ONLY “Federal Law” Applies on the Outer Continental Shelf. State Law Applies ONLY When There is a Gap in Federal Law not if it Conflicts with Federal Law
Coleman v. BP Expl. & Prod., Inc. No. 20-40811, 5th Cir., 2021 WL 5564498 (Nov. 29, 2021).
Shell Pipeline Co., LP (Shell) enlisted BP Exploration and Production, Inc. (BP) to manage the expansion of an offshore platform Shell managed and is adjacent to Louisiana, SP 89E. BP then engaged Grand Isle Shipping, LLC (Grand Isle) which then contracted with Brand Energy Services (Brand) to build scaffolding on the facility. Ledell Coleman, an employee of Brand, injured his back while carrying a scaffold board which he said was “lifted up” by a sudden gust of wind. He sued BP and Grand Isle in state court in Texas; the suit was removed to federal court. After discovery, BP and Grand Isle filed Motions for Summary Judgment based on the Louisiana independent contractor defense and that no legal duty was owed. The trial court granted the Motions and dismissed the suit. (See: Coleman v. BP Expl. & Prod., Inc. 2020 U.S. Dist. LEXIS 199396 *, 2020 WL 6292491 [S.D. Tx. 2020])
In granting the MSJ, the trial court applied Louisiana law stating: “Louisiana law applies as surrogate federal law unless Louisiana law conflicts with any federal law.” (2020 U.S. Dist. LEXIS 199396 at *5; italics added) The parties also agreed that Louisiana law applied. Coleman appealed the decision.
The Fifth Circuit affirmed. In doing so, the panel addressed the analysis to determine applicable law. “Federal law exclusively governs out on the OCS.” (Citing the seminal case of Rodrigue v. Aetna Cas. & Sur. Co., 395 U.S. 352, 357 [1969]) It is worthy to note that Judge Willett who authored the opinion emphasized the word “Federal.” The court then turned to the Supreme Court’s most recent opinion regarding applicable law on the OCS, Parker Drilling Mgmt. Svcs., Ltd. v. Newton, 139 S.Ct. 1881, 1892 (2019). In the Parker case, the Supreme Court emphasized again that state law is adopted “’only when there is a gap in federal law’s coverage.’ If ‘a federal law addresses the issue at hand,’ then no gap exists.’” (Id.)
Thus, in analyzing applicable law on the OCS, counsel should determine if there is any federal law on the issue. If so, no further inquiry is required. State law will apply ONLY in the absence of any federal law not if it conflicts with federal law.
A copy of the opinion is attached in PDF format.
