Eagle-Picher Industries, Inc. v. United StatesEagle-Picher Industries, Inc. v. United States
OPINION OF THE COURT
This appeal presents three issues concerning the liability of the United States as a third party for asbestos-related injuries suffered by government shipyard workers. Specifically, we must address: (1) whether the United States is subject to third-party liability under the Longshore and Harbor Workers Compensation Act (LHWCA),
As is often the case when complex issues are presented for appellate review, we benefit from the efforts of other courts that have decided similar cases. Our task is simplified when we are able to draw on another jurist’s thorough analysis, and when the process itself is used to examine and refine the dispositive legal issues. These principles are especially applicable here, where the district judge carefully adjudicated a plethora of issues concerning the liability of the United States to asbestos manufacturers sued by government shipyard workers.
Our inquiry requires examination of two decisions of the district court:
Eagle-Picher Indus., Inc. v. United States,
The district court’s decision rested on a controlling question of law and because immediate appeal would “materially advance the ultimate termination of the litigation,”
id.
at 814 (quoting
*890 1. Whether the limitation on the liability of the United States contained in the Federal Employees’ Compensation Act (FECA),5 U.S.C. § 8116(c) , precludes the assertion by Eagle-Picher of its claim against the United States for contribution/indemnity, given that the Eagle-Picher claim arises under28 U.S.C. § 2674 which provides that “[t]he United States shall be liable, respecting the provisions of this title relating to tort claims, in the same manner and to the same extent as a private individual under like circumstances.... ”
2. Whether (assuming Eagle-Picher’s claim is not foreclosed by the answer to question 1) Eagle-Picker, in order to support its claim, must, in addition to establishing that Mr. Press was injured on navigable waters while “engaged in maritime employment,”33 U.S.C. § 902(3) , make an independent showing that the wrong which befell Mr. Press bore “a significant relationship to traditional maritime activity.” Executive Jet Aviation v. City of Cleveland,409 U.S. 249 , 268,93 S.Ct. 493 , 504,34 L.Ed.2d 454 (1972).
Although our scope of review is generally governed by the legal questions in the district court’s certification order, we may “consider all grounds that might require reversal of the order appealed from.”
In re Data Access Systems Securities Litigation,
By holding that Eagle-Picher’s claim is foreclosed by our resolution of the first certified question, we obviate the need to decide the second question whether a
I. FACTS
The parties agree on the basic facts. Between 1941 and 1979 Charles Press was *891 employed by the United States Navy as a sheetmetal worker at the Philadelphia Naval Shipyard. During that time, Press was exposed to asbestos-based insulation products manufactured by Eagle-Picher and other firms. In 1979, Press and his wife filed suit in the Philadelphia Court of Common Pleas seeking damages from Eagle-Picher and twenty-one other manufacturers/distributors for injuries resulting from asbestos exposure. Press died in 1983 of asbestos-related injuries, and his wife pursued the 1979 suit. In 1984, she won a $575,000 verdict against Eagle-Picher and seven other defendants. Two months later Eagle-Picher settled its portion of the suit for nearly $68,000.
Eagle-Picher then sought contribution or indemnity from the United States. When the government took no action on the claim, Eagle-Picher filed suit in the district court, alleging jurisdiction under the FTCA, which renders the United States liable for tort claims “in the same manner and to the same extent as a private individual under like circumstances_”
The court determined that had the United States been a private shipowner in Pennsylvania, employees like Press working on one of its ships could bring a negligence action against the shipowner under
II. DISCUSSION
A. Jurisdiction Under the LHWCA
The United States attacks the district court’s analysis at its inception. It contends that the court erred by failing to include the government’s immunity under the FECA as one of the “like circumstances” that must be considered under the FTCA’s “private individual/under like circumstances” standard. By including the FECA immunity,
see
Under the FTCA, the government consents to suit “in the same manner and to the same extent as a private individual under like circumstances.”
If the United States is not subject to direct suit under
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(1980).
4
Direct liability in this context stems from Congress’s 1972 LHWCA amendments that permit longshore workers to not only collect workers’ compensation from their employer, but to also recover from the shipowner for negligence.
See
Under the government’s theory, however, courts would never reach the point of applying the LHWCA. Instead, the government contends the FECA provides the exclusive remedy for its employees and thereby renders it immune from negligence actions that could otherwise be brought against private shipowners. Under
The district court concluded that like any other shipyard employer in Pennsylvania, the United States, by virtue of the FTCA, would be subject to the PWCA, which pro
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vides that workers’ compensation shall be the exclusive basis for liability against an employer.
7
See Colombo,
The difficulty with this reasoning is the assertion that
Coverage
(b) Governmental officers and employees
No compensation shall be payable in respect of the disability or death of an officer or employee of the United States, or any agency thereof, or of any State or foreign government, or any subdivision thereof.
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Instead, we interpret the LHWCA in a manner consistent with Congress’s express intent to extend LHWCA coverage only to private employees. Congress, in
Any other construction of the LHWCA would subject the United States to liability for harm to its employees under a statute that from its inception has barred government employees from its coverage.
See In re Maine Asbestos Litigation,
We recognize, of course, that the LHWCA’s
Indeed, as originally enacted, the LHWCA was strictly a workers’ compensation statute. Congress passed the LHWCA only after the Supreme Court held that states were powerless to extend their compensation laws to longshore workers injured “on the gangplank between a ship and a pier.”
See Northeast Marine Terminal,
The Supreme Court expanded the remedies available to injured longshore workers in 1946 when it held that the traditional seaman’s action against a vessel owner for
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strict liability under the theory of “unseaworthiness” applied with equal force to longshore workers.
See Seas Shipping Co. v. Sieracki,
In 1972, however, Congress “radically changed the scheme of things” by amending the LHWCA.
Scindia Steam Navigation Co.,
At no point, however, did Congress address whether any of the LHWCA revisions should apply to federal employees. Significantly, although other exceptions from coverage were deleted, the exclusion of federal employees emerged unscathed from the drastic congressional overhaul of the LHWCA. For example, while expanding the category of covered employees, and thereby extending the LHWCA’s coverage shoreward, “Congress also removed the provision [in
Viewed in this context, the 1972 amendments establish that Congress specifically intended the United States’s exclusion from liability under the LHWCA to remain as a bar to all aspects of the LHWCA. Accordingly, although
B. Admiralty Jurisdiction
Eagle-Picher nevertheless maintains that the district court should consider its undisputed allegations pursuant to admiralty jurisdiction. In addition to requiring that the injury occured on navigable waters, admiralty jurisdiction demands that the wrong must “bear a significant relationship to traditional maritime activity.”
Executive Jet,
As a threshold matter, every court of appeals to address the issue-the First, Second, Fourth, Fifth, Sixth, Ninth, and Eleventh-has concluded that asbestos-related claims by land-based ship workers bear no significant relationship to traditional maritime activity. See generally Petersen v. Chesapeake & Ohio Ry. Co.,
We find this analysis not only compelling, but also required by our own jurisprudence. More than a decade ago, we adopted this four-part test “for determining whether torts occurring upon navigable waters have a maritime connection.”
Edynak v. Atlantic Shipping Inc.,
Although it normally satisfies the threshold “situs” test for admiralty jurisdiction, a shipyard worker’s claim based on an asbestos-related injury does not bear a sufficient connection to traditional maritime activity. First, the function and role of the parties does not require application of admiralty law. Although Press, the underlying plaintiff and injured worker, performed his duties on board ship, his skills were essentially land-based. Press performed sheetmetal work in close proximity to operations involving the removal of asbestos-containing insulation. On occasion, he was also required to remove asbestos from insulation-covered piping systems.
See
J.A. at 14 (amended complaint 1130). His skill and training was “linked more with the land than with the sea.”
Har-ville,
Second, although Press worked on board ship, the “involvement of the ships is at most tangential to the nature” of his tort claim.
See Oman,
Third, the causation and type of injury does not favor invocation of admiralty law. Press suffered respiratory tract injuries caused by exposure to asbestos-based insu
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lation products. Land-based workers suffer the same injuries from identical causes; indeed, the injury and its cause “are far more closely affiliated with the clearly land-based negligence arising in the construction industry generally than with negligence taking place in commerce and navigation on the navigable waters.”
Owens-Illinois, Inc. v. United States District Court,
Fourth, when viewed in light of the traditional concept of the role and purpose of admiralty law, Press’s claim does not relate to traditional maritime activity. Admiralty law is “designed and molded to handle problems of vessels relegated to ply the waterways of the world ...”, such as navigational rules, maritime liens, seaworthiness, cargo damage, and maintenance and cure.
See Executive Jet,
Accordingly, we conclude that the tort claims forming the basis for Eagle-Picher’s cause of action did not bear a significant relationship to traditional maritime activity. The judgment of the district court will be reversed. The case will be remanded to the district court for entry of judgment for the United States.
No costs taxed.
Notes
. See infra n. 8.
. We note only that the district court’s holding, that
. See
J.A. at 3 (amended complaint ¶ 3, alleging jurisdiction under the FTCA or in the alternative "general admiralty and maritime law of the United States_”). In
Colombo v. Johns-Manville Corp.,
. In Pennsylvania, a right of indemnity "enures to a person, who without active fault on his own part, has been compelled, by reason of some legal obligation, to pay damages occasioned by the initial negligence of another, and for which he himself is only secondarily liable."
McCabe,
Contribution, meanwhile, allows one defendant to force a concurrent or joint tortfeasor to “bear the common burden” by sharing damages.
McCabe,
For purposes of this appeal, we need not determine which theory Eagle-Picher’s claim implicates. We note only that like indemnity, the right to contribution is predicated on a third-party's direct liability to the plaintiff.
Federal maritime law reaches the same result, allowing contribution among actively negligent joint tortfeasors.
See Cooper Stevedoring Co. v. Fritz Kopke, Inc.,
. In 1984, Congress amended the
If such person was employed to provide shipbuilding, repairing, or breaking services and such person's employer was the owner, owner pro hac vice, agent, operator, or charterer of the vessel, no such action shall be permitted, in whole or in part or directly or indirectly, against the injured person’s employer (in any capacity, including as the vessel's owner, owner pro hac vice, agent, operator, or charter) or against the employees of the employer.
.In
Lockheed,
the Court interpreted the nearly identical exclusivity provision of the FECA,
. The FECA also contains an exclusivity provision.
The court did not, however, acknowledge that because of the FECA immunity, which is comparable to the PWCA immunity, "the United States should be entitled to the same immunity from suit enjoyed by private employer covered by state workers’ compensation laws."
See LaBarge v. Mariposa County,
. Nonetheless, we agree that our decision could have been based on the more indirect rationale advocated by the government. The FECA bars a direct action by a government employee against the government.
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The FECA immunity parallels the immunity provision of the PWCA, and hence, would have to be considered in determining whether Pennsylvania would allow this type of third-party suit. A similarly situated private employer in Pennsylvania would be immune from direct liability and contribution actions. Accordingly, "[t]he United States, by virtue of its compliance with the applicable worker's compensation law, FECA, is entitled to claim the immunity. To hold otherwise would be to place the United States in a position less favorable than that of any private employer” under Pennsylvania law.
See General Elec. v. United States,
. Longshore workers, however, do not receive a double recovery. When an employer pays workers’ compensation, it may then recover that amount from an employee who later collects damages from a negligence action against the shipowner.
See Jones & Laughlin Steel Corp. v. Pfeifer,
. In any event, Congress’s 1984 amendment of
. Arguably, the function and role of defendant asbestos manufacturers tend to support the assertion of admiralty jurisdiction. Defendants, although land-based, manufactured and marketed their products for use on vessels. Nevertheless, the products were not designed specifically for maritime use.
Oman v. Johns-Manville Corp.,