Joseph Mike Deshotels v. Shrm Catering Services, Inc., Defendant-Third-Party v. The Louisiana Insurance Guaranty Association, Third-Party
Docket: 87-4798
Court: Court of Appeals for the Third Circuit; May 24, 1988; Federal Appellate Court
An employer whose insurer became insolvent sought reimbursement from the Louisiana Insurance Guaranty Association (LIGA) after settling a maritime injury claim. This case involves a significant legal question regarding LIGA's responsibility to cover claims for maritime injuries under a general workers' compensation policy with a maritime endorsement. The district court had awarded summary judgment to the employer, leading the appellate court to certify the liability question to the Louisiana Supreme Court.
The facts of the case involve Joseph Mike Deshotels, a night cook for SHRM Catering Services, Inc., who suffered injuries during an incident while being transported from the MR. DEMP rig. Deshotels claimed the crane operator dropped him from a height of 10 feet, resulting in serious cervical and lumbar injuries requiring surgery. He initially filed suit against SHRM and Magnum-Marine Drilling Corporation for negligence under maritime law and the Jones Act, asserting claims for maintenance and cure as well as seaworthiness.
At the time of the accident, SHRM was insured under a policy from Transit Casualty Company that included a maritime endorsement applicable to its offshore operations. Following Transit’s insolvency in December 1985, SHRM filed a third-party claim against LIGA, seeking coverage under the Insurance Guaranty Association Law, which was established to handle claims from insolvent insurers.
LIGA coverage is applicable to various types of direct insurance, excluding life, health, accident, title, disability, mortgage guaranty, and ocean marine insurance. LIGA denied liability to SHRM, asserting that Deshotels's claim fell under "ocean marine insurance" due to its maritime nature. Following Magnum-Marine's bankruptcy, Deshotels settled his claim with SHRM for $75,000, leading to SHRM's third-party demand against LIGA. SHRM sought summary judgment, which was agreed to be submitted for a final judgment. The federal district court ruled that the insurance policy in question was not "ocean marine insurance," obligating LIGA to cover Deshotels's claim and SHRM's legal expenses. The court awarded SHRM $75,000 for the settlement, $24,143.79 in maintenance and cure benefits, and $26,606.84 in attorney's fees, with additional fees to be determined for costs incurred post-July 31, 1987. LIGA did not seek reconsideration but appealed, which was consolidated with seven similar appeals. The Louisiana First Circuit Court of Appeals previously ruled that a similar worker's compensation policy was not "ocean marine insurance," making LIGA liable. However, the Louisiana Supreme Court later vacated this ruling, remanding for a trial on the merits regarding liability and coverage. The current appeal is set to certify the coverage question to the Louisiana Supreme Court, with the stipulation that should SHRM prevail, it would receive specified attorney's fees and costs through July 31, 1987, plus any additional fees incurred thereafter.
The document certifies a legal question from the United States Court of Appeals for the Fifth Circuit to the Supreme Court of Louisiana regarding a case involving maritime-related injuries. The case, titled Joseph Mike Deshotels vs. SHRM Catering Services, Inc., concerns whether a claim under a Standard Workmen's Compensation and Employers' Liability policy with a marine endorsement constitutes "ocean marine insurance," which would exclude it from coverage by the Louisiana Insurance Guaranty Association Fund under La.R.S. 22:1377.
The Fifth Circuit court expresses no intention to limit the Louisiana Supreme Court's response to the specific question posed and suggests that the court may reference expert testimony from related pending cases (Sifers v. General Marine Catering and Blair v. Sealift, Inc.) regarding the marine insurance industry's definition of "ocean marine insurance." The Fifth Circuit emphasizes that the Louisiana Supreme Court’s answer will be crucial in determining the liability of the Louisiana Insurance Guaranty Association (LIGA) in this case. The document includes a list of related federal and district court cases from the Fifth Circuit and the Western District of Louisiana.
The document lists a series of legal cases involving various parties and courts primarily within Louisiana, including federal and state jurisdictions. Notable cases include Temple Drilling Company v. Louisiana Insurance Guaranty Association and others involving different companies and individuals, with case numbers and specific sections provided for reference. The document outlines cases from various judicial districts, including the First Circuit Court of Appeals and several district courts such as the 15th, 16th, 19th, and 24th Judicial District Courts, as well as Civil District Court in Orleans Parish. The cases encompass a range of issues, likely related to maritime and insurance law, as indicated by the involvement of the Louisiana Insurance Guaranty Association. Citations for relevant statutes and prior case law are included, suggesting the legal context and implications of the cases listed.
