Justia U.S. 5th Circuit Court of Appeals Opinion Summaries

Plaintiff, injured while employed by GC, filed suit against GC alleging that he was working as a seamen at the time of his accident and sought damages under the Jones Act, 46 U.S.C. 30104, for GC's negligence. Travelers, which provided coverage to GC at the time of plaintiff's accident, moved to intervene. In this appeal, the court held that an insurer who makes voluntary Longshore Harbor Workers' Compensation Act (LHWCA), 33 U.S.C. 901-950, payments to an injured employee on behalf of the employer acquires a subrogation lien on any recovery by the employee in a Jones Act suit against the employer based on the injuries for which the insurer has already compensated him. Therefore, Travelers was entitled to the disputed funds in the district court's registry, and Travelers could intervene for the purpose of collecting these funds. Accordingly, the court reversed the district court's denial of the motion to intervene filed by Travelers and remanded with instructions. View "Chenevert v. Travelers Indemnity Co." on Justia Law

The Parishes filed suit against BP and others involved in the "Deepwater Horizon" oil spill, seeking to recover penalties under The Louisiana Wildlife Protection Statute, La. R.S. 56:40:1. On appeal, the Parishes challenged the denial of its motion to remand to state court and dismissal of its claims as preempted by federal law. The court concluded that the state law claims were removable pursuant to the broad jurisdictional grant of section 1349 of the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1349. The court also concluded that the district court correctly concluded that the Parishes' claims were preempted by the Clean Water Act (CWA), 33 U.S.C. 1321, as interpreted in International Paper Co v. Ouellette, and that Congress did not reject that interpretation explicitly or by negative implication in the CWA or when it passed the Oil Pollution Act (OPA), 33 U.S.C. 2718(c). Accordingly, the court affirmed the judgment of the district court. View "In Re: Deepwater Horizon" on Justia Law

These consolidated cases arose out of an accident aboard Estis Rig 23, a barge supporting a truck-mounted drilling rig. The principal issue was whether seamen could recover punitive damages for their employer's willful and wanton breach of the general maritime law duty to provide a seaworthy vessel. Like maintenance and cure, unseaworthiness was established as a general maritime claim before the passage of the Jones Act, 46 U.S.C. 30104; punitive damages were available under general maritime law; and the Jones Act did not address unseaworthiness or limit its remedies. Accordingly, the court reversed and remanded, concluding that punitive damages remained available as a remedy for the general maritime law claim of unseaworthiness. View "McBride, et al. v. Estis Well Service L. L. C." on Justia Law

This appeal arose out of an allision between a vessel owned by Settoon and an oil well. On appeal, Settoon challenged the district court's grant of summary judgment in favor of the umbrella insurers. The court concluded that the umbrella insurers were not liable for damages resulting from the allision because Settoon failed to provide them notice within 30 days; SNIC was liable to Settoon because delayed delivery prevented SNIC from relying on the exclusions in the policy and the conditions precedent of the exceptions to the exclusions; and prejudgment interest should be calculated from the date Settoon paid for the allision. Accordingly, the court reversed and remanded for calculation of prejudgment interest and affirmed the district court's judgment in all other respects. View "In Re: Settoon Towing, L.L.C." on Justia Law

Plaintiff was operating in the Gulf Intracoastal Waterway (ICW) under its contract with the Corp when it was struck by a passing vessel. This admiralty appeal challenged the district court's finding of liability arising from the allision in the ICW. The court agreed with the district court and held that plaintiff violated Inland Navigation Rule 9 (INR 9) by mooring in a narrow channel; and that the violation triggered the rule of The Pennsylvania, shifting the burden of proving causation to the dredge. Because plaintiff failed to rebut the presumption of causation by demonstrating that the dredge was not a cause of the allision, the court affirmed the district court's judgment holding plaintiff partially liable. The court found that the district court committed no error in finding plaintiff 70 percent liable and thus affirmed the allocation of fault. View "Mike Hooks Dredging Co., Inc. v. Eckstein Marine Serv., Inc., et al" on Justia Law

This appeal arose out of a maritime accident where a vessel owned by Bertucci hit the Leo Kerner bridge in Louisiana. Claimants, residents of an affected community, argued that they suffered damages as a result of the accident. The court affirmed the district court's dismissal of the claims, holding that the case was barred by Supreme Court and circuit precedent. The law of this circuit did not allow recovery of purely economic claims absent physical injury to a proprietary interest in a maritime negligence suit. Claimants failed to point to any facts that might plausibly state a claim for physical damages of any kind. View "In Re: Bertucci Contracting" on Justia Law

Plaintiff sued Transocean to recover maintenance and cure for a back injury allegedly sustained on the job. The district court awarded summary judgment to Transocean on its counterclaim to recover benefits it already paid to plaintiff, concluding that Transocean's successful McCorpen v. Central Gulf Steamship Corp. defense automatically established its right to restitution - a right of action never before recognized in maritime law. The court concluded that, though most courts have accepted McCorpen, Transocean's attempt to invoke the case as an affirmative right of recovery finds virtually no support, and the court was not inclined to accede. Accordingly, the court rejected Transocean's claim, and reversed and remanded the district court's judgment. View "Boudreaux v. Transocean Deepwater, Inc." on Justia Law

Plaintiff filed suit in Texas state court seeking relief under general maritime law, the Longshore and Harbor Workers' Compensation Act, 33 U.S.C. 901-950, and Texas tort law. Plaintiff claimed that he suffered severe emotional distress from witnessing his friend's death as a result of an accident on a jack-up rig attached to the Outer Continental Shelf. The district court denied plaintiff's motion for remand and granted summary judgment to defendants. The court concluded that the suit was properly removed to federal court under the Outer Continental Shelf Lands Act's, 43 U.S.C. 1331-1356, grant of original federal question jurisdiction, regardless of whether maritime law provided the substantive rule of decision, and regardless of the citizenship of the parties. Because plaintiff could not show a genuine issue of material fact with respect to his claims under either Texas or maritime law, the court affirmed the district court's orders denying remand and granting summary judgment to defendants. View "Barker, Jr. v. Hercules Offshore, Inc., et al" on Justia Law

Plaintiff appealed the district court's entry of an order declaring enforceable under general maritime law a liquidated damages provision (LD Provision) in a contract between defendant and plaintiff. The parties entered into a Vessel Sales Agreement (VSA), which included the LD Provision, that provided for a $250,000 payment for each violation of the non-competition clause. The court followed Farmers Exp. Co. v. M/V Georgis Prois in finding persuasive the district court's careful factual findings as to whether the LD Provision was a reasonable forecast of damages. The court held that looking at the contract at the time it was made, ex ante breach, the court could not bicker with the $250,000 per occurrence forecast. Plaintiff had not met its burden to prove that the LD Provision was a penalty. Therefore, the court concluded that the district court properly held that the LD Provision was enforceable and affirmed the judgment. View "International Marine, L.L.C., et al v. Delta Towing, L.L.C." on Justia Law

This case arose from the 2010 Deepwater Horizon accident in the Gulf of Mexico where an explosion killed 11 workers, caused the drilling platform to sink, and resulted in a major uncontrolled release of oil. At Presidential direction, those events prompted the Department of the Interior to prohibit all new and existing oil and gas drilling operations on the Outer Continental Shelf for six months. The district court preliminarily enjoined enforcement of the moratorium. At issue on appeal was whether the Interior's subsequent actions violated a specific provision of the court's injunction, justifying a finding of civil contempt. The court held that even though the Interior immediately took steps to avoid the effect of the injunction, the court concluded that none of those actions violated the court's order. Accordingly, the court reversed the judgment. View "Hornbeck Offshore Services, et al v. Salazar, et al" on Justia Law