Barrosse v. Huntington Ingalls ( 2023 )


Menu:
  • Case: 21-30761      Document: 00516782736         Page: 1     Date Filed: 06/12/2023
    United States Court of Appeals
    for the Fifth Circuit
    United States Court of Appeals
    Fifth Circuit
    FILED
    June 12, 2023
    No. 21-30761                            Lyle W. Cayce
    Clerk
    Lynn Barrosse; Raegan Holloway; Makenzie Stricker,
    Plaintiffs—Appellants,
    versus
    Huntington Ingalls, Incorporated, formerly known as
    Northrop Grumman Shipbuilding, Incorporated, formerly
    known as Northrop Grumman Ship Systems, Incorporated,
    formerly known as Avondale Industries, Incorporated,
    Defendant—Appellee.
    Appeal from the United States District Court
    for the Eastern District of Louisiana
    USDC No. 2:20-CV-2042
    Before Richman, Chief Judge, and Ho and Engelhardt, Circuit
    Judges.
    Kurt D. Engelhardt, Circuit Judge:
    Federal law is the “supreme Law of the Land.” U.S. Const. art.
    VI. When a state law looks like it might conflict with a federal statute or
    regulation, courts consider preemption to see if the state law in question must
    yield. Perry v. Mercedes Benz of N. Am., Inc., 
    957 F.2d 1257
    , 1261 (5th Cir.
    1992). Here, Defendant-Appellee argues that Plaintiffs-Appellants’ state-law
    tort claims are preempted by the federal Longshore and Harbor Workers’
    1
    Case: 21-30761        Document: 00516782736              Page: 2      Date Filed: 06/12/2023
    No. 21-30761
    Compensation Act (“LHWCA” or “the Act”). But, under the specific facts
    of this case and applicable Supreme Court caselaw, they are not. We
    therefore REVERSE and REMAND.
    I
    A
    Ronald Barrosse1 worked for Defendant-Appellee Huntington Ingalls
    (formerly “Avondale”) as a shipyard electrician from February 1969 to June
    1977. In March 2020, Barrosse was diagnosed with mesothelioma. Following
    his diagnosis, he filed a state-law tort suit in the Civil District Court for the
    Parish of Orleans alleging that Avondale, among other defendants, caused
    Barrosse to contract mesothelioma by exposing him to asbestos in a negligent
    manner. Because Barrosse primarily worked on United States Navy ships
    when he was exposed, Avondale removed the case to federal district court
    under the federal officer removal statute. See 
    28 U.S.C. § 1442
    ; Latiolais v.
    Huntington Ingalls, Inc., 
    951 F.3d 286
    , 296 (5th Cir. 2020) (en banc). Barrosse
    never claimed benefits under the LHWCA, which provides a no-fault
    compensation remedy to injured workers. 
    33 U.S.C. § 904
    .
    Avondale moved for summary judgment. Relevant here, Avondale
    argued that Barrosse’s state-law tort claims were preempted by the
    LHWCA because they directly conflicted with and frustrated the purposes
    of the Act. The district court agreed and held that the claims are preempted.
    Barrosse v. Huntington Ingalls Inc., 
    563 F. Supp. 3d 541
    , 559 (E.D. La. 2021).
    Barrosse appeals.
    1
    Barrosse unfortunately passed away mid-litigation, so his survivors substituted
    themselves as Plaintiffs-Appellants. To avoid confusion, they will collectively be referred
    to herein as “Barrosse.”
    2
    Case: 21-30761         Document: 00516782736              Page: 3       Date Filed: 06/12/2023
    No. 21-30761
    B
    While cases about statutes typically begin with the text, recounting the
    development of federal maritime compensation law is necessary to
    understand the nuances presented in this case. In 1917, the Supreme Court
    “declared that States were constitutionally barred from applying their
    compensation systems to maritime injuries.” Sun Ship, Inc. v. Pennsylvania,
    
    447 U.S. 715
    , 717 (1980) (citing S. Pac. Co. v. Jensen, 
    244 U.S. 205
     (1917)).
    After failed efforts to delegate compensation matters to the states, Congress
    passed the LHWCA in 1927 to provide compensation for maritime workers.
    
    Id.
     The original LHWCA expressly limited its application to those cases
    where state worker’s compensation laws did not apply. 
    Id.
     at 717–18.
    But that limited application caused problems because it was unclear
    where “the boundary at which state remedies gave way to federal remedies”
    was. 
    Id. at 718
    . Injured workers had to guess whether to file a claim under
    state or federal law, and “the price of error was unnecessary expense and
    possible foreclosure from the proper forum.” 
    Id.
     The Supreme Court
    responded with the creation of the so-called “twilight zone,” an area of
    concurrent jurisdiction that applies on a case-by-case basis. 
    Id.
     (discussing
    Davis v. Dep’t of Labor, 
    317 U.S. 249
    , 253–56 (1942)).2 Notably, it did so over
    a strong dissent which argued that the plain language of the Act “left no room
    for an overlapping dual system” of concurrent jurisdiction. Davis, 
    317 U.S. at 261
     (Stone, C.J., dissenting). According to the dissent, the majority
    interpreted the LHWCA to “not mean what it says”—that “[i]f there is
    liability under the federal act, that liability is exclusive.” 
    Id.
    2
    The district court noted that “there appears to be no genuine [dispute] of material
    fact that this is a twilight zone case,” and the parties do not contest that conclusion on
    appeal. Barrosse, 563 F. Supp. 3d at 556.
    3
    Case: 21-30761        Document: 00516782736             Page: 4      Date Filed: 06/12/2023
    No. 21-30761
    Nevertheless, the twilight zone prevailed. Among other cases, the
    Supreme Court decided Hahn v. Ross Island Sand & Gravel Co., 
    358 U.S. 272
    ,
    273 (1959) (per curiam). In Hahn, the plaintiff brought a state-law tort claim.
    
    Id.
     Because the plaintiff was in the twilight zone and compensation “could
    have been, and in fact was, validly provided by [s]tate law,”3 the LHWCA
    “did not bar” the claim. 
    Id.
     (quotation marks omitted). Like Davis, Hahn was
    decided over a dissent which argued that the twilight zone’s regime of
    concurrent jurisdiction extended only to “a state workmen’s compensation
    act or the [LHWCA],” and not to torts. 
    Id. at 274
     (Stewart, J., dissenting).
    “In 1972, Congress . . . extend[ed] the LHWCA landward beyond the
    shoreline of the navigable waters of the United States.” Sun Ship, 
    447 U.S. at 719
    . Rather than “resurrecting the jurisdictional monstrosity” of pre-
    Davis longshore compensation law, the Supreme Court reaffirmed the
    twilight zone because it remained unclear where federal jurisdiction ended
    and state jurisdiction began, even though that point “is fixed upon land.” 
    Id.
    at 719–20. The upshot is that despite the text of the Act expressly providing
    that employer liability for injuries falling under its ambit is “exclusive and in
    place of all other liability of such employer to the employee . . . at law or in
    admiralty,” the Supreme Court has limited that exclusivity to cases outside
    the so-called twilight zone. 
    33 U.S.C. § 905
    (a).
    3
    This particular phrase is in reference to the pre-1972 version of the LHWCA,
    which extended LHWCA coverage only if the state does not—and could not—validly
    provide recovery. See Newport News Shipbuilding & Dry Dock Co. v. Dep’t of Labor, 
    583 F.2d 1273
    , 1277 (4th Cir. 1978) (discussing the language and its subsequent removal). The
    district court held that the post-1972 version of the LHWCA applies here, and Barrosse
    does not challenge that holding on appeal. Barrosse, 563 F. Supp. 3d at 548–52.
    4
    Case: 21-30761         Document: 00516782736              Page: 5       Date Filed: 06/12/2023
    No. 21-30761
    C
    The pertinent development of Louisiana compensation law is shorter,
    but just as relevant in this case of concurrent jurisdiction. Louisiana passed
    the applicable version of its Workers’ Compensation Act (“WCA”) in 1952.
    See La. Rev. Stat. § 23:1031.1 (1952). Like most workers’ compensation
    statutes, the WCA gave an injured worker a remedy that was “exclusive of
    all other rights and remedies.” Id. The pertinent portion of the statute took
    a schedule approach, only covering the diseases listed in the statutory text.
    See Rando v. Anco Insulations Inc., 
    16 So. 3d 1065
    , 1072–73 (La. 2009). If a
    disease was not listed, an afflicted worker could only bring a tort suit as
    neither the compensation nor the exclusivity provisions of the WCA applied.
    
    Id. at 1071
    .
    Barrosse is one of those workers. Mesothelioma, the disease Barrosse
    suffered from, was not covered by the WCA until it was amended in 1975.
    Id.; see Williams v. Lockheed Martin Corp., 
    990 F.3d 852
    , 864 (5th Cir. 2021).
    When survivors of a decedent bring state-law claims “based on asbestos
    exposure,” we apply “the law in effect when the exposure occurred.” Savoie
    v. Huntington Ingalls, Inc., 
    817 F.3d 457
    , 464 (5th Cir. 2016), overruled on other
    grounds Latiolais, 951 F.3d at 296 n.9.4 Barrosse’s claims are based on alleged
    exposure, as mesothelioma injuries in Louisiana are deemed to occur “at the
    time of significant exposure to asbestos, not later when [the] disease . . .
    manifest[s] itself.” Rando, 16 So. 3d at 1083; see Williams, 990 F.3d at 865.
    Barrosse claims that his significant exposure first occurred vis-à-vis Avondale
    in 1969. Thus, the applicable version of the WCA does not cover the injury
    4
    We do not address the district court’s interpretation of Savoie or its holding that
    the post-1972 LHWCA applies to this dispute. Those issues are not presented here.
    5
    Case: 21-30761          Document: 00516782736            Page: 6       Date Filed: 06/12/2023
    No. 21-30761
    he suffered. See Rando, 16 So. 3d at 1071.5 As a result, Barrosse’s only state-
    law remedy is a tort suit. Id.
    The upshot of these parallel events and their timing6 is that once
    Barrosse discovered his injury, he could seek relief under either the LHWCA
    or state tort law.7 The question presented in this case is whether state tort law
    5
    The plaintiff in Rando was injured in 1970, but the 1952 WCA applied. Rando, 16
    So. 3d at 1072.
    6
    Condensing these developments, the following timeline emerges:
    • 1927: Congress passes the LHWCA, providing workers’ compensation
    remedies to maritime workers.
    • 1942: The Supreme Court decides Davis, creating a regime of concurrent
    jurisdiction in twilight zone cases.
    • 1952: Louisiana passes the applicable version of the WCA, which neither covers
    mesothelioma nor prohibits tort claims based on mesothelioma injuries.
    • 1959: The Supreme Court decides Hahn, permitting a state-law tort claim in a
    twilight zone case when that tort claim was included in the state-law regime.
    • 1969: Barrosse begins working for Avondale and suffers injury in the twilight zone
    for purposes of his present claims.
    • 1972: Congress amends the LHWCA, expanding its coverage landward.
    • 1975: Louisiana amends the WCA to cover mesothelioma injuries.
    • 1980: The Supreme Court decides Sun Ship, reaffirming Davis and its twilight-
    zone progeny after the 1972 LHWCA amendment.
    • 2020: Barrosse is diagnosed with mesothelioma and brings this suit.
    7
    We do not address whether a plaintiff who brings a tort claim could subsequently
    obtain relief under the LHWCA. On at least one occasion, the Supreme Court has
    sanctioned LHWCA compensation after the beneficiary received state-law compensation,
    but only when the state payments were credited against LHWCA relief. See Calbeck v.
    Travelers Ins. Co., 
    370 U.S. 114
    , 131 (1962) (upholding compensation payments under both
    the LHWCA and state law where the state payments were credited against the LHWCA
    payments so “no impermissible double recovery [wa]s possible”). Whether that holding
    extends to tort remedies is a question we leave for another day.
    6
    Case: 21-30761      Document: 00516782736           Page: 7   Date Filed: 06/12/2023
    No. 21-30761
    is preempted by the LHWCA in the twilight zone under those
    circumstances.
    II
    We review the district court’s grant of summary judgment de novo
    and affirm if “there is no genuine dispute as to any material fact and the
    movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a);
    Renfroe v. Parker, 
    974 F.3d 594
    , 599 (5th Cir. 2020). Here, the sole issue is
    preemption, which “is a question of law.” Baker v. Farmers Elec. Co-op., Inc.,
    
    34 F.3d 274
    , 278 (5th Cir. 1994). “Preemption of state law may be the result
    of either express preemption, field preemption, or conflict preemption.”
    Wright v. Allstate Ins. Co., 
    415 F.3d 384
    , 389 (5th Cir. 2005).
    Express preemption applies “[w]here Congress expresses an explicit
    intent to preempt state law.” Hetzel v. Bethlehem Steel Corp., 
    50 F.3d 360
    , 363
    (5th Cir. 1995). “Conflict preemption applies (1) where complying with both
    federal law and state law is impossible; or (2) where the state law creates an
    unacceptable obstacle to the accomplishment and execution of the full
    purposes and objectives of Congress.” Janvey v. Democratic Senatorial
    Campaign Comm., Inc., 
    712 F.3d 185
    , 200 (5th Cir. 2013) (quotation omitted).
    Courts may not conduct “a freewheeling judicial inquiry into whether a state
    statute is in tension with federal objectives [because] such an endeavor would
    undercut the principle that it is Congress rather than the courts that pre-
    empts state law.” Chamber of Com. v. Whiting, 
    563 U.S. 582
    , 607 (2011)
    (quotation omitted). For a state law to be conflict preempted, “a high
    threshold must be met.” 
    Id.
     (quotation omitted).
    III
    Avondale argues that both express and conflict preemption bar
    Barrosse’s claims.
    7
    Case: 21-30761       Document: 00516782736             Page: 8     Date Filed: 06/12/2023
    No. 21-30761
    A
    Express preemption does not apply. There is no dispute that this is a
    twilight zone case. Id. at 556. In the twilight zone, “although the LHWCA’s
    exclusivity language would seem to express congressional intent to preempt
    state law, the Supreme Court has found that total preemption was not
    intended.” Hetzel, 
    50 F.3d at 363
    .8 Thus, despite the clear proclamation of
    exclusivity in the LHWCA’s text that prohibits any liability “at law or in
    admiralty” for injuries covered by the Act, there is no express preemption
    here. 
    33 U.S.C. § 905
    (a).
    Fundamental tension between the plain text of the Act and twilight-
    zone concurrent jurisdiction has been apparent and controversial from the
    very beginning. Indeed, Davis itself created the twilight zone over a dissent
    which argued that the twilight zone “is plainly not permissible” and
    “controverts the words of the statute,” which “left no room for an
    overlapping dual system” of concurrent jurisdiction. Davis, 
    317 U.S. at
    261–
    64 (Stone, C.J., dissenting). Avondale would have us agree, but a dissent is
    just that. Perhaps time and Supreme Court reconsideration will ultimately
    conclude that the twilight zone’s creation was beyond “judicial
    competence,” 
    id. at 260
    , but until then, there is no express preemption in the
    twilight zone. Hetzel, 
    50 F.3d at 363
    .
    B
    Neither does conflict preemption apply under these circumstances.
    The Supreme Court has recognized that LHWCA remedies exist
    8
    It is apparent from context that the Hetzel panel was discussing express
    preemption despite using the phrase “total preemption.” See Hetzel, 
    50 F.3d at 363
    . We
    clarify this point only to ensure that Hetzel’s imprecise language is not confused with
    “complete” preemption, an entirely different doctrine. See Mitchell v. Advanced HCS,
    L.L.C., 
    28 F.4th 580
    , 585 n.2 (5th Cir. 2022).
    8
    Case: 21-30761        Document: 00516782736             Page: 9      Date Filed: 06/12/2023
    No. 21-30761
    concurrently with state-law remedies, including at least some state-law tort
    claims, in the twilight zone. Consistent with that binding recognition, we
    cannot find that the limited and unusual circumstances that gave rise to
    Barrosse’s state-law tort claims pose “an unacceptable obstacle to the
    accomplishment and execution of the full purposes and objectives of
    Congress.” Janvey, 
    712 F.3d at 200
    . A contrary holding would, at least as far
    as Barrosse and similarly situated plaintiffs are concerned, have the LHWCA
    “supplant” rather than “supplement” state law by effectively eliminating
    the twilight zone and contradicting the Supreme Court’s instruction in Sun
    Ship, 
    447 U.S. at 720
    . Indeed, Avondale concedes that if Barrosse’s claims
    are preempted, his “exclusive remedy for any injury he suffered working for
    Avondale was—and is—available under the LHWCA.” State law is nowhere
    to be found.
    We begin our analysis by noting that existing caselaw is of little
    assistance. Numerous cases address LHWCA preemption of tort claims, but
    none address the situation before us—an injured employee, in the twilight
    zone, who declines to invoke the LHWCA but, under state law, is limited to
    a tort claim for relief.9
    The most on-point case is Hahn, but Hahn neither prohibits nor
    endorses the claims at issue here. Hahn does not endorse claims like
    Barrosse’s because it did not address a freestanding tort claim. The state
    statute in Hahn permitted employers to “elect[] to reject” the statute’s
    “automatic compensation provisions,” in which case an injured employee
    could bring “a negligence action for damages.” Hahn, 
    358 U.S. at 273
    . Thus,
    9
    Some district court cases address a similar fact pattern but neither acknowledge
    nor analyze the complications presented by a concurrent-jurisdiction regime where the only
    state-law remedy is a tort claim. See, e.g., Hulin v. Huntington Ingalls, Inc., 
    2020 WL 6059645
    , at *5–7 (E.D. La. Oct. 14, 2020).
    9
    Case: 21-30761       Document: 00516782736             Page: 10     Date Filed: 06/12/2023
    No. 21-30761
    Hahn only sanctioned a state-law tort claim that was expressly contemplated
    by state statute. Here, Barrosse’s tort claims arise under state law because
    they are not included in the relevant statute, i.e., the WCA. Barrosse cannot
    obtain automatic compensation for mesothelioma, but neither does the
    WCA’s exclusivity provision apply to any tort claims he might bring for that
    injury. Hahn does not prohibit claims like Barrosse’s either. Nothing in Hahn
    holds that tort claims are only permissible when expressly contemplated by
    state compensation statutes. Hahn clearly opens the door to at least some tort
    claims, but it is ultimately inapposite.
    Avondale would nevertheless have us read Hahn to limit state-law tort
    claims in the twilight zone to claims “provided for by state workers’
    compensation law” as a sanction for failing to secure coverage. But Hahn
    doesn’t say that, and the lone federal court of appeals case that Avondale
    cites for that proposition is distinguishable. In Peter v. Hess Oil Virgin Islands
    Corp., the Third Circuit considered an injured worker’s negligence action
    under Virgin Islands law. 
    903 F.2d 935
    , 936–37 (3d Cir. 1990). The employer
    had obtained coverage under both the LHWCA and the relevant Virgin
    Islands workers’ compensation act. 
    Id. at 953
    . The court held that “where an
    employer has obtained workmen’s compensation coverage for its LHWCA
    employee under both [the] LHWCA and the state or territorial statute,” tort
    claims are preempted. 
    Id.
     On its own terms, Peter does not apply where, as
    here, an employer has obtained coverage under the LHWCA but not under
    a state or territorial statute. Thus, contrary to Avondale’s assertion at oral
    argument, permitting Barrosse’s claims under these circumstances does not
    create a circuit split.10
    10
    The district court supposed that Barrosse “could have sought compensation
    under Louisiana’s Workers’ Compensation Act.” Barrosse, 563 F. Supp. 3d at 556. If that
    10
    Case: 21-30761       Document: 00516782736              Page: 11       Date Filed: 06/12/2023
    No. 21-30761
    Other cases likewise do not bear on the question before us. Some
    permit claims against alleged third-party tortfeasors, not employers. Norfolk
    Shipbuilding & Drydock Corp. v. Garris, 
    532 U.S. 811
    , 819–20 (2001)
    (permitting general maritime negligence claim against a third party);
    McLaurin v. Noble Drilling (US) Inc., 
    529 F.3d 285
    , 292–93 (5th Cir. 2008)
    (holding that plaintiff did not have a vessel negligence claim but could bring
    a state-law tort claim against the vessel owner as a third-party tortfeasor).
    Others address injuries that occurred on the Outer Continental Shelf, which
    is outside the twilight zone. Hebron v. Union Oil Co., 
    634 F.2d 245
    , 246 (5th
    Cir. 1981) (per curiam); Gaudet v. Exxon Corp., 
    562 F.2d 351
    , 354 (5th Cir.
    1977); see LeSassier v. Chevron USA, Inc., 
    776 F.2d 506
    , 509 (5th Cir. 1985)
    (noting that Outer Continental Shelf claims do not involve the twilight zone
    or any other “confusing concurrent jurisdictional realm”).
    Most of Avondale’s cited cases concern plaintiffs attempting to obtain
    both LHWCA compensation and damages in tort. See Hetzel, 
    50 F.3d at 367
    ;
    Levene v. Pintail Enters., Inc., 
    943 F.2d 528
    , 530 (5th Cir. 1991) (plaintiff filed
    suit under the LHWCA); Rosetti v. Avondale Shipyards, Inc., 
    821 F.2d 1083
    ,
    1084 (5th Cir. 1987) (plaintiff received LHWCA benefits from his nominal
    employer then sued his borrowing employer); White v. Bethlehem Steel Corp.,
    
    222 F.3d 146
    , 148 (4th Cir. 2000) (same); Langfitt v. Fed. Marine Terminals,
    Inc., 
    647 F.3d 1116
    , 1119 (11th Cir. 2011) (same); In re Buchanan Marine, L.P.,
    
    874 F.3d 356
    , 362 (2d Cir. 2017) (plaintiff received LHWCA benefits but
    filed a tort suit anyways). But an injured worker cannot eat his cake and have
    it too. Once a worker “receives LHWCA benefits,” he “may not sue his
    employer under state law for any additional compensatory damages.” Jowers
    were true, Peter would be applicable and potentially persuasive authority. But the district
    court’s assumption was incorrect. See Rando, 16 So. 3d at 1071.
    11
    Case: 21-30761       Document: 00516782736              Page: 12       Date Filed: 06/12/2023
    No. 21-30761
    v. Lincoln Elec. Co., 
    617 F.3d 346
    , 357 (5th Cir. 2010). Instead, once a worker
    “elect[s] the LHWCA remedy, he is bound by the provisions of the Act,”
    including the exclusivity provision of § 905(a). Hetzel, 
    50 F.3d at 367
    . That
    comports with the Supreme Court’s instruction that § 905(a)’s exclusivity
    provision “gains meaning only after a litigant has been found to occupy one
    side or the other of the doubtful jurisdictional line.” Davis, 
    317 U.S. at 256
    ;
    see Sun Ship, 
    447 U.S. at
    722 n.4 (clarifying that, in the twilight zone, § 905(a)
    “does not exclude remedies offered by other jurisdictions”); see also Calbeck
    v. Travelers Ins. Co., 
    370 U.S. 114
    , 131 (1962) (upholding compensation
    payments under both the LHWCA and state law where the state payments
    were credited against the LHWCA payments, so “no impermissible double
    recovery [wa]s possible”); Hahn, 
    358 U.S. at 273
     (holding that the exclusivity
    provision did not “prevent[] recovery” via a state-law tort claim). Barrosse
    did not engage in double-dipping. He has eschewed the LHWCA entirely and
    is only seeking compensation in tort.
    Thus, even considering the cases raised by the parties and the district
    court, this is a sui generis case. We resolve this issue of first impression by
    holding that, on these facts and pursuant to binding jurisprudential authority,
    Barrosse’s state-law tort claims are not preempted. As a preliminary matter,
    we emphasize that the category of claims we address here is small. Our
    holding concerns only: 1) maritime workers; 2) injured in the twilight zone;
    3) in Louisiana; 4) who neither seek nor obtain LHWCA compensation; and
    5) whose injuries are not covered by the relevant version of the WCA.11
    Recall that “[c]onflict preemption applies (1) where complying with
    both federal law and state law is impossible; or (2) where the state law creates
    11
    The situation presented here, where a plaintiff’s choices are the LHWCA or
    state-law tort, may arise under other states’ laws. Whether such claims are preempted
    should be determined on a case-by-case and state-by-state basis, so our holding is limited.
    12
    Case: 21-30761      Document: 00516782736          Page: 13   Date Filed: 06/12/2023
    No. 21-30761
    an unacceptable obstacle to the accomplishment and execution of the full
    purposes and objectives of Congress.” Janvey, 
    712 F.3d at 200
    . But we may
    not conduct “a freewheeling judicial inquiry” to find such an obstacle, and
    the threshold for finding conflict preemption is “high.” Whiting, 
    563 U.S. at 607
    . This dispute concerns only the second species of conflict preemption,
    so we look to whether the operation of state tort law in this case “creates an
    unacceptable obstacle” to the purpose of the LHWCA. Janvey, 
    712 F.3d at 200
    . And, in the twilight zone, the Supreme Court has interpreted the
    LHWCA to avoid “resurrecting the jurisdictional monstrosity that existed”
    prior to Davis. Sun Ship, 
    447 U.S. at 720
    . Thus, we consider conflict
    preemption with the understanding that the LHWCA “supplements, rather
    than supplants, state compensation law” and runs “concurrently with state
    remedies.” 
    Id.
    The purpose that Barrosse’s tort claims must not unacceptably
    obstruct is the “balance” between employer and employee wherein
    “[e]mployers relinquish[] their defenses to tort actions in exchange for
    limited and predictable liability,” while “[e]mployees accept the limited
    recovery because they receive prompt relief without the expense,
    uncertainty, and delay that tort actions entail.” Morrison-Knudsen Constr. Co.
    v. Dep’t of Labor, 
    461 U.S. 624
    , 636 (1983) (citations omitted). Permitting
    Barrosse’s claims upsets that balance to some extent. But conflict
    preemption is not triggered by ordinary incongruities or minor annoyances,
    only by “unacceptable obstacle[s].” Janvey, 
    712 F.3d at 200
    . Here, the
    Supreme Court has expressly carved out space for concurrent operation of
    often-asymmetrical state and federal law in the twilight zone, lessening any
    concern that obstacles posed by state law are “unacceptable.” Id.; see Sun
    Ship, 
    447 U.S. at
    723–25 (noting that “state remedial schemes” often differ
    from the LHWCA).
    13
    Case: 21-30761          Document: 00516782736              Page: 14        Date Filed: 06/12/2023
    No. 21-30761
    Indeed, if tort claims themselves visited any inherent frustration on
    Congress’ goals sufficient to trigger conflict preemption, the Supreme Court
    would have sided with the dissent in Hahn, which argued that permitting tort
    claims in the twilight zone would “frustrate th[e] very purpose” of the
    LHWCA. Hahn, 
    358 U.S. at 275
     (Stewart, J., dissenting). But it did not.
    Given the limited circumstances permitting Barrosse’s claims under
    Louisiana law, they pose little, if any, greater obstacle to congressional
    purpose than the category of tort claims permitted by Hahn. The only
    difference is that the Oregon legislature in Hahn expressly permitted
    negligence claims under certain circumstances, while the Louisiana legislature
    implicitly permitted negligence claims for certain injuries by excluding those
    injuries from the expressed schedule of covered diseases in the WCA.
    What is more, that distinction simply reflects the differing policy
    choices of different states, a feature of any concurrent-jurisdiction regime.
    Accepting Avondale’s arguments is, therefore, tantamount to eliminating
    concurrent jurisdiction in cases like Barrosse’s.12 We do not think that
    mesothelioma’s exclusion from the pre-1975 WCA’s schedule of covered
    diseases “mandate[s] the result that [Barrosse] can only seek recovery under
    the federal compensation scheme.” DiBenedetto v. Noble Drilling Co., 
    23 So. 3d 400
    , 406 (La. Ct. App. 2009).13 Instead, because the LHWCA does not
    “supplant[]” state law, Sun Ship, 
    447 U.S. at 720
    , Barrosse may pursue the
    12
    As noted above, Avondale effectively concedes this point.
    13
    Although DiBenedetto is a state court case and not binding here, we find it
    persuasive as it is the only case that we or the parties are aware of that addresses the factual
    scenario before us head on. In DiBenedetto, the plaintiff was injured in Louisiana, in the
    twilight zone, before 1975, was diagnosed with mesothelioma, did not seek LHWCA
    benefits, and brought a tort suit. 
    Id.
     at 404–05. Like Avondale, the defendants argued that
    the LHWCA preempted his claims. Id. at 404. The court held that it did not. Id. at 405.
    14
    Case: 21-30761     Document: 00516782736            Page: 15   Date Filed: 06/12/2023
    No. 21-30761
    remedy available to him under that law which, as state law applies here, is
    only a tort claim. See DiBenedetto, 
    23 So. 3d at 406
    .
    The Supreme Court has already rejected the principal arguments to
    the contrary. Writing separately, Justices in Davis and Hahn criticized the
    twilight zone as illogical, contrary to the text, beyond the power of the
    judiciary to create, and unfair to employers who are deprived of the benefits
    of the LHWCA’s quid pro quo and must instead secure compensation
    coverage under both federal and state law. Hahn, 
    358 U.S. at 275
     (Stewart,
    J., dissenting) (characterizing the twilight zone as “illogic”); Davis, 
    317 U.S. at 259
     (Frankfurter, J., concurring) (same); 
    id.
     at 260–62 (Stone, C.J.,
    dissenting) (arguing that recognizing the twilight zone is not “within judicial
    competence . . . [,] controverts the words of the statute,” and “imposes an
    unauthorized burden on the employer” who will be subject to liability under
    state law). These 80-year-old objections have yet to overcome the twilight
    zone. We cannot hold that they do.
    In sum, our conclusion that conflict preemption does not apply is
    supported by the existence of concurrent jurisdiction and the acceptable
    incongruity inherent therein, the Supreme Court’s consistent rejection of
    arguments resisting that regime, the LHWCA’s role of supplementing
    rather than supplanting state law, the limited category of claims at issue here,
    and the similarity between these claims and those the Supreme Court has
    already permitted in Hahn.
    IV
    The Supreme Court has recognized a twilight zone of concurrent
    jurisdiction, permitted by the LHWCA, in cases like this one. We are duty-
    bound to interpret and apply the law consistent with that guidance. Here, that
    means preserving concurrent jurisdiction in the twilight zone and avoiding
    the resurrection of a “jurisdictional monstrosity” by allowing Barrosse’s
    15
    Case: 21-30761     Document: 00516782736           Page: 16   Date Filed: 06/12/2023
    No. 21-30761
    state-law tort claims to proceed. Sun Ship, 
    447 U.S. at 720
    . We reiterate the
    highly unusual fact pattern that brought Barrosse to this point and
    reemphasize that our holding is narrow. It is only through the peculiar nature
    and application of Louisiana’s pre-1975 worker’s compensation statute,
    combined with the other characteristics of this case listed above, that
    Barrosse’s claims survive preemption. We accordingly REVERSE and
    REMAND for further proceedings consistent with this opinion.
    16
    

Document Info

Docket Number: 21-30761

Filed Date: 6/12/2023

Precedential Status: Precedential

Modified Date: 6/12/2023

Authorities (24)

Langfitt v. Federal Marine Terminals, Inc. , 647 F.3d 1116 ( 2011 )

Tilcon New York v. Volk , 874 F.3d 356 ( 2017 )

Gaudet v. Exxon Corp. , 562 F.2d 351 ( 1977 )

Wright v. Allstate Insurance , 415 F.3d 384 ( 2005 )

Conrad Peter, in No. 88-3797 v. Hess Oil Virgin Islands ... , 903 F.2d 935 ( 1990 )

Douglas F. White v. Bethlehem Steel Corporation, and Krupp ... , 222 F.3d 146 ( 2000 )

Jowers v. Lincoln Electric Co. , 617 F.3d 346 ( 2010 )

Roy Hebron v. Union Oil Company of California , 634 F.2d 245 ( 1981 )

Janvey v. Democratic Senatorial Campaign Committee, Inc. , 712 F.3d 185 ( 2013 )

Richard Baker, Cross-Appellee v. Farmers Electric ... , 34 F.3d 274 ( 1994 )

Joe Rosetti v. Avondale Shipyards, Inc. , 821 F.2d 1083 ( 1987 )

Lynda D. Perry v. Mercedes Benz of North America, Inc. And ... , 957 F.2d 1257 ( 1992 )

McLaurin v. Noble Drilling (U.S.), Inc. , 529 F.3d 285 ( 2008 )

Hetzel v. Bethlehem Steel Corp. , 50 F.3d 360 ( 1995 )

Davis v. Department of Labor and Industries of Wash. , 63 S. Ct. 225 ( 1942 )

Hahn v. Ross Island Sand & Gravel Co. , 79 S. Ct. 266 ( 1959 )

DiBenedetto v. Noble Drilling Co. , 23 So. 3d 400 ( 2009 )

Lorita Savoie v. Huntington Ingalls, Inc. , 817 F.3d 457 ( 2016 )

Kirk J. Lesassier v. Chevron Usa, Inc. , 776 F.2d 506 ( 1985 )

Sun Ship, Inc. v. Pennsylvania , 100 S. Ct. 2432 ( 1980 )

View All Authorities »