Articles Posted in Offshore Accidents

supply-vessel-1449728-1-698x1024Contracts between parties working toward a common goal can sometimes result in detail-oriented litigation when something goes wrong. When those parties need to subcontract with a third party, the responsibility for that third party if something goes wrong can be a point of contention.

In the Western District of Louisiana, a lawsuit and appeal revolved around whether the defendant-appellant, W & T Offshore Incorporated (W&T), or the defendant-appellee, Triton Diving Services (Triton), was responsible for injuries sustained by the plaintiff, Jakarta Grogan. W&T contends that Triton is liable because the injury occurred on Triton’s vessel. Triton disputes all liability and contends that W&T must pay for Mr. Grogan’s injuries, due to the contractual relationship between them.

W&T operates a pipeline in the Gulf of Mexico and hired Triton to participate in a recommissioning project. Triton was to be responsible for flushing the pipeline for impurities and was able to do so by using a dive support vessel called the Achiever. The two parties signed a Master Services Contract that allowed Triton operational control of the vessel but granted overall operational control to W&T. During the flushing process, Triton detected potentially unsafe levels of hydrogen sulfide being released. Due to this hazard, Triton consulted with W&T engineer, Alan Greig, about how to proceed. Mr. Greig recommended they hire a third party to help resolve the issue, and they brought Tiger Safety onto the project. W&T representatives, including Mr. Greig himself, made the necessary arrangements with Tiger Safety. The Plaintiff, Mr. Grogan, was one of Tiger Safety’s personnel that boarded the Achiever in order to resolve the hydrogen sulfide issue. Mr. Grogan acted under the direction of W&T’s on-site representative and provided necessary information gathered to said representative. The problem was resolved, and Tiger Safety’s personnel had been discharged. During the departure from the Achiever, Mr. Grogan fell. He subsequently sued both W&T and Triton for the injuries he sustained. W&T and Triton filed cross-claims against one another, and each defendant claimed indemnification. Simply, each defendant claimed that they could not be held liable for Mr. Grogan’s injuries because the other defendant had contracted to release them from any potential claims. The contract between the parties held that Triton indemnified W&T from personal injury claims brought by members of the ‘contractor group’. The term ‘contractor group’ was meant to refer to the Contractor, its parent company, affiliated companies, and all respective officers, employees, and invitees on the work sites. The district court held in favor of Triton and found that, based on all relevant facts, Mr. Grogan was W&T’s invitee. W&T appealed the ruling.

64-photo-3_13_19-768x1024Worker’s compensation (WC) is a system designed to compensate workers for injuries that occur on the job. The system also helps to spread the risk of loss among numerous employers, similar to an insurance arrangement that employers pay into. Still, employers have an interest in ensuring that WC claims are valid in order to keep overall costs down. As a result, WC cases can lead to bitter disputes between workers and their employers.

Andrew Schmidt was a diver for the Cal-Dive company in Lafayette, Louisiana in 2010 when he suffered a brain injury due to decompression sickness that occurred during a work-related dive. Two years later, Schmidt filed a lawsuit against Cal-Dive alleging that the injury left him permanently disabled. He claimed that the brain injury resulted in a condition that required him to remain in a supine position nearly all the time. Cal-Dive didn’t believe Schmidt’s claim and Cal-Dive hired private investigators to surveil Schmidt for evidence that his claim was fraudulent. The observation turned up nothing favorable for challenging Schmidt’s claim. Schmidt was examined by multiple medical professionals who offered conflicting expert opinions about whether Schmidt was permanently disabled. Shortly before trial, Schmidt and Cal-Dive settled and the trial court dismissed the case.

Even though the matter was settled, Cal-Dive continued to have Schmidt followed by private investigators. The PIs discovered that Schmidt purchased a new car and was observed cutting grass, shopping, driving, and jogging. As a result, Cal-Dive filed for relief from the trial court’s order to dismiss the case under Fed. R. Civ. P. 60(d)(1) so it could amend its original complaint against Schmidt and set aside the settlement. Schmidt filed a motion to dismiss the case for failure to state a claim. See Fed. R. Civ. P. 12(b)(6). The district court denied Cal-Dive’s request to set aside the settlement and refused to permit Cal-Dive to amend the complaint, finding that it would be futile. Cal-Dive appealed.

ship-at-las-palmas-bay-1449622-1024x683Long considered “wards of admiralty,” courts carefully scrutinize the treatment of seamen, particularly in cases where substantial legal rights are involved. One such case involves the execution of a release with a seaman, particularly when the seaman is unrepresented and in claims of personal injury. Generally, in a personal injury case, a release is a legal agreement that serves to settle the claims between the parties and terminates the injured party’s right to seek damages in court.

So, what is required to uphold such a release? The Louisiana First Circuit Court of Appeal gave us an example in Buras v. Sea Supply. The plaintiff, Mr. Buras, was a seaman injured while working aboard the defendant’s vessel. A month later, Mr. Buras’ doctor cleared him to return to work where, without counsel present, he signed a release settling all claims against the defendants. In addition to the release itself, the evidence included a transcript of the conversation had between Mr. Buras and the defendant at the time of executing the release. This transcript showed that the defendant clearly advised Mr. Buras multiple times of both the consequences of signing the release and his right to have an attorney present. Nevertheless, Mr. Buras signed the release stating he understood he was giving up his legal rights in connection with this claim and declined to speak to an attorney. Nearly a year later, Mr. Buras filed a claim seeking to have the release declared unenforceable; however, the trial court found that because all of Mr. Buras’ claims against the defendants were covered by the release, there were no genuine issues of material fact and, therefore, granted the defendant’s motion for summary judgment, dismissing the case without trial.

The law is well-settled that there is a heavy burden upon one who sets up a seaman’s release to show that it was executed freely, without deception or coercion, and that it was made by the seaman with full understanding of his rights and appreciation for the consequences. See, e.g., Garrett v. Moore-McCormack Co., 317 U.S. 239, 240 (1942); Stipelcovich v. Sand Dollar Marine, Inc., 805 F.2d 599 (5th Cir. 1986);

helicopter-1450413-2-683x1024For a negligence lawsuit to have any chance of survival, an essential element is to show the plaintiff had damages. Often these damages are obvious physical injuries.   Sometimes however, damages claimed are for emotional distress. Due to its intangible nature, emotional distress can be extremely difficult to prove and a lawsuit for such damages can be equally difficult to maintain.  In a recent case out of the Parish of Lafayette, a Louisiana man failed to prove all the necessary elements to sustain his emotional distress lawsuit despite the lawsuit centering on a helicopter crash.

Plaintiff Hayward Allen worked on an offshore rig owned by an oil company.  Mr. Allen took a helicopter to his job site. Defendant PHI, Inc. (“PHI”) owned and operated the helicopters delivering the employees to the rig. In December 2009, one of PHI’s helicopters rolled over while dropping off some passengers on the rig where Mr. Allen was working. No one was injured in the accident. Mr. Allen did not even see the incident because he was sixty feet below the helipad when it occurred. Because of this incident however Mr. Allen claimed he could no longer work because he was now too afraid of helicopters. Mr. Allen alleged to be suffering from chest pains, sleep problems, anxiety and elevated blood pressure from the emotional distress brought upon him from the helicopter incident. Mr. Allen filed a lawsuit in the Judicial District Court for the Parish of Lafayette. The District Court granted a directed verdict in favor of PHI because Mr. Allen failed to offer any evidence of PHI’s liability or negligence.   

A directed verdict is granted only when the evidence overwhelmingly points to one conclusion.  See Carter v. Western Kraft Paper Mill, 649 So.2d 541, 544 (La. Ct. App. 1994).  The facts must so strongly support judgment in favor of one party that the court must determine reasonable people could not reach a contrary verdict.  Directed verdicts do not require the assent of the jury. See La. C.C.P. art 1810.  To have any chance at success in a negligence claim, including an emotional distress claim, a plaintiff must show that the defendant was the cause of the plaintiff’s injuries.  See La. C.C. art 2315.6.  

oil-power-1182675-1-1024x768Waiting until the last minute to do almost anything is not recommended but it is especially true if you are seeking to bring a claim for damages. That is what some fishermen found out when they sought to bring claims under the Oil Pollution Act of 1990 (OPA) for damages that resulted from an oil spill.  The oil spill came from a barge owned by American Commercial Airlines, LLC (ACL) that had been involved in a collision on the Mississippi River in the Port of New Orleans on July 23, 2008.

On July 25, 2011, the fishermen claimants filed an action against ACL in the United States District Court for the Eastern District of Louisiana.  The district court denied ACL’s motion for summary judgment but certified to the United States Court of Appeals for the Fifth Circuit two issues of law regarding the requirements for proceeding under OPA.  One issue was whether the claimants met the requirements when they did not personally sign the claim forms and did not provide specific requested items in support of their claims. The other issue was whether the claimants had to make a proper presentment at least 90 days before the three year limitation period ran out.  The first issue pertained to all claimants but the second issue involved only those claimants who first presented their claims on or after July 22, 2011, because those claimants had not waited the 90 days after first presenting their claims to file an action in order to not be barred by the three year limitation period.

Individuals and entities harmed by an oil spill may file claims for damages under OPA.  To promote settlement and avoid litigation, there are specific procedures under OPA that claimants must follow.  See  Johnson v. Colonial Pipeline Co. , 830 F. Supp. 309 (E.D. Va. 1993).  Under OPA’s presentment requirement, claimants must first present their claims to the responsible party and then wait until that party denies all liability or until 90 days from the time of presentment have passed before filing an action against that party.  See OPA, 33 U.S.C. § 2713 (2016).

container-barge-1238820-1024x321The fate of a claim brought under the Longshore and Harbor Workers’ Compensation Act (“LHWCA”) is often determined based upon the weight the Administrative Law Judge (“ALJ”) gives certain evidence. But how should the ALJ weigh conflicting evidence from different sources? This question was recently addressed by the United States Fifth Circuit Court of Appeals in Petron Industries Inc. v. Courville.

Ryan Courville suffered injuries to his thoracic spine while lifting equipment aboard a barge. Because of how Mr. Courville sustained his injury, he was eligible for compensation under the LHWCA. Soon after the injury, Mr. Courville sought medical treatment from multiple different doctors in an effort to alleviate the pain caused by his spinal injury. His initial treating physician recommended physical therapy but did not think surgery was necessary at the time. Mr. Courville, because of his continued pain, sought a second opinion. Mr. Courville’s second physician recommended more physical therapy and prescription medication. Still experiencing pain, Mr. Courville sought a third opinion. Mr. Courville’s third physician, a pain management specialist, tried additional physical therapy, which proved equally unsuccessful. Mr. Courville was then referred back to his second physician who ultimately recommended surgery.

Under the LHWCA, “[o]nce an employee establishes that his injury was work-related, he is entitled to all reasonable and necessary medical expenses related to that injury.” Amerada Hess Corp. v. Director, 543 F.3d 755, 761 (5th Cir. 2008) (citing 33 U.S.C.A. § 907 (2015)). Mr. Courville asked for Petron Industries and American Home Insurance’s (collectively, “the Petitioners”) to pay for the surgery pursuant to the LHWCA. Disagreeing that surgery was necessary, the Petitioners sought additional medical opinions. The Petitioners’ first physician opined that it was “more likely than not” that surgery would be needed. The Petitioners’ second physician stated that surgery would not be needed and that Mr. Courville could return to a “medium duty” job.

misc-rig-oil-ship-yard-equipme-1468457-1024x768In the insurance industry, one of the most important issues to consider when determining whether a claim is covered under a policy is the wording of the contract. Whether it is home, auto, life, or, as in this case a marine insurance policy, the exact words of the contract will control whether or not a specific claim will be paid out. Equally important are the laws which will control how those words are interpreted. And in a recent case out of Louisiana, one insured was out of luck over the interpretation of one small word.  

In a recent Louisiana case, Union Oil Company of California, which owned an offshore drilling platform near the coast of Louisiana, contracted with Shaw Global Energy Services Inc. (“Shaw”) from Delcambre, Louisiana, to perform sandblasting and painting for the platform. In 2003, Michael Cash, an employee of Shaw, was injured by an employee of Max Welders, Inc. while being transferred by crane from a platform to a supply vessel. Mr. Cash filed a lawsuit against Max Welders, its primary insurance company, and its marine excess insurer, Liberty Insurance Underwriters, Inc. (“Liberty”).  During the course of the lawsuit, Liberty notified Max Welders that they were declining to cover the incident with Mr. Cash because the act of ferrying Mr. Cash to and from the platform fell under an exclusion in the excess insurance policy. The exclusion Liberty pointed to was a platform exclusion where they would not cover anything “arising out of the ownership, use or operation of . . . platforms.”  Max Welders, the primary insurer, and Mr. Cash settled for the policy limit of one million dollars. But because of the severity of Mr. Cash’s injuries, Max Welders agreed to pay an additional four hundred thousand dollars.

Max Welders brought a cross-claim against Liberty alleging the platform exclusion did not apply and that coverage should be extended to cover the four hundred thousand dollars in excess payment.  The United States District Court for the Western District of Louisiana agreed with Max Welders that the platform exclusion did not apply because the word “use” in the insurance policy was ambiguous.  The District Court reasoned that because the transferring of Mr. Cash to the vessel was not within the intended purpose of an oil rig platform (extracting energy) that the exclusion did not apply and the insurance company had to pay Max Welders for the four hundred thousand dollars.  Liberty appealed to the United States Fifth Circuit Court of Appeal.    

big-oli-rig-1239227-1024x769Decisiveness can be an excellent quality, especially in a judge.  Court dockets are usually quite full and it can take a very long time for cases to be resolved. Whenever there is a confusion over which law to apply, however, patience is the greater virtue.  In a lawsuit, lawyers will often request relief under various laws in hopes that one will bring success.   In a recent case out of Venice, Louisiana, the  Louisiana Fourth Circuit Court of Appeal reminded an Office of Workers’ Compensation Judge (“WCJ”)  just how important patience is when issuing an order in a case with competing theories of recovery.   

Shawn Johnson was a mechanic for The Wood Group working on its oil production platforms when he was injured in a boat collision on Grand Pass on March 12, 2014.  Grand Pass is a fishing channel, known as “the jump”, which is located close to Venice, Louisiana, in St. Bernard Parish.  After the accident, Mr. Johnson filed claims for compensation under both the Louisiana Workers’ Compensation Act (“LWCA”) and the federal Longshore and Harbor Workers’ Compensation Act (“LHWCA”).  At a December 19, 2014, hearing, the WCJ dismissed Mr. Johnson’s LWCA claim with prejudice asserting the WCJ lacked jurisdiction because the claim did not fall under the LWCA. The dismissal with prejudice would prohibit Mr. Johnson from refiling his LWCA claim.  Mr. Johnson’s LHWCA claim before a federal court was still pending at the time of the dismissal.

In the judgment, the WCJ did not explicitly find that Mr. Johnson’s claim was covered by the LHWCA.  Instead, she found that his claim did not fall under the LWCA. In her reasoning, the WCJ said that there is no longer concurrent jurisdiction so if a claim falls under any federal statute, that would preclude a state claim. The WCJ did not wait however for a definitive determination by the federal court on whether Mr. Johnson’s claim fell under the LHWCA.  If both claims were dismissed with prejudice Mr. Johnson would be completely deprived of relief.  Mr. Johnson appealed the case to the Fourth Circuit only requesting that the case is dismissed without prejudice (meaning it could be refiled) just in case the LHWCA claim did not survive.

money-1537576-1-768x1024What if you are injured, hire a lawyer, and that lawyer fails to sufficiently work on your case? Outrage ensues and you may choose to fire that lawyer and hire a second.  But is that first lawyer entitled to payment if you happen to win and receive an award in your case? In a recent Louisiana case, the Fifth Circuit Court of Appeals decided that the answer can be in the affirmative.  

After David Corey was the injured, he hired Salvador Brocato and Lionel Hutton to handle his personal injury lawsuit. In the two years that Mr. Brocato and Mr. Hutton handled Mr. Corey’s case, the attorneys did little work on his case: failing to hire an investigator,  failing to adequately prepare Mr. Corey for his deposition, and failing to hire experts as well as other faults. Mr. Corey fired Mr. Brocato and Mr. Hutton and subsequently hired Arnold & Itkin, LLP, to handle his case.  Arnold & Itkin worked on Mr. Corey’s case, and eventually secured a settlement of $2,187,500, with $875,000 awarded in attorneys’ fees. Mr. Brocato and Mr. Hutton intervened seeking a share of the amount of the attorneys’ fees awarded for the work they had done on Mr. Corey’s case prior to termination. The United States District Court for the Eastern District of Louisiana awarded Mr. Brocato and Mr. Hutton 20% of the awarded attorneys’ fees. The judge calculated the percentage based on the principles of quantum meruit: generally expressed as the actual value of the services performed. In this case, the amount of work completed before termination was calculated at 20%.  Contending that to award the 20% would be an improper and illegal award of a contingency fee to lawyers who did not have a contingency fee agreement, Arnold & Itkin appealed to the United States Court of Appeals for the Fifth Circuit.  

Louisiana fee awards in quantum meruit are calculated by factors set out by the Louisiana Supreme Court. See State, Dep’t of Transp. & Dev. v. Williamson, 597 So. 2d 439 (La. 1992). There are ten factors, including the ultimate result, obtained, the importance of litigation, the amount of money involved, the extent of the work performed, skill and diligence of the attorneys, the number of appearances made, intricacies of the facts, and the court’s own knowledge. Courts may consider these factors in the quantum meruit analysis when a contingency fee agreement has been discharged or when a contingency fee agreement was never involved. See City of Alexandria v. Brown, 740 F.3d 339 (5th Cir. 2014). The factors sometimes referred to as “Saucier Factors” are applied even when the attorney was discharged either with or without cause, although courts must reduce the award of an attorney discharged for cause according to the gravity of cause for discharge. Saucier v. Hayes Dairy Product, Inc., 373 So. 2d 102 (La. 1978).

oil-1441845-1-768x1024It’s a common scenario: someone is injured or property is damaged because another party failed to use reasonable care. This situation is far from rare in the legal profession, and the responsible party is usually held accountable for their negligence with civil lawsuits. But what happens when the injured person attempts to hold the wrong party responsible? It seems unlikely, but as James Johnson discovered, it is possible and the consequences can alter the course of a lawsuit’s final outcome.

James Johnson was shot in the leg while working as a superintendent on a drilling rig located near the coast of Nigeria. On November 8, 2010, Nigerian gunmen invaded Johnson’s rig and an attacker shot him, causing a severe injury that triggered months of complications. The night before the incident, rig hands moved a piece of equipment in front of the stairs that connected the rig to the platform in order to work on a device connected to the moving equipment. When rig hands noticed the assailants’ boat approaching the next day, they attempted to raise the stairs from the platform but were unable to do so because the equipment blocked the stairs. The gunmen used the lowered stairs to board the rig.

Johnson attempted to hold the rig hands’ employers responsible. Under the concept of vicarious liability, an employer can be held responsible for employees’ wrongful actions if those actions took place during the course of employment. Stoot v. D & D Catering Serv., Inc., 807 F.2d 1197, 1199 (5th Cir. 1987). Johnson brought multiple claims for negligence under maritime law and the Jones Act against many parties, one of which was GlobalSantaFe Corporation (GSF). Each of the companies Johnson named related to one another through a complex corporate structure.

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