stating that who furnished the funds to pay the employee “is the determinative inquiry for this factor”
How later courts described this case
- stating that who furnished the funds to pay the employee “is the determinative inquiry for this factor”
- “There is no sound reason why conclusory allegations should suffice to require a trial when there is no evidence to support them even if the movant lacks contrary evidence.”
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA
JEFFERY HARPER CIVIL ACTION
VERSUS No. 24-1101
W&T OFFSHORE INC SECTION I
ORDER AND REASONS
Before the Court is defendant W&T Offshore Inc.’s (“W&T”) motion1 for
summary judgment. Plaintiff Jeffery Harper (“Harper”) filed a response2 in
opposition. W&T filed a reply.3 For the reasons that follow, the Court grants W&T’s
motion.
I. FACTUAL BACKGROUND
This case arises out of an incident, in which Harper claims that he was injured
when he tripped and fell on a valve handle that was protruding into a passageway
while working on the platform East Cameron 321-A (“EC 321-A”).4 At the time of the
alleged incident, Harper was working as a production operator on EC 321-A.5 This
platform is located on the Outer Continental Shelf off the coast of Louisiana and is
owned by W&T.6 Harper was employed by Danos LLC (“Danos”)7 at the time and was
1 R. Doc. No. 28.
2 R. Doc. No. 29.
3 R. Doc. No. 30.
4 R. Doc. No. 1, ¶¶ VII–IX.
5 R. Doc. No. 28-2, at 1; R. Doc. No. 29-1, at 2.
6 R. Doc. No. 28-2, at 1; R. Doc. No. 29-1, at 2.
7 Harper was originally employed by Wood Group when he began working on EC 321-
A in 2022. R. Doc. No. 28-3, at 5–6. Danos purchased Wood Group in 2023, and Harper
contracted to W&T through a master service contract.8 Harper filed suit in this Court
on April 30, 2024, alleging that W&T was negligent and that this negligence caused
Harper’s injuries.9
W&T now seeks summary judgment on the ground that Harper was W&T’s
borrowed employee, making workers’ compensation benefits Harper’s exclusive
remedy and barring the suit against W&T pursuant to the Longshore and Harbor
Workers’ Compensation Act (“LHWCA”), 33 U.S.C. § 905(a).10 W&T likewise argues
that summary judgment is appropriate because “the valve handle which allegedly
caused his injury was an open and obvious condition.”11
Harper argues that summary judgment is inappropriate because there are
disputed issues of fact that must be resolved before the Court can determine whether
Harper is a borrowed employee.12 Harper also argues that W&T’s open and obvious
argument is based on caselaw that has been reversed by the Louisiana Supreme
Court.13 Because the Court concludes that Harper is a borrowed employee, the Court
does not reach whether the condition was open and obvious.
stayed with Danos through the transition. Id. at 5. Harper testified that nothing
really changed for him when Danos took over Wood Group. Id. at 6. For simplicity,
the Court refers to Harper’s direct employer as Danos throughout this order and
reasons.
8 R. Doc. No. 29-1, at 6; R. Doc. No. 30-1, at 3.
9 R. Doc. No. 1, ¶ X.
10 R. Doc. No. 28-1, at 3.
11 Id. at 1.
12 R. Doc. No. 29, at 1.
13 Id.
II. STANDARD OF LAW
Summary judgment is proper when, after reviewing the materials in the
record, a court determines that 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). “[A]
party seeking summary judgment always bears the initial responsibility of informing
the district court of the basis for its motion, and identifying those portions of [the
record] which it believes demonstrate the absence of a genuine issue of material fact.”
Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). The party seeking summary
judgment need not produce evidence negating the existence of a material fact; it need
only point out the absence of evidence supporting the other party’s case. Id.; see also
Fontenot v. Upjohn Co., 780 F.2d 1190, 1195–96 (5th Cir. 1986) (“There is no sound
reason why conclusory allegations should suffice to require a trial when there is no
evidence to support them even if the movant lacks contrary evidence.”).
Once the party seeking summary judgment carries that burden, the
nonmoving party must come forward with specific facts showing that there is a
genuine dispute of material fact for trial. See Matsushita Elec. Indus. v. Zenith Radio
Corp., 475 U.S. 574, 587 (1986). The showing of a genuine dispute is not satisfied by
creating “‘some metaphysical doubt as to the material facts,’ by ‘conclusory
allegations,’ by ‘unsubstantiated assertions,’ or by only a ‘scintilla’ of evidence.” Little
v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994) (citations omitted). Rather, a
genuine dispute of material fact exists when the “evidence is such that a reasonable
jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc.,
477 U.S. 242, 248 (1986). If the nonmovant fails to meet its burden of showing a
genuine issue for trial that could support a judgment in favor of the nonmovant,
summary judgment must be granted. See Little, 37 F.3d at 1075–76.
The party responding to the motion for summary judgment may not rest upon
the pleadings but must identify specific facts that establish a genuine issue.
Anderson, 477 U.S. at 248. The nonmoving party’s evidence, however, “is to be
believed, and all justifiable inferences are to be drawn in [the nonmoving party’s]
favor.” Id. at 255. “Although the substance or content of the evidence submitted to
support or dispute a fact on summary judgment must be admissible . . . the material
may be presented in a form that would not, in itself, be admissible at trial.” JW Dev.,
LLC v. Indep. Specialty Ins. Co., No. CV 22-390, 2022 WL 3139133, at *1 (E.D. La.
Aug. 5, 2022) (Africk, J.) (quoting Lee v. Offshore Logistical & Transp., LLC, 859 F.3d
353, 355 (5th Cir. 2017)).
III. ANALYSIS
Section 1333(b) of the Outer Continental Shelf Lands Act incorporates and
extends the benefits of the LHWCA to employees injured on fixed platforms on the
Outer Continental Shelf. 43 U.S.C. § 1333(b). The LHWCA entitles employees to
worker’s compensation benefits as their exclusive remedy against their employer
“because the Act bars all common law tort actions against the employer.” Melancon
v. Amoco Prod. Co., 834 F.2d 1238, 1243 (5th Cir. 1988) (citing 33 U.S.C. § 905(a)).
Borrowed employees and borrowing employers enjoy the same rights to workers’
compensation and protection from tort liability afforded by the LHWCA. See id.
The parties agree that Harper’s alleged injury occurred on the Outer
Continental Shelf.14 Thus, if Harper is found to be W&T’s borrowed employee, he is
covered by the LHWCA, entitling him to workers’ compensation pursuant to the Act
and barring him from suing W&T in tort.
“The issue of borrowed employee status is a matter of law for the district court
to determine, but some cases involve factual disputes on the issue of borrowed
employee status and require findings by a fact-finder.” Brown v. Union Oil Co. of Cal.,
984 F.2d 674, 677 (5th Cir. 1993) (per curiam). “The party asserting the existence of
a borrowed employee relationship bears the burden of proof.” Butcher v. Superior
Offshore Int’l, LLC, 754 F. Supp. 2d 829, 836 (E.D. La. 2010) (Vance, J.) (citing Franks
v. Assoc’d Air Center, Inc., 663 F.2d 583, 587 (5th Cir.1981)). In order to determine
borrowed employee status, courts consider nine factors:
(1) Who had control over the employee and the work he is performing, beyond
mere suggestion of details or cooperation?
(2) Whose work was being performed?
(3) Was there an agreement, understanding, or meeting of the minds between
the original and the borrowing employer?
(4) Did the employee acquiesce in the new work situation?
(5) Did the original employer terminate his relationship with the employee?
(6) Who furnished tools and place for performance?
(7) Was the new employment over a considerable length of time?
(8) Who had the right to discharge the employee?
(9) Who had the obligation to pay the employee?
Id. at 676 (citing Ruiz v. Shell Oil Co., 413 F.2d 310 (5th Cir. 1969)).
In some cases, “[t]he first factor, the question of who has control over the
employee and the work he is performing, has been considered the central issue of
14 R. Doc. No. 28-2, at 1; R. Doc. No. 29-1, at 2.
‘borrowed employee’ status.” Melancon v. Amoco Prod. Co., 834 F.2d 1238, 1244–45
(5th Cir. 1988). However, “no one of these factors, or any combination of them, is
decisive, and no fixed test is used to determine the existence of a borrowed-servant
relationship.” Ruiz, 413 F.2d at 312. The Fifth Circuit has stated that “certain of these
factors may be more important than others” in different cases, depending on the facts
before the court. Alday v. Patterson Truck Line, Inc., 750 F.2d 375, 376 (5th Cir. 1985).
a. Who had control over the employee and the work he is performing,
beyond mere suggestion of details or cooperation?
Although no single factor or combination of factors is dispositive, the Fifth
Circuit “has considered the first factor—control—to be the central factor.” Brown, 984
F.2d at 677. The first factor requires the Court to distinguish “between authoritative
direction and control, and mere suggestion as to details or the necessary cooperation
where the work furnished is part of a larger undertaking.” Ruiz, 413 F.2d at 313
(quotation omitted).
The undisputed facts regarding this factor are as follows. The parties agree
that Harper never received any work instructions from Danos while on W&T’s
platforms.15 Danos did not have any supervisors present on EC 321-A, nor did Harper
maintain any contact with Danos while he was on EC 321-A.16 Indeed, Harper
reported his accident to W&T’s person in charge, Rodney Carline (“Carline”), rather
than reporting it to Danos.17 Either Carline or W&T’s lead operator, George Gray
15 R. Doc. No. 28-2, at 2; R. Doc. No. 29-1, at 2.
16 R. Doc. No. 28-2, at 2; R. Doc. No. 29-1, at 3–4.
17 R. Doc. No. 28-2, at 2; R. Doc. No. 29-1, at 4.
(“Gray”), conducted mandatory meetings each morning, and every worker on the
platform was required to attend.18 Gray would also sometimes instruct Harper to
work on platforms other than EC 321-A.19
Despite these agreed-upon facts, the parties dispute the level of instruction
and supervision that Harper received from W&T. W&T argues that Harper received
daily work assignments from Carline at the morning meetings and that Harper was
directly supervised by W&T.20 However, Harper argues that he did not receive
specific instructions on general production days and that he was not typically told
where to work or what to do.21 Harper argues that he was trained by Danos regarding
how to perform his job duties and that he did not require or receive daily
instructions.22 Instead, he states that the purpose of the morning meeting was to give
a general overview of everyone’s job scope for the day.23 Harper states that, on regular
production days with a 12-hour shift, he would typically only speak to Carline once
in the context of instructions regarding the work he was performing.24
The disagreement seems to come from somewhat conflicting testimony in
Harper’s deposition. Harper testified at one point that Carline typically gave him
tasks for the day and daily work instructions during mandatory morning meetings.25
18 R. Doc. No. 28-2, at 2; R. Doc. No. 29-1, at 2.
19 R. Doc. No. 28-2, at 2; R. Doc. No. 29-1, at 3.
20 R. Doc. No. 28-1, at 4–6.
21 R. Doc. No. 29, at 7.
22 R. Doc. No. 29-1, at 2.
23 R. Doc. No. 29, at 7.
24 Id.
25 R. Doc. No. 28-3, at 8–9.
Yet, at another point he stated that the morning meetings were to let all the workers
on the platform know generally what was occurring that day and discuss safety tips,
but Carline did not instruct each of the workers where they were to begin their
work.26 Harper testified that Carline did not “stand over his shoulder” giving specific
instructions27 and that he could function without being told what needed to be done.28
Regarding supervision, he testified that Carline never came around to monitor the
work he was performing on regular production days.29 In contrast, Carline testified
that he would give instructions at the meetings regarding what work was to be
performed that day30 and that he directly supervised Danos employees, including
Harper.31
There are clearly disputed issues of fact regarding the specific degree of control
that W&T exercised over Harper. However, even accepting Harper’s contention that
he did not require or receive daily instructions and that he was not closely supervised,
a finding of borrowed employee status is not barred. Indeed, the Fifth Circuit in
Melancon v. Amoco Prod. Co. concluded that a plaintiff's “specialized skills” and a
lack of instructions on how he was to perform his work did not bar a finding of
borrowed employee status. See Melancon, 834 F.2d at 1245 (citing Huff v. Marine
Tank Testing Corp., 631 F.2d 1140 (4th Cir. 1980)); see also Huff, 631 F.2d at 1143
26 R. Doc. No. 29-2, at 22–24.
27 R. Doc. No. 28-3, at 10–11.
28 See R. Doc. No. 29-2, at 3.
29 R. Doc. No. 29-2, at 21.
30 R. Doc. No. 28-4, at 14–15.
31 R. Doc. No. 29-3, at 23–24.
(“It is of no moment that [defendant’s] supervision of the welders was not close.”).
Since Melancon, district courts have consistently “rejected the argument” that skilled
workers who require little supervision cannot be considered borrowed employees.
Robertson v. W & T Offshore, Inc., 712 F. Supp. 2d 515, 529 (W.D. La. 2010) (citing
cases).
At a minimum, W&T had the authority to tell Harper where to work. W&T
likewise exercised some degree of supervision over Harper through the morning
meetings, and it acted as Harper’s only point of managerial contact while on W&T
platforms. In contrast, Danos declined to exercise any control over Harper or
supervise Harper in any way. Harper’s ability to work independently with minimal
instruction does not defeat this point. The Court therefore concludes that this factor
favors finding borrowed employee status.
b. Whose work was being performed?
W&T is in the business of producing oil, and the parties agree that all work
performed on its platforms is performed in furtherance of its objectives.32 This factor
weighs in favor of finding borrowed employee status.
c. Was there an agreement, understanding, or meeting of the minds
between the original and the borrowing employer?
“In deciding this factor, courts have looked to contractual provisions and the
behavior of the parties to determine whether an understanding existed.” LeBlanc v.
AEP Elmwood, LLC, 946 F. Supp. 2d 546, 551 (E.D. La. 2013) (Lemelle, J.) (citing
Brown, 984 F.2d at 677). In this case, the master service agreement between W&T
32 R. Doc. No. 28-2, at 2; R. Doc. No. 29-1, at 3.
and Danos provides that Danos “is an independent contractor and that neither
[Danos] nor [Danos’s] principals, partners, employees[,] or subcontractors are
servants, agents[,] or employees of W&T.”33
A contract purporting to prohibit individuals from being considered borrowed
employees “does not automatically prevent borrowed employee status.” Brown, 984
F.2d at 677–78. “The reality at the worksite and the parties’ actions in carrying out a
contract . . . can impliedly modify, alter, or waive express contract provisions.”
Melancon v. Amoco Prod. Co., 834 F.2d 1238, 1245 (5th Cir. 1988). “Obviously parties
to a contract cannot automatically prevent a legal status like ‘borrowed employee’
from arising merely by saying in a provision in their contract that it cannot arise.”
Id.
While the contract here purports to prohibit borrowed employee status for
Harper, much of the behavior of the parties—including Danos’s lack of supervision
and control—suggests that the parties may have impliedly modified or altered their
agreement. Thus, the master service agreement “could create a factual dispute on the
third factor if the other factors were disregarded.” See Billizon v. Conoco, Inc., 993
F.2d 104, 106 (5th Cir. 1993). “Previously faced with this issue, [the Fifth Circuit] has
concluded that summary judgment is appropriate when the remaining factors clearly
point to borrowed-employee status.” Id. Because there are genuine issues of material
fact regarding whether this factor favors borrowed employee status, the Court
concludes that this factor goes against borrowed employee status for purposes of this
33 R. Doc. No. 29-4, at 1.
motion. However, this does not bar the Court from granting summary judgment in
favor of W&T because all remaining factors clearly point to borrowed employee
status.34
d. Did the employee acquiesce in the new work situation?
The Fifth Circuit has phrased the relevant inquiry as whether “[c]onsidering
the length of time that [Harper] worked on [W&T’s] platform, we can conclude that
he acquiesced to his working conditions.” See Hotard v. Devon Energy Prod. Co., 308
F. App’x 739, 742 (5th Cir. 2009) (citing Brown, 984 F.2d at 678). In Brown, the Fifth
Circuit noted that “one month is a sufficient amount of time for [a plaintiff] to
appreciate [his or her] new work conditions.” See Brown, 984 F.2d at 678.
Here, Harper worked on EC 321-A and other W&T platforms for two years
prior to February 17, 2024.35 Harper was well aware of his working conditions and
34 Harper argues that there are disputed issues of material fact with respect to other
factors, which preclude summary judgment. R. Doc. No. 29, at 15. Harper cites Alday
v. Patterson Truck Line, Inc., in which the Fifth Circuit stated that the presence of a
contractual provision prohibiting borrowed employee status raised genuine issues of
material fact. Alday, 750 F.2d at 378–79. Yet Alday is distinguishable because, in
that case, the plaintiff had worked for the alleged borrowing employer for only one
day. Id. at 379. The Fifth Circuit noted the absence facts showing that the other
factors favored borrowed employee status. See id. at 378–79.
Harper likewise cites Brown where the Fifth Circuit reversed the district
court’s grant of summary judgment based on a finding of borrowed employee status
because the parties had a similar contract provision, there where disputed issues of
fact regarding who controlled the employee, and the remaining factors did not
overwhelmingly favor borrowed employee status. Brown, 984 F.2d at 679. This case
is likewise distinguishable. While there are disputed issues regarding the first factor
of control, the undisputed facts are sufficient to weigh in favor of borrowed employee
status, and the remaining factors overwhelmingly support borrowed employee status.
35 R. Doc. No. 28-2, at 1; R. Doc. No. 29-1, at 2. While the parties agree in their
statements of uncontested material facts that Harper worked on W&T platforms for
two years prior to his alleged injury, some of Harper’s deposition testimony suggests
chose to continue working in them. There is no evidence that Harper complained of
his working conditions or otherwise refused to accept them. And Harper does not
dispute that this factor weighs in favor of borrowed employee status.36 The Court
therefore concludes that this factor weighs in favor of Harper being a borrowed
employee.
e. Did the original employer terminate his relationship with the
employee?
“The emphasis when considering this factor should focus on the lending
employer’s relationship with the employee while the borrowing occurs.” Capps v. N.L.
Baroid-NL Industries, 784 F.2d 615, 618 (5th Cir. 1986). However, this factor “does
not require a lending employer to sever completely its relationship with the
employee” for there to be a finding of borrowed employee status “because such a
requirement would effectively eliminate the borrowed employee doctrine.” Melancon,
834 F.2d at 1246 (internal quotations omitted).
It is undisputed that “Harper did not maintain contact with Danos while he
was on EC 321-A.”37 Accordingly, this factor weighs in favor of borrowed employee
status.
f. Who furnished tools and place for performance?
W&T provided the place of performance and all transportation to and from
jobsites as well as Harper’s lodging, food, and transportation while he was on W&T’s
that he had been working on W&T platforms for four years. See R. Doc. No. 28-3, at
3, 7.
36 R. Doc. No. 29, at 11.
37 R. Doc. No. 28-2, at 2; R. Doc. No. 29-1, at 4.
platforms.38 However, Harper argues that there are factual disputes for the trier of
fact to determine regarding this factor.39 Specifically, Harper argues that he provided
his own tools for the job and that Danos was the one who provided personal protective
equipment (“PPE”) that was required to work on the platform, including a hard hat,
fire retardant clothing, and steel toed boots.40 Harper testified that W&T did not
provide him with any tools but that W&T provided its own employees with tools.41
Carline testified that W&T does ordinarily provide tools for both W&T and Danos
employees but that Harper opted to use his own tools instead.42
In Melancon, the lending employer supplied the plaintiff with a welding
machine and related equipment; the plaintiff supplied his own safety equipment; and
the borrowing employer supplied “certain consumables, the place of performance,
transportation to and from the place of work, food, lodging, etc.” Melancon, 834 F.2d
at 1241, 1246. There, the Fifth Circuit agreed with the district court that, on balance,
this factor weighed in favor of borrowed employee status. Id. at 1246.
The Court accepts Harper’s testimony that he supplied his own tools and that
W&T did not supply him with tools for the purpose of this motion. However, because
of the undisputed fact that Danos supplied Harper with his PPE and that W&T
provided the place of performance, lodging, food, and transportation, the Court
concludes that this factor favors borrowed employee status in light of Melancon.
38 R. Doc. No. 28-2, at 2–3; R. Doc. No. 29-1, at 3–4.
39 R. Doc. No. 29, at 11–12.
40 Id.
41 R. Doc. No. 29-2, at 10, 12–13.
42 R. Doc. No. 28-4, at 15; R. Doc. No. 29-3, at 20–21.
g. Was the new employment over a considerable length of time?
“In the case where the length of employment is considerable, this factor
supports a finding that the employee is a borrowed employee; however, the converse
is not true.” Capps, 784 F.2d at 618. As stated, Harper worked on EC 321-A and other
offshore W&T platforms for two years before the date of the alleged accident.43 And
Harper does not dispute that this factor favors finding borrowed employee status.44
The Court therefore concludes that this factor weighs in favor of Harper being a
borrowed employee.
h. Who had the right to discharge the employee?
“The proper focus under this factor is whether the borrowing employer had the
right to terminate the borrowed-employee’s services with the borrowing employer.”
Tamez v. Anadarko Petroleum Corp., No. CV 15-4941, 2017 WL 4351527 (E.D. La.
Oct. 2, 2017) (Morgan, J.) (citing Capps, 784 F.2d at 618). The alleged borrowing
employer need not have the right to terminate the employee’s relationship with the
lending employer. See Brown, 984 F.2d at 679 (“Although Union did not have the
right to terminate Brown’s employment with Gulf Inland, it had the right to
terminate Brown’s work relationship with Union. This arrangement is sufficient to
support a finding of borrowed servant status.”).
The parties agree that W&T had the right to remove Harper from its platforms
for any reason.45 Harper argues that W&T did not have a right to terminate Harper’s
43 R. Doc. No. 28-2, at 1; R. Doc. No. 29-1, at 2.
44 R. Doc. No. 29, at 12.
45 R. Doc. No. 28-2, at 3; R. Doc. No. 29-1, at 4.
employment with Danos.46 However, this is not relevant to the Court’s inquiry.
Because W&T had the right to terminate Harper’s employment with W&T, the Court
finds that this factor weighs in favor of borrowed employee status.
i. Who had the obligation to pay the employee?
The relevant inquiry for this factor is who furnished the funds from which the
employee was paid. See Melancon, 834 F.2d at 1246 (stating that who furnished the
funds to pay the employee “is the determinative inquiry for this factor”). Even when
the employee is paid by the lending employer, when the employee’s pay is “based on
time tickets” that are verified by the alleged borrowing employer, that procedure
supports borrowed employee status. See Brown, 984 F.2d at 679.
Harper received his paycheck from Danos based on time sheets that were
approved by W&T. Harper concedes that this factor favors borrowed employee status
pursuant to Fifth Circuit case law.47 The Court finds that the ninth factor favors
borrowed employee status.
IV. CONCLUSION
For the reasons stated above, the undisputed facts are sufficient to conclude
that Harper is W&T’s borrowed employee. Only the third factor, asking whether there
was an agreement between the original and borrowing employers, weighs against
borrowed employee status. All remaining factors—control, whose work is being
performed, acquiescence, whether the original employer terminated its relationship
46 R. Doc. No. 29, at 12–13.
47 Id. at 13.
with the employee, who provided the tools and place of performance, length of
employment, right to discharge, and obligation to pay—weigh in favor of holding that
Harper is a borrowed employee. W&T is therefore entitled to summary judgment as
a matter of law, and Harper’s exclusive remedy against W&T for his alleged injury is
workers’ compensation benefits pursuant to the LHWCA. Accordingly,
IT IS ORDERED that W&T’s motion for summary judgment is GRANTED.
The above-captioned case is DISMISSED WITH PREJUDICE.
New Orleans, Louisiana, December 23, 2024.
Sree
UNITED STATES DISTRICT JUDGE
16