MEMORANDUM OPINION
Henry Sobratti (“Appellant”, “Sobratti”) challenges the trial court’s grant of summary judgment and presents the following issues for review:
1) Whether the trial court erred in determining that the appellee was an “employer” immune from tort liability under the Longshoremen Harbor Workers Compensation Act [“LHWCA”]; and
2) Whether the court erred in ruling on the motion for summary judgment without benefit of a hearing and without permitting further discovery pursuant to Federal Rule of Civil Procedure 56(f).
Appellee additionally claims it is entitled to an award of attorney’s fees and costs for what it terms a frivolous appeal.
I. STATEMENT OF FACTS AND PROCEDURAL HISTORY
It is undisputed that appellant was hired by AllTemp Services and was assigned to work as a stevedore at Tropical Shipping and Construction Co., Ltd. (“Tropical”, “Appellee”). It is further undisputed that Appellant was performing duties for Tropical at the time of his injury. The parties disagree, however, on the facts surrounding an issue that carries some legal significance here — that is, who was the appellant’s employer under the facts of this case.
Sobratti contends that, during his term of employment with Tropical, he received project instructions from AllTemp. As evidence of such instructions, Sobratti points to a document titled, “Tropical Shipping Stevedore Project”, which outlines the work schedule, time and attendance requirements, job descriptions and safety policies employees assigned to Tropical were expected to follow. [Joint Appendix (“J.A.”) at 96-97]. That document also specifies that time cards are to be submitted to AllTemp. However, the document also provides that all personnel must agree to be bound by Tropical Shipping’s safety policies and wear protective equipment as directed or supplied by Tropical Shipping. [Id.]. In support of his assertion that All-Temp controlled the specifics of the job, Sobratti also points to an affidavit in which he characterizes the above-mentioned document as a job description: “AllTemp provided me with a written job description of what to do and what not to do with respect to work done for Tropical Shipping.” [J.A. at 26]. However, Tropical counters that the project instructions were actually written by and issued for Tropical. [Appel-lee’s Br. at 6]. Moreover, Sobratti contends that payment for work done while at Tropical was made alternatingly by both Tropical and AllTemp. [J.A. at 74-82],
On April 11, 1999, while unloading a vessel at Tropical’s worksite, Sobratti fell from a ladder and sustained serious injuries to his left elbow. It is undisputed that, at the time of his injuries, appellant was performing work for Tropical. [J.A. at 5-6, 88], Appellant avers he is now unable to work as a result of those injuries. Following that incident, appellant filed a claim with the U.S. Department of Labor (“DOL”)for benefits under the Longshoremen Harbor Worker Compensation Act (“LHWCA”, “the Act”). [J.A. at 85-88]. By letter dated April 20,1999, the DOL notified Sobratti that it had determined he came within the jurisdiction of the LHWCA and was, therefore, entitled to receive compensation benefits. [J.A. at 85-86]. The DOL conducted an informal conference on June 14, 1999, at which So-bratti was represented by his legal counsel. [J.A. at 90]. Following that conference, on June 23, 1999, DOL issued a memorandum in which it concluded that the covered employer was Tropical Shipping. [J.A. at 88]. The DOL also established the amount of compensation to which Sobratti was entitled and also ordered Tropical to pay all of his medical expenses, in line with the statutory responsibilities of an employer. Id. As a result of that ruling, appellant collected benefits through Tropical’s insurance carrier and Tropical. While appellant concedes he has received those benefits, he contends they were paid not entirely by Tropical but, rather, in part by Birdsall,Inc. — an entity with whom he is unfamiliar. [J.A. at 73]. Appellee contends Birdsall and Tropical are one and the same.
4. On or about April 11, 1999, the Plaintiff was employed by Alltemp Services, Inc. performing work at the container port.
5. Plaintiff was a borrowed employee of Defendant Tropical.
6. Plaintiff was instructed to use a ladder provided by Defendant.
7. The ladder was in a defective condition.
8. Defendant knew the ladder was in a defective condition and had previously been instructed by OSHA to remove the ladder from the job.
9. Defendant failed to warn Plaintiff of the dangerous condition.
10. As a direct and proximate result of Defendant’s negligence and the defective condition of the ladder, it broke while Plaintiff was on it, Plaintiff having climbed almost to the top of the ladder.
[J.A. at 5-6]. In its answer, Tropical admitted appellant was an Alltemp employee, performing work with Tropical as a borrowed employee, as alleged in the complaint. [J.A. at 7]. Appellee also raised several affirmative defenses, arguing,
inter alia,
that because Sobratti was a borrowed employee of Tropical, he was limited to the remedies provided in the LHWCA and was barred from pursuing an independent tort action.
1
[J.A. at 8], Just over one month after the initial pleadings, and before any substantial discovery was conducted, Tropical filed a motion for summary judgment,
2
arguing the appellee’s tort claim was statutorily barred. Tropical argued that Sobratti’s assertions in the complaint that he was a borrowed employee of Tropical, as well as other evidence on record establishing that employment status, left no genuine issue of material fact to be decided. By Order entered October 5, 1999, the trial court put both parties on notice that the motion was to be decided without a hearing and ordered submission of any supporting affidavits or memoranda by October 26, 1999. [J.A. at 35]. Appellant never responded to the motion. Rather, on the deadline date set by the court, [J.A. at 2], appellant filed a motion to stay ruling on the motion pending further discovery, pursuant to Federal Rule of Procedure 56(f). As basis for that motion, appellant asserted that discovery regarding the owner of the vessel and the ladder
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was particularly critical to determining the issue of control — a key inquiry in determining the appellant’s actual employer. [J.A. at 20]. Appellant additionally claimed the contract between Tropical and Alltemps was also important in resolving the issue of control. The appellee opposed that motion; however, there is no indication in the record the court decided the motion to delay a decision on the summary judgment motion pending further discovery. Rather, the trial court, by order entered February 8, 2000, finally decided the motion for summary judgment in the ap-
II. DISCUSSION
A. Jurisdiction and Standard of Review
This Court has jurisdiction to review final judgments and orders of the Territorial Court in all civñ matters. See, Virgin Islands Code AnN. tit. 4, § 33; Revised Organic Act of 1954 § 23A.
The trial court’s grant of summary judgment is afforded plenary review, and this Court applies the same standard that should have been applied below.
See, Government of V.I. v. Innovative Communications Corp.,
B. Was Summary Judgment Appropriate?
Sobratti challenges the lower court’s grant of summary judgment as inappropriate, arguing there remained genuine issues of material fact in dispute regarding whether Tropical is an employer protected from tort liability under the LHWCA. 4
The LHWCA provides protection for certain specified workers, by requiring employers to maintain insurance coverage to compensate employees in the event of injury.
See, Peter v. Hess Oil V.I. Corp.,
The liability of an employer prescribed in section 904 of this title shall be exclusive and in place of all other liability of such employer to the employee, his legal representative, husband or wife, parents, dependents, next of kin, and anyone otherwise entitled to recover damages from such employer at law or in admiralty on account of such injury or death ....
33 U.S.C.A. § 905 (emphasis added). This exclusivity provision has been judicially construed as a bar to tort claims against covered employers.
See, Peter,
[A]ny of whose employees are employed, in whole or in part, upon the navigable waters of the United States (including any adjoining pier, wharf, dry dock, terminal, building way, marine railway, or other adjoining area customarily used by an employer in loading, unloading, repairing, or building a vessel).
33 U.S.C.A. § 902(4).
6
This definition has been construed by both the courts and the administrative agency charged with administering the LHWCA compensation program to embrace the borrowed servant doctrine, thereby extending the responsibility for compensation insurance and the concomitant statutory protections to borrowing employers.
See, Peter,
Whether one is a protected borrowing employer is a question of law, to be decided by the court in the first instance. However, that determination is, by necessity, fact-driven, based on the nature of— and the facts surrounding — the employment relationship and a determination of who had control to direct the employee’s work, and whose work was being performed.
7
See, Standard Oil,
1. Admissions in Complaint Removed Genuine Issue of Fact
Sobratti claims error in the trial court’s failure to make findings on the factors outlined above, before concluding he was Tropical’s borrowed employee. However, Tropical argues its status as the employer was not subject to reasonable dispute, given Sobratti’s prior admissions on that issue. This Court agrees that Sobratti’s assertions of fact in his pleadings, coupled with other evidence on the record, constituted admissions which conclusively determined the issue of Tropical’s employer status, thereby removing any genuine dispute on that issue.
In deciding whether summary judgment is proper, consideration is given to facts in the “pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any.” Fed. R. Civ. P. 56(c). Because a complaint is intended to summon the resources of the court, and given the responsibility placed on parties to ensure that claims filed with
Here, Sobratti claimed in his complaint — and the appellee admitted — that he was a borrowed employee of Tropical. He further asserted Tropical provided the equipment required to complete that work and failed in its duty to ensure that such equipment was safe. The factual basis of appellant’s entire negligence claim was that he was working for Tropical at the time he was injured; that Tropical had a duty, as his employer, to provide safe equipment and. failed to do so in this instance by providing him with a defective ladder, and that Tropical’s safety standards were breached.
Additionally, the assertions in the initial pleadings were consistent with Sobratti’s claims to the administrative agency, for the purpose of recovering benefits under the LHWCA. Throughout the administra
As earlier noted, Sobratti’s entire negligence action was premised on his view that Tropical, as his employer with control over the conduct of his work and his safety, breached its duty to provide safe working equipment. Permitting Sobratti to now recant the assertions on which his cause of action was formulated, when it becomes evident that they are destructive to his underlying negligence claim, would seriously undermine the purposes of summary judgment. Having admitted in his complaint — and, implicitly by accepting the agency’s finding and the benefits flowing from that finding — that Tropical was his employer at the time of his injury, Sobratti is bound by that admission and cannot now rely on a contrary argument simply to create an issue of fact and avoid summary judgment.
2. Denial of 56(f) Motion Was Not Error
Federal Rule of Civil Procedure 56(f) relief is discretionary; therefore, a trial court’s failure to grant additional time for discovery before ruling on a motion for summary judgment is reviewed for abuse of discretion.
See, Innovative,
Here, a determination that Tropical did not assume employer status was the linchpin for the viability of Sobratti’s tort action. Given the clearly established employer-employee status between the parties, under the standards stated above, this Court rejects appellant’s argument that details of an agreement, if any, between Tropical and Birdsall, Inc. or All-temps sufficiently bore on the issue of control to' preclude summary judgment
C. Whether This Appeal is Frivolous, Warranting Sanctions.
In its responsive brief, Tropical additionally argues this appeal is frivolous, given the well-settled law in this circuit on the issues presented and, accordingly, asks this Court to award sanctions in its favor.
A party may seek sanctions if it perceives that it was forced to defend against an appeal that is “wholly without merit”, based on an objective standard of reasonableness.
See,
V.I.R.App. P. 30(a);
see, also, Hilmon Co. v. Hyatt Int’l,
III. CONCLUSION
Given the facts and procedural posture of this case, this Court should find no
ORDER
For the reasons stated in an accompanying Memorandum Opinion of even date, it is hereby
ORDERED that the trial court’s order granting the appellee’s motion for summary judgment is AFFIRMED; it is further
ORDERED that the appellee’s request for sanctions is DENIED.
Notes
. Tropical also argues it is entitled to immunity under the V.I. Workmen’s Compensation statute; however, that argument does not appear to be relevant here, as there is no indication a claim was filed — or compensation paid — under that statute.
. Appellee also sought attorney’s fees and costs. It does not aDDear from the record. however, that the trial court ruled on that motion.
.Appellant argued he needed to determine who, from among Tropical and Birdsall, owned the vessel which was being off-loaded at the time of his injury.
. Appellant also argues it was error to decide the motion without a hearing. This argument is unpersuasive, as the decision to afford an opportunity to present arguments on a motion is one that is purely discretionary.
See, e.g., Government of V.I. v. Innovative Communications Corp.,
. For a comprehensive look at the history and policy of the LHWCA, see, Peter v. Hess Oil V.I. Corp., cited supra.
. This Court is unpersuaded by appellant’s argument that the fact that he falls within the “twilight zone” — or area of uncertain coverage or protections by the LHWCA given the location where his injury occurred — which gives rise to an issue regarding whether he is within the scope of the LHWCA or may pursue an action in tort against Tropical. This issue generally arises where the injury occurs while conducting work connected with a vessel on land — or outside of a covered "situs,” thereby creating uncertainties regarding the statute's protection. However, this is not an issue here. Significantly, the U.S. DOL has already concluded Sobratti is so covered by the LHWCA and provided benefits accordingly, thereby rendering moot any issue regarding whether he comes within the jurisdiction of that statute. Moreover, through amendments to the LHWCA, the statute's scope has been clarified considerably to reach workers both in the waters and immediate surrounding harbor areas, so long as their duties are in connection with a vessel. The statute also now provides concurrent jurisdiction with state remedies, permitting land workers to recover both under the LHWCA and state Workmen's Compensation statutes.
See, generally, Peter,
. Compare, 3 Larson Workmen's Compensation Law § 67.05(3) (recognizing that where employer is in the business of furnishing employees to others, such as temporary service, the worker essentially becomes the employee of the borrowing employee).
. The court in Gaudet listed nine factors for the borrowing employer determination:
(1) Who has control over the employee and the work he is performing, beyond mere suggestion of details for cooperation?
(2) Whose work is being performed?
(3) Was there an agreement, understanding, or meeting of the minds between the original and the borrowing employer?
(4) Did the employee acquiesce in the new work situation?
(5) Did the original employer terminate his relationship with the employee?
(6) Who furnished tools and place for performance?
(7) Was the new employment over a considerable length of time?
(8) Who had the right to discharge the employee?
(9) Who had the obligation to pay the employee?
Gaudet,
.
St.Surin,
. Of course, this Court may impose sanctions sua sponte, after providing notice of the possible sanction and providing an opportunity to be heard.
