Maritime law is a division of law that governs businesses and business activity involved with ships and shipping, as well as any crimes that occur on the open water. This legal division involves separate codes and jurisdictions, aside from national laws. When situations arise that involve insurance claims and property damage of ships and cargo or civil cases arising between businesses or companies and individuals, parties involved must understand how this division of law applies to and governs the resolution of the issues.

RECENT RULINGS

A recent case, Petrobras America, Inc. vs. Vicinay Cadenas, S.A., resulted in the Fifth Circuit’s consideration of the application of maritime law. The court needed to decide which laws would apply to claims arising from oil and gas exploration and production occurring on the Outer Continental Shelf. This dispute involved an incident with an underwater tether chain that allegedly failed. When the chain ruptured, a riser fell to the bottom of the Gulf of Mexico, which caused a break in a connection between the wellhead and the surface. Consequently, the riser system was lost, and the company experienced lost production due to inability to use its FPSO facility.

The final decision of the district court stated that maritime law did not apply to claims for economic loss when the damage occurred due to an incident and not a specific product. The Fifth Circuit became involved with an appeal and reversed the earlier decision. The final ruling stated that the adjacent state law applied to the case under the Outer Continental Shelf Lands Act and not general maritime rules.

This ruling creates some uncertainty on the application of these laws with regards to gas and oil activities with ships on the sea. Future liability claims and the application of maritime law may be limited, especially with regards to economic and physical damages. However, the facts involved with every case will guide outcomes.

On April 28, 2016, the Houston Court of Appeals for the 1st District denied Diamond Offshore Services’ request for a rehearing en banc, choosing to uphold the decision by a three-judge panel that had previously affirmed the verdict for a Doyle Dennis Avery LLP client against Diamond Offshore Services in July 2015.

Willie David Williams is a Mississippi resident and was a long-time employee of Diamond Offshore Services. He worked as a mechanical supervisor and was in charge of making repairs to drilling and other oilfield equipment. While offshore near Egypt, Williams was on board the semi-submersible drilling vessel Ocean Lexington. He was instructed to quickly repair a set of hydraulic pipe elevators in order to avoid a shutdown in drilling operations. While attempting to repair the elevators, Williams heard a cracking sound in his lower back and immediately a felt sharp, radiating pain. Diamond Offshore Services’ violation of company protocol was evidenced in its failure to maintain the elevators, failure to provide sufficient time for repair, and failure to maintain a sufficient number of spare elevators in order to avoid a shutdown in drilling production. In fact, it was later shown that the elevators were in such bad condition that they could not be repaired and had to be scrapped.

In September 2013, a unanimous jury found that Diamond Offshore Services’ negligence and the Ocean Lexington’s unseaworthiness led to an unnecessary medical emergency and were direct sources of the permanent and disabling injuries that Williams sustained. Michael Patrick Doyle, the lead trial lawyer on the case, stated, “Diamond Offshore promises a comprehensive safety program, at least on paper, but the jury’s verdict confirms, in practice, that Diamond Offshore is ready to jettison these critical equipment and operational standards to avoid jeopardizing any financial penalties a shutdown would bring. The jury’s verdict supports the evidence of the company’s willingness to expose its own employees, rig, and the environment to potentially dangerous consequences.”

The 1st Court of Appeals upholding of the verdict is a significant step in obtaining the compensation that Williams and his family have long awaited and deserve. If you or someone you know has suffered an oilfield or maritime injury, you may also be entitled to compensation. Contact the experienced trial attorneys at Doyle Dennis Avery LLP for more information and guidance on the legal options for your claim.

The maritime industry encompasses any business involved with the design, operation, maintenance, or repair of sea vessels. Working in this industry can involve danger and risk, and employees who have experienced a work-related injury need to be aware of the Jones Act. This legislation protects the rights of maritime employees who have been injured due to work-related negligence.

Overview of the Process

The Jones Act is also called the Merchant Seaman Protection/Relief Act. Under this law, anyone working in the maritime industry can file to receive benefits, including lost wages and health care costs due to a work injury. This law also allows workers to file personal injury lawsuits to collect compensation for injuries.

Complexities of the Law

Confusion about the Jones Act Law is common after an injury. Experienced attorneys can provide guidance to help clients understand the law and the process of recovering damages. Contact our firm to receive information and assistance with a maritime injury. Receiving help with pretrial negotiation or courtroom litigation can be very advantageous for resolving an injury claim and receiving compensation. In the meantime, we offer the following advice to help you through the process.

Helpful Tips

The first step after an incident is to seek medical attention as soon as possible. Patients must also document all diagnostics, test results, diagnoses, and treatment, including prescribed medicine and therapy. Take concise notes outlining all communication and instructions from physicians.

It is important that you timely report the accident. The Jones Act requires employees to report the injury to a supervisor as soon as reasonably possible.

Consult an attorney regarding claim requirements to ensure compliance. Requirements define the type of employee eligible for benefits and what specifics comprise negligence. Then, explore settlement and trial options with the attorney.

Anyone injured in a maritime accident while working has the right to receive adequate and fair compensation for damages. At Doyle Dennis Avery LLP , we have the expertise and knowledge to help clients explore their options for recovering damages.

Special thanks to NOAA Ocean Explorer for the image.