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DISCLAIMER: The Longshore Benchbook was created solely to assist the Office of Administrative Law Judges as a first reference in researching cases arising under the Longshore and Harbor Workers' Compensation Act, and extension acts, as amended. This Benchbook does not constitute the official opinion of the Department of Labor, the Office of Administrative Law Judges, or any individual judge on any subject. This Benchbook does not necessarily contain an exhaustive or current treatment of case holdings, and should, under no circumstances, substitute for a party's own research into the statutory, regulatory, and case law authorities on any given subject referred to therein. It is intended to be used as a research tool, not as final legal authority and should not be cited or relied upon as such.
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TOPIC 8.10
Topic 8.10.1 Section 8(i)
Settlements—Generally
Announcemnt—Settlement Judge Notice
OALJ continues to experience a high success rate (75 percent) of cases settling
through the Settlement Judge process in Longshore cases. Requests for
Settlement Judge Appointments in Longshore cases should be addressed to the
Associate Chief Judge for Longshore or to the appropriate district Chief
Judge. While reasonable efforts will be made to accommodate requests for
specific dates, there can be no guarantee that requests for specific judges will
be granted.
Topic 8.10.1 Section 8(i)
Settlements—Generally
Announcement--Proposed Amendment to Medicare Secondary
Payer Act
Two sections of the American Bar Association—Tort Trial and Insurance Practice Section
and Section of State and Local Government Law--have issued a report to the
ABA’s House of Delegates recommending that the Medicare Secondary Payer
Act correct problems which exist in the implementation of settlements in
Longshore and other workers compensation cases. The recommendation will
be considered by the House of Delegates next month [February 2005] at the ABA’s
Mid-Winter Meeting
Topic 8.10.1 Section 8(i)
Settlements—Generally
[ED. NOTE: The following case is included
for informational value only.]
Petition of RJF International Corp. for Exoneration from
or Limitation of Liability, Civil and Maritime, (Unpublished)(C.A. No.
01-588S)(D.C. R.I. Aug. 2004).
A yacht liability insurance policy is the primary payer for medical bills for a
seaman. Under the Medicare secondary payer provisions of the Omnibus Budget
Reconciliation Act of 1980, the responsibility of the seaman's
"maintenance and cure" can not be shifted to Medicare. Cf. Moran
Towing & Transp. Co. v. Lombas, 58 F.3d 24 (2d Cir. 1995)(Held,
injured seaman's eligibility for free medical treatment under Medicare
satisfies a vessel owner's obligation to furnish cure.).
Topic 8.10.1 Section 8(i)
Settlements—Generally
Keys v. Ceres Gulf, Inc., (Unpublished)(BRB No.
03-0745) (Jan. 30, 2004).
While this matter was on appeal, the employer moved for a partial remand,
noting that it had reached an 8(i) settlement but also requesting that it be
allowed to pursue its appeal regarding Section 8(f). The Director
asserted that employer’s signed settlement with the claimant precluded the
employer from obtaining Section 8(f) relief and required dismissal of the
appeal. Agreeing with the director, the Board noted that there is no
procedural mechanism for bifurcating an appeal.
The Board, denying the employer’s motion for partial remand, remanded the full
case for consideration of the settlement agreement. The Board stated:
If the settlement is approved and
establishes compensation due for any period for which the Special Fund could be
liable if Section 8(f) relief were granted, then employer’s continuation of its
appeal is precluded by Section 8(i)(4). If, however, the approved
settlement affects only employer’s liability, i.e., the Fund cannot be liable
for reimbursement to employer of any sums due under the settlement, then
employer may seek reinstatement of its appeal. In this event, or in the
event that the proposed settlement is not approved, employer may request
reinstatement by filing notice with the Board…
Topic 8.10.1 Section 8(i)
Settlements--Generally
Jeschke v. Jones Stevedoring Co., 36 BRBS 35 (2002).
Here the claimant was prescribed binaural analog hearing aids, and began
wearing completely-in-the-canal hearing aids to reduce wind noise. Subsequently
he filed a hearing-loss claim against two employers and entered into a Section
8(i) settlement with one who accepted responsibility and agreed to be
responsible for all future medical expenses. Sometime after, the district
director issued a compensation order approving the settlement which she stated
effected a final disposition of the claim. After that, the claimant obtained
state-of-the-art digital hearing aids. The Board found that the ALJ was within
reason in finding that the responsible employer who had settled this claim was
liable for the new hearing aids as the settlement had indicated it would remain
liable for all future reasonable and necessary medical expenses for treatment
of the claimant's work-related hearing loss. The ALJ had determined that this
was a work-related hearing loss and that this employer had accepted liability
in the settlement agreement as the responsible party under the LHWCA.
Topic 8.10.2 Section 8(i) Settlements—Persons
Authorized
Mobley v. MONTCO, Inc., (Unpubished), 2004 WL 307478
(E.D. La. February 17, 2004).
Here the federal district court judge held that the court had the power to
force the plaintiff in a Jones Act case to sign a “Receipt and Release” even
though the settlement agreement was not reduced to writing.
[ED. NOTE: The reader may want to keep
in mind that the settlement of a related non-longshore action will not bar a
later claim brought under the LHWCA, unless the settlement meets the
requirements of Section 8(i). Ryan v. Alaska Constructors, 24 BRBS 65
(1990) (Claimant’s claim under LHWCA was not barred by a previous settlement of
a Jones Act claim entered into with his employer, involving the same injury);
see also Harms v. Stevedoring Servs. Of America, 25 BRBS 375 (1992).]
Topic 8.10.2 Section 8(i) Settlements--Persons
Authorized
O'Neil v. Bunge Corp., 365 F.3d 820 (9th Cir.
2004). [See next entry.]
The Ninth Circuit held that when a claimant enters into an
"agreement" with his employer to settle a case, but passes away prior
to signing the settlement agreement, there is no enforceable Section 8(i)
settlement agreement. The Ninth Circuit found that the Section 8(i)
implementing regulations, 20 C.F.R. §§ 702.241 to 702.243, are clear on their
face: a settlement is contingent upon the submission of a signed
settlement application.
Topic 8.10.2 Section 8(i) Settlements--Persons
Authorized
O'Neil v. Bunge Corp., 36 BRBS 25 (2002). [See
Above.]
For this matter geographically within the Ninth Circuit (but without
pertinent Ninth Circuit case law), the Board relied on Henry v.
Coordinated Caribbean Transport, 204 F.3d 609, 34 BRBS 15 (CRT) (5th
Cir. 2000), aff'g 32 BRBS 29 (1998). To hold that where a decedent
dies without having signed a proposed settlement agreement, and the agreement
had not been submitted for administrative approval prior to death, it is not an
enforceable settlement agreement under Section 8(i).
Additionally, the Board noted that the ALJ had not erred in refusing to enforce
the proposed agreement under common law contract principles since Section 8(i)
provides the only basis for settlement of claims under the LHWCA and Sections
15(b) and 16 of the LHWCA prohibit the settlement of claims except in accordance
with Section 8(i) and its implementing regulations.
Topic 8.10.3 Section 8(i)
Settlements—Structure of Settlement
O'Neil v. Bunge Corp., 365 F.3d 820 (9th Cir.
2004). [See next entry.]
The Ninth Circuit held that when a claimant enters into an
"agreement" with his employer to settle a case, but passes away prior
to signing the settlement agreement, there is no enforceable Section 8(i)
settlement agreement. The Ninth Circuit found that the Section 8(i)
implementing regulations, 20 C.F.R. §§ 702.241 to 702.243, are clear on their
face: a settlement is contingent upon the submission of a signed
settlement application.
Topic 8.10.3 Section 8(i)
Settlements--Structure of Settlement; Withdrawal of
Claim/Settlement Agreement
O'Neil v. Bunge Corp., 36 BRBS 25 (2002). [See
Above.]
For this matter geographically within the Ninth Circuit (but without
pertinent Ninth Circuit case law), the Board relied on Henry v.
Coordinated Caribbean Transport, 204 F.3d 609, 34 BRBS 15 (CRT) (5th
Cir. 2000), aff'g 32 BRBS 29 (1998). To hold that where a decedent
dies without having signed a proposed settlement agreement, and the agreement
had not been submitted for administrative approval prior to death, it is not an
enforceable settlement agreement under Section 8(i).
Additionally, the Board noted that the ALJ had not erred in refusing to enforce
the proposed agreement under common law contract principles since Section 8(i)
provides the only basis for settlement of claims under the LHWCA and Sections
15(b) and 16 of the LHWCA prohibit the settlement of claims except in
accordance with Section 8(i) and its implementing regulations.
Topic 8.10.4 Section 8(i)
Settlements--Time Frame
Jenkins v. Puerto Rico Marine, Inc., 36 BRBS 1(2002).
Here the claimant argues that the district director erred in denying his request
for penalties and interest on Section 8(i) settlement proceeds. When the
district director received the parties' application for settlement, the case
was on appeal before the Eleventh Circuit and thus the district director
did not have jurisdiction. He therefore concluded that the 30-day time limit
for automatic approval of the settlement was tolled and instructed the parties
to request remand of the case so that he could fully consider the agreement.
The crux of the claimant's contention is that, contrary to the district
director's findings, the 30 day time limit for consideration of the settlement
could not be tolled and, therefore, the settlement was
"automatically" approved and as a result, the employer was liable for
interest and penalties which accrued from the date of the 30th day until
payment to the claimant of the agreed upon amounts.
Citing Section 702.241(b), 20 C.F.R.. §§ 702.241(d) ("... The thirty day period
as described in paragraph (f) of this section begins when the remanded case is
received by the adjudicator."), the Board held that the 30-day period had
properly been tolled. The Board further noted that the 30-day period would have
been tolled in any event since the parties had not provided a complete
application as needed to comply with Section 702.242 of the regulations.
Claimant also alleged that in approving the settlement, the district director
in effect nullified the Board's prior attorney fee award and that award should
be considered separate and apart from the attorney's fee agreed upon in the
parties' settlement agreement. However, based on the wording in the settlement
agreement, the Board found that the district director rationally construed the
settlement agreement as conclusively deciding the issue of all attorney's fees
due in this case.
Topic 8.10.6 Section 8(i)
Settlements--Withdrawal of Claim/Settlement Agreement
Keys v. Ceres Gulf, Inc., (Unpublished)(BRB No.
03-0745) (Jan. 30, 2004).
While this matter was on appeal, the employer moved for a partial remand,
noting that it had reached an 8(i) settlement but also requesting that it be
allowed to pursue its appeal regarding Section 8(f). The Director
asserted that employer’s signed settlement with the claimant precluded the
employer from obtaining Section 8(f) relief and required dismissal of the
appeal. Agreeing with the director, the Board noted that there is no procedural
mechanism for bi-furcating an appeal.
The Board, denying the employer’s motion for partial remand, remanded the full
case for consideration of the settlement agreement. The Board stated:
If the settlement is approved and
establishes compensation due for any period for which the Special Fund could be
liable if Section 8(f) relief were granted, then employer’s continuation of its
appeal is precluded by Section 8(i)(4). If, however, the approved
settlement affects only employer’s liability, i.e., the Fund cannot be liable
for reimbursement to employer of any sums due under the settlement, then
employer may seek reinstatement of its appeal. In this event, or in the
event that the proposed settlement is not approved, employer may request
reinstatement by filing notice with the Board…
Topic 8.10.6 Section 8(i)
Settlements–Withdrawal of Claim/Settlement Agreement
Thomas v. Raytheon Range Systems, (Unpublished) (BRB
No. 01-0891) (August 13, 2002).
The claimant herein, without aide of counsel, now challenges a Section 8(i)
settlement on the grounds that: (1) she signed the agreement because she would
otherwise have to wait to have her claim adjudicated and (2) she did not know
that by signing the agreement she would not get to testify about her post
injury employment and termination. In upholding the settlement, the Board
stated that waiting for a hearing is not duress and reflects no more than a
choice faced by any claimant in deciding whether to proceed with, or settle, a
pending case. "Moreover, the fact that claimant did not get to testify
before the [ALJ] concerning her post-injury employment and termination does not
establish grounds for negating or modifying the settlement."
Topic 8.10.6 Section 8(i)
Settlements--Withdrawal of Claim/Settlement Agreement
Hansen v. Matson Terminals, Inc., 37 BRBS 40 (2003).
This is the “Appeal of the Order Approving Settlement and the Order Denying
Motion to Reconsider Approval of Settlement.” Prior to the
submission of the settlement agreement to the claimant and his counsel, the
employer received a “rumor” that the claimant was being considered for
longshore employment. The employer subsequently contacted the claimant’s
counsel who, after consulting with the claimant, informed the employer that the
claimant might return to longshore employment upon a release from his
physician. ( The claimant did return to longshore employment on March 25, 2002
as a wharf gang member.) The settlement agreement was thereafter faxed to
the claimant’s counsel, was signed and returned to employer. The
employer’s Human Resources Department was unable to verify the claimant’s
employment status. Subsequently, the employer’s two carriers executed the
settlement agreement and forwarded it along with the appropriate attachments to
the ALJ who issued an Order approving the executed settlement agreement on
April 23, 2002.
Later the employer asserted that it became aware, on April 25, 2002, of the
claimant’s re-employment and on April 26, 2002, filed a “Motion to Disapprove
Settlement Agreement and/or to Reconsider Approval of Settlement.” The
ALJ denied relief. On appeal, the employer challenged the ALJ’s approval
of the parties’ executed settlement agreement, asserting that the settlement
should be set aside as the claimant returned to longshore employment in
violation of a term of the agreement.
However, as the Board pointed out, the parties’ settlement agreement addresses
only the remedy available to the employer should the claimant “return to work
as a laborer in the longshore industry after the settlement is approved,” and
the remedy it provides is not rescission of the agreement but a credit to be
applied to any future claim for benefits. The Board noted that “Contrary
to employer’s position on appeal, the presence of an express right of
rescission in a settlement agreement is required in order for employer to
protect its interest should a specific contingency arise....The settlement
agreement in this case, however, does not specifically provide employer with a
right of rescission should some specific event occur prior to approval by the
[ALJ].” Citing Oceanic Butler, Inc. v. Nordahl, 842 F.2d 773, 21
BRBS 33(CRT) (5th Cir. 1988), aff’g 20 BRBS 18 (1987). The
Board further stated, “Accordingly, as the executed settlement agreement sets
forth no express right of rescission for employer and contains no express
provision allowing employer to escape from its agreement to pay if claimant
were to return to work, we reject employer’s contention that the [ALJ] erred in
not setting aside the agreement.” However, the reader is cautioned that
this last statement by the Board may be somewhat misleading. Nordahl,
which the Board repeatedly cited as authority in this area of the law,
specifically addressed an employer’s ability to include a provision allowing
its escape from an agreement during the pre-approval period, not post
approval. The Board even notes this distinction in its footnote 6.
There is no case law which holds that the parties can contract to rescind a
settlement agreement if an event occurs after the settlement has become
effective.
Employer also argued that the claimant’s return to work was a material breach
of the agreement since he represented that he could not return to work as a
laborer. However, the Board noted that the agreement provided additional
reasons for settlement. Furthermore, the Board noted that the claimant
returned to work as a member of a wharf gang, not as a laborer and the employer
knew of the claimant’s intention to return to work prior to its execution of
the agreement. “Finally, employer’s argument that claimant’s return to
work denied it the benefit of the bargain is misplaced since, as noted by the Fifth
Circuit in Nordahl, settlements are essentially a gamble: claimants
gamble, inter alia, that the injury will not be as debilitating as the carrier
expects, while the carrier gambles, inter alia, that claimant will have less
earning capacity on the open labor market than they expect or that claimant has
applied an overly optimistic discount rate in evaluating his future
rights.”
Topic 8.10.6 Section 8(i)
Settlements--Withdrawal of Claim/Settlement Agreement
Rogers v. Hawaii Stevedores, Inc., 37 BRBS 33 (2003).
In an issue of first impression, the Board held that a claimant may withdraw
from a settlement agreement prior to its approval. Citing Oceanic
Butler, Inc., v. Nordahl, 842 F.2d 773, 21 BRBS 33 (CRT) (5th Cir.
1988), the Board noted that while the LHWCA and the regulations do not
explicitly state that the claimant may rescind a settlement agreement prior to
its approval, the reasoning of the Fifth Circuit in Nordahl that
a claimant has such a right is compelling. “The holding that a claimant’s
agreement to waive his compensation is not binding upon him unless it is
administratively approved, either through the settlement process or pursuant to
a withdrawal under Section 702.225, is supported by the structure of the
Act. Consistent with Sections 15(b) and 16, no agreement by a claimant to
waive or compromise his right to compensation is valid until it is
administratively approved pursuant to Section 8(i). Thus, claimant may
withdraw his agreement at any time prior to approval of the agreement by the
[ALJ].”
Topic 8.10.7 Section 8(i)
Settlements--Attorney Fees
Jenkins v. Puerto Rico Marine, Inc., 36 BRBS
1(2002).
Here the claimant argues that the district director erred in denying his
request for penalties and interest on Section 8(i) settlement proceeds. When
the district director received the parties' application for settlement, the
case was on appeal before the Eleventh Circuit and thus the district
director did not have jurisdiction. He therefore concluded that the 30-day time
limit for automatic approval of the settlement was tolled and instructed the
parties to request remand of the case so that he could fully consider the
agreement. The crux of the claimant's contention is that, contrary to the
district director's findings, the 30 day time limit for consideration of the
settlement could not be tolled and, therefore, the settlement was
"automatically" approved and as a result, the employer was liable for
interest and penalties which accrued from the date of the 30th day until
payment to the claimant of the agreed upon amounts.
Citing Section 702.241(b), 20 C.F.R.. §§ 702.241(d) ("... The thirty day
period as described in paragraph (f) of this section begins when the remanded
case is received by the adjudicator."), the Board held that the 30-day period
had properly been tolled. The Board further noted that the 30-day period would
have been tolled in any event since the parties had not provided a complete
application as needed to comply with Section 702.242 of the regulations.
Claimant also alleged that in approving the settlement, the district director
in effect nullified the Board's prior attorney fee award and that award should
be considered separate and apart from the attorney's fee agreed upon in the
parties' settlement agreement. However, based on the wording in the settlement
agreement, the Board found that the district director rationally construed the
settlement agreement as conclusively deciding the issue of all attorney's fees
due in this case.
Topic 8.10.8 Section 8(i) Settlements—Finality
of Settlement
Schultz v. United States Marine Corps/MWR,
(Unpublished)(BRB No. 03-0473)(March 17, 2004).
A motion to correct clerical errors in a settlement order, such as where an ALJ
merely recited the wrong monetary figures to which the parties had agreed, does
not toll the time for filling a notice of appeal of the underlying compensation
order.
Topic
8.10.8.2 Section
8(i) Settlements–Setting Aside Settlements
Thomas v. Raytheon Range Systems, (Unpublished) (BRB
No. 01-0891) (August 13, 2002).
The claimant herein, without aide of counsel, now challenges a Section 8(i)
settlement on the grounds that: (1) she signed the agreement because she would
otherwise have to wait to have her claim adjudicated and (2) she did not know
that by signing the agreement she would not get to testify about her post
injury employment and termination. In upholding the settlement, the Board stated
that waiting for a hearing is not duress and reflects no more than a choice
faced by any claimant in deciding whether to proceed with, or settle, a pending
case. "Moreover, the fact that claimant did not get to testify before the
[ALJ] concerning her post-injury employment and termination does not establish
grounds for negating or modifying the settlement."
Topic
8.10.8.2 Section
8(i) Settlements--Setting Aside Settlements
Hansen v. Matson Terminals, Inc., 37 BRBS 40 (2003).
This is the “Appeal of the Order Approving Settlement and the Order Denying
Motion to Reconsider Approval of Settlement.” Prior to the
submission of the settlement agreement to the claimant and his counsel, the
employer received a “rumor” that the claimant was being considered for
longshore employment. The employer subsequently contacted the claimant’s
counsel who, after consulting with the claimant, informed the employer that the
claimant might return to longshore employment upon a release from his
physician. (The claimant did return to longshore employment on March 25, 2002
as a wharf gang member.) The settlement agreement was thereafter faxed to
the claimant’s counsel, was signed and returned to employer. The
employer’s Human Resources Department was unable to verify the claimant’s
employment status. Subsequently, the employer’s two carriers executed the
settlement agreement and forwarded it along with the appropriate attachments to
the ALJ who issued an Order approving the executed settlement agreement on
April 23, 2002.
Later the employer asserted that it became aware, on April 25, 2002, of the
claimant’s re-employment and on April 26, 2002, filed a “Motion to Disapprove
Settlement Agreement and/or to Reconsider Approval of Settlement.” The
ALJ denied relief. On appeal, the employer challenged the ALJ’s approval
of the parties’ executed settlement agreement, asserting that the settlement
should be set aside as the claimant returned to longshore employment in
violation of a term of the agreement.
However, as the Board pointed out, the parties’ settlement agreement addresses
only the remedy available to the employer should the claimant “return to work
as a laborer in the longshore industry after the settlement is approved,” and
the remedy it provides is not rescission of the agreement but a credit to be
applied to any future claim for benefits. The Board noted that “Contrary
to employer’s position on appeal, the presence of an express right of
rescission in a settlement agreement is required in order for employer to
protect its interest should a specific contingency arise....The settlement
agreement in this case, however, does not specifically provide employer with a
right of rescission should some specific event occur prior to approval by the
[ALJ].” Citing Oceanic Butler, Inc. v. Nordahl, 842 F.2d 773, 21
BRBS 33(CRT) (5th Cir. 1988), aff’g 20 BRBS 18 (1987). The
Board further stated, “Accordingly, as the executed settlement agreement sets
forth no express right of rescission for employer and contains no express
provision allowing employer to escape from its agreement to pay if claimant
were to return to work, we reject employer’s contention that the [ALJ] erred in
not setting aside the agreement.” However, the reader is cautioned that
this last statement by the Board may be somewhat misleading. Nordahl,
which the Board repeatedly cited as authority in this area of the law,
specifically addressed an employer’s ability to include a provision allowing
its escape from an agreement during the pre-approval period, not post
approval. The Board even notes this distinction in its footnote 6.
There is no case law which holds that the parties can contract to rescind
a settlement agreement if an event occurs after the settlement has become
effective.
Employer also argued that the claimant’s return to work was a material breach
of the agreement since he represented that he could not return to work as a
laborer. However, the Board noted that the agreement provided additional
reasons for settlement. Furthermore, the Board noted that the claimant
returned to work as a member of a wharf gang, not as a laborer and the employer
knew of the claimant’s intention to return to work prior to its execution of
the agreement. “Finally, employer’s argument that claimant’s return to
work denied it the benefit of the bargain is misplaced since, as noted by the Fifth
Circuit in Nordahl, settlements are essentially a gamble: claimants
gamble, inter alia, that the injury will not be as debilitating as the carrier
expects, while the carrier gambles, inter alia, that claimant will have less
earning capacity on the open labor market than they expect or that claimant has
applied an overly optimistic discount rate in evaluating his future
rights.”
Topic 8.10.9 Section 8(i) Settlements--Section
8(f) Relief
Keys v. Ceres Gulf, Inc., (Unpublished)(BRB No.
03-0745) (Jan. 30, 2004).
While this matter was on appeal, the employer moved for a partial remand,
noting that it had reached an 8(i) settlement but also requesting that it be
allowed to pursue its appeal regarding Section 8(f). The Director
asserted that employer’s signed settlement with the claimant precluded the
employer from obtaining Section 8(f) relief and required dismissal of the
appeal. Agreeing with the director, the Board noted that there is no
procedural mechanism for bi-furcating an appeal.
The Board, denying the employer’s motion for partial remand, remanded the full
case for consideration of the settlement agreement. The Board stated:
If the settlement is approved and
establishes compensation due for any period for which the Special Fund could be
liable if Section 8(f) relief were granted, then employer’s continuation of its
appeal is precluded by Section 8(i)(4). If, however, the approved
settlement affects only employer’s liability, i.e., the Fund cannot be liable
for reimbursement to employer of any sums due under the settlement, then
employer may seek reinstatement of its appeal. In this event, or in the
event that the proposed settlement is not approved, employer may request
reinstatement by filing notice with the Board…
Topic
8.10.12
Section 8(i) Settlements—Alternative Dispute Resolution
ERRATA
The OALJ Internet Home Page address should read: http://www.oalj.dol.gov.
Topic
8.10.12
Section 8(i) Settlements—Alternative Dispute Resolution
Autin v. Nabors Offshore Corp., (Unpublished)(Civ. No.
0203704)(E.D. of La. March 5, 2004), 2004 U.S. Dist. LEXIS 3507.
Here a worker's status as either a Jones Act seaman or as a maritime worker
covered by the LHWCA was at issue. The employer contended that in evaluating
seaman status, the court must consider only the plaintiff's work on a fixed
platform. In contrast, the plaintiff argued that his career with the employer
did not involve a termination and re-hire, but rather a transfer, and thus the
status question must be resolved in the context of his entire two-plus years
employment at employer, largely in a seaman's capacity.
The employer filed a Motion to Compel Arbitration and Alternatively, for
Summary Judgment. The judge denied both motions noting that the matter was not
subject to arbitration:
Plaintiff's claim is either under
the Jones Act or the LHWCA. By law, Jones Act claims are not subject to arbitration.
Brown v. Nabors Offshore Corp., 339 F.3d 391 (5th Cir. 2003).
Moreover, LHWCA claims are specifically excluded from arbitration by the very
terms of the [employer's] DRP ("notwithstanding anything to the contrary
in this Program, the Program does not apply to claims for workers' compensation
benefits.") Accordingly, there is no possible scenario under which
plaintiff's claims are subject to arbitration.
[ED. NOTE: Although it has not been
litigated as to whether a contractual agreement can specifically exclude a
longshore claim from ADR as a public policy, the question is mooted
nevertheless since all parties to a claim must request the appointment of a
settlement judge at OALJ.]
Summary judgment was denied since there remain outstanding fact
issues.
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