Powell v. McDermott International

575 So. 2d 852, 1991 La. App. LEXIS 270, 1991 WL 20380
CourtLouisiana Court of Appeal
DecidedFebruary 22, 1991
DocketNo. 89-C-1574
StatusPublished
Cited by2 cases

This text of 575 So. 2d 852 (Powell v. McDermott International) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powell v. McDermott International, 575 So. 2d 852, 1991 La. App. LEXIS 270, 1991 WL 20380 (La. Ct. App. 1991).

Opinions

[853]*853ON REMAND FROM THE SUPREME COURT

WILLIAMS, Judge.

Relator, an American citizen, filed suit to recover damages under the Jones Act and general maritime law for two injuries. The first injury he received allegedly while working on a vessel, built in the United States, registered in Panama, and located at the time of the accident off the coast of West Africa. He was working under an employment contract with McDermott International, Inc./Marine Contractors, Inc., both corporations organized and existing under the laws of Panama. The contract specifically provided for employment in the “West Africa area.”

The second “injury” occurred while he was working in a repair yard in Nigeria. He alleges that this second "injury” was an aggravation of his infected leg, which became infected after the first accident.

The defendant, McDermott International, Inc., filed exceptions of no right or cause of action which were granted on the ground that the case was subject to and governed by the laws of Panama, not the Jones Act or general maritime law. On April 29, 1989, the trial court issued a “recall and amended order” stating it did not intend to “dismiss the case or any of the causes of action but to simply apply (sic) Panamanian law to the facts thereof.” The plaintiff sought writs from the amended judgment arguing Wilander v. McDermott International, Inc., 887 F.2d 88 (5th Cir.1989), reh. den. 894 F.2d 406, cert. granted in part, McDermott International, Inc. v. Wilander, — U.S. -, 110 S.Ct. 3212, 110 L.Ed.2d 660 (1990) was determinative and that Schexnider v. McDermott, 817 F.2d 1159 (5th Cir.1987) cert. den., McDermott v. Schexnider, 484 U.S. 977, 108 S.Ct. 488, 98 L.Ed.2d 486 (1987) was distinguishable.

This court denied writs based primarily upon Schexnider, Powell v. McDermott, unpub. (89-C-1574, La.App. 4th Cir., January 26, 1990). Relator next sought writs from the Louisiana Supreme Court. The Louisiana Supreme Court granted writs, remanding the case to this court for briefing, argument and opinion. Powell v. McDermott, 560 So.2d 2 (La.1990).

The determination of the law governing a maritime action is made pursuant to a multifactored analysis set out in Lauritzen v. Larsen, 345 U.S. 571, 73 S.Ct. 921, 97 L.Ed. 1254 (1953), and further elaborated in Hellenic Lines, Ltd. v. Rhoditis, 398 U.S. 306, 90 S.Ct. 1731, 26 L.Ed.2d 252 (1970) (factors that have become to be known as the Lauritzen-Rhoditis (factors). They are:

1. the place of the wrongful act;
2. the law of the flag;
3. the allegiance of domicile of the injured seaman;
4. the allegiance of the defendant shipowner;
5. the place where the contract was made;
6. the accessibility of the foreign forum;
7. the law of the forum;
8. the base of operations.

In Schexnider, the relevant facts were:

The appellant, John A. Schexnider, is an American citizen. He alleges an injury, occurring on April 12, 1981, while serving as a crewmember of the Derrick Barge 21(DB), which was performing work in the Java Sea off the coast of Indonesia. At the time of his accident, Schexnider was working pursuant to an employment contract with McDermott International, Inc., a Panamanian corporation. On March 6, 1981, in New Orleans, Schexnider had entered into the contract that called for him to work “in the Southeast Asia Area.”
During Schexnider’s service aboard the DB, the vessel flew the Australian flag. The DB was built in Australia, had been purchased by McDermott Australia, Ltd. in 1966, and had been refitted for use in Indonesian waters. At no time had the DB ever been within the territorial waters of the United States. At the time of the accident the DB was owned by McDermott Australia, Ltd., and was chartered to McDermott Southeast Asia, Pte., Ltd., both of which are foreign corporations not conducting any business [854]*854within the United States, although they are wholly owned subsidiaries of McDer-mott International Inc., and McDermott, Inc. (both U.S. corporations), respectively. Schexnider, at 1160.

The Fifth Circuit found that the trial court had correctly determined that Australian law applied to Schexnider’s suit:

In this case, the district court concluded that the application of these factors weighed in favor of applying Australian law. While the court found that the domicile of the injured party was in the United States, and his employment contract was made in the United States, the other factors favored applying Australian law. The district court found that the ship on which the accident occurred flew the Australian flag, the allegiance of the defendant shipowner was Australian, Australian law was presumed adequate since the plaintiff had not shown otherwise and the shipowner’s base of operations was abroad. The district court also found that the ship was never intended to and never did sail in American, waters, and that while the plaintiff did sign on for work in this country, the employment contract specifically provided that employment was for the “Southeast Asia area.”
Of particular significance in this case is the fact that the ship on which Schex-nider was injured flew the Australian flag. The law of the flag is given great weight in determining the law to be applied in maritime cases. As the Supreme Court has held, the law of the flag is “the most venerable and universal rule of maritime law,” which “overbears most other connecting events in determining applicable law ... unless some heavy counterweight appears.” Lauritzen, 345 U.S. at 584, 73 S.Ct. at 929. The district court found that under the facts of this case, heavy counterweights which favored applying American law did not exist. We agree.
Furthermore, a related consideration is that the DB was built in Australia, and in accordance with Australian standards. This clearly favors the application of Australian law since part of Schexnider’s unseaworthiness claim relates to the way in which the staircase was built on the DB. In addition, the district court presumed, without challenge, that the Australian courts would be available and adequate for the litigation of this case. The principal factor favoring the application of American law is the fact that Schexnider is a United States citizen. But this is not sufficient to outweigh the factors favoring the application of Australian law, especially the law of the flag. Schexnider also argues that the fact that the ultimate parent corporation (the DB is owned by a subsidiary of a subsidiary), McDermott, Inc., is an American corporation, militates in favor of applying American law. But we do not regard as significant the fact that McDermott, Inc.

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Related

Powell v. McDERMOTT INTERNATIONAL., INC.
588 So. 2d 84 (Supreme Court of Louisiana, 1991)
Powell v. McDermott International
580 So. 2d 365 (Supreme Court of Louisiana, 1991)

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575 So. 2d 852, 1991 La. App. LEXIS 270, 1991 WL 20380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-mcdermott-international-lactapp-1991.