If a seaman becomes ill or is injured while in the service of the vessel, then the shipowner owes the seaman maintenance and cure – a contractual form of compensation similar to workers’ comp. The employer’s duty encompasses situations where a seaman has a pre-existing medical condition that becomes manifest while working for the vessel. Importantly, courts are in agreement that any doubts as to a shipowner’s responsibility for maintenance and cure are resolved in favor of the seaman.
The Eastern District of Louisiana’s decision in Jefferson v. Baywater Drilling, LLC reaffirms the notion that courts sitting in admiralty will continue to scrutinize an employer’s denial of maintenance and cure benefits. In this case, the plaintiff, having been on the defendant’s oil rig for about 11 hours, began experiencing a painful skin condition that produced blisters on his feet. It was later determined that he was suffering from a rare skin disorder where the top layer of skin rapidly dies and begins to shed. Once he alerted his supervisor about his condition, it took an additional five hours for Baywater to transfer Jefferson to shore.
Once Baywater’s claims adjuster arrived at the hospital, he began asking Jefferson non-medical questions, but was eventually asked to leave by one of the nurses who felt the adjuster was harassing Jefferson. The adjuster was unable to get a medical authorization from Jefferson. Baywater also interviewed witnesses and reviewed reports of the incident. As a result of this investigation, Baywater decided not to pay any maintenance and cure based on its conclusion that Jefferson’s condition had actually manifested prior to his arrival on the rig.
The court considered Baywater’s investigation “impermissibly lax” based in large part on its failure to review any medical opinion or administer any test that supported its theory that Jefferson’s illness had manifested prior to arriving on the rig. In effect, the court found that Baywater made a “medical determination without medical evidence.” For this reason, the court held that Baywater was arbitrary and capricious in denying maintenance and cure to Jefferson, subjecting Baywater to compensatory and punitive damages, as well as attorney’s fees and pre-judgment interest from the date Jefferson had to leave the rig.
Jefferson v. Baywater Drilling, LLC
