Raymond Louviere was injured when a hot water heater exploded in the living quarters of a fixed platform in the Gulf of Mexico. Almost three years after the explosion, he filed suit for damages. The district court dismissed his suit, holding that his claim had prescribed. Louviere appeals, alleging that a suit filed by his employer’s workmen’s compensation carrier against the same defendants interrupted the running of prescription. We reverse and remand.
Louviere was employed by Movible Offshore, Inc. as a cook in the living quarters of a fixed platform located on the outer Continental Shelf off the Louisiana coast. On May 6, 1970, a hot water heater exploded injuring some workers and killing others. Louviere suffered broken ribs, a broken collar bone, an injured back, and burns. After surgery on his back, he returned to work from time to time but on each occasion found himself unable to continue working. A psychiatrist concluded that the explosion had caused multiple trauma, and that Louviere later suffered an anxiety neurosis and depression. He has, allegedly, had severe pain from his injuries and has had episodic crying spells. He now asserts that he is totally and permanently disabled.
After the accident, Movible Offshore’s compensation carrier, Argonaut Insurance Company, paid Louviere benefits under the terms of the Longshoremen’s and Harbor Workers’ Compensation Act. 33 U.S.C. §§ 901 et seq. Because Movible Offshore did not contest Louviere’s right to compensation, benefits were paid without entry of an award by the deputy commissioner. Argonaut, as Movible’s subrogee, 1 then filed a suit in federal district court on May 5, 1971, seeking reimbursement for workmen’s compensation benefits paid as a result of the explosion. The complaint named as defendants, the owner of the platform, the manufacturers and sellers of the heater and some of its components, and the builder of the living quarters.
The complaint alleged that the negligence of the defendants was the proximate fBause of the explosion; that cer *281 tain employees were injured or killed in the explosion; that, as a result of the explosion, Argonaut had become obligated to pay workmen’s compensation benefits to those employees under the Longshoremen’s and Harbor Workers’ Compensation Act; and that, under the provisions of the Act, it was entitled to recover against the defendants all the benefits it had paid or might become obligated to pay.
On February 27, 1973, while Argonaut’s suit was pending but before trial, 2 Louviere filed suit, seeking to recover damages from the same defendants, alleging their negligence as the cause of his injuries. 3 The defendants filed a plea of prescription, alleging that the one year prescriptive period allowed under Louisiana law for suit on a tort claim had passed and that Louviere’s claim was barred. They argue that Argonaut’s suit was not effective to interrupt prescription because it was barred by provisions of the Longshoremen’s and Harbor Workers’ Compensation Act. 33 U.S.C. § 933.
The Louisiana one year period of limitations governing personal injury actions, Art. 3536, La.Civ.Code Ann., is applicable to this action. Chevron Oil Co. v. Huson, 1971,
The appellees seek to avoid application of this rule in favor of Louviere, by invoking the rule that a suit that “does not state any right or cause of action whatsoever” will not interrupt prescription. Callendar v. Marks, Sup.Ct.1936,
The threshold questions we must consider are whether Section 33 of the Act preempts whatever nonstatutory rights of action an employer might have for compensation payments to an employee, and if not, whether the employer does, in the absence of a statutory bar, have such a right of action in the circumstances *282 this case presents, and whether suit to enforce such a right is effective to interrupt prescription of the employee’s claim for damages.
I.
The contention that Section 33 of the Act should be construed as providing the sole remedy of an employer against third persons, preempting other nonstatutory remedies, was addressed and rejected in Federal Marine Terminals, Inc. v. Burnside Shipping Co., 1969,
The Supreme Court reversed. First, it held that Section 33 of the Act is not the exclusive source of an employer’s remedies to recoup compensation payments from negligent third parties. The keystone of its analysis was that Section 33 “gave the employer, in return for his absolute liability to the [employee], part of the latter’s rights against others” and “the legislative grant of a new right does not ordinarily cut off or preclude other nonstatutory rights in the absence of clear language to that effect.”
Liberty Mutual Insurance Co. v. United States, 2 Cir. 1961,
The Court of Appeals for the District of Columbia reached the same conclusion
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in Joyner v. F. & B. Enterprises, 1971,
Both decisions appear to impute to Section 33 an exclusory effect. To this extent they are, we conclude, inconsistent with the holding and reasoning of Burnside. Both appear to have decided that recognition of an independent, non-statutory right of action would be inimical to the legislative purpose evidenced by the statutory scheme. Burnside apart, we find a general poverty of support for that conclusion.
First, courts and commentators have recognized the objective under the Act of “placing the burden ultimately on the company whose default caused the injury.” Italia Societa per Azioni di Navigazione v. Oregon Stevedoring Co., 1964,
Section 33, if exclusive, is manifestly incapable of advancing these related objectives. One commentator has identified nine distinct situations where a holding that the Section 33 remedy is exclusive would “deprive the employer of a valuable prior remedy, and present the third party with a gratuitous immunity.” 2 Larson’s Workmen’s Compensation Law § 77 at 250.102-.103 (Cum.Supp. 1974). As that commentator aptly admonishes, “before a statutory remedy is construed to be an implied abolition of all antecedent remedies, it should be shown that the new remedy covers the ground previously dealt with by the old, without substantial lacunae where nothing is put in the place of the remedy abolished.” Id. at 250.102. Section 33 does not meet this test.
The statutory scheme is also designed to assure prompt and certain payment of benefits to the injured employee. To this end, the Act provides:
(a) “Compensation under this chapter shall be paid periodically, promptly, and directly to the person entitled thereto, without an award, except where liability to pay compensation is controverted by the employer.
(b) The first installment of compensation shall become due on the fourteenth day after the employer has knowledge of the injury or death . . .”33 U.S.C. § 914.
The Act thus directs that compensation shall ordinarily be paid to an injured employee without an award. The manifest purpose is to assure prompt aid to the employee when his need is greatest. See American Stevedores, Inc. v. Porello, 1946,
This limitation on statutory assignment was imposed for a specific and limited purpose. Section 33, as originally enacted, provided that acceptance of compensation worked a complete assignment to the employer of all the employee’s rights against third persons. Act of March 4, 1927, ch. 509, 44 Stat. 1424. This right was granted “in aid of the employer”, not as a limitation on his right to nonstatutory recoupment. The Etna, 3 Cir. 1943,
The thrust of the amendment was thus to protect the employee against premature and unwitting surrender to his employer of his right to sue on his own behalf. See H.R.Rep.No.1945, 75th Cong., 3d Sess. 9 (1938); S.Rep.No.1988, 75th Cong., 3d Sess. 9 (1938). It attempted to do so by preserving the employee’s right to sue on his claim. But there is nothing to suggest that the amendment was intended to divest the employer of his right to sue on his own behalf for recoupment from the party at fault. Nothing in that right is prejudicial to the right of the employee to pursue his own remedy. The employer’s suit or settlement would in no way bind the employee or prevent him from enforcing his own rights.
In short, we find nothing in the statutory scheme or its legislative history that requires leaving the employer who voluntarily pays compensation without a remedy against culpable third parties. On the contrary, we conclude that such a holding would frustrate the congressional objectives of providing prompt compensation to injured employees and of placing the ultimate burden of loss on the party at fault. We therefore hold that in the circumstances this case presents the employer who pays compensation without an award is not barred by Section 33 from pursuing whatever non-statutory rights he may have against third party wrongdoers.
II.
We must also disagree with the district court’s apparent conclusion that Argonaut had no right of action for recoupment sufficient to interrupt prescription of Louviere’s claim, even in the absence of a statutory bar to assertion of non-statutory remedies. We conclude that the employer, or as here, his subrogated insurer, is entitled to indemnity from a wrongdoing third party.
Louisiana law is determinative of this question of nonstatutory recoupment. That law, no less than the common law, is fundamentally hostile to unjust enrichment. See, e. g., La.Civ.Code Art. 1965 (1870). Louisiana courts have, accordingly, long recognized an action for indemnity, although its codal basis has been a source of some dispute.
6
In
*285
deed, the courts have recognized an independent nonstatutory right of an employer paying workmen’s compensation benefits to recoup those payments from a wrongdoing third party. See, e. g., London Guarantee Accident Insurance Co. v. Vicksburg, S. & P. R. Co., 1923,
Argonaut’s complaint, we conclude, alleged facts sufficient to support relief under this theory; alleging specifically that the fault of the defendants injured the employee whom the plaintiff then became obligated to, and did in fact, compensate. Thus the alleged tortfeasors were enriched at the expense of the employer’s subrogated insurer, without legal justification.
III.
The remaining question is whether the suit filed by Argonaut interrupts prescription of the employee’s right of action against the same defendants. We are compelled, by decisions of the Louisiana Supreme Court, to hold that it does. Most directly pertinent is the decision in National Surety Corp. v. Standard Accident Insurance Co., 1965,
*286
There the employer’s subrogated insurer had paid benefits to an injured employee pursuant to the Louisiana Workmen’s Compensation Act and had subsequently filed a suit against an alleged third party tortfeasor seeking recovery of the amount paid.
8
More than one year after the accident, the employee intervened in the action, seeking damages, and the defendant pleaded prescription. The court held that the prescription running in favor of the tortfeasor was interrupted as to the injured employee by the timely filing of suit by the employer’s compensation carrier. The employee’s claim, the court concluded, was on the same cause of action, for purposes of LSA — R.S. 9:5801, as the employer’s carrier’s suit. “Cause of Action”, for those purposes, was defined as “an act on the part of a defendant which gives rise to a plaintiff’s cause of complaint”.
The Louisiana Supreme Court, in a recent decision, has reaffirmed the reasoning and result of
National Surety
and overruled a court of appeals decision that attempted to narrow its implications. Nini v. Sanford Brothers, Inc., La.1973,
The Supreme Court in
Nini
found this reasoning inconsistent with
National Surety.
In another context we might be loathe to take the broad language of *287 these opinions of the Louisiana Supreme Court at face value. 9 But the analogy of Louisiana Workmen’s Compensation Law to the Longshoremen’s and Harbor Workers’ Compensation Act persuades us that National Surety and Nini should control the disposition of this appeal. We conclude, accordingly, that suit by the employer’s subrogated insurer to recover benefits paid an injured employee under the Longshoremen’s and Harbor Workers’ Compensation Act will interrupt prescription to permit a subsequent suit by the employee for his damages arising out of the same occurrence. The employer-employee nexus under the Act assures that suit by the employer, or by his subrogated insurer, will necessarily include allegations of injury to its employee, and thereby give clear notice to the defendants of the potential claim of that employee.
We therefore hold that Argonaut’s suit was effective to interrupt prescription of Louviere’s claim. In so holding, we imply no opinion as to the merits of Louviere’s claim or, for that matter, the claim of Argonaut. We reverse the judgment of the district court and remand this case for further proceedings consistent with this opinion.
Notes
. An insurer paying workmen’s compensation benefits under the Act, is subrogated to the employer’s interests to the extent of benefits paid. 33 U.S.C. § 933(h).
Cf.
Hartford Accident & Indemnity Co. v. Byles, La.App.1973,
. The district court dismissed Argonaut’s independent suit on June 6, 1974. The reason given in the minute entry was that the compensation payments were not made under a formal award.
. Argonaut’s suit also named Movible Offshore as a defendant. Because an employer’s liability under the Act is exclusive of all other liability to the employee, Movible should be dismissed from the suit. 33 U.S.C. § 905.
. Jurisdiction of this action is grounded on 43 U.S.C. §' 1333, the Outer Continental Shelf Lands Act, which extends coverage of the Longshoremen’s and Harbor Workers’ Compensation Act to accidents taking place on fixed platforms such as the one involved here. 43 U.S.C. § 1333(c). The law applicable to these structures is the federal law of the United States and the law of the adjacent state applied as federal law in the absence of inconsistent federal law. 43 U.S.C. § 1333(a)(2); Rodrigue v. Aetna Casualty & Surety Co., 1969,
. This provision reads:
“The filing of a suit in a court of competent jurisdiction shall interrupt all prescriptions affecting the cause of action therein sued upon, against all defendants, including minors and interdicts.” LSA-R.S. 9:5801.
. A number of different theories have, over the years, been advanced by the Louisiana Supreme Court to support an action for indemnity in circumstances similar to those present in this case — among them direct action in tort under Article 2315, quasi-contract,
*285
and legal subrogation.
See, for example,
Appalachian Corporation v. Brooklyn Cooperage Co., 1922,
. Some of these decisions have come upon hard times as of late.
London Guarantee
has been overruled to the extent that it permits an unsubrogated insurer to sue for what is in effect “damage sustained by reason of a contractual obligation.” Forcum-James Co. v. Duke Transportation Co.,
supra,
. The employer is guaranteed the right to sue on his own behalf by the statute. LSA-R.S. 23:1101. He does not, however, sue as a subrogee whose rights are derivative of those of his employee. The statute is held to grant him an independent right of action against wrongdoing third parties. Marquette Casualty Co. v. Brown, 1958,
. A persuasive argument might be made that the holding of
National Surety
should not be extended beyond the special statutory context in which it arose. There was a line of authority to the effect that “[f]rom a single tortious injury to an employee there arises but one cause of action . . . and all damages flowing therefrom, which may include several different and distinct elements, are recoverable in one and the same suit.” Board of Commissioners v. City of New Orleans, 1953,
Nevertheless, the Court in Nini has, to all appearances, rejected this narrower view. There National Surety was not treated as a narrow exception carved out of the general rule but as illustrative of the general rule itself. It is notice not of the plaintiffs intention to assert his demand, but of any demand stemming from the same tortious occurrence or conduct, which interrupts prescription as to subsequent demands on that “cause of action,” at least to the extent that the first demand sufficiently implies the second. Thus, the narrower view of National Surety, whatever its intrinsic merit, is not the current view of the Louisiana Supreme Court.
