Opinion ID: 10021
Heading Depth: 3
Heading Rank: 1

Heading: In District Court: Phase I

Text: In November 1984, Plaintiffs Dwayne Blair (Dwayne) and his wife, Gloria Blair, (collectively, the Blairs) filed suit under the Jones Act and general maritime law against Sealift, Dwayne's employer. The Blairs alleged that Dwayne had been injured in the course of his employment as a crew member on one of Sealift's vessels. At the time of Dwayne's alleged injury, Sealift was 2 Deshotels v. SHRM Catering Serv., Inc., 845 F.2d 582, 583 (5th Cir. 1988). 3 See Sifers v. Gen. Marine Catering Co., 892 F.2d 386, 388 (5th Cir.), modified on other grounds, 897 F.2d 1288 (5th Cir. 1990). 4 See LA. REV. STAT. ANN. § 22:1377 (West 1995). 5 See id. 3 insured under a “Standard Workmen's Compensation and Employers' Liability” insurance policy (the WC/EL policy) issued by Transit Casualty Company (Transit), a member of LIGA. Under the WC/EL policy, Transit owed Sealift the duties of defense and indemnity. In December 1985, Transit was declared insolvent by the Louisiana's Commissioner of Insurance, and Transit's policies were canceled. As a result, in January 1986, Sealift demanded that LIGA assume Transit's obligations under the WC/EL policy. LIGA refused, asserting that the policy constituted “ocean marine insurance” within the meaning of the statutory exception to its reinsurance obligations. In response, Sealift filed a third party complaint against LIGA in the Blair lawsuit, and the Blairs named LIGA as an additional defendant. In April 1986, Sealift filed a motion for summary judgment against LIGA, asserting that LIGA was obligated to pay the full amount of the Blairs' claim. Sealift also sought payment from LIGA of any attorneys fees and other costs incurred by Sealift in its defense against the Blairs' suit, as well as in its prosecution of the coverage claim against LIGA. In opposing the motion, LIGA insisted that (1) the WC/EL policy constituted “ocean marine insurance”; and (2) LIGA was therefore liable for neither the Blairs' claim nor Sealift's attorneys' fees and costs. In October 1986, Sealift and the Blairs reached a settlement in the amount of $150,000. The Blairs agreed not to execute on the settlement against Sealift, however, until LIGA's obligations were judicially determined. Based on that settlement, the district 4 court entered a final, summary judgment dismissing the Blairs' claims against Sealift. In that judgment, the court also ordered LIGA to pay the amount owed to the Blairs under the settlement and to reimburse Sealift for its attorneys’ fees and other costs.