Edward L. Lowe v. Ingalls Shipbuilding, a Division of Litton Systems, Inc.

723 F.2d 1173, 40 Fed. R. Serv. 2d 1304, 1984 U.S. App. LEXIS 25957
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 30, 1984
Docket82-4361
StatusPublished
Cited by187 cases

This text of 723 F.2d 1173 (Edward L. Lowe v. Ingalls Shipbuilding, a Division of Litton Systems, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edward L. Lowe v. Ingalls Shipbuilding, a Division of Litton Systems, Inc., 723 F.2d 1173, 40 Fed. R. Serv. 2d 1304, 1984 U.S. App. LEXIS 25957 (5th Cir. 1984).

Opinion

GARWOOD, Circuit Judge:

In this declaratory judgment action we are asked to determine whether a shipyard employer, self-insured under the Longshoremen’s and Harbor Workers’ Compensation Act, 33 U.S.C. § 901, et seq. (“LHWCA” or the “Act”), which has paid LHWCA compensation to employees contracting asbestosis during their employment, has an “independent” cause of action, of the character recognized in Federal Marine Terminals, Inc. v. Burnside Shipping Co., 394 U.S. 404, 89 S.Ct. 1144, 22 L.Ed.2d 371 (1969), against a manufacturer of asbestos containing products used in the shipyard, for the excess of the compensation so paid over the amount for which the employees settle their third-party claims against the manufacturer. Because we conclude that neither the complaint alone, nor the record as a whole, is sufficient to establish the district court’s subject matter jurisdiction, we must decline the invitation. We accordingly vacate the judgment below.

PROCEEDINGS BELOW

This declaratory judgment action was brought by twenty-five individuals, residents of Mississippi, Alabama and Oklahoma, each either a current or former employee of Ingalls Shipbuilding Company, an unincorporated division of Litton Systems, Inc. (“Litton”), apparently at its Pascagoula, Mississippi shipyard, against Litton and Owens-Corning Fiberglass Corporation (“Owens-Corning”), each a Delaware corporation. The allegations of the complaint and the stipulations of the parties filed below reflect that prior to the institution of this suit Litton, a self-insurer under the Act, had admitted liability and paid compensation under the Act to twenty-two of the plaintiffs. Additionally, each of the plaintiffs had a separate suit against Owens-Corning, and numerous other third-party manufacturers of asbestos containing insulation products, pending in the same federal district court. In those suits plaintiffs sought to recover for their respective personal injuries from Mississippi work-related exposure to asbestos on theories of negligence, implied warranty and strict liability in tort. The plaintiffs instituted their personal „ injury suits before any LHWCA claims against or payments by Litton were made, and Litton was not, and did not seek *1176 to become, a party to any of those suits. So far as the record reflects, the sole basis for federal court jurisdiction in the personal injury suits is diversity of citizenship, and none of those suits has gone to judgment or been finally settled.

The present plaintiffs, however, did reach conditional settlements with Owens-Corning of their personal injury suits against it. The settlement amounts were in many instances less than the amounts Litton had already paid the particular plaintiffs in LHWCA benefits respecting their asbestosis. To ensure that Owens-Corning would not be exposed to liability respecting plaintiffs’ asbestosis beyond the amounts offered in settlement, consummation of the settlements was conditioned on either their being approved by Litton or judgment being procured declaring that on consummation of the settlements Owens-Corning would have no exposure to Litton, in regard to plaintiffs’ asbestosis, beyond Litton’s LHWCA subrogation rights respecting the settlement payments. As the complaint alleges, Litton declined to give its approval and took the position “that it has an independent right of indemnification against said Defendant, Owens-Corning Fiberglass, other than that provided by the Longshoremen’s and Harbor Workers’ Compensation Act.” Plaintiffs accordingly instituted this declaratory judgment action against Litton and Owens-Corning seeking a determination that Litton “has no independent right of indemnification against the Defendant, Owens-Corning Fiberglass, and that the right of subrogation provided under the Longshoremen’s and Harbor Workers’ Compensation Act, and the case of Allen v. Texaco, 510 F.2d 977 (5th Cir.1975) are the exclusive remedies available to the Defendant” Litton. 1 Litton, in answer, maintained that it had “an independent Burnside action against any settling third party defendant who has not obtained Litton’s consent to such settlement.”

The district court determined that Litton’s “only right against” Owens-Corning “is the right of subrogation pursuant to the Longshoremen’s and Harbor Workers’ Compensation Act” and that Litton “does not have a present or future independent right” against Owens-Corning of the type recognized in Burnside. 2 Litton has appealed contending that it does have an independent, Burnside-type remedy against Owens-Corning, governed by the general maritime law, and is not restricted to subrogation under the LHWCA. Plaintiffs and Owens-Corning, our appellees, contend that the LHWCA, especially its 1972 amendments, restricts Litton to the Act’s subrogation rights, that Litton accordingly has no independent or Burnside-type indemnity action, and that, if the LHWCA does not so restrict Litton’s rights, any independent rights Litton might have would arise under state law, and that under the law of the relevant state, Mississippi, Litton has no such rights.

JURISDICTION

Although the subject matter jurisdiction issues which we consider were not raised by *1177 the parties here or below, nor addressed by the district court, it is nevertheless our duty to address them sua sponte. Superior Oil Co. v. Pioneer Corp., 706 F.2d 603 (5th Cir.1983); Wright, Miller & Cooper, Federal Practice and Procedure: Jurisdiction § 3522 at 48, 49. Moreover:

“... the rule is well settled that the party seeking to invoke the jurisdiction of a federal court must demonstrate that the case is within the competence of that court. The presumption is that a federal court lacks jurisdiction in a particular case until it has been demonstrated that jurisdiction over the subject matter exists. Thus the facts showing the existence of jurisdiction must be affirmatively alleged in the complaint.” Id. at 45 (footnotes omitted).

See also Epps v. Bexar-Medina-Atascosa Counties Water Improvement Dist. No. 1, 665 F.2d 594, 595 (5th Cir.1982) (“... the party claiming federal subject matter jurisdiction bears the burden of proving it.”).

The complaint here seeks to invoke jurisdiction on the following grounds: of Civil Procedure [declaratory judgment].”

“Jurisdiction of this cause of action is founded on the existence of a question arising under the laws of the United States of America and more particularly 33 U.S.C. Section 901, et seq. [LHWCA], 28 U.S.C. Section 1331 [federal question], 28 U.S.C. Section 1332 [diversity], 28 U.S.C. Section 1333

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Bluebook (online)
723 F.2d 1173, 40 Fed. R. Serv. 2d 1304, 1984 U.S. App. LEXIS 25957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edward-l-lowe-v-ingalls-shipbuilding-a-division-of-litton-systems-inc-ca5-1984.