Eagle-Picher Industries, Inc. v. United States

846 F.2d 888, 1988 A.M.C. 2058, 1988 U.S. App. LEXIS 6180, 1988 WL 44114
CourtCourt of Appeals for the Third Circuit
DecidedMay 10, 1988
Docket87-1361
StatusPublished
Cited by23 cases

This text of 846 F.2d 888 (Eagle-Picher Industries, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eagle-Picher Industries, Inc. v. United States, 846 F.2d 888, 1988 A.M.C. 2058, 1988 U.S. App. LEXIS 6180, 1988 WL 44114 (3d Cir. 1988).

Opinion

OPINION OF THE COURT

SCIRICA, Circuit Judge.

This appeal presents three issues concerning the liability of the United States as a third party for asbestos-related injuries suffered by government shipyard workers. Specifically, we must address: (1) whether the United States is subject to third-party liability under the Longshore and Harbor Workers Compensation Act (LHWCA), 33 U.S.C. § 905(b) (1982); (2) if, in order to sue under § 905(b), a party must also satisfy the requirements for admiralty jurisdiction, see Executive Jet Aviation v. City of Cleveland, 409 U.S. 249, 93 S.Ct. 493, 34 L.Ed.2d 454 (1972); and (3) in the alternative, whether admiralty jurisdiction can provide an independent basis for subject matter jurisdiction, i.e., did the underlying wrong bear a significant relationship to traditional maritime activity. See id. at 268, 93 S.Ct. at 504.

As is often the case when complex issues are presented for appellate review, we benefit from the efforts of other courts that have decided similar cases. Our task is simplified when we are able to draw on another jurist’s thorough analysis, and when the process itself is used to examine and refine the dispositive legal issues. These principles are especially applicable here, where the district judge carefully adjudicated a plethora of issues concerning the liability of the United States to asbestos manufacturers sued by government shipyard workers.

Our inquiry requires examination of two decisions of the district court: Eagle-Picher Indus., Inc. v. United States, 657 F.Supp. 803 (E.D.Pa.1987), the subject of this action, and Colombo v. Johns-Manville Corp., 601 F.Supp. 1119 (E.D.Pa.1984), which formed the basis for the decision in Eagle-Picher. In Eagle-Picher, the court denied the United States’ motion to dismiss Eagle-Picher’s, the asbestos manufacturer, suit for contribution. The court held: (1) it had jurisdiction under the Federal Tort Claims Act (FTCA), 28 U.S.C. § 2674 (1982), which would permit Eagle-Picher to maintain a third-party action for contribution against the United States under § 905(b) of the LHWCA; and (2) under the LHWCA, Eagle-Picher need not satisfy the general admiralty jurisdiction requirement that the underlying wrong had a significant relationship (i.e., a nexus) to a traditional maritime activity. Executive Jet Aviation v. City of Cleveland, 409 U.S. at 268, 93 S.Ct. at 504. By declining to apply admiralty principles to an LHWCA claim, the court concluded that Eagle-Picher stated a claim under the LHWCA by demonstrating that the injured worker was engaged in maritime employment pursuant to 33 U.S.C. § 902(3). See Eagle-Picher, 657 F.Supp. at 805-06, 811-14.

The district court’s decision rested on a controlling question of law and because immediate appeal would “materially advance the ultimate termination of the litigation,” id. at 814 (quoting 28 U.S.C. § 1292(b)), the court certified an interlocutory appeal. We granted the United States permission to appeal the following questions:

*890 1. Whether the limitation on the liability of the United States contained in the Federal Employees’ Compensation Act (FECA), 5 U.S.C. § 8116(c), precludes the assertion by Eagle-Picher of its claim against the United States for contribution/indemnity, given that the Eagle-Picher claim arises under 28 U.S.C. § 2674 which provides that “[t]he United States shall be liable, respecting the provisions of this title relating to tort claims, in the same manner and to the same extent as a private individual under like circumstances.... ”
2. Whether (assuming Eagle-Picher’s claim is not foreclosed by the answer to question 1) Eagle-Picker, in order to support its claim, must, in addition to establishing that Mr. Press was injured on navigable waters while “engaged in maritime employment,” 33 U.S.C. § 902(3), make an independent showing that the wrong which befell Mr. Press bore “a significant relationship to traditional maritime activity.” Executive Jet Aviation v. City of Cleveland, 409 U.S. 249, 268, 93 S.Ct. 493, 504, 34 L.Ed.2d 454 (1972).

Although our scope of review is generally governed by the legal questions in the district court’s certification order, we may “consider all grounds that might require reversal of the order appealed from.” In re Data Access Systems Securities Litigation, 843 F.2d 1537, 1539 (3d Cir.1988) (en banc) (citing Merican, Inc., v. Caterpillar Tractor Co., 713 F.2d 958, 962 n. 7 (3d Cir.1983), cert. denied, 465 U.S. 1024, 104 S.Ct. 1278, 79 L.Ed.2d 682 (1984); Akerly v. Red Barn Sys., Inc., 551 F.2d 539, 543 (3d Cir.1977)); see also Simon v. G.D. Searle & Co., 816 F.2d 397, 400 (8th Cir.), cert. denied, — U.S. -, 108 S.Ct. 268, 98 L.Ed.2d 225 (1987). With respect to the first question, we conclude that Eagle-Picher cannot assert its claim against the United States, and we will reverse the judgment of the district court. The primary basis for our holding, however, is a rationale other than that suggested by the district court in its certification order. Although we agree with the government that the United States’ FECA immunity from suit is a significant circumstance that must be considered under the FTCA, 1 we hold that § 903(b)’s express exclusion of federal employees from the coverage of the LHWCA bars a direct LHWCA action by a federal employee against the government. As a result, the § 903(b) exclusion also bars Eagle-Picher’s ensuing third-party action for contribution/indemnity.

By holding that Eagle-Picher’s claim is foreclosed by our resolution of the first certified question, we obviate the need to decide the second question whether a § 905(b) cause of action must also satisfy the requirements for admiralty jurisdiction. 2 Eagle-Picher, however, suggests that regardless of the LHWCA’s applicability, the district court could have exercised admiralty jurisdiction over this dispute. 3

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Bluebook (online)
846 F.2d 888, 1988 A.M.C. 2058, 1988 U.S. App. LEXIS 6180, 1988 WL 44114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eagle-picher-industries-inc-v-united-states-ca3-1988.