Fifth Circuit Bars Surety's Subrogation Claims Against Prior OCS Leaseholders for Decommissioning Bond Payments

The Fifth Circuit affirmed summary judgment against Lexon Insurance, which issued performance bonds securing offshore decommissioning obligations and sought reimbursement from Chevron, BP, and Sojitz as prior leaseholders under subrogation, contribution, and unjust enrichment theories. Applying Louisiana law to fill gaps in OCSLA, the court held that the surety had no right of recourse against prior leaseholders who were non-parties to the bonds and that the prior leaseholders did not share an equal burden with the surety.