Pacific Operators Offshore, LLP v. ValladolidPacific Operators Offshore, LLP v. Valladolid
Lead Opinion
delivered the opinion of the Court.
The Outer Continental Shelf Lands Act (OCSLA) extends the federal workers’ compensation scheme established in the Longshore and Harbor Workers’ Compensation Act (LHWCA),
I
Petitioner Pacific Operators Offshore, LLP (Pacific), operates two drilling platforms on the Outer Continental Shelf off the coast of California and an onshore oil and gas processing facility in Ventura County, California. Pacific employed Juan Valladolid as a general manual laborer — known in the trade as a roustabout — in its oil exploration and extraction business. Valladolid spent about 98 percent of his time on one of Pacific’s offshore drilling platforms performing maintenance duties, such as picking up litter, emptying trashcans, washing decks, painting, maintaining equipment, and helping to load and unload the platform crane. Valladolid spent the remainder of his time working at Pacific’s onshore processing facility, where he also performed maintenance duties, including painting, sandblasting, pulling weeds, cleaning drain culverts, and operating a forklift.
While on duty at the onshore facility, Valladolid died in a forklift accident. His widow, a respondent here (hereinafter respondent), filed a claim for benefits under the LHWCA pursuant to the extension of that Act contained within the OCSLA. The OCSLA provides, in relevant part:
“With respect to disability or death of an employee resulting from any injury occurring as the result of operations conducted on the outer Continental Shelf for the purpose of exploring for, developing, removing, or transporting by pipeline the natural resources, or involving rights to the natural resources, of the subsoil and seabed of the outer Continental Shelf, compensation shall be payable under the provisions of the [LHWCA].” 43U.S. C.§ 1333(b) .
The Ninth Circuit reversed, holding that
II
In 1953, Congress enacted the Submerged Lands Act, 67 Stat. 29,
The question before us is the scope of coverage under
The Courts of Appeals have offered competing interpretations. In Curtis v. Schlumberger Offshore Service, Inc.,
In Mills v. Director, supra, the Fifth Circuit, sitting en banc, adopted a narrower interpretation of
In the case below, the Ninth Circuit rejected the Fifth Circuit’s “situs-of-injury” requirement as unsupported by the text of
The Solicitor General suggests yet a fourth interpretation of
III
Pacific argues that the Fifth Circuit s situs-of-mjury test presents the best interpretation
A
The OCSLA extends the provisions of the LHWCA to the “disability or death of an employee resulting from any injury .occurring as the result of operations conducted on the outer Continental Shelf.”
Despite the lack of a textual “situs-of-injury” requirement in
Moreover, if, as Pacific suggests, the purpose of
Pacific also argues that, because all of
Pacific argues that this conclusion is foreclosed by language in Herb’s Welding, Inc. v. Gray,
The same is true of the Court’s opinion in Offshore Logistics. In that case, the Court considered whether the widows of oil platform workers who were killed when their helicopter crashed into the high seas could file wrongful-death suits under Louisiana law. In the Court’s analysis of
Finally, Pacific argues that including off-OCS injuries within the scope of the workers’ compensation coverage created by
There is no indication in the text, however, that the OCSLA excludes OCS workers from LHWCA coverage when they are also eligible for state benefits. To the contrary, the LHWCA workers’ compensation scheme incorporated by the OCSLA explicitly anticipates that injured employees might be eligible for both state and federal benefits. An offsetting provision in the LHWCA provides that “any amounts paid to an employee for the same injury, disability, or death for which benefits are claimed under [the LHWCA] pursuant to any other workers’ compensation law or [the Jones Act] shall be credited against any liability imposed by [the LHWCA].”
B
Pacific also offers an alternative argument derived from the interaction of
Although this alternative argument has the advantage of assigning some meaning to the words “occurring as the result of operations” in
C
Pacific also makes several policy arguments in favor of a situs-of-injury requirement, but policy concerns cannot justify an interpretation of
IV
The Solicitor General urges us to adopt a status-based inquiry that applies one test to on-OCS injuries and a different test to off-OCS injuries. Specifically, the Government proposes that when a worker is injured on the OCS, he is eligible for workers’ compensation benefits if he is employed by a company engaged in extractive operations on the OCS. But if the employee is injured off the OCS, the employee will be covered only if his “duties contribute to operations” on the OCS and if he performs “work on the [OCS] itself that is substantial in terms of both its duration and nature.” Brief for Federal Respondent 35. This approach is derived from our decision in Chandris, Inc. v. Latsis,
The Third Circuit’s “but for” test is nominally based on causation, but it is also incompatible with
Accordingly, we conclude that the Ninth Circuit’s “substantial-nexus” test is more faithful to the text of
Although the Ninth Circuit’s test may not be the easiest to administer, it best reflects the text of
The judgment is affirmed, and the case is remanded to the Court of Appeals for further proceedings consistent with this opinion.
It is so ordered.
Notes
The Director, Office of Workers’ Compensation Programs, United States Department of Labor, is a respondent in this case because the Director administers the OCSLA workers’ compensation scheme established by
See also
Concurrence Opinion
concurring in part and concurring in the judgment.
I join the Court’s judgment that the Ninth Circuit properly remanded this case to the Benefits Review Board, and I agree with almost all of the Court’s opinion. My disagreement is limited to the last two substantive paragraphs of Part IV, which endorse the Ninth Circuit’s “substantial-nexus” test for determining the scope of coverage under 43 Ü. S. C.
The term “proximate cause” is “shorthand for a concept: Injuries have countless causes, and not all should give rise to legal liability.” CSX Transp., Inc.
Although the doctrine of proximate cause is rooted in tort law and most commonly applied in negligence actions, it can also provide a useful guide in no-fault compensation schemes like this one. In Brown v. Gardner,
To be sure, proximate cause is an imperfect legal doctrine; I have no illusions that its tenets are easy to describe or straightforward to apply. Judicial opinions do not provide a uniform formulation of the test, and borderline cases are rarely clear. But “it is often easier to disparage the product of centuries of common law than to devise a plausible substitute.” McBride,
“Substantial nexus,” by contrast, is an indeterminate phrase that lacks all pedigree. Our case law has used it as a term of art in only one context, first appearing in Justice Blaekmun’s opinion for the Court in Complete Auto Transit, Inc. v. Brady,
Does the Court mean to establish, by the novel “substantial [causal] nexus” test, a new tertium quid of causality— somewhere between but-for causality and proximate cause? One might think so, since there is no other sensible reason to (1) reject but-for cause, (2) say nothing about the natural alternative (proximate cause), and (3) embrace the “substantial [causal] nexus” novelty. On the other hand, the Court’s opinion suggests at least some connection (that is to say, in the Court’s favored lawspeak, some “nexus”) between the proximate-cause standard and the substantial-nexus test, since it cites one of our proximate-cause cases just before concluding that “[accordingly, . . . the Ninth Circuit’s 'substantial-nexus’ test is more faithful to the text of
Finally, I must note an additional uncertainty (or else a peculiarity) that the Court’s opinion creates: The statutory text at issue requires compensation for “disability or death of an employee resulting from any injury occurring as the result of operations conducted on the outer Continental Shelf . . . .”
Strange to say, the California Supreme Court has held that this unmistakable term-of-art reference to a rule found in the common law of torts does not establish a rule “identical to that found in the common law of torts,” but merely “elaborat[es] the general requirement that the injury arise out of the employment.” LaTourette v. Workers’ Compensation App. Bd.,