Peggy Mays v. Chevron Pipe Line Company

CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 4, 2020
Docket19-30535
StatusPublished

This text of Peggy Mays v. Chevron Pipe Line Company (Peggy Mays v. Chevron Pipe Line Company) 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
Peggy Mays v. Chevron Pipe Line Company, (5th Cir. 2020).

Opinion

Case: 19-30535 Document: 00515515644 Page: 1 Date Filed: 08/04/2020

REVISED AUGUST 4, 2020

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

FILED August 3, 2020 No. 19-30535 Lyle W. Cayce Clerk

Peggy Mays, Individually & as Personal Representative, on behalf of James L. Mays Estate; Daphne Lanclos; Brent Mays; Jared Mays,

Plaintiffs—Appellees,

versus

Chevron Pipe Line Company,

Defendant—Appellant.

Appeal from the United States District Court for the Western District of Louisiana USDC No. 6:14-CV-3098

Before Barksdale, Higginson, and Duncan, Circuit Judges. Stuart Kyle Duncan, Circuit Judge: James Mays was killed in an explosion on an offshore platform owned by appellant Chevron Pipe Line Company (“Chevron”). Mays was directly employed by a Chevron subcontractor, Furmanite American (“Furmanite”), which serviced valves on Chevron’s platforms. Mays’ widow and children sued Chevron for state-law wrongful death, and Chevron Case: 19-30535 Document: 00515515644 Page: 2 Date Filed: 08/04/2020

No. 19-30535

claimed immunity under the state workers’ compensation scheme. The parties agree that state immunity does not protect Chevron if Mays’ accident was covered by the federal Longshore and Harbor Workers’ Compensation Act (“LHWCA”), 33 U.S.C. §§ 901–50, which extends to injuries “occurring as the result of” natural-resource extraction on the Outer Continental Shelf (“OCS”). 43 U.S.C. § 1333(b). This question of LHWCA coverage was submitted to the jury, based on evidence that even though the platform Mays was working on was in Louisiana waters, it was connected to Chevron’s OCS platforms; that the fatal explosion was caused by gas flowing from those platforms; and that those platforms had to be shut down due to the accident. The jury found Mays’ death was caused by Chevron’s OCS activities, which meant that the LHWCA applied and that Chevron did not enjoy state immunity. The jury found Chevron 70% at fault for Mays’ death and awarded his widow $2 million for her loss of Mays’ affection. Chevron’s central argument on appeal concerns the jury instructions. Chevron insists they violated the Supreme Court’s decision in Pacific Operators Offshore, LLP v. Valladolid, which interpreted the federal law extending LHWCA coverage to OCS activities. 565 U.S. 207 (2012). Chevron argues that under Valladolid, the jury should have been asked only whether the OCS activities of Mays’ direct employer, Furmanite, caused his death. According to Chevron, Furmanite had no OCS activities, and so the LHWCA could not have applied to supplant Chevron’s state immunity. Asking instead about the link between Mays’ death and Chevron’s OCS operations, Chevron urges, was legal error that requires reversing the jury verdict and rendering judgment in Chevron’s favor. Chevron misreads Valladolid. That decision, consistent with the language of the statute it interpreted, requires only a link “between the injury and extractive operations on the shelf.” Id. at 211. It does not specify which

2 Case: 19-30535 Document: 00515515644 Page: 3 Date Filed: 08/04/2020

employer’s OCS operations are relevant in a case, like this one, where a subcontractor’s employee does work for a contractor with OCS operations. Chevron would extract from Valladolid a limitation it does not contain. We therefore reject Chevron’s argument that the jury instructions violated Valladolid. We also reject Chevron’s alternative arguments that the evidence failed to link Mays’ death with Chevron’s OCS operations and that the district court abused its discretion in not reducing Mrs. Mays’ damages. The judgment of the district court is affirmed. I. James Mays worked as a valve technician for Furmanite. On September 13, 2014, Mays was killed while servicing a valve at the Lighthouse Point natural gas platform, which is part of Chevron’s Henry Gas Gathering System (“Henry System”). The platform lies in Louisiana’s territorial waters, but the Henry System includes other platforms outside Louisiana waters on the OCS. 1 Two such platforms are connected by pipeline to the platform on which Mays was killed. To stop the gas flowing through the breached valve that caused Mays’ death, Chevron had to shut off gas flow from the two connected OCS platforms. At the time of the accident, Mays was working pursuant to a contract between Chevron and Furmanite, under which Furmanite provided maintenance and repair services to several Henry System platforms. Mays’ estate, wife, and children (collectively, “plaintiffs”) sued Chevron in federal district court, invoking the court’s diversity jurisdiction

1 The OCS comprises “all submerged lands lying seaward” of state-controlled navigable waters but within the United States’ exclusive economic zone. 43 U.S.C. § 1331(a); see also id. § 1301(a).

3 Case: 19-30535 Document: 00515515644 Page: 4 Date Filed: 08/04/2020

and raising tort claims under Louisiana law. Specifically, they alleged Chevron failed to maintain the valve Mays was working on and also misinformed him about the valve’s manufacturer. They asserted these mistakes led Mays to inadvertently breach the pipeline’s pressure barrier, triggering an explosion that killed him. Chevron moved for summary judgment, claiming immunity as Mays’ “statutory employer” under the Louisiana Workers’ Compensation Act (“LWCA”), LA. REV. STAT. ANN. §§ 23:1020–1470. A statutory employer is one that receives work from someone by contracting with his direct employer. See id. § 23:1061(A)(1). The statutory employer may owe the employee workers’ compensation under certain circumstances. In exchange, the statutory employer, like the direct employer, is immune from tort liability. Id.; see also id. § 23:1032(A)(1). In response, the plaintiffs argued this state-law immunity did not apply because Mays was covered by the federal LHWCA. By its terms, the state LWCA does not apply where the LHWCA does. 2 The plaintiffs argued the LHWCA applied to Mays’ death because of the accident’s ties to the OCS. Another federal law, the Outer Continental Shelf Lands Act (“OCSLA”), 43 U.S.C. §§ 1331–56, extends the LHWCA to injuries “occurring as the result of” OCS operations. 43 U.S.C. § 1333(b). This extension applies where (1) an employee’s injury “result[s] from” OCS extractive operations, and (2) his employer is an “employer” under

2 See LA. REV. STAT. ANN. § 23:1035.2 (providing that “[n]o [LWCA] compensation shall be payable” to employees “covered by . . . the [LHWCA], or any of its extensions”); see also, e.g., Johnson v. ACE Am. Ins. Co., 2015-0277 (La. App. 4 Cir. 9/23/15), 176 So. 3d 609, 610–11 (explaining LWCA is inapplicable “if [employee] is eligible to receive benefits under the LHWCA or other federal compensation scheme”).

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OCSLA. 3 See Barger v. Petroleum Helicopters, Inc., 692 F.2d 337, 340 (5th Cir. 1982); Stansbury v. Sikorski Aircraft, 681 F.2d 948, 950 (5th Cir. 1982). 4 An injury “result[s] from” OCS extractive operations if it has a “substantial nexus” to those operations. Valladolid, 565 U.S.

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Peggy Mays v. Chevron Pipe Line Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peggy-mays-v-chevron-pipe-line-company-ca5-2020.