Sanchez Oil & Gas Corp. v. Crescent Drilling & Productions, Inc., No. 20-20304 (5th Cir. 2021)Annotate this Case
Sanchez oil was sued by a subcontractor of a contractor for alleged violations of the Fair Labor Standards Act (FLSA). After unsuccessfully requesting indemnification from Crescent, which hired the subcontractor, Sanchez filed a third-party complaint alleging breach of contract for Crescent's failure to indemnify Sanchez and failure to comply with the FLSA.
The Fifth Circuit reversed the district court's denial of Sanchez's motion for summary judgment and grant of Crescent's motion, finding material fact issues as to whether the subcontractor was an "independent contractor" or otherwise was exempt from the FLSA. The court also found material fact issues regarding whether Crescent unreasonably withheld consent to the settlement. The court remanded for further proceedings.