William Pippen, Jr. v. Shell Oil Company and Inland Well Service, Inc., Third-Party v. Superior Electric Wireline Corporation, Third-PartyWilliam Pippen, Jr. v. Shell Oil Company and Inland Well Service, Inc., Third-Party v. Superior Electric Wireline Corporation, Third-Party
This is a maritime tort action resulting from an injury suffered by plaintiff William Pippen while working aboard a drilling barge owned and operated by Inland Well Service, Inc., and under lease and apparently chartered to Shell Oil Company. The case is before this Court upon appeal by Inland Well and Shell Oil from the district court’s dismissal of their third-party actions against Superior Electric Wireline Corp., plaintiff Pippen’s employer. Since the district court properly granted summary judgment for Superior Electric against Inland Well and Shell Oil, we affirm.
At the time of his injury, in December 1977, plaintiff Pippen was a wireline operator employed by Superior Electric and working aboard a vessel owned and operated by Inland Well. The vessel had been leased and/or chartered to Shell Oil to drill one or more gas wells in Louisiana territorial waters. Inland Well had apparently contracted with Superior Electric for the specialized services provided by Superior Electric employees. Pippen and two other employees of Superior Electric were sent to the rig to perforate and set packers on the rig. Specialized tools had been sent to the job site for this work.
1
As plaintiff and one
On December 14, 1978, plaintiff filed this action against Shell Oil and Inland Well, alleging that the unseaworthiness of the vessel and/or the concurrent negligence of both defendants caused plaintiff to be injured. On March 5, 1979, Inland Well filed a third-party action against Superior Electric, alleging that in the event Inland Well was held liable to plaintiff, then Superior Electric was liable to Inland Well for indemnity or contribution, together with all costs of defense. On September 17, 1979, Shell Oil filed a cross-claim and a third-party complaint against Inland Well, its insurer Highland Insurance Company, and Superior Electric, claiming that Shell Oil was entitled to indemnity or contribution, together with all costs of defense, from the third-party defendants. Superior Electric moved for summary judgment against Shell Oil and Inland Well on the ground that plaintiff Pippen was a longshoreman covered by the Longshoremen’s and Harbor Workers’ Compensation Act (LHWCA),
The ultimate issue in this case is whether the dismissal of the third-party claims brought by Shell Oil and Inland Well against Superior Electric was proper. To make this determination, it is necessary to examine whether the LHWCA as amended in 1972, which provides that the compensation liability of the employer is to be exclusive and which specifically prohibits indemnification actions by a vessel against the employer, applies to this action.
The coverage of the LHWCA is delineated in
Compensation shall be payable under this chapter in respect of disability ordeath of an employee, but only if the disability or death results from an injury occurring 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).
An employee is defined by the Act as:
any person engaged in maritime employment, including any longshoreman or other person engaged in longshoring operations, and any harborworker including a ship repairman, shipbuilder, and ship-breaker, but such term does not include a master or member of a crew of any vessel, or any person engaged by the master to load or unload or repair any small vessel under eighteen tons net.
Id.
§ 902(3). Thus, to trigger the application of the Act, a dual situs,
Maritime employment is an occupational concept that is dependent upon the nature of the employee’s activities.
P. C. Pfeiffer Co. v. Ford,
In
Odom Construction Co. v. United States Department of Labor,
Moving the blocks directly furthered maritime commerce. By tying up to the blocks, barges were moored and held inplace before loading until they could be moved to the loading facilities and, after loading, until they could be taken away by tugs. Relocating the blocks after they had fallen or slipped into the water from erosion is not the type of job peripherally related to maritime matters that Congress said was not to be covered by the LHWCA, such as trans-shipment of stored cargo or clerical work.
Id. at 113. Thus, the Court concluded that since plaintiff’s job had a realistically significant relationship to traditional maritime activity involving navigation and commerce on navigable waters, plaintiff was engaged in maritime employment at the time of his injury. 6
In the instant case, plaintiff Pip-pen was a wireline operator. At the time of his injury he was preparing to set packers for perforation.
7
The function of the vessel on which Pippen was working was to drill gas wells; consequently, Pippen’s work was essential to the function of the vessel. More importantly, Pippen’s job was necessary to the completion of the offshore drilling process. As discussed above, to determine whether the status test is satisfied, it is necessary to examine the nature and purpose of the employee’s activities and to determine whether those activities had a realistically significant relationship to maritime navigation or commerce. The “significant relationship” requirement can be met when the purpose of the employee’s activi
The suggestion that Pippen was not engaged in maritime employment because he was not performing longshoreman duties at the time of his injury is untenable. The LHWCA does not limit the scope of maritime employment to longshoring operations. Indeed, the Supreme Court stated, “We understand the word ‘including’ [in section 902(3)] to indicate that ‘longshoring operations’ comprise a part of the larger group of activities that make up ‘maritime employment.’ ”
P.C. Pfeiffer Co.,
Since Pippen was engaged in maritime employment at the time of his injury, and since that was the only jurisdictional confine of the LHWCA that was challenged by the parties, we conclude that the LHWCA is applicable to the instant lawsuit. Under the LHWCA, Inland Well’s action against Superior Electric was properly dismissed. Inland Well was the owner of the vessel on which Pippen was working at the time .of his injury. Section 905(b) of the LHWCA cuts off the right of a vessel— which is defined to include the vessel’s owner 12 — to recover contribution or indemnity from the employer. Section 905(b), which was added by the 1972 amendments to the LHWCA, provides;
(b) In the event of injury to a person covered under this chapter caused by the negligence of a vessel, then such person, or anyone otherwise entitled to recoverdamages by reason thereof, may bring an action against such vessel as a third party in accordance with the provisions of section 933 of this title, and the employer shall not be liable to the vessel for such damages directly or indirectly and any agreements or warranties to the contrary shall be void. If such person was employed by the vessel to provide stevedoring services, no such action shall be permitted if the injury was caused by the negligence of persons engaged in providing stevedoring services to the vessel. If such person was employed by the vessel to provide ship building or repair services, no such action shall be permitted if the injury was caused by the negligence of persons engaged in providing ship building or repair services to the vessel. The liability of the vessel under this subsection shall not be based upon the warranty of seaworthiness or a breach thereof at the time the injury occurred. The remedy provided in this subsection shall be exclusive of all other remedies against the vessel except remedies available under this chapter.
See Scindia Steam Navigation Co. v. De Los Santos,
The remaining issue is whether Shell Oil’s third-party action against Superior Electric was properly dismissed. The question whether Shell Oil (a nonvessel) may bring an indemnity action against Superior Electric is more complicated than whether Inland Well (a vessel) may bring such an action against Superior Electric. The issue involving Shell Oil is not settled by simply applying the plain meaning of section 905(b), since that section makes explicit reference only to the liability of the employer to the vessel. A further examination of section 905 is therefore necessary to resolve this issue.
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, except that if an employer fails to secure payment of compensation as required by this chapter, an injured employee, or his legal representative in case death results from the injury, may elect to claim compensation under the chapter, or to maintain an action at law or in admiralty for damages on account of such injury or death. In such action the defendant may not plead as a defense that the injury was caused by the negligence of a fellow servant, or that the employee assumed the risk of his employment, or that the injury was due to the contributory negligence of the employee.
Shell Oil contends that a contract of indemnification exists between it and Superior Electric and that, under the contract, Shell Oil’s third-party action against Superior Electric is proper. Section 905(a),
inter alia,
prohibits actions against the employer by third parties for damages
“on account of
” the injury to the employee.
13
See Fitzgerald v. Compania Naviera La Molinera,
we would hesitate to hold that § 905(b) by its own force cuts off the availability of Ryan indemnity to a non-vessel in all cases where the concurring negligence of a stevedoring company has caused injuríes to the latter’s employees, ... for example, although we do not intend these to be exclusive, where there is a direct contractual relationship between the third party and the stevedore or where the third party is designated as a beneficiary of an express contract between the stevedore and a vessel.
Zapico v. Bucyrus-Erie Co.,
The district court’s dismissal of the third-party claims of Shell Oil and Inland Well against Superior Electric is
AFFIRMED.
Notes
. According to the plaintiff, the normal procedure was for the wireline operator to be called out to the rig about 24 hours before his job was actually to be performed in order to check the equipment. After the equipment was checked, the workers were considered to be on stand-by. In this case, the equipment had been brought on board by employees of Inland Well, and the plaintiff and his two co-workers had checked the equipment the day before plaintiffs accident. Just prior to plaintiff’s accident, a Shell Oil employee had told plaintiff that they would be ready for him in a couple of hours and that plaintiff was to begin preparing his perforating guns immediately. Record, vol. 1, at 47. The guns had been sent out to the rig loaded in a
. The “basket” was actually a metal box approximately 12 feet by 3 feet. Record, vol. 1, at 48.
. Superior Electric’s motion for summary judgment was heard on January 15, 1980 (in conjunction with a motion by Shell Oil to strike the jury). The district court made the following determination:
IT IS ORDERED:
(1) That plaintiff is entitled to a jury against Inland Well Service under 905(b);
(2) That the claim of Inland Well Service against Superior is dismissed;
(3) That all claims of Shell against Superior premised on a tort theory are dismissed.
IT IS FURTHER ORDERED that Shell Oil Company is allowed fifteen (15) days from this date within which to file a contract in the record of this case; and that if no contract is filed, and counsel call this to the Court’s attention, any claims based on the contract will be stricken.
IT IS FURTHER ORDERED that the oral motion by Superior Electric Wireline Corp. for entry of a Rule 54(b) judgment upon the expiration of fifteen (15) days will be granted if no contract is filed by Shell Oil Company.
IT IS FURTHER ORDERED that counsel for movers prepare and submit a formal orders [sic] for signature of the Court in keeping with the foregoing rulings.
Record, vol. 1, at 196. Inland Well filed a motion pursuant to
. According to
Trotti & Thompson v. Crawford,
. There is no contention that plaintiff Pippen is a seaman covered by the Jones Act; all parties are in agreement that he lacks the requisite permanent connexity to a vessel necessary for seaman status.
The Outer Continental Shelf Lands Act (OCS-LA),
. In
Odom,
the appellants also contended that even if the employee “was doing maritime work at the time of his injury, he is not a covered employee because he spent the great majority of his time doing indisputably land-based jobs.”
In the instant case, all parties agree that an employee who does not engage in maritime activity by occupation, but who is engaged in maritime employment at the time of his injury, satisfies the § 902(3) status test. Since no party contests this characterization of the law, this Court need not decide whether it is correct. Whether or not it is correct, however, neither Pippen in particular, nor Superior Electric employees in general, spend the majority of their time performing indisputably land-based jobs. Indeed, a substantial part of their work is performed offshore. In his deposition, Pippen stated that he worked mostly offshore and on vessels. When asked about the amount of time he worked on fixed platforms as opposed to jack-up rigs and barges, he estimated that 75% of his work was performed on inland barges and floaters. Record, vol. 1, at 43. In addition, he testified that only about 10% of the work done by Superior Electric was done on land.
Id.
at 99-100.
See Boudloche v. Howard Trucking Co.,
. Superior Electric compares Pippen’s work to that of the employee in
St. Julien v. Diamond M Drilling,
. We do not intend to suggest, however, that facilitation of maritime commerce is the only way to satisfy the status test.
. To reach this conclusion, of course, we must to some extent look to location. Whereas onshore drilling and production cannot be considered maritime commerce, offshore drilling and production can be considered maritime commerce because of its location. Though
Pfeiffer
clearly stated that the status requirement “focuses upon the nature, not the location, of employment,”
The conclusion that offshore drilling is maritime commerce is not in conflict with
Sohyde Drilling & Marine Co. v. Coastal States Gas Producing Co.,
. Inland Well cites this Court’s recent decision in
Sohyde Drilling & Marine Co. v. Coastal States Gas Producing Co.,
In large part,
Sohyde Drilling
is inapposite to the issue before this Court — whether Pippen was engaged in maritime employment at the time of his injury and thus satisfies the status test of the LHWCA. The question facing the
Sohyde Drilling
Court was whether the wrong asserted — the injury complained of — bore a significant relationship to maritime activity. This Court need not decide whether Pippen’s
injury
bore a significant relationship to maritime activity. Rather, we must decide whether the
work
in which Pippen was engaged at the time of his injury bore a significant relationship to maritime activity. The factors considered by the
Sohyde Drilling
Court to determine whether the wrong bore a significant relationship to maritime activity for purposes of the Admiralty Extension Act have not been applied in cases that considered whether an employee was engaged in maritime employment for purposes of the LHWCA. To whatever limited extent that the factual conclusions of the
Sohyde Drilling
Court might be relevant to the inquiry before this Court, they do not compel a conclusion that Pippen’s activities did not have a realistically significant relationship to traditional maritime activity and that he was not engaged in maritime employment at the time of his injury. While the
Sohyde Drilling
Court did hold that an action involving property damage caused by the blowout of a gas well did not have a substantial maritime relationship, it did not hold that a wireline operator on an offshore drilling rig who was preparing to set packers
. Superior Electric relies heavily upon
Guidry v. Continental Oil Co.,
. Section 902(21) provides:
The term “vessel” means any vessel upon which or in connection with which any person entitled to benefits under this chapter suffers injury or death arising out of or in the course of his employment, and said vessel’s owner, owner pro hac vice, agent, operator, charter or bare boat charterer, master, officer, or crew member.
. Section 905(a) (which existed as section 905 prior to the 1972 amendments) provides:
. As stated above, § 905(a) prohibits actions by a third party against the employer “on
if a claim of indemnity founded in tort is premised on an alleged duty owed by the indemnitor directly to the indemnitee, such a claim is not barred by § 905(a). As is the case with claims of indemnity founded in contract, then, where a duty or obligation sounding in tort exists directly between the indemnitor and indemnitee, recovery of indemnity based on this duty or obligation is not “on account of” the employee’s injury, and hence is not proscribed by § 905(a).
Id. at 1100-01 (emphasis in original). Since Shell Oil has not presented any evidence of an obligation in tort between it and Superior Electric that would cause Superior Electric to be liable to Shell Oil for indemnity, the district court’s summary judgment on this ground was proper.
. Refusing to extend section 905(b) to prohibit
Ryan
actions by nonvessels would be consistent with the approach taken in the recent Fifth Circuit case of
Aparicio v. Swan Lake,
. Superior Electric contends that Shell Oil was a time charterer of the vessel owned by Inland Well. Thus, Superior Electric argues that Shell Oil is barred by § 905(b) from bringing any action against the employer, since § 905(b) expressly prohibits indemnity actions by a vessel and since the definition of vessel includes charterers. There is no evidence in the record as to what type of arrangement existed between Shell Oil and Inland Well for the lease of the vessel; consequently, we cannot base our decision on this contention.