Fifth Circuit Expands Marcel Exception To Include Third-Party Contractor

A Master Service Agreement is a standard form of contract that is frequently used for doing business on the Outer Continental Shelf (OCS) in energy-related operations. These agreements usually contain indemnity and insurance obligations that are sought to be enforced when an OCS claim arises. Which law governs is important, and choice of law provisions are not automatically enforceable. State law may void or limit these obligations. Maritime law will generally enforce contractually assumed insurance and indemnity obligations.

The Outer Continental Shelf Lands Act (OCSLA) extends federal law to installations attached to the seabed of the OCS. OCSLA allows for the application of state law as surrogate federal law (1) when an incident occurs at an OCSLA situs (the subsoil, seabed, or installation or other structure permanently or temporarily attached to the seabed); (2) where state law is not inconsistent with federal law; and (3) where maritime law does not apply by