United States District Court, E.D. Louisiana
JOHN BLUDWORTH SHIPYARD, INC. ET AL.
CAPITAL CONSULTANTS, INC. OF LOUISIANA ET AL.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
TRICHE MILAZZO, UNITED STATES DISTRICT JUDGE.
of 2014, Defendant Capital Consultants, Inc. of Louisiana
(“Capital”) and Plaintiff Wire Industrial, Inc.
(“Wire”) entered into a teaming agreement in
which Wire agreed to handle the hiring and leasing out of
laborers to customers while Capital handled certain financial
and administrative matters (the “Teaming
Agreement”). Thereafter, two such laborers were injured
while working for Wire's customer, Plaintiff John
Bludworth Shipyard Inc. (“JBS”). Wire's
insurer First Mercury provided JBS with defense, indemnity,
and insurance coverage for the laborers' claims against
JBS. In this matter, First Mercury, JBS, and Wire seek
indemnity, defense, and insurance coverage from Capital and
its insurer Liberty Mutual Insurance Company (“Liberty
Mutual”) for the amount paid in settlement of the
case proceeded to a bench trial on June 4, 2018. On
Defendant's Motion, the claims by JBS and Wire were
dismissed during trial for failure to show damages. Having
considered the evidence admitted at trial and the arguments
of counsel, this Court makes the following findings of fact
and conclusions of law as to First Mercury's claim
against Capital and Liberty Mutual. To the extent a finding
of fact constitutes a conclusion of law, and vice versa, the
Court adopts it as such.
June of 2014, Capital and Wire entered into a teaming
agreement in which Wire agreed to handle the hiring and
leasing out of laborers to customers while Capital handled
certain financial and administrative matters (the
parties agreed to share profits on a 50/50 basis under the
Teaming Agreement stated that Capital “will supply all
back office support including coverage of Workers
Compensations, Liabilities, and taxes for payrolled
employees.” It later states that Capital “will
provide Liability Insurance.”
sought out the Teaming Agreement with Capital because of its
need to procure a lower rate for worker's compensation
Teaming Agreement was intended as a short term solution to
assist Wire in procuring worker's compensation insurance.
There was no testimony at trial that the parties contemplated
insurance coverage for indemnity agreements previously
entered into by Wire when negotiating the Teaming Agreement.
Capital had a company policy in which it refused to sign any
agreement that required it to indemnify a third party for its
Capital would not have signed an agreement with Wire that
required it to indemnify a third party for its own
leased two workers, Gilberto Flores and Santos Beltran Silva,
to Plaintiff John Bludworth Shipyard Inc. (“JBS”)
pursuant to a subcontractor agreement between Wire and JBS
that predated the ...