Substantial Nexus Test of Valladolid Applied by 5th Circuit: Accident on Platform in State Waters Satisfies Substantial Nexus; $2 Million Award for Loss of Love and Affection Affirmed

Mays v. Chevron Pipe Line Corporation, 2020 WL 4432025 No. 19-30535 (5th Cir., Aug. 3, 2020).

The U.S. Supreme Court in Pacific Operators Offshore, LLP v. Valladolid[1] resolved a three-way circuit split interpreting 43 U.S.C. § 1333(b), which extends the Longshore Act to  injuries “occurring as the result of operations conducted on the [OCS].”[2] In doing so, the Supreme Court adopted the position taken by the Ninth Circuit Court of Appeals requiring a “substantial nexus between the injury and extractive operations on the shelf.”[3]  In Valladolid, the employee spent 98% of his time on offshore platforms but was killed while performing work on shore.

No U.S Court of Appeals has addressed the question: What constitutes a substantial nexus to the Outer Continental Shelf (“OCS”) if the employee is injured on a facility within state waters.

Here, the decedent was employed by a contractor to Chevron and killed while working on a facility in Louisiana state waters connected to other platforms on the OCS. Chevron sought to assert immunity from suit under the Louisiana State Workers’ Compensation Act. The defense would not apply if the Longshore Act applied pursuant to the Outer Continental Shelf Lands Act (“OSCLA”).

The trial judge, though initially agreeing that Chevron was entitled to immunity under the state act, changed the ruling on a motion for reconsideration. By the time of trial, a new judge presided and put the question of fact to the jury, which held in favor of the claimants and found that the facility had a substantial nexus to the OCS.

On appeal, Chevron maintained the trial court committed error is instructing the jury whether the substantial nexus existed between the death and Chevron’s offshore operations rather than the actual employer’s operations. The unanimous panel rejected this interpretation of Valladolid and OSCLA. Judge writing for the court relied on 43 U.S.C. § 1333(b), which only requires a link between the injury and the extractive OCS operations. Other challenges to the finding were also dismissed by the court.

Finally, the court also affirmed the trial court’s denial of a remittitur of the jury’s award of $2 million for loss of love and affection.

Author’s Note: There will be a more thorough report of this important case to follow.

[1] 565 U.S. 207 (2012).

[2] 43 U.S.C. § 1333(b).

[3] 565 U.S. at 211.