Omar Nadheer v. Ins Company of the State of PA, et
506 F. App'x 297
5th Cir.2013Background
- Nadheer worked as an interpreter for L-3 in Iraq and was covered by the DBA and LHWCA.
- He was seriously injured in December 2007 from a roadside bombing; medical care and disability benefits were provided under LHWCA.
- Nadheer filed this federal action in 2011 asserting breach of contract, breach of fiduciary duty, fraud, and conspiracy against L-3, ICSOP, and AIG-related entities.
- District court dismissed all claims except breach of contract, which was later fully dismissed after the record catch-up.
- The district court and court of appeals addressed whether the DBA/LHWCA exclusivity preempts Nadheer’s claims, including against insurers.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are Nadheer's tort claims preempted by DBA/LHWCA exclusivity? | Nadheer argues misrepresentation and related torts fall outside DBA/LHWCA exclusivity. | Defendants contend exclusivity bars these non-DBA/LHWCA remedies. | Yes; preempted. |
| Is the breach of contract claim preempted by LHWCA exclusivity? | Contract language imposes separate LHWCA duties not covered by the Act. | Contract claims would undermine the comprehensive LHWCA scheme and are preempted. | Yes; preempted. |
| Do insurers fall under LHWCA exclusivity as preempted defendants? | Insurers should not be immunized as third parties under the insurer-as-employer theory. | Insurers are implicitly preempted by the LHWCA’s exclusivity provisions. | Yes; preempted. |
Key Cases Cited
- Atkinson v. Gates, McDonald & Co., 838 F.2d 808 (5th Cir. 1988) (preemption of bad-faith denial of benefits)
- Johnson v. American Mutual Liability Ins. Co., 559 F.2d 382 (5th Cir. 1977) (insurer immunity under LHWCA)
- Texas Employers Ins. Ass’n v. Jackson, 820 F.2d 1406 (5th Cir. 1987) (subsequent en banc limitations on preemption)
- Pacific Operators Offshore LLP v. Valladolid, 132 S. Ct. 680 (2012) (strict construction of situs/coverage under related statutes)
- Jebaco Inc. v. Harrah’s Operating Co., 587 F.3d 314 (5th Cir. 2009) (de novo review of preemption questions; summary judgment standard applied)
- Haynes v. Rederi A/S Aladdin, 362 F.2d 345 (5th Cir. 1966) (purpose of LHWCA benefits excludes common law damages)