Opinion ID: 195115
Heading Depth: 2
Heading Rank: 2

Heading: Applying Puerto Rico law.

Text: 25 Garcia claims that Puerto Rico law requires American Airlines to participate in the Commonwealth's insurance fund, and that the airline's failure to do so makes it an uninsured employer subject to a tort suit under section 16 of the Puerto Rico Workmen's Accident Compensation Act, 11 P.R. Laws Ann. Sec. 16. His receipt of benefits from Florida does not foreclose such a suit, Garcia maintains, in light of the Commonwealth's unequivocal policy that all employers carrying business in Puerto Rico must contribute to the financial feasibility of the Fund. He asserts that allowing employers to escape liability by obtaining insurance elsewhere would undermine the Commonwealth's compensation framework. 26 In emphasizing Commonwealth policy, Garcia has put his best foot forward. Courts that have rejected application of a foreign state's exclusive remedy provision have done so because the forum state's policy would be disadvantaged. See, e.g., Reid v. Hansen, 440 N.W.2d 598, 601-02 (Iowa 1989) (plaintiff's receipt of benefits in Nebraska does not bar tort action under Iowa statute); Davis v. Morrison-Knudsen Co., 289 F.Supp. 835, 838 (D.Ore.1968) (Oregon's policy of providing incentive to elect coverage in Oregon would be undercut by Idaho exclusive remedy provision). If Garcia were correct that barring his suit would conflict with Commonwealth compensation policy, his position would have considerable force. 27 We can find no conflict, however. Puerto Rico's workers' compensation act, like all such laws, reflects a primary interest in ensuring that the burden resulting from an employee's work-related injury falls upon his employer rather than the individual or his community. See, e.g., Crider v. Zurich Ins. Co., 380 U.S. 39, 41, 85 S.Ct. 769, 770, 13 L.Ed.2d 641 (1965); Delano v. City of South Portland, 405 A.2d 222, 225 (Me.1979). As the district court recognized, this interest has been amply satisfied by the benefits Garcia received through Florida's workers' accident compensation system--benefits exceeding those available under the Puerto Rico statute. Puerto Rico's policy, like Florida's, immunizes employers who pay statutory benefits from further liability. P.R.Laws Ann. tit. 11, Sec. 21. Because the two governments agree on the compensation quid pro quo, Puerto Rico would have no reason to reject Florida's exclusive remedy provision unless it had an interest in providing an incentive for American and similar employers to insure their employees specifically in the Commonwealth. 28 Our reading of Puerto Rico policy, however, indicates that the Commonwealth expressly has disclaimed an interest in covering employees who do most of their work outside Puerto Rico. In an opinion and subsequent explanatory letter, the Commonwealth's Secretary of Justice concluded that flight attendants who perform more than 50% of their work elsewhere are excluded from the coverage of the Commonwealth's labor laws and Section 16 of the Bill of Rights of the Puerto Rico Constitution, which guarantees various employment-related rights, including safe working conditions and a reasonable minimum salary. See Op.Sec.Just., No. 1977-22, Trans. (Oct. 21, 1977); Letter of Dec. 28, 1977, Trans. 8 In making this determination, the Secretary relied on federal and Commonwealth caselaw indicating that job situs is fundamental and determinative with respect to the applicability of labor laws, Op.Sec.Just., Trans., at 6 (citing Oil, Chemical & Atomic Workers Int'l Union, et al. v. Mobil Oil Corp., 426 U.S. 407, 420-21, 96 S.Ct. 2140, 2146-47, 48 L.Ed.2d 736 (1976) (job situs is controlling factor as to whether state can apply its right-to-work laws); Green Giant Co. and Saint Paul Fire and Marine Ins. Co. v. Superior Court, 104 P.R.Dec. 489, 4 Off.Trans. 682, 697 (1975) (constitutional guarantee of overtime compensation does not apply to Puerto Rico migrant workers who work outside of Puerto Rico)). 29 Although the Secretary's opinion does not explicitly address the workers' compensation statute, we are persuaded that its underlying rationale reaches that system. The Secretary's intent that his determination be applied broadly is strongly suggested by the explanatory letter, in which he concluded that even employees of a Puerto Rico airline are excluded from coverage of the Commonwealth's labor laws because they spend the majority of their work time outside the jurisdictional limits of Puerto Rico. See Letter of Dec. 28, 1977, Trans., at 2. We think it follows naturally from this inclusive approach that the opinions be interpreted to encompass all legislation designed to govern the employer-employee relationship, including the Puerto Rico Workmen's Accident Compensation Act. 30 Puerto Rico, therefore, would have no reason to penalize American Airlines for providing workers' compensation insurance for Garcia under the Florida system rather than through the Puerto Rico Insurance Fund, particularly since Florida provided superior benefits. See generally Alcoa Steamship Co. v. Velez, 376 F.2d 521, 524 (1st Cir.1967) (intention by Puerto Rico legislature that its workers' compensation act not be used as a vehicle to require the maintenance of duplicating compensation insurance by an employer). Accordingly, we agree with the district court that American Airlines is entitled to summary judgment as a matter of law because Puerto Rico would respect the statutory immunity granted the company under Florida's worker's compensation statute. 31 Affirmed.