Opinion

Ellison v. Marquette Transportation Company Gulf-Inland, LLC

Court
District Court, E.D. Louisiana
Filed
Sep 13, 2024
Cited by
0 cases
Authority
More cited than 31.4%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

KYLE ELLISON CIVIL ACTION

VERSUS NO. 23-1849

MARQUETTE TRANSPORTATION COMPANY SECTION: “G”(3)

GULF-INLAND, LLC

ORDER AND REASONS

In this litigation, Plaintiff Kyle Ellison (“Plaintiff”) brings claims against Defendant

Marquette Transportation Company Gulf-Inland, LLC (“Defendant”) under the Jones Act and

general maritime law.1 Plaintiff alleges that Plaintiff was a member of the M/V ST. PEREGRINE’s

crew when a collision occurred between two barges while the M/V ST. PEREGRINE was building

tow.2 As a result of this collision, Plaintiff alleges he suffered injuries to his left leg and lower

back.3 Pending before the Court is Defendant’s Motion for Partial Summary Judgment on the issue

of whether Defendant can properly be assessed punitive damages for delaying maintenance and

cure payments.4 Plaintiff opposes the motion.5 Considering the motion, the memoranda in support

and in opposition, the record, and the applicable law, the Court denies the motion.

1 Rec. Doc. 1.

2 See, e.g., Rec. Doc. 24 at 1.

3 Id.

4 Rec. Doc. 22.

5 Rec. Doc. 23.

1

I. Background

Plaintiff avers that he was a deckhand and member of the crew of the M/V ST.

PEREGRINE when a collision occurred while the M/V ST. PEREGRINE building tow on June 5,

2020.6 Plaintiff claims they injured their left leg and lower back in the collision.7 On June 5, 2020,

the M/V ST. PEREGRINE was captained by Captain Landry who operated the vessel with

deckhands Brandon Morgan (“Morgan”) and Plaintiff Kyle Ellison.8 Harvey Marbile was the port

captain.9

On July 9, 2024, Defendant filed the instant motion for partial summary judgment on

punitive damages.10 On July 16, 2024, Plaintiff opposed the motion.11 On July 19, 2024, Defendant

filed a reply brief.12

II. Parties’ Arguments

A. Defendants’ Arguments in Support of the Motion for Partial Summary Judgment on

Punitive Damages

Defendant argues there is no evidence it acted “in bad faith or engaged in egregious

misconduct with respect to Plaintiff and his claims.”13 Defendant admits that a Jones Act employer

owes a duty to provide maintenance and cure to any employee that is injured or becomes ill while

6 Rec. Doc. 24 at 1.

7 Id.

8 Id. at 6.

9 Id.

10 Rec. Doc. 22.

11 Rec. Doc. 23.

12 Rec. Doc. 31.

13 Rec. Doc. 22-1 at 17.

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working on a company vessel.14 But Defendant claims Jones Act employers are not required to

immediately commence payments.15 It submits that employers are first permitted to investigate

claims for maintenance and cure before beginning payments, and that performing an investigation

does not open employers to liability for compensatory or punitive damages.16 As Defendant notes,

under Atlantic Sounding Co. v. Townsend,17 an employee may seek punitive damages if an

employer arbitrarily and willfully refuses to pay maintenance and cure.18 Defendant claims

Plaintiff can point to no evidence demonstrating it arbitrarily, willfully, or in bad faith failed to

pay maintenance and cure with respect to Plaintiff’s claims.19

Specifically, Defendant points to the fact that Plaintiff “never reported an acute injury from

a barge collision” to Defendant.20 Defendant argues when it was first informed by Plaintiff that

the injury occurred on the boat it immediately began investigating the matter.21 Defendant

reviewed text message exchanges between Plaintiff and the Crew Manager, Corey Sayers, where

Plaintiff claimed the injury was “done at my house.”22 After later being informed Plaintiff injured

himself on the boat, Defendant claims the investigation that ensued was the first time they were

14 Id.

15 Id.

16 Id.

17 Atlantic Sounding Co. v. Townsend, 557 U.S. 404 (2009).

18 Rec. Doc. 22-1 at 17–18.

19 Id. at 20.

20 Id. at 8.

21 Id.

22 Id.

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made privy to Plaintiff’s medical records from the injury.23 After Defendant and their board-

certified physician reviewed the records, Defendant determined the records made no mention of

an acute injury on a vessel.24 Due to this fact and the fact Plaintiff allegedly never directly reported

a specific incident to Defendant, Defendant denied Plaintiff’s claim for maintenance and cure.25

In December of 2022, Defendant admits it received a second demand for maintenance and

cure from Plaintiff.26 On June 2, 2023, Plaintiff filed the instant lawsuit against Defendant.27 On

December 14, 2023, Defendant claims, after receiving more medical records and discovery from

Plaintiff, it informed Plaintiff that none of the medical records made a mention of an incident or a

barge collision occurring on June 5, 2020.28 Defendant continued with the investigation,

interviewing Plaintiff, one of Plaintiff’s initial medical providers, Dr. James Lalonde, and Captain

Landry.29 Defendant then attempted to mediate with Plaintiff with a meeting occurring on June 4,

2024, but with no resolution.30 After completing these steps, Defendant then agreed to pay

maintenance and cure for Plaintiff’s leg injury in the amount of $28,485, representing a rate of $45

a day from June 5, 2020 until March 2, 2022.31 Defendant denied Plaintiff’s claims for

23 Id. at 10.

24 Id.

25 Id.

26 Id. at 11.

27 Id.

28 Id. at 12.

29 Id.

30 Id. at 13.

31 Id.

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maintenance and cure for Plaintiff’s alleged lower back issues based on the fact Plaintiff made no

complaints about lower back pain to medical providers and Dr. Katz, Defendant’s board-certified

orthopedic surgeon hired to examine Plaintiff, reported that Plaintiff’s lower back injuries did not

relate to the June 5, 2020 incident.32

B. Plaintiff’s Arguments in Opposition to the Motion for Summary Judgment

In Opposition,33 Plaintiff argues, in keeping with the “absolute nature of the right” to

maintenance and cure, a plaintiff need only establish that he was injured or became ill while

serving on a vessel.34 Plaintiff concedes when an employee demands maintenance and cure the

“employer is not obliged to immediately begin payments; rather, it may conduct a reasonable

investigation of the claim and require corroboration without subjecting itself to compensatory or

punitive damages.”35 Plaintiff further admits the willful and wanton conduct necessary to justify

an award of punitive damages requires an element of bad faith.36

Plaintiff argues multiple witnesses interviewed by Defendant, including Captain Landry

and Corey Sayers, confirm Plaintiff was injured and unable to work in his normal capacity the

days following June 5, 2020.37 Plaintiff maintains Defendant “unquestionably” knew that

Plaintiff’s leg started swelling after working on June 5, 2020 as confirmed by Captain Landry and

32 Id.

33 Rec. Doc. 23.

34 Id. at 17.

35 Id.

36 Id. at 18.

37 Id. at 19.

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Corey Sayers in their July 24, 2020 interviews.38 Plaintiff alleges, regardless of the text sent on

Plaintiff’s phone to Corey Sayers about the injury occurring at home, Defendant knew Plaintiff

was injured after working on June 5, 2020.39 Plaintiff submits the text from Plaintiff claiming the

injury occurred at home was only sent after “Sayers made veiled threats against [Plaintiff’s] job,

and had instructed Plaintiff to send this text.”40 Plaintiff also mentions the “Lump Sum Payment

Agreement” sent by Defendant to Plaintiff on August 4, 2020 which, Plaintiff claims, stated that

Plaintiff told Defendant about his injury on June 5, 2020 on the M/V ST. PEREGRINE.41

Plaintiff disagrees with Defendant’s characterization of Plaintiff’s medical records,

claiming the records demonstrate that every provider references his job with Defendant in relation

to his injuries.42 Plaintiff further takes issue with the fact Defendant failed to interview Morgan,

the lead deckhand on June 5, 2020 on the M/V ST. PEREGRINE, at the same time it interviewed

Captain Landry and Corey Sayers.43 Plaintiff points out Defendant waited nearly three-and-a-half

years until interviewing Brandon Morgan.44

C. Defendant’s Arguments in Reply

Defendant replies by arguing, even assuming all of Plaintiff’s allegations are true, the

evidence does not demonstrate Defendant’s conduct rises to the level of a “monstrous wrong” or

38 Id.

39 Id.

40 Id. at 21.

41 Id. at 13.

42 Id.

43 Id. at 22.

44 Id.

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the “willful, wanton, [or] bad faith conduct” necessary to support punitive damages.45 Defendant

paints Plaintiff’s contention that Plaintiff’s wife sent Corey Sayers the text about the injury

occurring at home as irrelevant, arguing the text was considered by Defendant in its investigation

of Plaintiff’s injury and Defendant had no reason to believe at the time it was sent by Plaintiff’s

wife.46 Defendant further argues the medical records demonstrated to Defendant that Plaintiff’s

injuries were the result of a chronic condition unrelated to Plaintiff’s job due to their silence on a

“barge collision” causing any of the symptoms.47 Defendant refutes Plaintiff’s contention that it

denied Plaintiff’s claim due to Plaintiff refusing to accept the Lump Sum Agreement.48

Defendant defends its decision not to initially interview Brandon Morgan, stating that

Defendant performed its investigation based on the information Plaintiff provided to it.49

Defendant claims Plaintiff never mentioned a barge collision to them, and so Defendant found it

unnecessary to interview Brandon Morgan about any accident.50

Defendant further argues much of Plaintiff’s Opposition contains inadmissible hearsay

statements that should not be considered by this Court.51 Defendant sums up its argument by

asserting it investigated the injury based on Plaintiff’s allegations at the time,52 and while the denial

45 Rec. Doc. 31 at 1.

46 See id. at 2.

47 Id. at 3.

48 Id.

49 Id.

50 Id.

51 Id. at 4.

52 Id. at 5.

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of maintenance and cure may ultimately have been wrong, Defendant avows it was not

unreasonable in denying or delaying maintenance and cure based on Plaintiff’s statements at the

time.53

III. Legal Standard

A. Summary Judgment Standard

Summary judgment is appropriate when the pleadings, discovery, and affidavits

demonstrate “no genuine dispute as to any material fact and the movant is entitled to judgment as

a matter of law.”54 To decide whether a genuine dispute as to any material fact exists, the court

considers “all of the evidence in the record but refrain[s] from making credibility determinations

or weighing the evidence.”55 All reasonable inferences are drawn in favor of the nonmoving

party.56 Yet “unsupported allegations or affidavits setting forth ‘ultimate or conclusory facts and

conclusions of law’ are insufficient to either support or defeat a motion for summary judgment.”57

If the entire record “could not lead a rational trier of fact to find for the non-moving party,” then

no genuine issue of fact exists and, consequently, the moving party is entitled to judgment as a

matter of law.58 The nonmoving party may not rest upon the pleadings.59 Instead, the nonmoving

53 Id. at 6.

54 Fed. R. Civ. P. 56(a); see also Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994).

55 Delta & Pine Land Co. v. Nationwide Agribusiness Ins. Co., 530 F.3d 395, 398–99 (5th Cir. 2008).

56 Turner v. Baylor Richardson Med. Ctr., 476 F.3d 337, 343 (5th Cir. 2007) (quoting Reeves v. Sanderson

Plumbing Prods., Inc., 530 U.S. 133, 150 (2000))

57 Galindo v. Precision Am. Corp., 754 F.2d 1212, 1216 (5th Cir. 1985); Little, 37 F.3d at 1075.

58 Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986).

59 Celotex Corp. v. Catrett, 477 U.S. 317, 325 (1986).

8

party must identify specific facts in the record and articulate the precise manner in which that

evidence establishes a genuine issue for trial.60

The party seeking summary judgment always bears the initial responsibility of showing the

basis for its motion and identifying record evidence that demonstrates the absence of a genuine

issue of material fact.61 “To satisfy this burden, the movant may either (1) submit evidentiary

documents that negate the existence of some material element of the opponent’s claim or defense,

or (2) if the crucial issue is one on which the opponent will bear the ultimate burden of proof at

trial, demonstrate that the evidence in the record insufficiently supports an essential element of the

opponent’s claim or defense.”62 If the moving party satisfies its initial burden, the burden shifts to

the nonmoving party to “identify specific evidence in the record, and to articulate” precisely how

that evidence supports the nonmoving party’s claims.63 The nonmoving party must set forth

“specific facts showing the existence of a ‘genuine’ issue concerning every essential component

of its case.”64

The nonmovant’s burden of demonstrating a genuine issue of material fact is not satisfied

merely by creating “some metaphysical doubt as to the material facts,” “by conclusory

60 See id.; Ragas v. Tenn. Gas Pipeline Co., 136 F.3d 455, 458 (5th Cir. 1998).

61 Celotex, 477 U.S. at 323.

62 Duplantis v. Shell Offshore, Inc., 948 F.2d 187, 190 (5th Cir. 1991) (quoting Little, 939 F.2d at 1299).

63 Forsyth v. Barr, 19 F.3d 1527, 1537 (5th Cir. 1994), cert. denied, 513 U.S. 871 (1994); see also Morris v.

Covan World Wide Moving, Inc., 144 F.3d 377, 380 (5th Cir. 1998).

64 Morris, 144 F.3d at 380; see also Bellard v. Gautreaux, 675 F.3d 454, 460 (5th Cir. 2012).

9

allegations,” by “unsubstantiated assertions,” or “by only a scintilla of evidence.”65 Moreover, the

nonmoving party may not rest upon mere allegations or denials in its pleadings.66

B. Maintenance and Cure and Punitive Damages Standard

“Maintenance is a per diem living allowance for food and lodging comparable to what the

seaman is entitled to while at sea; cure is payment of medical expenses incurred in treating the

seaman’s injury or illness.”67 A seaman’s right to maintenance and cure lives in the contractual

relationship between the seaman and the employer.68 It is designed to guarantee recovery to

seaman who experience injury or sickness in the service of a vessel.69 Maintenance and cure is a

“right” to seaman who are injured in the course of their duties to a vessel.70 Plaintiff can recover

maintenance and cure by proving the following: (1) his engagement as a seaman, (2) his illness or

injury and that it occurred, was aggravated by, or manifested itself while in service to the vessel,

(3) the wages to which he may be entitled to the end of the voyage, and (4) the expenditures or

liability incurred for medical costs, care, board, and lodging.71

Upon receiving a demand for maintenance and cure, a shipowner is not required to begin

payments immediately, but may undertake a reasonable investigation to corroborate the seaman’s

claim.72 “If, after investigating, the shipowner unreasonably rejects the claim, when in fact the

65 Little, 37 F.3d at 1075 (internal citations omitted).

66 Morris, 144 F.3d at 380.

67 Weeks Marine, Inc. v. Watson, 190 F. Supp. 3d 588, 596 (E.D. La. 2016).

68 Pelotto v. L & N Towing Co., 604 F.2d 396, 400 (5th Cir. 1979).

69 Id.

70 Fostrer v. Brian's Transp. Serv., No. CIV. A. 91-4421, 1993 WL 114528, at *2 (E.D. La. Apr. 8, 1993).

71 Id. (citing Martin Norris, 2 The Law of Seamen § 26.21, at 53 (Supp. 1992)).

72 Lodrigue v. Delta Towing, L.L.C., No. CIV.A.03-0363, 2003 WL 22999425, at *11 (E.D. La. Dec. 19,

10

seaman is due maintenance and cure, the owner becomes liable not only for the maintenance and

cure payments, but also for compensatory damages.”73 But there is an “escalating scale of

liability.”74 “If the owner not only lacks a reasonable defense” for failing to pay maintenance and

cure, “but has exhibited callousness and indifference to the seaman’s plight, he becomes liable for

punitive damages and attorney’s fees as well.”75

IV. Analysis

In this case, Plaintiff asserts that there is a genuine dispute of material fact on whether

Defendant should be assessed punitive damages for their delay in paying maintenance and cure to

Plaintiff.76 A plaintiff is entitled to maintenance and cure if he establishes: (1) his engagement as

a seaman, (2) his illness or injury and that it occurred, was aggravated by, or manifested itself

while in service to the vessel, (3) the wages to which he may be entitled to the end of the voyage,

and (4) the expenditures or liability incurred for medical costs, care, board, and lodging.77 In this

case, at issue is prong two, whether Plaintiff was injured or aggravated an injury on the M/V ST.

PEREGRINE. Defendant claims Plaintiff “never reported any barge collision or specific acute

accident,” and so denying maintenance and cure was justified.78

2003).

73 Morales v. Garijak, Inc., 829 F.2d 1355, 1358 (5th Cir. 1987).

74 Id.

75 Id.

76 See Rec. Doc. 23 at 16.

77 Fostrer, 1993 WL 114528 at *2.

78 Rec. Doc. 22-1 at 10.

11

If an injury occurs, manifests itself, or is even aggravated by working on a vessel, Plaintiff

is owed maintenance and cure.79 Here, there is a genuine dispute of material fact on whether

Plaintiff’s injury fits this criterion. Defendant’s board-certified physician stated he does not believe

Plaintiff’s condition was caused or aggravated by his work on the boat.80 However, an employee

of Defendant’s summary of the incident states that Plaintiff notified the “master of the ST

PEREGRINE of having a swollen leg and moderate pain late in the evening of 06/05/20,” and that

his “leg started swelling after several hours of work.”81 Defendant’s own Claims and Risk Manager

Ronnie Dupuy stated in an email “[Plaintiff] has always alleged that his leg issues were caused by

prolonged standing on the deck.”82

While Defendant points to some medical records that do not mention work as a cause or

aggravation of Plaintiff’s injury, one such record produced by Dr. Olinde only two weeks after the

alleged June 5, 2020 barge bump indicates that Plaintiff stated swelling “oftentimes will follow

his left foot when he works on the River.”83 While Defendant claims it did not receive Dr.

Lalonde’s July 2, 2020 intake form in the initial investigation, it too cited wires constantly

dropping on Plaintiff’s feet as the cause of injury.84

Thus, there exists adequate evidence for a reasonable factfinder to find Plaintiff

demonstrated to Defendant his injury was caused or at least aggravated by his work on the M/V

79 Fostrer, 1993 WL 114528 at *2.

80 Rec. Doc. 22-3 at 22.

81 Id. at 18.

82 Id. at 21.

83 Rec. Doc. 22-1 at 6.

84 Id. at 7.

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ST. PEREGRINE. With these facts, a reasonable factfinder could further find that Defendant

exhibited callous, arbitrary, and bad faith behavior in refusing to pay maintenance and cure for

over two years after these records and emails were produced. Accordingly, a genuine dispute of

material fact exists on the issue of whether punitive damages are proper and the Court, as trier of

fact, must weigh the evidence presented at trial.

V. Conclusion

Based on the foregoing, there are genuine issues of material fact in dispute precluding

summary judgment on the punitive damages. Accordingly,

IT IS HEREBY ORDERED that Defendant’s Motion for Partial Summary Judgment*® is

DENIED.

NEW ORLEANS, LOUISIANA, this 11th day of September, 2024.

ersctteobuett. OS

NANNETTE JOLYVETTE BROWN (OU

CHIEF JUDGE

UNITED STATES DISTRICT COURT

® Rec. Doc. 22.

13

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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