Green v. Industrial Helicopters, Inc.Green v. Industrial Helicopters, Inc.
Michael J. GREEN, United States Fidelity & Guaranty Co.
v.
INDUSTRIAL HELICOPTERS, INC.
Supreme Court of Louisiana.
*636 Nicholas Gachassin, Jr., Gachassin, Hunter & Sigur and Mary Ann Olson, Lafayette, for applicant.
Karl W. Bengtson, Shelton and Legendre, Lafayette, and Charles Sonnier, and Fred W. Davis, Sonnier, Hebert, Cabes & Hebert, Abbeville, for respondent.
CALOGERO, Chief Justice.
The narrow question presented in this case is whether Louisiana Civil Code article 2317[1], which imposes strict liability for injury causing things in one's custody, is applicable in a case cognizable in admiralty but brought in a Louisiana state court pursuant to the "savings to suitors" clause of the Judiciary Act of 1789 as amended.
Originally, the court of appeal held that plaintiff could recover under La.C.C. art. 2317 for an injury in a helicopter crash at sea. Green v. Industrial Helicopters, Inc.,
For the reasons which follow we reverse the court of appeal and hold that Article 2317 applies as a supplement to the remedies available under the general maritime law in this maritime personal injury case, since Article 2317 does not impermissibly conflict with the substantive general maritime law.
Plaintiff, Michael J. Green was employed as an offshore oil meter technician for Southern Petroleum Labs ("Southern"). Southern contracted with Industrial Helicopters, Inc. ("Industrial") to carry workers from Louisiana shore sites to offshore platforms. Doug Wright was employed by Industrial as a helicopter pilot. There occurred an emergency helicopter landing on the high seas approximately 150 miles off the Louisiana coast. Plaintiff's lawsuit, filed in the Fifteenth Judicial District Court, State of Louisiana, named as defendants the pilot of the aircraft, Wright, and the pilot's employer, Industrial.
Wright picked up the plaintiff in Milton, Louisiana. From there plaintiff was to be taken to his worksite in the Gulf of Mexico from which he was later to be returned to Milton. En route to the worksite, the pilot refueled at an Exxon platform located 140 miles off the coast of the State of Louisiana. After refueling and soon after taking off from the Exxon platform, mechanical failure caused the pilot to make an emergency landing in the Gulf. The helicopter's governor had malfunctioned. Workers on the nearby Exxon platform assisted in the rescue of plaintiff and the pilot. Plaintiff suffered injuries in the emergency landing and in the rescue.
Generally, federal maritime jurisdiction is invoked whenever an accident occurs on the high seas and in furtherance of an activity bearing a significant relationship to a traditional maritime activity. Offshore Logistics v. Tallentire,
The United States Constitution grants to federal district courts jurisdiction in all "cases of admiralty and maritime jurisdiction." U.S. Const. art. III, section 2, Rodrigue v. Legros,
It is well settled that by virtue of the savings clause "a state, `having concurrent jurisdiction, is free to adopt such remedies, and to attach to them such incidents as it sees fit' so long as it does not attempt to make changes in the substantive maritime law." (citations omitted) Tallentire,
The U.S. Supreme Court has explicitly recognized the difficulty in defining the interplay of state law and federal maritime law, and has stated: "if one thing is clear it is that the source of law in saving-clause actions cannot be described in absolute terms." Romero v. International Terminal Operating Co.,
The process of determining the applicability of state law in cases within the *638 admiralty jurisdiction has been described as:
one of accommodation, entirely familiar in many areas of overlapping state and federal concern, or a process somewhat analogous to the normal conflict of laws situation where two sovereignties assert divergent interests in a transaction as to which both have some concern. Kossick [v. United Fruit Co.], supra [365 U.S. 731 ] at 738 [81 S.Ct. 886 at 892,6 L.Ed.2d 56 (1961)].
Thus, state law may be applied where the state's interest in a matter is greater than the federal interest. This principle, applying the state rule in a matter within the admiralty jurisdiction when the state interest outweighs the federal interest, has been recognized by the U.S. Supreme Court. See Huron Portland Cement Co. v. City of Detroit,
Louisiana has a strong interest in applying its own law in this case: Plaintiff is a Louisiana resident, Industrial a Louisiana corporation, the pilot a Louisiana resident, and the helicopter was stored in a Louisiana hangar. The contract of carriage between plaintiff's employer and defendants was confected in Louisiana. The mission started in Louisiana and was to end in Louisiana. Plaintiff and defendants, more likely than not, expected to be governed by Louisiana law.
Moreover, La.C.C. art. 2317 embodies a strong social policy to place liability with the owner or custodian of an injury causing thing. This type of liability is not imposed exclusively on helicopter or aircraft owners. Article 2317 liability is imposed on owners and custodians of any thing which, because of an unreasonably dangerous condition, causes injury to another. Also, in the personal injury area states have much freedom to provide redress for their citizens.
In Daigle v. Coastal Marine, Inc.,
When congress is silent on a particular question, there is no bar to application of a state statute to its own citizens on the high seas. Skiriotes v. Florida,313 U.S. 69 ,61 S.Ct. 924 [85 L.Ed. 1193 (1941) ], reh. den.313 U.S. 599 ,61 S.Ct. 1093 [85 L.Ed. 1552 ] (1941). Louisiana can extend the protection of LSAC.C. art. 2315 to its constitutional limits in personal injury actions involving Louisiana residents where Louisiana has a strong interest in the transaction and there is no conflict with federal law. (citation omitted).
Accordingly, a Louisiana state court should respect Louisiana law unless there is some federal impediment to application of that law contained in federal legislation or a clearly applicable rule in the general maritime law. We have found no such impediment or contrary general maritime rule. Rather, the general maritime law authorizes application of state law as a supplement to the general maritime law.
The court of appeal in this case, on the other hand, found that La.C.C. art. 2317 "alters or conflicts with the maritime or admiralty law which establishes the substantive rights of the parties." Green v. Industrial Helicopters, Inc.,
Contrary to the implication of the court of appeal decision, finding an exact counterpart to strict custodial liability in the general maritime law is not a prerequisite for application of La.C.C. art. 2317. The proper inquiry is whether in this setting strict liability under Louisiana law thwarts the purpose of any specific Congressional pronouncement, or "work[s] material prejudice to the characteristic features of maritime law or interfere[s] with the proper harmony or uniformity of that law in its international and interstate relations". Western Fuel Co. v. Garcia,
The first step in our examination involves determining whether there is an applicable Congressional pronouncement governing the liability of a helicopter owner to an offshore worker passenger for injuries sustained by the passenger from a crash landing on the high seas caused by the defective condition of the helicopter. Where Congress has spoken in a particular area, courts engage in the familiar preemption analysis. Offshore Logistics, supra,
The only federal legislation possibly applicable to this incident is Section 1333(a) of OCSLA, and that statute adopts state law as surrogate federal law. The relevant portions of that section state:
To the extent that they are applicable and not inconsistent with ... Federal laws and regulations ... the civil and criminal laws of each adjacent State are hereby declared to be the law of the United States for that portion of the subsoil and seabed of the outer Continental Shelf, and artificial islands and fixed structures erected thereon. (emphasis added) 43 U.S.C.A. § 1333(a)(2)(A).
It appears that OCSLA is not applicable to accidents occurring near a structure located on the outer Continental Shelf. The U.S. Supreme Court has said as much in Offshore Logistics v. Tallentire,
*640 The extension of OCSLA far beyond its intended locale to the accident in this case simply cannot be reconciled with either the narrowly circumscribed area defined by the statute or the statutory prescription that the Act not be construed to affect the high seas which cover the Continental Shelf. Nor can the extension of OCSLA to this case be reconciled with the operative assumption underlying the statute: that admiralty jurisdiction generally should not be extended to accidents in areas covered by OCSLA.
* * * * * *
We do not interpret ... 43 U.S.C. § 1333, to require or permit us to extend the coverage of the statute to the platform workers in this case who were killed miles away from the platform and on the high seas simply because they were platform workers. Id.477 U.S. at 218 ,106 S.Ct. at 2492 .
Tallentire was admittedly a wrongful death case under DOHSA. The U.S. Supreme Court nonetheless found reason to determine that section 1333(a) of OCSLA does not apply to accidents occurring on the high seas near an OCSLA covered area. This conclusion should apply equally to the personal injury case under consideration here. Since this accident occurred near but not on a platform located on the outer Continental Shelf, OCSLA's state law extension clause is therefore not triggered.
Absent a clearly applicable act of Congressand there is none herewe next look to the general maritime law to determine if application of La.C.C. art. 2317 would materially prejudice the "characteristic features of maritime law".
The traditional remedies available for employee injuries occurring within admiralty depend upon a person's classification as a seaman, a non-seaman maritime worker, or a nonmaritime worker. Remedies available to "seamen" include wages, maintenance and cure for injury or illness. Recovery includes payment of actual wages, payment for food and lodging, and the providing of necessary medical services. Seamen have claims, too, for personal injury damages caused by the unseaworthy condition of the vessel. The Jones Act also allows a seaman to recover damages for personal injury occurring because of the negligence of the seaman's co-workers or employer. 46 U.S.C. § 688. Shore-based maritime workers may recover workers' compensation from their employers under the Longshore and Harbor Workers Compensation Act (LHWCA). 33 U.S.C.A. §§ 901 et seq. Offshore workers may recover compensation from their employers under the LHWCA by virtue of Section 1333(b) of the outer Continental Shelf Lands Act (OCSLA).[5]
The shipowner's exposure for unseaworthiness is a form of liability without fault in that liability is imposed upon the vessel owner, whether the owner is the injured seaman's employer or a third party, and without regard to his due care or negligence. The Osceola,
*641 The U.S. Supreme Court has not addressed whether non-seamen passengers aboard a vessel have an action for unseaworthiness[7]. Lower federal courts, however, have held that the basis of recovery of damages from a carrier for personal injury to a passenger is predicated on the theory of negligence. M. Norris, The Law of Maritime Personal Injuries 4th Ed. § 3:4 at 63 (1990) [hereinafter, Norris].[8]
The latter are among the cases upon which the court of appeal in this case bases its conclusion, and Industrial relies, for its position that Article 2317 conflicts with the general maritime law. The argument is not without some appeal. However, it does not take into account that general maritime law distinctly authorizes application of supplementary state law in some situations. In our considered judgment, the general maritime law authorizes application of state law under the circumstances of this case.
Although the passenger-carrier cases referred to above are somewhat analogous there is this important difference. Those cases involved passengers aboard vessels. And the need for uniformity under the general maritime law is prompted primarily by concern regarding maritime shipping and commerce involving vessels. The U.S. Supreme Court has declared that helicopters and other aircraft are not vessels, and commentators have urged that aircraft should not be treated like vessels. Offshore Logistics v. Tallentire, supra, Smith v. Pan Air Corp.,
Moreover, there is in the general maritime law no prohibition against strict liability. On the contrary, the general maritime law embraces strict liability in various forms. Most recently the U.S. Supreme Court has recognized "products liability, including strict liability, as part of the general maritime law." East River S.S. Corp. v. Transamerica Delaval,
The last step in our inquiry requires analyzing the scope of the uniformity requirement. The requirement of national uniformity in the area of the maritime law has dictated that state law not apply in certain situations. D. Robertson at 146; See cases cited in Rodrigue v. Legros,
On the other hand, courts have from time to time supplemented general maritime law with state law, such as in cases affecting "the exercise of ... [the state's] police powers or in the provision of an additional maritime tort remedy". Powell, supra, at 1065, n. 5 referring to Askew v. American Waterways Operators, Inc.,
[i]t is true that state law must yield to the needs of a uniform federal maritime law when this Court finds inroads on a harmonious system. But this limitation still leaves the States a wide scope. State-created liens are enforced in admiralty. State remedies for wrongful death and state statutes providing for the survival of actions, both historically absent from the relief offered by the admiralty, have been upheld when applied to maritime causes of action. Federal courts have enforced these statutes. *643 State rules for the partition and sale of ships, state laws governing the specific performance of arbitration agreements, state laws regulating the effect of a breach of warranty under contracts of maritime insuranceall these laws and others have been accepted as rules of decision in admiralty cases, even, at times, when they conflicted with a rule of maritime law which did not require uniformity. Romero v. International Term. Operat. Co.,358 U.S. 354 , 373,79 S.Ct. 468 , 480-481 [3 L.Ed.2d 368 ] (1959).
Generally where maritime contracts are involved, the federal interest is at its "zenith", Rodrigue v. Legros, supra, while in maritime tort cases the interest in uniformity is minimal because of the "fortuitous nature of accidental injuries and the strong state interest in providing redress for injuries." Id. at 254. The uniformity requirement is also tempered with a recognition that in some matters local concerns outweigh the federal need for a uniform admiralty rule. To this end the "maritime but local" doctrine emerged from U.S. Supreme Court decisions. See Western Fuel Co. v. Garcia, supra; Norris, supra, §§ 4:5, 4:6 at 115-122.
Underlying the "maritime but local" doctrine is the rationale that "[i]f it [can] be said that the work activities of the injured employee [have] no direct concern with navigation or commerce, it [is] `local' and therefore the State laws [are] applicable." Norris, supra, § 4:6 at 117. The Court has extended this reasoning to recognize a "twilight zone" or "area of doubt" within which the Longshore and Harbor Worker's Compensation Act and state compensation acts may overlap, allowing the injured worker to recover under either of them. Norris, supra, § 4:6 at 121; See Hahn v. Ross Island Sand & Gravel Co.,
The respect for comity underlying the "maritime but local" doctrine remains a viable rationale for allowing state law to supplement the general maritime law. See Askew v. American Waterways Operators, Inc., supra, (states may constitutionally exercise their police power regarding maritime activities concurrently with Federal Government); Palestina v. Fernandez,
An offshore worker's employment activities have no "direct concern" with maritime shipping or commerce. Norris, supra, § 4:6 at 117. The U.S. Supreme Court has stated that work related to offshore oil and gas exploration is not "maritime employment". Herb's Welding Inc. v. Gray,
That offshore employment is of particularly local concern and not a maritime vocation is evidenced by the policies underlying Section 1333(a) of OCSLA. In that "state law extension clause", Congress "deliberately eschewed the application of admiralty principles" to incidents occurring on a platform or island on the outer Continental Shelf since "accidents on the artificial islands covered by OCSLA `[have] no more connection with the ordinary stuff of admiralty than do accidents on piers'". Tallentire,
Further evidence that Congress is not insistent on uniformity in the maritime law regarding offshore exploration and drilling is found in the 1982 amendment to the Jones Act, now found in section 688(b). That statute precludes maintenance and cure and Jones Act claims for damages, regarding incidents occurring in territorial waters overlaying the Continental Shelf of a nation other than the United States, its territories and possessions if there is a remedy available under the laws of the nation asserting jurisdiction over the area or under the laws of the nation where at the time of the incident the injured person maintains citizenship or residency. 46 U.S.C.A. § 688(b).[10]
It is evident from the cases just discussed and the federal statutes to which we have alluded that there is a lessened need for uniformity in a case like the one before us.
In summary we conclude that there is no applicable contrary federal legislation and that La.C.C. art. 2317 neither prejudices the characteristic features of the general maritime law nor interferes impermissibly with any required uniformity in such law.
Article 2317 applies in this case. The court of appeal panel, in its opinion of April 18, 1990, is correct. The more recent opinion of the court of appeal sitting en banc is incorrect. Duhon v. Petroleum Helicopters, Inc.,
DECREE
For the foregoing reasons the March 13, 1991, judgment of the court of appeal on remand,
DENNIS, J., concurs.
WATSON, J., concurs and assigns reasons.
WATSON, Justice, concurring.
In the field of personal injury, state law may supplement general maritime law. *645 Gulf Offshore Co. v. Mobil Oil Corp.,
I concur to note that the majority's analysis of OCSLA may err in drawing a bright line of demarcation between platform injuries and high sea injuries. In Tallentire, the platform workers were killed miles away from the platform. By its terms, OCSLA's scope is not limited to platforms. A platform worker who is injured in the water near a rig has maritime situs. Executive Jet Aviation v. Cleveland,
I respectfully concur in the majority opinion.
NOTES
Notes
[1] La.C.C. art. 2317 states:
We are responsible, not only for the damage occasioned by our own act, but for that which is caused by the act of persons for whom we are answerable, or of the things which we have in our custody.
* * * * * *
[2]
[3] That provision originally stated:
The district courts shall have exclusive original cognizance of all civil cases of admiralty and maritime jurisdiction ... saving to suitor, in all cases, the right of a common law remedy, where the common law is competent to give it.
In 1948 this provision was amended to read:
The district courts shall have original jurisdiction, exclusive of the courts of the states, of any civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled. 28 U.S.C.A. § 1333.
This amendment has not, however, changed the scope of the savings clause. D. Robertson, Admiralty and Federalism, p. 134 (1970).
[4] "[T]he precise extent to which local rules of law will operate to modify the general maritime law applied in the federal admiralty court is by no means clear. Indeed, it would have to be said that there are not even any clearly visible principles governing the nature and degree of permissible modifications of this sort.... [I]t is not clear that state courts are limited with respect to the application of local law to the same degreewhatever it may beas are the federal admiralty courts." D. Robertson at 146
[5] 43 U.S.C.A. 1333(b). Section 1333(a) calls for the application of state law as "surrogate" federal law. Section 1333(b), which allows offshore workers to recover under the LHWCA:
is expansive ... [and] extends to every injury or death "occurring as a result of operations... for the purpose of exploring for, developing, removing, or transporting ... natural resources. 43 U.S.C.A. § 1333(b). The state law extension clause [§ 1333(a) ], however, is considerably narrower, providing only for the application of state law to "the subsoil and seabed of the outer Continental Shelf, and artificial islands and fixed structures erected thereon." Barger v. Petroleum Helicopters, Inc.,
[6] The Longshore and Harbor Workers Compensation Act was amended in 1972 and those amendments expanded the categories of workers covered by the Act. The amendments also provide that employees covered by the Act may not assert a cause of action for unseaworthiness. Thus, so called "Sieracki" seamen may no longer assert an unseaworthiness cause of action. T. Schoenbaum, § 5-4 at 171.
[7] Norris suggests that the doctrine of unseaworthiness should be extended to non-seaman passengers aboard a vessel, stating:
The enlightened view of the present day courts in demanding that a vessel be reasonably fitand its interpretation of what is reasonable fitnessshould apply to the passengers carried in those ships if for no other reason than that passengers should be accorded relief now given to cargo. M. Norris, The Law of Maritime Personal Injuries, § 3:25 at 102.
[8] See Katz v. Cie Generale Transatlantique,
[9] Justice Stewart, writing for the Court in Executive Jet heavily criticized the inclusion of aircraft in admiralty law and stated:
The law of admiralty has evolved over many centuries, designed to handle problems of vessels relegated to ply the waterways of the world, beyond whose shores they cannot go. That law deals with navigational rulesrules that govern the manner and direction those vessels may rightly move upon the waters. When a collision occurs or a ship founders at sea, the law of admiralty looks to those rules to determine fault, liability, and all other questions that may arise from such a catastrophe. Through long experience, the law of the sea knows how to determine whether a particular ship is seaworthy, and it knows the nature of maintenance and cure. It is concerned with maritime liens, the general average, captures and prizes, limitation of liability, cargo damage, and claims for salvage.
Rules and concepts such as these are wholly alien to air commerce, whose vehicles operate in a totally different element, unhindered by geographical boundaries and exempt from the navigational rules of the maritime road. The matters with which admiralty is basically concerned have no conceivable bearing on the operation of aircraft, whether over land or water.... Although dangers of wind and wave faced by a plane that has crashed on navigable waters may be superficially similar to those encountered by a sinking ship, the plane's unexpected descent will almost invariably have been attributable to a cause unrelated to the seabe it pilot error, defective design or manufacture of airframe or engine, error of a traffic controller at an airport, or some other cause; the determination of liability will thus be based on factual and conceptual inquiries unfamiliar to the law of admiralty.
[10] Section 688(b) of the Jones Act (46 U.S.C.A. § 688(b)) states:
(1) No action may be maintained under subsection (a) of this section or under any other maritime law of the United States for maintenance and cure for damages for the injury or death of a person who was not a citizen or permanent resident alien of the United States at the time of the incident giving rise to the action if the incident occurred
* * * * * *
(B) in the territorial waters or waters overlaying the continental shelf of a nation other that the United States, its territories, or possessions.
(2) The provisions of paragraph (1) of this subsection shall not be applicable if the person bringing the action establishes that no remedy was available to that person
(A) under the laws of the nation asserting jurisdiction over the area in which the incident occurred; or
(B) under the laws of the nation in which, at the time of the incident, the person for whose injury or death a remedy is sought maintained citizenship or residency.
[11] After the district court judgment in favor of plaintiff was rendered and after the delay for suspensive appeal had run, upon motion to the court Industrial deposited the amount of the judgment plus accrued interest into the registry of the court. This procedure is a jurisprudential creation which allows a defendant cast in judgment to stop the accrual of legal interest. LaGraize v. Bickham,