LLOYD'S OF LONDON v. ORYX ENERGY CO.

No. 97-40376.

142 F.3d 255 (1998)

CERTAIN UNDERWRITERS AT LLOYD'S LONDON, Who are Members of Lloyd's Syndicates Numbered 658, 483, 741, 687, 79, 872, 535, 552, 123, 114, 741, 209, 1023, 309, 872 and 500; Indemnity Marine Assurance Co. Ltd.; Zurich Re UK Ltd.; Ocean Marine Insurance Co. Ltd.; Commercial Union Assurance; The Tokio Marine & Fire; Phoenix Assurance PLC LSA; Northern Assurance Company Limited; Gan Minster Insurance Company, Limited; Terra Nova Insurance Company Ltd.; Phoenix Assurance Public Limited; Cornhill Insurance PLC; The Yorkshire Insurance Company, Limited; Skandia Marine Insurance Company (UK); Scottish Lion Insurance Company, Limited; Hansa Re & Marine Insurance Company (UK) Limited; Threadneedle Insurance Co. Ltd.; Sphere Drake Insurance; Dai-Tokyo Insurance Company; Compagnie D'Assurancey Martimes; Aeriennes & Terrestres (CAMAT); Americas Insurance Company; Hansa Re-Marine; Anglo American Insurance Company, Gan France; Phoenix 09/01/75; Terra Nova; CAMAT 1992; Cornhill D A/C; Skandia Marine; Indemnity Marine; Yorkshire L A/C; Zurich Re; Ocean Marine; Phoenix LSA A/C; Northern Marine; London & Edinburgh; Gan Minster; Gernerali; Sphere Drake No. 1; Scottish Lion, Plaintiffs-Appellees-Cross-Appellants, v. ORYX ENERGY COMPANY, Defendant-Appellant-Cross-Appellee. ORYX ENERGY COMPANY, Plaintiff-Counterclaim Defendant-Appellant-Cross-Appellee, v. LLOYD'S OF LONDON, Certain Underwriters who are members of Lloyd's Syndicates Numbered 658, 483, 741, 687, 79, 872, 535, 552, 123, 114, 741, 209, 1023, 309, 872 and 500, Defendants-Counter-claim Plaintiffs-Appellees-Cross-Appellants, Indemnity Marine Assurance Co. Ltd.; Zurich Re UK Ltd.; Ocean Marine Insurance Co. Ltd.; Commercial Union Assurance; The Tokio Marine & Fire; Phoenix Assurance PLC LSA; Northern Assurance Company Limited; Gan Minster Insurance Company, Limited; Terra Nova Insurance Company Ltd.; Phoenix Assurance Public Limited; Cornhill Insurance PLC; The Yorkshire Insurance Company, Limited; Skandia Marine Insurance Company (UK); Scottish Lion Insurance Company, Limited; Hansa Re & Marine Insurance Company (UK) Limited; Threadneedle Insurance Co., Ltd.; Sphere Drake Insurance; Dai-Tokyo Insurance Company; Compagnie D'Assurancey Martimes; Aeriennes & Terrestres (CAMAT); Americas Insurance Company; Hansa Re-Marine; Anglo American Insurance Company; Gan France; Phoenix 09/01/75; Terra Nova; CAMAT 1992; Cornhill D A/C; Skandia Marine; Indemnity Marine; Yorkshire L A/C; Zurich Re; Ocean Marine; Phoenix LSA A/C; Northern Marine; London & Edinburgh; Gan Minster; Gernerali; Sphere Drake No. 1; Scottish Lion, Defendants-Appellees-Cross Appellants.

United States Court of Appeals, Fifth Circuit.

May 26, 1998.


Attorney(s) appearing for the Case

Edward D. Vickery, Chester Joseph Makowski, Bradley A. Jackson, Royston, Rayzor, Vickery & Williams, Houston, TX, James Richard Watkins, Royston, Rayzor, Vickery & Williams, Galveston, TX, for Plaintiffs-Appellees-Cross-Appellants.

B. Michael Bennett, James Edgar Cowles, Gregory Joseph Lensing, Cowles & Thompson, Dallas, TX, for Oryx Energy Co.

Before REAVLEY, DeMOSS and PARKER, Circuit Judges.


REAVLEY, Circuit Judge:

The district court has held that a Texas statute limiting the indemnification of a negligent indemnitee limits the liability insurance coverage obtained by the indemnitor for the indemnitee. We disagree and reverse the judgment.

BACKGROUND

Mallard Bay Drilling, Inc. (Mallard), owner of a drilling platform off the Texas coast, contracted with Oryx Energy Company (Oryx) for work on a well. The contract provided for Mallard...

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