Opinion ID: 484257
Heading Depth: 1
Heading Rank: 5

Heading: Statutory Employer Defense

Text: 22 As set out above, Gates brought suit under the OCSLA. See 43 U.S.C. Sec. 1349 (granting federal court jurisdiction); Laredo Offshore Constructors, Inc. v. Hunt Oil Co., 754 F.2d 1223 (5th Cir.1985). Federal law governs suits under the OCSLA. The statute, however, adopts as the controlling law the law of the state adjacent to the accident, in this instance Louisiana, to the extent that the state law is not inconsistent with federal law. 43 U.S.C. Sec. 1333(a)(2)(A). McNeese v. Reading & Bates Drilling Co., 749 F.2d 270, 273 (5th Cir.1985) (state law is surrogate federal law); Hyde v. Chevron USA, Inc., 697 F.2d 614, 618 (5th Cir.1983). 23 Gates qualified for and was receiving benefits under the LHWCA. The LHWCA, like most compensation statutes, provides the exclusive remedy for an injured employee against his own employer. Washington Metro Area Transit Authority v. Johnson, 467 U.S. 925, 104 S.Ct. 2827, 81 L.Ed.2d 768 (1984). Under the LHWCA, Total and not Shell was Gates' employer. See Trussell v. Litton Systems, Inc., 753 F.2d 366, 369 n. 6 (5th Cir.1984). 24 Gates' suit against Shell is a third party suit for negligence. It is governed by Louisiana law, and Shell may raise the usual defenses to such a suit under Louisiana law so long as the defenses are consistent with congressional intent. Olsen v. Shell Oil Co., 561 F.2d 1178, 1188 n.8 (5th Cir.1977); Bourg v. Texaco Oil Co. Inc., 578 F.2d 1117, 1120 (5th Cir.1978). But Shell claims that it is immune from this third party suit because it was Gates' statutory employer under the Louisiana compensation statute. Louisiana has a workers' compensation law which, like the LHWCA, provides the exclusive remedy for an injured employee against his employer. See La.Rev.Stat.Ann. Sec. 23:1032 (West 1985). 25 For the statutory employer defense to apply, Louisiana's workers' compensation law would have to extend to a worker like Gates. There is Louisiana authority that its compensation law can extend to offshore workers. Thomas v. Teledyne Movible Offshore, Inc., 419 So.2d 833 (La.1982). But it can apply only if it is not in conflict with federal law, and OSCLA, 43 U.S.C. Sec. 1333(b) applies the LHWCA to offshore workers such as Gates. In the typical pattern of workers compensation statutes, the LHWCA does provide for the injured employees suing third persons who caused the injury through their negligence. 33 U.S.C. Sec. 933. In this case, as pointed out above, the law of the adjacent state, Louisiana, is applicable in such a third party suit. 43 U.S.C. Sec. 1333(a)(2)(A). 26 Contrary to the contention of Shell Oil, however, the state law which is applicable cannot be the state workers' compensation law because the LHWCA is the compensation statute applicable. The Louisiana compensation law setting up the statutory employer definition of coverage is inconsistent with and contrary to the LHWCA since the employer was Total Services under the LHWCA. The Louisiana law which is asserted to make Shell the employer is the Louisiana compensation law. It is, therefore, inconsistent with the federal compensation law. Under the critical statutory provision, it follows that the state law is not applicable. 27 Indeed, this analysis is sharpened further by noting that in 43 U.S.C. Sec. 1333(b)(2) there is a specific definition of employer relating to the definition of employer under the LHWCA, 33 U.S.C. Sec. 902(4) as it is made applicable to offshore oil workers by OCSLA. Nothing in that definition gives any recognition to any concept of a statutory employer in the sense of the Louisiana law. Nor does it countenance the possibility that there can be one employer and also another statutory employer under the Federal compensation act. It must be concluded that while Gates is suing Shell Oil for a negligent tort and Louisiana law is applicable, Shell Oil has available to it only the defenses which apply under the Louisiana tort law and which are not inconsistent with federal law. Defenses, including the defense of statutory employer, created by the Louisiana compensation law are not available. As a matter of law, then, Shell does not have the statutory employer defense available to it in the retrial of this case.