Justia Admiralty & Maritime Law Opinion Summaries

Articles Posted in Labor & Employment Law
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Brian Ranger, a maintenance worker for Alamitos Bay Yacht Club, was injured while performing his duties, which included hoisting and mooring vessels. On August 28, 2018, he slipped and fell while boarding a vessel, resulting in serious injuries. Ranger applied for state workers' compensation and subsequently sued the Club under general maritime law, alleging negligence and unseaworthiness.The Los Angeles County Superior Court sustained the Club's demurrer without leave to amend, concluding that Ranger failed to allege facts implicating federal admiralty jurisdiction. Although the court acknowledged the tort occurred on navigable waters, it found that Ranger did not demonstrate his fall posed more than a fanciful risk to maritime commerce. The Court of Appeal affirmed the decision but on different grounds, holding that the Longshore and Harbor Workers’ Compensation Act (LHWCA) displaced general maritime law, making California’s workers’ compensation scheme Ranger’s exclusive remedy.The Supreme Court of California reviewed the case and concluded that the Court of Appeal erred. The court held that the 1984 amendments to the LHWCA, which exclude certain workers from federal workers' compensation if they are covered by state laws, did not abrogate general maritime remedies for those outside the LHWCA’s scope. The court also determined that California’s workers’ compensation exclusive-remedy provision could not deprive Ranger of his substantive federal maritime rights under the supremacy clause of the federal Constitution. The judgment of the Court of Appeal was reversed, and the case was remanded for further proceedings to address unresolved issues, including whether Ranger’s claims properly invoked admiralty jurisdiction. View "Ranger v. Alamitos Bay Yacht Club" on Justia Law

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Adam P. Harrington was injured on February 15, 2018, while using a swing rope to transfer from an offshore gas platform to a transport vessel. Harrington, employed by Skelton's Fire Equipment, Inc., was inspecting fire-suppression equipment on Exxon's platform. Due to rough seas, Harrington mistimed his swing and fractured his leg. His medical expenses were covered by Skelton's workers' compensation insurer.Harrington sued Exxon for maritime negligence and wantonness in the Mobile Circuit Court. Before trial, the court granted Harrington's motion to exclude evidence of his medical expenses being paid by the workers' compensation insurer. The jury found Exxon liable for $1,500,000 in damages, reduced by 10% for Harrington's fault, resulting in a $1,350,000 judgment. Exxon's postjudgment motion for a new trial, arguing the exclusion of evidence was erroneous, was denied.The Supreme Court of Alabama reviewed the case. Exxon argued that the trial court erred by excluding evidence of the workers' compensation payments, citing Alabama Code § 12-21-45. However, the court held that substantive maritime law, which includes the collateral-source rule, applied. This rule prevents the reduction of damages by amounts received from third parties, such as insurance. The court found that applying § 12-21-45 would conflict with maritime law.Exxon also claimed that Harrington's expert witness opened the door to admitting evidence of the workers' compensation payments. The court disagreed, stating that the expert's testimony did not justify introducing such evidence under the doctrine of curative admissibility.The Supreme Court of Alabama affirmed the trial court's judgment in favor of Harrington and dismissed Harrington's conditional cross-appeal as moot. View "Exxon Mobil Corporation v. Harrington" on Justia Law

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The plaintiff, Mary Rodgers-Rouzier, worked as a bartender on steamboats operated by American Queen. She alleged that she and her coworkers were wrongly denied overtime wages. Rodgers-Rouzier filed a suit as a collective action, and over one hundred of her coworkers joined her proposed collective action. Meanwhile, American Queen moved to dismiss the case, arguing that Rodgers-Rouzier had agreed to arbitration. The district court denied the motion, but American Queen moved again to dismiss based on the arbitration agreement, this time invoking Indiana state law. The district court granted this motion, over Rodgers-Rouzier’s objections.The district court had previously denied American Queen's motion to dismiss the case for improper venue because Rodgers-Rouzier had agreed to arbitration. However, American Queen then moved again to dismiss based on the arbitration agreement, this time invoking Indiana state law. The district court granted this motion, over Rodgers-Rouzier’s objections that American Queen had waived its argument and the court lacked authority to apply Indiana law in this context. The court further determined that all the workers who had filed consent forms were not parties to the action.The United States Court of Appeals for the Seventh Circuit reversed the district court's decision. The court concluded that although American Queen’s arguments were not waived and the court had authority to enforce the arbitration agreement under Indiana law, Indiana law would hold American Queen to its bargain that its arbitration agreement was governed by the Federal Arbitration Act (FAA). Therefore, Rodgers-Rouzier’s case may continue in federal court. The court did not decide whether it may do so as a collective action and left that question for further litigation. View "Rodgers-Rouzier v. American Queen Steamboat Operating Company, LLC" on Justia Law

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Appellant worked as a barge cleaner for T.T. Barge Services, which provides barge cleaning services to Ingram Barge Company. Appellant asserted negligence claims against Ingram after Appellant was injured by caustic soda that he was cleaning up on Ingram Barge 976, which was moored to one of T.T.’s work barges at the time of his injury. After Ingram filed a district court complaint to limit liability, Appellant counterclaimed and asserted claims of negligence against Ingram. T.T. also filed a claim for contribution and indemnity against Ingram. The district court granted summary judgment (1) as to Appellant’s lack of seaman status under the Jones Act and (2) as to all of Appellant’s negligence claims against Ingram. The district court then dismissed the case with prejudice. Appellant challenged the district court’s orders.   The Fifth Circuit affirmed. The court explained that T.T.’s Cleaning Barge is semi-permanently and indefinitely attached to land by steel cables, except for rare moves during repairs or to accommodate nearby dredging operations. Therefore, the district court did not err in finding that T.T.’s Cleaning Barge lacked vessel status at summary judgment.   Further, the court explained that to qualify as a Jones Act seaman, a plaintiff must satisfy two requirements. First, an employee’s duties must ‘contribute to the function of the vessel or to the accomplishment of its mission. Second, that employee must have a connection to a vessel in navigation that is substantial in terms of both its duration and its nature. Here, Ratcliff lacks a substantial connection to Ingram’s barges. View "Ingram Barge v. Ratcliff" on Justia Law

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Plaintiff fell while stepping from a dock to a boat. He sued his employer—a yacht club in Long Beach—under federal admiralty law. The trial court sustained the club’s final demurrer to the second amended complaint. The court ruled there was no admiralty jurisdiction.   The Second Appellate District affirmed the court’s ruling without deciding about admiralty jurisdiction. The court explained that Congress in 1984 specified employees covered by state workers’ compensation law working at a “club” are covered by state workers’ compensation law and not federal law if they are eligible for state workers’ compensation. The court wrote that Plaintiff concedes the yacht club is a “club.” Federal law thus makes California state workers’ compensation law paramount, which means Plaintiff’s exclusive remedy is workers’ compensation. The court wrote that a core part of the state workers’ compensation bargain is that injured workers get speedy and predictable relief irrespective of fault. In return, workers are barred from suing their employers in tort. Thus, the trial court correctly dismissed Plaintiff’s tort suit against his employer. View "Ranger v. Alamitos Bay Yacht Club" on Justia Law

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A collective-bargaining agreement between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), an association of carriers and other employers, earmarks all container loading and unloading work on the East and Gulf Coasts for the union’s members. So when USMX-affiliated ships docked at a new South Carolina terminal that used non-union lift operators, the union sued USMX and its carrier members for damages. Soon enough, USMX’s carrier members stopped calling at that terminal. At issue is whether the ILA’s lawsuit—and a separate provision of its contract with USMX—violate the National Labor Relations Act. The National Labor Relations Board held that they don’t, and the South Carolina State Ports Authority petitioned for review.   The Fourth Circuit agreed with the Board and denied the petition. The court agreed that USMX and the ILA haven’t made an agreement that violates Section 8(e). Moreover, the court explained that the Board rationally held that the ILA’s lawsuit against USMX sought to preserve its coastwide jurisdiction over loading and unloading work, so it didn’t violate the Act. And the Board and ALJ correctly concluded that Section 7(b) of the Master Contract didn’t constitute an illegal hot-cargo provision, whether by its text or by tacit agreement. View "South Carolina State Ports Authority v. NLRB" on Justia Law

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The First Circuit affirmed the district court's default judgment in a tort action brought against the owner of a boat that Plaintiff was working on at the time of his injury, holding that the district court did not err in granting default judgment and denying Appellant's request for leave to file a late claim under Supplemental Rule F of the Federal Rules of Civil Procedure.Appellant, a commercial fisherman, filed a complaint in a Massachusetts state court alleging that he was injured while working on a vessel owned by G&J Fisheries, Inc. and that G&J was liable for unseaworthiness and negligence under the Jones Act, 46 U.S.C. 30104. G&J filed a complaint in the federal district court seeking exoneration from liability under 46 U.S.C. 30501-12 and Supplemental Rule F. The district court enjoined all other lawsuits against G&J pursuant to Supplemental Rule F(3) and then granted default judgment for G&J on the grounds that Appellant failed to file a claim as required under the rule. The First Circuit affirmed, holding that the district court did not err in granting default judgment and in denying Appellant's request to file a late claim under Supplemental Rule F(4). View "G&J Fisheries, Inc. v. Costa" on Justia Law

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In 2011, during the course and scope of his employment as a shipwright, Claimant Robert Arlet slipped and fell on an icy sidewalk on the premises of his employer, Flagship Niagara League (Employer), sustaining injuries. Employer had obtained a Commercial Hull Policy from Acadia Insurance Company (Insurer). Through the policy, Insurer provided coverage for damages caused by the Brig Niagara and for Jones Act protection and indemnity coverage for the “seventeen (17) crewmembers” of the Brig Niagara. Employer had also at some point obtained workers’ compensation insurance from the State Workers’ Insurance Fund (SWIF). Insurer paid benefits to Claimant under its Commercial Hull Policy’s “maintenance and cure” provision. Claimant filed for workers’ compensation benefits. Employer asserted Claimant’s remedy was exclusively governed by the Jones Act. Employer also filed to join SWIF as an additional insurer in the event the Workers' Compensation Act (WCA) was deemed to supply the applicable exclusive remedy, and Employer was found to be liable thereunder. SWIF denied coverage, alleging Employer’s policy was lapsed at the time of Claimant’s injury. Thereafter, Claimant filed an Uninsured Employers Guaranty Fund (UEGF) claim petition, asserting the fund’s liability in the event he prevailed, and Employer was deemed uncovered by SWIF and failed to pay. The Workers’ Compensation Appeals Board (WCAB) found that as a land-based employee, Claimant did not meet the definition of seaman under the Jones Act and was, therefore, entitled to pursue his workers’ compensation claim. The issue this case presented for the Pennsylvania Supreme Court's review was one of first impression: the right of an insurer to subrogation under the WCA. The Supreme Court concluded Insurer’s Commercial Hull Policy did not cover Claimant, because Claimant was not a “seaman” or crew member. The WCA’s exclusive remedy applied, but Insurer was seeking subrogation for payment it made on a loss it did not cover. "[T]he 'no-coverage exception' to the general equitable rule precluding an insurer from pursuing subrogation against its insured comports with the purposes and public policy supporting the rule and hereby adopt it as the law of this Commonwealth. ... any equitable rule precluding an insurer from seeking subrogation against its insured is best tempered by the exception adopted herein today." View "Arlet v. WCAB (L&I)" on Justia Law

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The Ninth Circuit denied a petition for review of the BRB's decision affirming an IJ's award of benefits to claimant under the Longshore and Harbor Workers' Compensation Act (LHWCA). In this case, claimant sought disability and medical benefits under the LHWCA after injuring both knees while working for Sundial.The panel held that the ALJ did not err in applying section 910(a) of the LHWCA to calculate claimant's average weekly wage at the time of injury. The panel explained that the section 910(a) formula presumptively applies to calculating a five-day workers' average weekly wage, and the statutory presumption is not rebutted as a matter of law simply because section 910(a) would slightly underestimate earning capacity because the claimant worked in excess of 260 days. Rather, the statute plainly contemplates some inaccuracy in calculating the average weekly wage, and it does not provide that section 910(a) is inapplicable if more than 260 days were worked. Nor does the fact that claimant worked 264 days by itself make use of the section 910(a) formula unreasonable or unfair. In this case, claimant is incorrect that the section 910(a) formula entirely fails to account for his increased earnings, as the starting point for the section 910(a) calculation is the total amount of compensation earned in the previous year. Furthermore, the legislative history of the Act suggests that Congress did not envision application of section 910(c) under these circumstances. View "Martin v. Sundial Marine Tug and Barge Works, Inc." on Justia Law

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James Boudreaux was injured during his employment by Owensby & Kritikos, Inc. as an equipment-testing technician on platforms located on the Outer Continental Shelf (OCS). Plaintiff's injury resulted from an automobile accident on his way to his work for Owensby on the OCS. Primarily at issue in this case is whether, in light of Pacific Operators Offshore, LLP v. Valladolid, 565 U.S. 207 (2012) (establishing substantial-nexus test), an onshore injury en route to a rig platform on the OCS is recoverable under the Longshore and Harbor Workers' Compensation Act (LHWCA), as extended by the Outer Continental Shelf Lands Act (OCSLA). The ALJ determined that Boudreaux's injury arose out of, and occurred in the course of, his employment by Owensby; and, Boudreaux's injury had a substantial nexus to extractive operations on the OCS. The BRB affirmed.The Fifth Circuit applied the substantial-nexus test in Valladolid, holding that Boudreaux's injury is covered under OCSLA. Among the facts relevant to the court's inquiry, the court found persuasive Boudreaux's: being compensated by Owensby for both time and onshore mileage while traveling to and from the OCS; being on-the-job when he was injured; necessarily traveling to an intermediary pickup location to be transported from onshore to the OCS; and transporting his testing equipment in his vehicle. Furthermore, Owensby had another employee pick up Boudreaux's testing equipment to take it to the OCS after his accident. Therefore, each of these factors support Boudreaux's injury occurring as the result of operations conducted on the OCS. The court denied Owensby's petition for review, dismissed Boudreaux's cross-application based on lack of jurisdiction, and granted Boudreaux's request for reasonable attorney's fees incurred in defending against the petition, pending the court's decision on the amount to be awarded. View "Owensby & Kritikos, Inc. v. Boudreaux" on Justia Law