FEDERALDistrict Court, S.D. Texas
2018

Lloyd's Syndicate 457 v. Am. Global Mar. Inc.

346 F. Supp. 3d 908District Court, S.D. Texas • Decided 2018Enforced

HOLDING

An insurance company (Lloyd's Syndicate) sued American Global Maritime and foreign parent companies over a failed tendon installation on an offshore platform. The court dismissed the case against the foreign companies, ruling that the insurance company couldn't prove those companies had enough connection to Texas courts. The decision shows that parent companies can't automatically be sued in the same location as their subsidiaries, even when the subsidiary operates there.

KEY FINDINGS

Broad Indemnification

If you're sued, defendants can escape jurisdiction by proving they lack sufficient contacts with the state—don't assume a subsidiary's presence means the parent company can be sued there too.

Dispute Resolution

Arbitration clauses in contracts with project owners (like Chevron) may protect you from litigation; the court considered whether these clauses required disputes to go to arbitration instead of court.

Force Majeure

Insurance subrogation rights (where insurers sue on behalf of the insured) have limits—companies designated as 'Other Assureds' in the insurance policy may be protected from these claims.

FULL COURT OPINION