Huseman v. Icicle Seafoods, Inc.

471 F.3d 1116, 2006 WL 3783442
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 26, 2006
Docket04-35655
StatusPublished
Cited by36 cases

This text of 471 F.3d 1116 (Huseman v. Icicle Seafoods, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huseman v. Icicle Seafoods, Inc., 471 F.3d 1116, 2006 WL 3783442 (9th Cir. 2006).

Opinions

Opinion by Judge McKeown; Dissent by Judge Reinhardt

MeKEOWN, Circuit Judge.

Lanny Huseman appeals the district court’s decision on summary judgment that his Jones Act, 46 App. U.S.C. § 688, and unseaworthiness claims against Icicle Seafoods, Inc. (“Icicle”) were time-barred and that his maintenance and cure claim was barred by laches. As to the Jones Act and unseaworthiness claims, Huseman does not dispute that his filing was untimely and beyond the three year limitations period. Instead, he argues that he should be allowed to proceed under the theories of equitable tolling or equitable estoppel.

Given the circumstances of this case, Huseman cannot establish the requirements for either equitable tolling or equitable estoppel. Huseman asks us to fashion, under the “wards of the court” doctrine for seamen, a broad fiduciary duty that would require employers, like Icicle, to affirmatively disclose and explain federal causes of action, including Jones Act and unseaworthiness claims, to their employees. We are mindful of the special remedies and protections reserved for seamen because of the perils of the sea and the hard conditions of their labor; we decline however, to embrace such an unprecedented extension of the “wards of the court” doctrine. Although ship owners owe a duty “to act in good faith and to deal fairly in performing and enforcing ... contracts],” Flores v. Am. Seafoods Co., 335 F.3d 904, 913 (9th Cir.2003), these duties do not extend so far as to render ship owners legal advisors to their employees in all contexts. Compare Orsini v. O.S. Seabrooke O.N., 247 F.3d 953, 964 (9th Cir.2001) (shipowner is required to provide legal advice regarding the seaman’s rights before seaman may sign a release of those rights).

As to the maintenance and cure claim, we agree with Huseman that the district court erred in its laches determination. Huseman filed suit within a month after learning of his potential claim and less than six months after the three year limitations period for the other claims expired. The district court did not, as required by our case law, make specific findings of prejudice to support the laches bar and did not balance any prejudice against the short duration of the delay and Huseman’s justification.

We therefore affirm the district court’s dismissal of Huseman’s Jones Act and unseaworthiness claims, and reverse and remand on his maintenance and cure claim. This result does not, as the dissent suggests, leave the seaman devoid of legal redress, nor does it foreclose the invocation of equitable estoppel or equitable tolling in the appropriate case. See Thorman v. Am. Seafoods Co., 421 F.3d 1090, 1096 (9th Cir.2005).

Background

Sometime in March or April of 2000, Huseman injured his shoulder while working for Icicle aboard the Discovery Star. At the time of his hire as a seafood processor, Huseman received a document entitled “Terms of Employment,” which included the following clause informing him about potential maritime benefits:

If you are injured while working on the floating processor, it may be covered under Alaska Worker’s [sic] Compensation and/or under Federal Maritime benefits. Unless requested otherwise, we will process any claim through the Alas[1119]*1119ka Workers’ Compensation system and coordinate any additional benefits that may be due under Federal Maritime Law; however, you may request at any time to opt out of the Alaska Worker’s Compensation system in favor of Federal benefits.

After learning of Huseman’s injury, Icicle filed an Alaska Workers’ Compensation Report with the Alaska Department of Labor, as required by Alaska law. See Alaska Stat. § 23.30.070 (1970). The Alaska Department of Labor then sent Huseman an explanatory pamphlet, which Huseman remembers receiving and reading. The pamphlet explains coverage and invites questions, stating that “[njearly all Alaska employees are covered. Commercial fishers are an exception, but some fish processor workers on floating processing vessels are covered.” The pamphlet goes on to state that “[ajlthough federal employees and most maritime workers are not covered under Alaska law, they may be covered under federal law. If you want to know whether you are covered, contact the [Workers’ Compensation] Division.” Since his injury, Huseman has received continuous coverage by way of medical treatment and disability payments under the Alaska workers’ compensation system. Huseman did not inquire about the availability of federal remedies, nor about his eligibility for additional benefits beyond the workers’ compensation benefits that he was already receiving.

Nearly three and one-half years after his injury, Huseman filed suit in federal court alleging federal maritime claims of negligence under the Jones Act, unseaworthiness, and maintenance and cure. Huse-man was deposed and testified that he had received and read the Terms of Employment and the pamphlet from the Alaska Workers’ Compensation Board, both of which included statements regarding potential federal remedies. Huseman said that he did not understand the reference to federal benefits, and further, that he had forgotten about those documents by the time of his injury. Significantly, Huse-man acknowledged that no one at Icicle or the Alaska Workers’ Compensation Board told him that he could not pursue federal claims, and that he never asked about the availability of federal remedies. Huseman testified that had he inquired, Icicle and the Alaska agency probably would have explained the federal claims to him.

Icicle filed a motion for summary judgment, arguing that Huseman’s claims were barred on timeliness grounds. The district court granted the motion, finding that “(a) [Huseman] was unaware that seamen such as himself might have claims under the Jones Act and general maritime law, (b) [Icicle] did not advise him of that fact, and (c) [Huseman] made no effort to ascertain whether he had any remedy other than that afforded by the Alaska State Workers’ Compensation Act.” The district court also held that no one at Icicle misled Huseman regarding the availability of federal remedies. Instead, as the district court pointed out, Huseman based his argument on the Terms of Employment, claiming that the document was misleading. Because Huseman admitted that he did not understand the reference to federal benefits in the Terms of Employment and that he had completely forgotten about the reference by the time of his injury, the district court concluded that Huseman could not have relied on the Terms of Employment in filing his suit beyond the statute of limitations. Accordingly, Huse-man’s Jones Act and unseaworthiness claims were time-barred.

With regard to maintenance and cure, the district court recognized that there is a dispute as to whether laches or the statute of limitations determined the timeliness of [1120]*1120the claim. The district court did not decide the issue and instead held that the expiration of the statute of limitations brings a presumption that laches applies and that, absent good reason for an extension, the claim is barred. Because Huse-man based his claim on ignorance of the law and his failure to inquire about the federal claims, the district court found his delay in filing unreasonable. Without further explanation, the district court also found that Icicle would be prejudiced by the late filing and held the maintenance and cure claim time-barred under laches.

Analysis

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Cite This Page — Counsel Stack

Bluebook (online)
471 F.3d 1116, 2006 WL 3783442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huseman-v-icicle-seafoods-inc-ca9-2006.