided to the bidders and that would ultimately become part
of the dredging contract.
near
the
Atchafalaya
specifications;
Five submarine pipelines located in or
Pass
Channel
the Contango pipeline,
were
identified
however,
in
was not listed.
Weeks Marine was awarded the contract in August of 2009.
Contango pipeline was not identified in the dredging contract.
-2-
the
The
The National Oceanic and Atmospheric Administration ("NOAA")
is
the
federal
charts.
agency tasked with the publication of nautical
Before November 25,
Electronic
Navigational
2009,
Chart
the relevant NOAA charts -
( "ENC")
US4LA21E
and
Raster
Navigational Chart ("RNC") 11351 - displayed the Atchafalaya Pass
Channel without the Contango pipeline.
After receiving information
from MMS about a new pipeline across the Atchafalaya Pass Channel,
NOAA published on
December
3,
2009.
(collectively,
pipeline.
its
website
Both the
updated
ENC
and
updated ENC and
the "updated NOAA charts")
RNC
the
charts
on
updated RNC
depicted the Contango
On December 2, 2009, the Coast Guard published a Local
Notice to Mariners ("LNM") announcing the addition of a submarine
pipeline to the area displayed in the RNC.
The updated NOAA charts
and the LNM were published after Weeks Marine had been awarded the
contract and had commenced dredging.
On
February
dredging barge,
24,
2010,
the G.D.
Weeks
MORGAN,
Marine's
non-self-propelled
struck the Contango pipeline,
causing the pipeline to rupture and Contango to incur losses.
Contango then sued Weeks Marine and the United States.
During the Underlying Litigation Weeks Marine filed a crossclaim against the United States alleging that Contango's damages
were caused by the negligence of the Corps.
The court held that
Weeks Marine's cross-claim was essentially contractual and that the
court did not have jurisdiction to adjudicate the claim because
-3-
Weeks
Marine
("CDA"). 1
had not
The
complied with
CDA required Weeks
the
Marine
Contract
to
Disputes Act
first
submit
its
contract claim against the United States to the Contracting Officer
for a decision.
41 U.S.C.
§
7103 (a) (1).
After a bench trial the court held,
and the Fifth Circuit
affirmed, that both defendants were liable to Contango because of
separate acts of negligence.
The court held that Weeks Marine was
liable for 40% of Contango's damages and the United States was
liable for 60%. 2
The total award to Contango,
Weeks Marine, was $13,919,366.36.
paid in full by
After the Fifth Circuit affirmed
the court's Final Judgment Weeks Marine filed an Unopposed Motion
for Judgment for Contribution. 3
The court granted the motion and
ordered the United States to pay Weeks Marine $8,018,468.81. 4
1
Memorandum Opinion and Order, Contango Operators, Inc. , et al.
v. United States and Weeks Marine, Inc., Civil Action No. 4:1100532 (S.D. Tex. 2014), Docket Entry No. 34, pp. 4-11.
2
Memorandum Opinion and Order, Contango Operators, Inc. , et al.
v. United States and Weeks Marine, Inc., Civil Action No. 4:1100532 (S.D. Tex. 2014), Docket Entry No. 180, pp. 36-38.
3
See Defendant Weeks Marine, Inc.'s Unopposed Motion for
Judgment for Contribution, Contango Operators, Inc., et al. v.
United States and Weeks Marine, Inc., Civil Action No. 4:11-00532
(S.D. Tex. 2014), Docket Entry No. 196.
4
See Judgment for Contribution, Contango Operators, Inc. ,
et al. v. United States and Weeks Marine, Inc., Civil Action
No. 4:11-00532 (S.D. Tex. 2014), Docket Entry No. 197.
-4-
After paying its share of the judgment, 5 Weeks Marine filed a
Certified
Claim
against
the
Corps
for
$5,900,897.55. 6
The
Contracting Officer denied the claim, 7 and Weeks Marine filed this
action seeking indemnity against the United States. 8
then filed the pending cross-motions
for
The parties
summary judgment 9 and
responses in opposition. 10
II.
Summary Judgment Standard
5
Plaintiff Weeks Marine, Inc.'s Memorandum of Law in Support
of Motion for Summary Judgment ("Plaintiff's Memorandum in Support
of MSJ"), attached to Plaintiff's MSJ, Docket Entry No. 19-1,
p. 14.
6
See Weeks Marine,
Inc.'s Certified Claim Against the
United States Army Corps of Engineers, Exhibit B to Defendant's
MSJ, Docket Entry No. 20-4, p. 12.
7
See Contracting Officer's Final Decision,
Plaintiff's MSJ, Docket Entry No. 19-11, p. 7.
Exhibit
8
to
8
See Plaintiff's Verified Original Complaint, Docket Entry
No. 1. After a contractor's claim is denied by the Contracting
Officer, the contractor may bring a claim arising out of a maritime
contract in a district court. 41 U.S.C. § 7102(d); see Bethlehem
Steel Corp. v. Avondale Shipyards, Inc., 951 F.2d 92, 94 (5th Cir.
1992) (describing Section 7102 (former Section 603) as "rather than
completely excluding maritime contracts from the Contract Disputes
Act, simply vests appeals from the administrative determination of
claims in the district courts, rather than in the Court of Claims
or the Court of Appeals for the Federal Circuit").
9
See Plaintiff's MSJ,
Docket Entry No. 20.
Docket Entry No.
10
19; Defendant's MSJ,
See The United States' Response to Weeks Marine's Motion for
Summary Judgment, Docket Entry No. 21; Plaintiff Weeks Marine,
Inc.'s Memorandum of Law in Opposition to the United States of
America's Motion for Summary Judgment, Docket Entry No. 22.
-5-
Summary judgment is warranted if the movant establishes that
there is no genuine dispute about any material fact and that it is
entitled to judgment as a matter of law.
An
examination of
material.
(1986).
substantive
law
Fed. R. Civ. P. 56(c).
determines
to a
facts
are
Anderson v. Liberty Lobby, Inc., 106 S. Ct. 2505, 2510
Material facts are those facts
that
outcome of the suit under the governing law."
as
which
material
fact
exists
if
the
"might affect the
Id.
A genuine issue
evidence
is
such that a
reasonable trier of fact could resolve the dispute in the nonmoving
party's favor.
Id. at 2511.
Where, as here, both parties have moved for summary judgment,
both "motions must be considered separately, as each movant bears
the burden of establishing that no genuine issue of material fact
exists and that it is entitled to judgment as a matter of law."
Shaw Constructors v.
ICF Kaiser Engineers,
538-39 (5th Cir. 2004).
Inc.,
395 F.3d 533,
The movant must inform the court of the
basis for summary judgment and identify relevant excerpts from
pleadings, depositions, answers to interrogatories, admissions, or
affidavits
that
demonstrate
there
are
no genuine
Celotex Corp. v. Catrett, 106 S. Ct. 2548, 2553
fact
issues.
(1986); see also
Wallace v. Texas Tech Univ., 80 F.3d 1042, 1046-47 (5th Cir. 1996).
If a
defendant moves
for
summary
judgment on the basis of an
affirmative defense, "it must establish beyond dispute all of the
defense's essential elements."
Bank of Louisiana v. Aetna U.S.
-6-
Healthcare Inc., 468 F.3d 237, 241
(5th Cir. 2006).
A defendant
may also meet its initial burden by pointing out that the plaintiff
has failed to make a showing adequate to establish the existence of
an issue of material fact as to an essential element of plaintiff's
case.
Celotex Corp., 106 S. Ct. at 2552.
its initial burden,
show
by
affidavits,
If the movant satisfies
the burden shifts to the nonmoving party to
depositions,
answers
to
interrogatories,
admissions on file, or other evidence that summary judgment is not
warranted because genuine fact issues exist.
Celotex Corp., 106
s. Ct. at 2552.
In reviewing the evidence "the court must draw all reasonable
inferences in favor of the nonmoving party,
credibility determinations
or weigh the
Sanderson Plumbing Products,
Inc.,
and it may not make
evidence."
Reeves
120 S. Ct. 2097, 2110
v.
(2000).
But conclusory claims, unsubstantiated assertions, or insufficient
evidence will not satisfy the nonmovant's burden.
at 1047.
If
the nonmovant fails
to present specific evidence
showing there is a genuine issue for trial,
appropriate.
Topalian v.
Ehrman,
Wallace, 80 F.3d
summary judgment is
954 F.2d 1125,
1132
(5th Cir.
1992).
To prevail on its Motion for Summary Judgment Weeks Marine
must establish as a matter of law that the United States is liable
to it for the damages Weeks Marine paid to Contango.
Civ.
P.
56 (a)
See Fed. R.
The United States may prevail on its motion by
-7-
showing that there is an absence of evidence to support liability.
See Celotex, 106 S. Ct. at 2664.
III.
A.
Analysis
Weeks Marine's Motion for Summary Judgment
In its Motion for Summary Judgment Weeks Marine argues that
the United States is liable to Weeks Marine for $5,900,897.55, the
amount
it paid to satisfy Contango's
judgment. 11
Weeks Marine
argues that the collateral estoppel effect of the court's finding
in the Underlying Litigation makes the United States liable to
Weeks Marine for breach of contract and negligence. 12
its response to the United States'
Weeks
Marine
states
that
"[it]
Although in
Motion for Summary Judgment
is
not
making
a
claim
for
contractual indemnification, " 13 however its claim is characterized,
the different terminology amounts to the same claim -- Weeks Marine
seeks to be reimbursed by the United States for the $5,900,897.55
it paid to Contango because of its own negligence.
1.
Weeks Marine Is Not Entitled to Summary Judgment on Its
Negligence Claim
11
See Plaintiff's Memorandum in Support of MSJ, attachment 1 to
Plaintiff's MSJ, Docket Entry No. 19-1, p. 14.
12
Id. at 10-12.
13
Plaintiff Weeks Marine,
Inc. 's Memorandum of Law in
Opposition to the United States of America's Motion for Summary
Judgment, Docket Entry No. 22, p. 1.
-8-
The court previously held that Weeks Marine's cross-claim
against the United States arose out of a contractual relationship
between Weeks Marine and the Corps. 14
Any claim that the USA was negligent for failing to
inform Weeks Marine about the pipeline is essentially
contractual.
If the USA breached a duty by failing to
include information in the contract, such a duty would be
based in the contractual relationship, and a breach would
have occurred by a failure to include the information in
the contract. Any claim that the USA was negligent for
failing to inform Weeks Marine about the pipeline after
the contract was signed similarly would involve a duty
based in the contract -- even if other duties might be
implicated as well
and a breach consisting of a
failure to supply information that should have been
included in the contract.
Any claim that the USA was negligent in the
information provided in its solicitation for bids is
essentially contractual. The solicitation for bids was
a solicitation to enter into a contract. As the court in
A & S Council held, the fact that such alleged conduct
occurred before the contract was entered into does not
alone make the claim noncontractual. 56 F.3d at 240-41.
Any claim that the USA was negligent in the NOAA
navigational charts that the USA provided to Weeks Marine
is also essentially contractual.
These charts were
provided to Weeks Marine so that Weeks Marine could carry
out the promises it made to the USA in the contract.
Weeks
Marine's
negligence
claim against
the
government [] involves issues of contract interpretation
-- the question of whether the USA had an obligation to
inform Weeks Marine of the pipeline (a) in the contract,
(b) in the solicitation for bids for the contract, or
(c) in any charts given to Weeks Marine so that it could
perform under the contract, and the question of whether
the USA failed to fulfill any of those obligations. On
14
Memorandum Opinion and Order, Contango Operators
Inc.
et al. v. United States and Weeks Marine
Inc. , Civil Action
No. 4:11-00532 (S.D. Tex. 2014), Docket Entry No. 34, pp. 4-7.
I
I
-9-
I
these facts, arguing that the USA was negligent in not
informing Weeks Marine about the location of the pipeline
is inextricably bound up in arguing that the USA breached
a contractual duty to inform Weeks Marine about the
pipeline. 15
The CDA establishes a method for resolution of "each claim by
a
contractor
contract."
against
41 U.S.C.
the
§
Federal
7103(a) (1).
Government
Therefore,
relating
to
a
"[w]hen the [CDA]
applies, it provides the exclusive mechanism for dispute resolution
II
Trader Properties, LLC v. United States,
No. G-14-254,
2015 WL 1208983, at *2
Civil Action
(S.D. Tex. March 16,
Inc.,
50 F.3d 1014,
2015)
(quoting Dalton v.
Sherwood Van Lines,
1017
(Fed. Cir. 19 9 5) ) .
"In order to determine whether the CDA applies,
federal courts generally look to whether the dispute at issue is
one of contract . . . Effective enforcement of the jurisdictional
limits of the CDA mandates that courts recognize contract actions
that are dressed in tort clothing."
United States v. J&E Salvage
Co., 55 F.3d 985, 987-88 (4th Cir. 1995).
Weeks Marine has a claim
for breach of contract under the CDA, it does not have a negligence
claim.
Weeks Marine is therefore not entitled to summary judgment
on its negligence claim.
2.
Weeks Marine Is Not Entitled to Summary Judgment on Its
Breach of Contract Claim
15
Memorandum Opinion and Order, Contango Operators, Inc. ,
et al. v. United States and Weeks Marine, Inc., Civil Action
No. 4:11-00532 (S.D. Tex. 2014), Docket Entry No. 34, pp. 8-11.
-10-
Weeks
Marine
argues
that
it
is
entitled
to
contractual
indemnity under the analysis of Michigan Wisconsin Pipeline Co. v.
Williams-McWilliams Co.,
Underlying
argument
Litigation
had
no merit.
551 F. 2d 945
the
court
The
(5th Cir.
explained
court
began
in
its
1977) .
detail
In the
why
analysis
with a
detailed discussion of the opinion.
Two Fifth Circuit decisions involving damages to
pipelines are instructive in identifying the duties of
defendants in this case. Michigan Wisconsin Pipeline v.
Williams-McWilliams, 551 F.2d 945 (5th Cir. 1977),
involved an allision between a dredge and a pipeline.
The pipeline had been constructed pursuant to a permit
from the Corps of Engineers, but the specifications
attached to the dredger's government contract did not
show the pipeline crossing the area to be dredged.
551
F. 2d at 948.
The contract also contained two "site
inspection clauses" in which the dredger agreed to take
steps "reasonably necessary to ascertain the nature and
location of the work and the general and local conditions
which can affect the work and the cost thereof" and to
"acknowledge that he ha [d] investigated and satisfied
himself as to the conditions affecting the work." Id. at
949 (internal quotation marks omitted).
After the
accident the pipeline owner sued the dredger for damages.
Id. at 947. The dredger filed a third-party complaint,
arguing that the United States was at fault for providing
specifications that failed to show the pipeline. Id. at
947.
The district court in Michigan Wisconsin found in
favor of the pipeline owner and against the dredger, and
dismissed the dredger's third-party complaint.
Id.
Affirming the judgment against the dredger and reversing
the dismissal of the complaint against the United States,
the Fifth Circuit held the United States may be held
liable where it has "by a prolonged course of conduct
[led] a contractor to expect that when certain kinds of
material structures are present in an area in which a
contract is to be performed that the structures will be
shown on the specifications drawings." Id. at 951. The
court held that "the absence of a depiction" of a
pipeline
amounted
to
a
"positive
assertion"
or
-11-
this
"representation" on which a dredger-contractor was
entitled to rely, "given a prolonged course of conduct
justifying contractor reliance on the [United States]
providing this information one way or the other in
specifications drawings." Id. (internal quotation marks
omitted).
The court concluded that the Corps' regular
practice of depicting pipelines on the specifications
attached to dredging contracts amounted to such a course
of conduct.
Id. at 952-53.
Moreover, the court held
that "government contractors .
. are not obligated to
make an independent investigation" into the accuracy of
"positive assertions" made by the United States. Id. at
953.
The court summarily rejected the United States'
attempt to exculpate itself by virtue of the "site
inspection clauses," reasoning that such provisions do
not
shift
the
liability
that
flows
from
the
United States' representations.
Id.
Contango Operators, 9 F. Supp. 3d at 741-42.
why
Weeks
Marine
was
not
entitled
to
The court explained
indemnity
from
United States.
Weeks Marine contends that under Michigan Wisconsin
and Hollerbach v. United States, 233 U.S. 165, 49 Ct. Cl.
686, 34 S. Ct. 553, 58 L. Ed. 898 (1914), it was
obligated to accept the government's representations in
the dredging contract as true and therefore had no duty
to Contango to consult updated charts prior to the date
of the allision.
Weeks Marine argues that it is
therefore entitled to indemnity from the United States
for any liability imposed on it because of its sole
reliance on the contract. The court finds both Michigan
Wisconsin and Hollerbach to be distinguishable from the
facts of this case.
Weeks Marine argues
that under Michigan
Wisconsin it was "obliged by the law to accept the
[g] overnment' s warranty regarding the number of pipelines
as true."
Weeks Marine points to the Supreme Court's
language in Hollerbach that the government's representations "must be taken as true and binding upon the
government," 34 S. Ct. at 556, to argue that it was
obliged by law to accept the government's representations
in the contract as true.
The court does not interpret
-12-
the
this language to mean that Weeks Marine was required to
accept the contract specifications as true even when it
had ready access to contrary and more recent information
from the government.
Cf. D.F.K. Enterprises, Inc. v.
United States, 45 Fed. Cl. 280, 285 (Fed. Cl. 1999)
("Without some valid basis for a contrary conclusion
(e.g., an absence of detrimental reliance by a government
contractor, or a failure to investigate sources which
would have revealed the truth), the government 'is liable
for damage attributable to misstatements of fact (in a
contract or specifications) which are representations
made to the contractor.'" (quoting Summit Timber Co. v.
u. s.
677 F.2d 852, 857 [, 230 Ct. Cl. 434] (Ct. Cl.
1982))).
[ . . . ] Important for purposes of applying Michigan
Wisconsin to this case is the fact that in Michigan
Wisconsin neither NOAA nor the Coast Guard had issued
charts or announcements that identified the ruptured
pipeline prior to the allision.
Here, NOAA charts and
LNMs identifying Contango's pipeline were readily
available to Weeks Marine employees before the allision.
The court has already concluded that given the
significant damage that could result from striking a
pipeline, the availability of current pipeline data, and
the ease of accessing such data, it was unreasonable for
Weeks Marine to rely solely on pipeline information
provided earlier in the contract specifications.
I
Contango Operators,
9 F.
Supp.
3d at 749-50. 16
The court again
concludes that the holding of Michigan Wisconsin does not entitle
Weeks Marine to indemnity against the United States.
Weeks Marine seeks to revive its argument for relief under
Michigan Wisconsin by citing the Fifth Circuit's statement in the
Underlying Litigation that "[i]f Weeks were maintaining a crossclaim against the government, the government would be liable if the
specifications were a representation on which Weeks was justified
in relying,
and
the
specifications
I6Id.
-13-
were
a
proximate
cause
of
Contango's injury."
Contango Operators,
Inc.
Inc., 613 F. App'x 281, 285 (5th Cir. 2015).
v.
Weeks Marine,
Weeks Marine argues
that this statement affirmatively establishes that it is entitled
to recover from the United States the $5, 900, 897.55 it paid to
Contango. 17
The court is not persuaded by this argument.
statement
of
the
Fifth
Circuit
is
dicta
First,
because
it
In fact,
essential to the Fifth Circuit's holding.
immediately
following the statement on which Weeks Marine relies,
was
the
not
the Fifth
Circuit stated that "we have no occasion to consider that question,
"
Id. at 285.
Weeks Marine argues that its action against the United States
meets all the requirements of Michigan Wisconsin because the Corps'
omission was a positive assertion, Weeks Marine justifiably relied
on the positive assertion, and the absence of the pipeline in the
contract was a proximate cause of Contango's injury.
disagrees.
The court
The omission of the pipeline by the Corps may have been
a positive assertion and was one cause of Contango's injury, but as
the court previously held, Weeks Marine did not "justifiably" rely
on it.
Weeks Marine possessed information about
the
Contango
pipeline that it could have used to avoid striking the pipeline.
In the Underlying Litigation the court held, and the Fifth Circuit
17
Plaintiff' s
No. 19-1, p. 14.
Memorandum
In
Support
-14-
of
MSJ,
Docket
Entry
affirmed, that "it was unreasonable for Weeks Marine to rely solely
on pipeline
information provided
earlier by
the
contract specifications and dredging contract .
Operators, 9 F. Supp. 3d at 745.
Corps
II
18
in
the
Contango
The court held that "regardless
of whether the Corps' practice of identifying pipelines constituted
a 'prolonged course of conduct,' see Michigan Wisconsin, 551 F.2d
at 951, Weeks Marine's sole reliance on information provided by the
Corps did not satisfy its duty in this case to exercise reasonable
care in its dredging operations." 19
3d at 745. 20
Contango Operators, 9 F. Supp.
The holding of Michigan Wisconsin does not entitle
Weeks Marine to summary judgment against the United States.
B.
The United States' Motion for Summary Judgment
The United States argues that indemnification is not available
under the contract between Weeks Marine and the United States 21 and
18
Id. at 16.
20
Moreover, although the absence of the pipeline in the Corps'
documents was a proximate cause of the damages caused by the Corps
to Contango, Weeks Marine was liable to the Corps because its own
negligence proximately caused damages to Contango apart from the
Corps' negligence.
21
See Memorandum of Law in Support of the United States of
America's Motion for Summary Judgment, attachment 1 to Defendant's
MSJ, Docket Entry No. 20-1, p. 7.
-15-
that under the contract Weeks Marine is responsible for its own
negligence. 22
Under maritime law one party may agree to indemnify the other,
but
"a contract of indemnity will not afford protection to an
indemnitee against the consequences of his own negligent act unless
the contract clearly expresses such an obligation in unequivocal
terms."
Cir.
Corbitt v. Diamond M. Drilling Co., 654 F.2d 329, 333 (5th
1981).
In United States v.
Seckinger,
90 S.
Ct.
880,
885
(1970), the Court held that "a contractual provision should not be
construed to permit an indemnitee to recover for his own negligence
unless the court is firmly convinced that such an interpretation
reflects the intention of the parties."
The
contract
between Weeks
Marine
and
the
United
States
contains a provision entitled "Permits and Responsibilities," which
states "[t]he Contractor shall also be responsible for all damages
to persons or property that occur as a result of the Contractor's
fault or negligence." 23
that
Weeks
negligence
Marine
causes
This is an express contractual undertaking
will
damages
pay
for
to a
its
own
negligence
third party.
Weeks
if
that
Marine
is
zzid.
nclause 52.236-7, Contract, Exhibit A, Defendant's MSJ, Docket
Entry No. 20.
This provision is nearly identical to the one at
issue in Seckinger. See Seckinger, 90 S. Ct. at 881 (analyzing the
provision in a fixed-price government construction contract that
stated that the private contractor "shall be responsible for all
damages to persons or property that occur as a result of his fault
or negligence .
.").
-16-
therefore precluded by its contract from recovering its portion of
the judgment from the United States.
The court found Weeks Marine negligent and responsible for 40%
of Contango's damages.
The contract between Weeks Marine and the
Corps therefore provides no basis for Weeks Marine's claim that it
is entitled to indemnity from the United States for the damages
caused to Contango by Weeks Marine's negligence.
Nor has Weeks
Marine identified any other rule of law that would entitle it to be
indemnified by the United States.
The United States' Motion for
Summary Judgment will therefore be granted.
IV.
For
the
foregoing
Conclusion and Order
reasons
Motion for Summary Judgment
defendant
The
United
Plaintiff
Weeks
(Docket Entry No. 19)
States
of
America's
Marine,
Inc. 's
is DENIED, and
Motion
for
Summary
Judgment (Docket Entry No. 20) is GRANTED.
SIGNED at Houston, Texas, on this 31st day of October, 2017.
SIM LAKE
UNITED STATES DISTRICT JUDGE
-17-
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