Wood Grp. Prod. Servs. v. Dir., Office of Workers' Compensation Programs
Opinion of the Court
*735Luigi Malta was injured while unloading a vessel on a fixed platform in the territorial waters of Louisiana. Malta made a claim against his employer, Wood Group Production Services (Wood Group), under the Longshore and Harbor Workers' Compensation Act. To enjoy coverage under the Act, a claimant must show both that he was in a place covered by the Act (situs) and that he was engaged in maritime employment (status). The Benefits Review Board concluded that because Malta-who spent 25 to 35 percent of his working hours loading/unloading vessels-was injured while unloading a vessel on a platform customarily used for that task, Malta satisfied both the situs and status requirements. We deny Wood Group's petition for review.
I.
Wood Group, which staffs personnel for clients in the oil and gas industry,
Malta worked twelve hours each day-from sunup to sundown-seven days per week at Central Facility (and then he would rest shoreside for seven days). He never worked on any of the satellite platforms. His primary duties included ordering, receiving, and maintaining all supplies and equipment at the Central Facility warehouse. It is undisputed that, although not listed among his official job duties, a significant portion of Malta's "hitch" (shift), was dedicated to loading and unloading vessels arriving at and leaving from Central Facility. Wood Group's project manager, Ray Pitre, testified that this was a "big part" of Malta's job. And Malta testified that he spent roughly 25 to 35 percent of each hitch loading and unloading vessels.
Malta explained that he regularly would load/unload all sorts of things into/from the vessels: "It can be anywhere from piping to big valves, compressors, drinking water supplies, various items, nothing in particular everyday. It's just whenever we order and something is needed, [I] pull it off the work barge or the water barge." Pitre similarly testified that Malta would unload "a various assortment of things from rags to repair parts to nitrogen cylinders to valves and phalanges ... [because] the oil industry uses just a vast assortment of *736supplies." During a typical 12-hour hitch, if a group of workers on a "satellite platform needed additional supplies and equipment," Malta "would help load the field boat." This required Malta, "depending on exactly what it was [and] how big it was, [to] put it on a basket, and send it down to the boat and then off to the respective platform or field operator." Malta testified that there was "no difference" between his duties and those of "a dock worker loading and unloading" vessels in Venice.
Malta was injured when unloading a boat owned by a third party. He received a call seeking help to offload something coming up from the boats (which had come from one of the satellite platforms). Malta did not go onto the vessel to retrieve the item. Rather, it was "sent up to [him] via crane" while he was standing on the platform in front of the warehouse. As the basket was coming up, he "grabbed the tag line, pulled it in[,] and as the basket collapsed," Malta saw that the item was a CO2 cannister-which had been mistakenly marked as empty. While Malta was removing the cannister from the cargo basket, it exploded, and he was injured.
Malta made a claim for benefits against Wood Group under the Longshore and Harbor Workers' Compensation Act (LHWCA or Act),
The Benefits Review Board (Board) reversed the ALJ's decision, concluding the ALJ misapplied this court's precedent and the plain language of the statute. It held that Malta's "injury occurred on a covered situs" and remanded the case so that the ALJ could address Malta's status.
On remand, once again, none of the facts was in dispute. The only question was whether Malta enjoyed maritime status. The ALJ found that, because Malta "loaded or unloaded the cargo from a ship or vessel, he was performing a traditional maritime activity" and satisfied "the status requirement of the Act." Wood Group appealed to the Board, which affirmed the ALJ's decision.
Having exhausted its options before the Department of Labor, Wood Group filed a petition for review with this court, arguing that Malta cannot recover under the Act because he lacks status and his injury did not occur on a covered situs. Both Malta and the Director of the Office of Worker's Compensation Programs
II.
If "the facts are not in dispute"-as is true of this appeal-then whether a worker is covered under the Act presents a "pure question of law" that "is an issue of statutory construction and legislative intent."
*737New Orleans Depot Servs., Inc. v. DOWCP (Zepeda) ,
III.
Wood Group contends the Board erred by reversing the ALJ's initial decision holding that Malta's injury failed to satisfy the Act's situs requirement. The current form of the situs requirement-found at § 903-says a claimant is eligible for benefits
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, dismantling, or building a vessel).
It is undisputed that Central Facility does not meet the definition of "navigable waters" or any of the structures enumerated in this section ("pier, wharf, dry dock, terminal, building way, marine railway"). So, under the language of the statute, Malta can recover only if his injury occurred on an "other adjoining area customarily used by an employer in loading [and] unloading a vessel." § 903(a).
This court has said that, "[t]o qualify as an 'other adjoining area,' the situs must be located in proximity to navigable waters (i.e., possess a geographical nexus) and have a maritime nexus-here, 'customarily used by an employer in loading ... a vessel.' " Coastal Prod. Servs. Inc. v. Hudson ,
It is undisputed that Central Facility-situated in the territorial waters of Louisiana-has a geographical nexus to navigable waters. So the situs question boils down to whether Central Facility, or at least the part of it where Malta was injured, *738meets the functional component of the test-i.e. , whether it is "customarily used" in loading and unloading vessels.
Wood Group offers two reasons to support its position that Malta's injury does not satisfy the situs requirement: (a) the purpose of Central Facility was oil and gas production, and so it did not have a maritime purpose; and (b) the items Malta loaded/unloaded were not maritime cargo.
The Board rejected Wood Group's argument and compared the platform where Malta was injured to an offshore dock, emphasizing the plain language of the statute:
In a case like this one in which claimant is injured in an area that is customarily used for loading and unloading vessels, it follows that the requisite relationship with maritime commerce is established for purposes of the functional component of the situs test, and any further inquiry into whether there is an independent connection to maritime commerce is superfluous.
But, despite the plain language of the statute, Wood Group contends-and the ALJ initially agreed-that the Board's situs reasoning conflicts with this court's precedent as illuminated by Wood Group's two arguments. We address, and reject, each argument in turn.
A.
Wood Group first contends that Central Facility cannot satisfy the situs requirement because it did not have a "maritime purpose." The text of the Act does not expressly include any "maritime purpose" requirement. So, to support its position, Wood Group relies principally on this court's opinion in Thibodeaux v. Grasso Production Management, Inc. ,
After Thibodeaux made a claim under the Act, the "sole issue" before the court was "whether a fixed oil production platform built on pilings over marsh and water inaccessible from land constitutes either a 'pier' or an 'other adjoining area' within the meaning of § 903(a)."
The Thibodeaux court also considered whether the platform was an "other adjoining area" under the Act.
Wood Group contends that if even an enumerated structure (e.g. , a pier as discussed in Thibodeaux ) requires a "maritime purpose" then, a fortiori , an "other adjoining area" like Central Facility must also have a "maritime purpose" to qualify as a covered situs. Wood Group disagrees with the Board's characterization of the Central Facility platform as an "offshore dock." Because Central Facility is a fixed platform with the purpose of finding and producing oil-like the fixed oil production platform in Thibodeaux -Wood Group argues Central Facility does not have a maritime purpose. Thus, according to Wood Group, Malta's injury cannot satisfy the statutory situs requirement.
In response, Malta and the Director emphasize the features of Central Facility that differ from the fixed platform discussed in Thibodeaux . Specifically, Malta points out that, as evidenced by the pictures in the record, Central Facility is not a standalone fixed platform. It is a facility designed as a central hub to support a multitude of smaller platforms in and around the oilfield. Central Facility comprises four platforms and includes a safe harbor designed to allow for loading and unloading vessels in rough seas. Third-party vessels service the surrounding facilities, including a vessel that travels daily between Central Facility and Venice, Louisiana. Importantly, Central Facility is equipped with three cranes and a fulltime crane operator who works with the dedicated warehousemen (including Malta) to load and unload vessels throughout the day.
Moreover, Malta and the Director contend the Board was correct when it determined that the plain language of the Act is dispositive here. Although this court has said that "the mere act of loading, unloading, moving, or transporting something is not enough"-because, of course, these activities can occur in non-maritime contexts-loading/unloading is maritime when "undertaken with respect to a ship or vessel." Martin,
We are not persuaded by Wood Group's argument that the purpose of the structure where the injury occurred is the Alpha and Omega of the situs inquiry, regardless of whether the platform is customarily used for loading/unloading vessels. This does not comport with either the plain text of the statute or the Supreme Court's command to construe the Act liberally. See Schwalb ,
B.
The second piece of Wood Group's situs argument is that the Board erred by finding that the nature of the items Malta loaded and unloaded was "irrelevant" to determining whether an "other adjoining area" satisfies the functional component of the situs inquiry. Wood Group's argument is that, to meet the situs requirement, the cargo being loaded/unloaded from a vessel must be "product to be delivered into the stream of commerce."
Wood Group looks for support in Coastal Production Services Inc. v. Hudson ,
Even assuming the Hudson court meant to freight that one stray line of text with such meaning, the court held that the platform was a covered situs under the Act on other grounds, and so the language was dicta. Under the plain language of the statute, coverage extends to an area "customarily used by an employer in loading [or] unloading ... a vessel." Zepeda ,
Wood Group also looks to this court's decision in Martin to support its position.
Wood Group argues that Martin shows the nature of the items being unloaded matters when determining whether a structure serves a maritime purpose. According to Wood Group, the bauxite ceased being "cargo" before it arrived at the underground tunnel, and because Martin was unloading something other than maritime cargo, he was ineligible for coverage under the Act. But Wood Group reads too much into Martin , which addressed the express term "unloading" in the statute. § 903(a). The court explained that the long process the bauxite took before entering the tunnel was not "unloading." And "the fact that surface-level storage buildings are connected to the unloading process [did] not automatically render everything above and below the buildings [including underground transport tunnels] a part of the unloading process."
Nor does this court's opinion in Munguia v. Chevron U.S.A. Inc.
Wood Group contends this language adds a maritime cargo requirement to the Act, but Munguia , like Martin , merely glosses the Act's express terms "loading and unloading." According to Munguia , if a claimant unloads nothing more than personal gear from a boat in furtherance of pursuits not customarily thought of as maritime commerce, that claimant has failed to satisfy the loading/unloading requirement because he has performed "little or no loading and unloading of boats." Moreover, the facts of Munguia are distinguishable from Malta's case in important respects. First, it is undisputed that Malta spent at least 25 percent of his hitch unloading vessels. But the rare loading/unloading Munguia performed applied only to his own personal gear. And although Wood Group attempts to characterize the items Malta unloaded as his own personal tools and equipment, Malta used a crane to unload vessels containing tools and supplies for the use of 22 men on multiple satellite production platforms throughout the oilfield.
Wood Group again looks to Thibodeaux for support. When finding the Act did not extend to Thibodeaux, this court explained that, "[a]lthough personal gear and occasionally supplies [were] unloaded at docking areas on the platform, the purpose of the platform is to further drilling for oil and gas, which is not a maritime purpose."
In sum, because the Board correctly applied the plain language of the Act,
IV.
Wood Group also challenges the Board's conclusion that Malta meets the Act's maritime status requirement. That requirement-located at § 902-is satisfied by
any person engaged in maritime employment, including any longshoreman or other person engaged in longshoring operations, and any harbor-worker including a ship repairman, shipbuilder, and ship-breaker.
§ 902(3). The Supreme Court has characterized the requirement as "an occupational test that focuses on loading and unloading." P. C. Pfeiffer Co. v. Ford ,
This court has explained that "[a]n employee may qualify for maritime status based on either (1) the nature of the activity in which he is engaged at the time of the injury or (2) the nature of his employment as a whole." Hudson ,
The undisputed record shows that Malta-who spent 25 to 35 percent of his hitches loading/unloading vessels-was injured while unloading a vessel. This seems, on its face, to satisfy the maritime status requirement. And, indeed, the Board affirmed the ALJ's ruling that Malta satisfied the status requirement, reasoning that Malta was covered "based on both his overall job, a portion of which involved loading and unloading vessels, and the covered employment duties he was performing at the moment of injury."
Wood Group contends that the Board reversibly erred because the purpose of Malta's employment was not maritime in nature as his loading/unloading did not "enable a ship to engage in maritime employment."
*744So Malta's loading/unloading was "incidental to non-maritime work" and cannot constitute maritime employment as required by the status requirement.
Wood Group supports this argument with discussions of three Board opinions. But we conclude that none of these opinions is helpful to Wood Group. In Smith v. Labor Finders , Lee Smith worked as a "beach-walker"-gathering oil residue and pollutants after an oil spill from the beaches of an island dedicated as a wildlife preserve. Each day, Smith would load his tools and supplies into a boat and ride for 30-45 minutes to/from the mainland. After Smith gathered the oil and pollutants, another crew would then bag and load them into a boat. Smith was injured after his trailer crashed into another trailer when returning to the transport boat. The Board denied Smith's claim for recovery under the Act after concluding that Smith's "work duties were not in furtherance of 'maritime commerce' because [Smith's] purposes in cleaning up the island were to protect the wildlife preserve." No. BRB No. 12-0035,
In Hough v. Vimas Painting Co., Inc. , the claimant vacuumed up and disposed of debris that accumulated from the cleaning of a bridge. The vacuum deposited the debris into a machine on a barge. The Board found it significant that "the debris was merely collected and stored on the barge until the end of the bridge cleaning project; the vacuumed debris did not 'enable' the barge to 'engage in maritime commerce.' " No. BRB No. 10-0534,
*745In the third case, Bazenore v. Hardaway Constructors, Inc. , the claimant was injured while working in a construction yard cutting poles with a chainsaw. The Board noted that "claimant's work essentially facilitated the sale of construction materials to a nonmaritime customer, and as such did not in any way further maritime commerce." No. BRB no. 83-2842,
At bottom, because Malta's injury occurred when he was loading/unloading a vessel, and because he regularly loaded/unloaded vessels, the status requirement is satisfied. The cases Wood Group relies on offer no real support for the contention that Malta's employment takes him outside the ambit of the statute.
The petition for review is DENIED.
*746--------
Wood Group's insurer-Authorized Group Self-Insurer Signal Mutual Indemnity Association, Ltd. c/o Coastal Risk Services, LLC-is also a petitioner.
Here, Wood Group was a contractor for Helis Oil and Gas Company.
Two photographs of Central Facility appear at the end of our opinion.
"The Director is a party to the litigation of disputed claims under the Act at all stages of the litigation." Munguia v. Chevron U.S.A. Inc. ,
Wood Group contends that "[c]rucial in determining whether an item constitutes 'cargo,' is pinpointing the exact point at which the item in question 'moves from the stream of maritime commerce and longshoring operations to ... its ultimate destination." (quoting McKenzie v. Crowley Am. Transp., Inc. , 36 BRBS 41,
The court in Munguia was asked to decide whether the claimant satisfied the status requirement of the Act, not the situs requirement. But because Wood Group contends the nature of the cargo is relevant to both the situs and status inquiries, we address Wood Group's argument here.
Like the platform in Thibodeaux , oil is not shipped directly from Central Facility.
The Board, Malta, and the Director view this court's opinion in Gilliam v. Wiley N. Jackson Co. as settling the proposition that the use to which cargo will be put after its unloading is irrelevant to the question of coverage under the Act.
Wood Group also contends that Malta lacks maritime status because his loading/unloading was not connected to maritime commerce. To advance this position, Wood Group again relies on the "maritime cargo" argument we rejected when determining that Malta satisfied the situs requirement. Because no cargo requirement appears in the language of § 902(3), we similarly reject Wood Group's maritime cargo argument in the context of Malta's status.
Wood Group also directs us to another decision by the Board that relied heavily on Smith 's analysis, Miller v. CH2M Hill Alaska, Inc. , Ben. Rev. Bd No. 13-0069,
Reference
- Full Case Name
- WOOD GROUP PRODUCTION SERVICES v. DIRECTOR, OFFICE OF WORKERS' COMPENSATION PROGRAMS, United States Department of Labor Luigi A. Malta
- Cited By
- 6 cases
- Status
- Published