Keller Foundation/case Fndn v. Joseph Tracy
696 F.3d 835
9th Cir.2012Background
- Tracy seeks Longshore and Harbor Workers’ Compensation Act coverage for injuries incurred 1998–2002 while employed by Global International Offshore Ltd., under the Act’s last-employer rule.
- Tracy previously worked for Keller Foundation; disability attributed to cumulative trauma across Keller and Global, raising last-employer liability questions.
- Two contested Iroquois assignments: in Louisiana shipyard (first three weeks) and then at sea, with later assignment to the Seminole in Malaysia, all tied to the Iroquois’s mission.
- Later, Tracy performed land-based duties in Indonesia and Singapore ports during monsoon seasons, arguing situs coverage extended to foreign-adjacent areas.
- ALJ found Tracy’s disability from cumulative trauma but held no coverage by the Act during Global employment; BRB affirmed.
- Tracy challenged estoppel claims, arguing Global’s contract provision promised LHWCA coverage; BRB and ALJ rejected estoppel due to lack of detrimental reliance and statutory limits.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Tracy satisfy the status test during the Iroquois assignment? | Tracy was a seaman during the Louisiana shipyard period and thus not subject to LHWCA status. | Tracy’s duties in Louisiana contributed to the Iroquois’s mission, not land-based work, so he remained outside LHWCA seaman status. | Tracy did not satisfy status; he was a seaman in being for the Iroquois, thus not an LHWCA employee during that period. |
| Whether Tracy satisfied the situs test for injuries in Indonesia/Singapore ports. | Navigable waters include high seas and foreign territorial waters, extending LHWCA coverage to adjoining foreign land areas. | Extrateritorial application requires clear congressional intent; foreign territorial waters are not navigable waters under the Act. | No, foreign territorial waters and adjoining lands are not navigable waters under the Act; situs coverage does not apply. |
| Whether equitable estoppel bars denial of coverage based on contract language. | Global’s contract promise that compensation would be payable under the worker’s country laws estops denial of LHWCA coverage. | No detrimental reliance shown; contract language is ambiguous and does not guarantee LHWCA coverage. | Equitable estoppel does not apply; Tracy failed to show detrimental reliance and statutory eligibility. |
Key Cases Cited
- Chandris, Inc. v. Latsis, 515 U.S. 347 (Supreme Court 1995) (two-prong seaman test: function and substantial connection to vessel)
- Nacirema Operating Co. v. Johnson, 396 U.S. 212 (U.S. 1969) (broadens situs to landward areas near navigable waters)
- Saipan Stevedore Co. v. Dir., Office of Workers’ Comp. Programs, 133 F.3d 717 (9th Cir. 1998) (extension of coverage to high seas context for LHWCA)
- Kollias v. D&G Marine Maintenance, 29 F.3d 67 (2d Cir. 1994) (DOI for high seas coverage analysis (DOHSA reference in discussion))
- Desper v. Starved Rock Ferry Co., 342 U.S. 187 (Supreme Court 1952) (describes 'seaman in being' vs. expectant seaman framework)
- Heise v. Fishing Co. of Alaska, 79 F.3d 903 (9th Cir. 1996) (desistance of Jones Act coverage when vessel not afloat)
- Rambo v. Dir., Office of Workers’ Comp. Programs, 81 F.3d 840 (9th Cir. 1996) (four-element equitable estoppel test)
- Metro. Stevedore Co. v. Rambo, 521 U.S. 121 (1997) (supreme court reaffirming estoppel framework)
- Morrison v. Nat’l Austl. Bank Ltd., 130 S. Ct. 2869 (S. Ct. 2010) (presumption against extraterritoriality in statutory interpretation)
