New Orleans Depot Services, Inc. v. Director, Office of Worker's Compensation Programs
689 F.3d 400
5th Cir.2012Background
- Zepeda worked for NODSI (1996–2002) as a container repair mechanic and previously for NOMC, exposed to continuous loud noise without protection.
- Zepeda sustained an 11.3% binaural hearing impairment and sought permanent partial disability benefits under the LHWCA.
- ALJ found NODSI liable as Zepeda’s last maritime employer because he repaired Evergreen containers and worked at two yards (Chef Yard and Terminal Yard) with maritime connectivity.
- ALJ held the Chef Yard satisfied maritime situs and functional nexus, and that Zepeda’s activities constituted maritime employment under the LHWCA.
- BRB affirmed the ALJ’s decision in 2010; NODSI petitioned for review.
- Dissent argued the Chef Yard is not a maritime situs and that container repair is not maritime employment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Chef Yard is a maritime situs under the LHWCA | Zepeda’s injury occurred off navigable waters; site has functional nexus via Evergreen containers | Chef Yard has proximity but no functional nexus to maritime loading; not a maritime situs | Situs affirmed; Chef Yard is a maritime situs |
| Whether Zepeda was a maritime employee under the LHWCA | Zepeda’s repair work on Evergreen containers is integral to loading/unloading | Container repair is not part of loading/unloading; not maritime employment | Maritime status affirmed; Zepeda is a maritime employee |
| Standard of review for BRB factual findings | Deferential substantial-evidence review; review de novo on legal conclusions |
Key Cases Cited
- Winchester en banc, 632 F.2d 504 (5th Cir. 1980) (situs must be analyzed by total circumstances, not rigid factors; broad construction of situs allowed)
- Hudson, 555 F.3d 426 (5th Cir. 2009) (liberal, expansive view of maritime coverage and situs; presumption of coverage)
- Schwalb, 493 U.S. 40 (U.S. 1989) (maintenance/repair of loading equipment integral to loading process)
- Carroll, 650 F.2d 750 (5th Cir. 1981) (maritime status for non-maritime work when essential to loading/unloading)
- Atlantic Container Serv., Inc. v. Coleman, 904 F.2d 611 (11th Cir. 1990) (container repair connected to loading process deemed maritime)