E J Fields Machine v. Guidry ( 2002 )


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  •                IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT
    __________________________
    Summary Calendar
    Case No. 02-60211
    __________________________
    E J FIELDS MACHINE WORKS INC; LOUISIANA WORKERS’
    COMPENSATION CORPORATION
    Petitioners
    v.
    EDMOND GUIDRY; DIRECTOR, OFFICE OF WORKER’S COMPENSATION
    PROGRAMS, US DEPARTMENT OF LABOR
    Respondents
    _____________________________________________________________
    Petition for Review from an Administrative Decision of the
    Benefits Review Board
    (BRB No.: 01-0445)
    _____________________________________________________________
    December 3, 2002
    Before KING, Chief Judge, and BARKSDALE and STEWART, Circuit
    Judges.
    PER CURIAM:*
    Claimant Edmond Guidry injured his back while cleaning a ball
    bearing used in a vessel steering or propulsion system.    Both the
    administrative law judge and the Department of Labor Benefits
    *
    Pursuant to 5TH CIR. R. 47.5, the court has determined
    that this opinion should not be published and is not
    precedent except under the limited circumstances set
    forth in 5TH CIR. R. 47.5.4.
    1
    Review Board (“BRB”) agreed that Guidry was injured on a maritime
    situs    and    required     his   employer,     E.J.   Fields     Machine   Works
    (“Fields”), to pay benefits to Guidry under the Longshore and
    Harbor Workers’ Compensation Act (“LHWCA”), 
    33 U.S.C. § 901
     et seq.
    (2000).2       The discrete issue on appeal is whether substantial
    evidence supports the finding that Guidry’s accident occurred on a
    covered “situs” under the LHWCA.
    For the reasons stated herein, we answer this question in the
    affirmative and affirm the determination of the BRB.
    FACTUAL AND PROCEDURAL PREDICATE
    Fields       operates    a    job   shop    in   Morgan     City,   Louisiana,
    specializing in the repair, construction and fabrication of marine
    parts.      Its    operations      are   carried      out   at   three    locations
    designated as Shop #1, Shop #2 and Shop #3.                 All shops are located
    on Front Street, a two lane road in Morgan City that runs along the
    Atchafalaya River.
    Guidry began employment with Fields in August 1998 as a welder
    fitter     doing    a    variety    of   jobs,    including      rudder    repairs,
    construction of manhole or hatch covers for boats and barges, shaft
    welding and boat repairs.          Guidry spent ninety percent of his time
    fabricating or repairing rudders and shafts.                 Sixty percent of his
    2
    At the hearing before the administrative law judge, the
    Petitioners (Fields and the Louisiana Workers’ Compensation
    Corporation) conceded that Guidry satisfied the status
    requirement under the LHWCA. The only disputed issue for the
    administrative law judge to decide was whether Guidry also
    satisfied the situs requirement of the LHWCA.
    2
    work related to vessel repair work and forty percent related to new
    vessel construction.      On August 24, 1999, Guidry injured his lower
    back in a work-related accident at Shop #2, where he principally
    worked.
    On   January    9,    2001,   subsequent   to    a    hearing,    the
    administrative law judge issued an order finding that Shop #2
    constituted an “other adjoining area” under the LHWCA. On February
    4, 2002, the BRB affirmed the administrative law judge’s finding
    that Guidry was injured on a maritime situs as supported by
    substantial   evidence.      Petitioners   Fields    and   the   Louisiana
    Workers’ Compensation Corporation appeal this decision.
    STANDARD OF REVIEW
    All parties agree that this court should review the decision
    of the BRB using the same standard the BRB applies to review a
    decision of the administrative law judge – to discern whether the
    decision is supported by substantial evidence and is in accordance
    with the law. SGS Control Services v. Director, Office of Workers’
    Compensation Programs, U.S. Department of Labor, 
    86 F.3d 438
    , 440
    (5th Cir. 1996).    “Substantial evidence” is evidence that provides
    “a substantial basis of fact from which the fact in issue can be
    reasonably inferred . . . more than a scintilla . . . more than
    create a suspicion . . . such relevant evidence as a reasonable
    mind might accept as adequate to support a conclusion.”           Avondale
    Industries, Inc. v. Director, Office of Workers’ Compensation
    3
    Programs, 
    977 F.2d 186
    , 189 (5th Cir. 1992).                   “The substantial
    evidence standard is less demanding than that of preponderance of
    the evidence, and the ALJ’s decision need not constitute the sole
    inference   that   can    be   drawn   from   the    facts.”      New   Thoughts
    Finishing Co. v. Chilton, 
    118 F.3d 1028
    , 1030 (5th Cir. 1997).               If
    the situs determination is supported by substantial evidence on the
    record as a whole, it will not be set aside by this court.
    Texports Stevedore Co. v. Winchester, 
    632 F.2d 504
    , 515 (5th Cir.
    1980).
    ANALYSIS
    Coverage under the LHWCA is determined by the nature of the
    place of work at the moment of injury.                 See Northeast Marine
    Terminal Co. v. Caputo, 
    432 U.S. 249
     (1977).               Petitioners dispute
    the conclusion     that   Guidry    was    injured    on   a   maritime   situs,
    averring that (1) Fields accepts business from both maritime and
    non-maritime customers with no particular advantage being gained by
    its proximity to the Atchafayala River, (2) non-maritime businesses
    and residences are located in the vicinity of its operations, and
    (3) Fields chose its original location because it was located in a
    commercial area of town, not because of its proximity to the water.
    However, as discussed below, the record evidence belies some of
    these averments.    More importantly, Plaintiff’s narrow approach to
    the definition of a maritime situs does not comport with the
    expansive definition our court uses.
    4
    1.      Definition of “Other Adjoining Area”
    The 1972 amendments to the LHWCA broadened the definition of
    “navigable     waters”   (the   “situs”   of   injury)    to   include   “any
    adjoining pier, wharf, dry dock, terminal, building way, marine
    railway, or other adjoining area customarily used by an employer in
    loading, unloading, repairing, dismantling, or building a vessel.”
    
    33 U.S.C. § 903
    (a) (2000) (emphasis added).3        See Northeast Marine
    Terminal Co. v. Caputo, 
    432 U.S. 249
    , 268 (1977) (“The language of
    the 1972 Amendments is broad and suggests that we should take an
    expansive view of the extended coverage.”).         As the injury in this
    case did not occur at one of the specifically enumerated areas
    under the LHWCA, to qualify as a maritime situs, the location must
    fall within the definition of an “other adjoining area” under the
    LHWCA.
    In Texports Stevedore Co. v. Winchester, 
    632 F.2d 504
    , 513-16
    (5th Cir. 1980), this court discussed the parameters of the “other
    adjoining area” situs specified in the LHWCA.            Winchester teaches
    us that the situs requirement compels a factual determination that
    cannot be hedged by mere labels placed on an area.             There, we held
    that a gear room located five blocks from the nearest dock fell
    within the definition of a maritime situs under the LHWCA because
    3
    Prior to the 1972 amendments, the LHWCA extended
    coverage to a maritime worker only for injuries incurred “upon
    the navigable waters of the United States (including any dry
    dock),” and only if such workers could not recover compensation
    under state law. 
    33 U.S.C. § 903
    (a) (1970).
    5
    it was in the vicinity of a navigable waterway, it was as close to
    the docks as was feasible, and it had a nexus to maritime activity
    in that it was used to store gear utilized in the loading process.
    In so doing, we opined on the definition of the phrase “other
    adjoining area,”
    Although “adjoin” can be defined as “contiguous to” or
    “to border upon,” it also is defined as “to be close to”
    or “to be near.” “Adjoining” can mean “neighboring.” To
    instill in the term its broader meanings is in keeping
    with the spirit of the congressional purposes. So long
    as the site is close to or in the vicinity of navigable
    waters, or in a neighboring area, an employee’s injury
    can come within the LHW[C]A.        To require absolute
    contiguity would be to reenact the hard lines that caused
    longshoremen to move continually in and out of coverage.
    It would frustrate the congressional objectives of
    providing uniform benefits and covering land-based
    maritime activity.
    . . .
    The answer to the question of where the boundaries are to
    an “area” is found right in the statute. The perimeter
    of an area is defined by function. The “area” must be
    one “customarily used by an employer in loading,
    unloading, repairing, or building a vessel.” The statute
    does not require that the area’s exclusive use be for
    maritime purposes so long as it is customarily used for
    significant maritime activity.     The statute does not
    restrict coverage to only these areas used by the
    claimant’s employer.      It is an “area” if it is
    customarily used by any statutory employer.
    Winchester, 
    632 F.2d at 514-15
    .   Thus, under Winchester, so long as
    (1) the site is close to or in the vicinity of navigable waters, or
    in a neighboring area, and (2) the area is customarily used for
    significant maritime activity, the locale of an employee’s injury
    can come within the “other adjoining area” situs under the LHWCA.
    6
    Id.
    2.    Application of the Definition
    Shop #2 is in close proximity (100 to 175 feet) from the
    Atchafalaya River.     Indeed, although Petitioners claim that you
    cannot see the Atchafalaya River from Shop #2, the only thing that
    separates it from the waterway is a street (Front Street) and a
    flood wall, making it accessible to the docks.      Directly across
    from Shop #2 is a public fishing pier and a dock for pleasure
    boats.     As Petitioners do not dispute that there are no other
    businesses between Shop #2, Front Street and the flood wall, the
    location is as close to the docks as is feasible.
    Further, the area is customarily used for maritime activity.
    Next to Shop #2 on the same side of Front Street is Control Fire
    and Safety, a maritime business that supplies boat companies and
    shipyards with fire extinguishers and safety equipment.     Next to
    Control Fire and Safety is Taylor Industries, a maritime related
    business that sells hoses, fittings, pipes, pumps and residential
    siding.    Also next to Shop #2 is Shop #3.   One-hundred percent of
    the work performed at Shop #3 relates to the fabrication and repair
    of vessel parts.     Shop #1 is located approximately three blocks
    from Shop #2.     Sixty percent of the work performed at Shop #1
    relates to the fabrication and repair of vessel parts.      Directly
    across the street from Shop #1 is Rio Fuel and Supply that fuels
    vessels.    Next to Rio Fuel and Supply is a tank cleaning business.
    7
    Next in line comes Candy Fleet, Johnny Propeller Shop, Conrad
    Industries      Shipyard,    Steven   Shipyard,    and   Lang   Towing   –   all
    customers of Fields.         While Petitioners argue that non-maritime
    business – a warehouse, a dance studio, a frame shop, an antique
    shop, a clothing store, a studio, a hardware store, a caterer, and
    an electrical supply house – are also located in the area, this
    fact does not strip Shop #2 of its maritime status.              As stated by
    the Winchester court, “[t]he statute does not require that the
    area’s exclusive use be for maritime purposes so long as it is
    customarily used for significant maritime activity.”              
    632 F.2d at 515
    . Significant maritime activity in the area close to Shop #2 is
    evident from the record.
    Contrary to Fields’s assertions, testimony further reflects
    that   Fields    gains   a   significant      economic   advantage   from    its
    location near other maritime businesses in the area.                     Conrad
    Industries Shipyard, located in the area, makes up approximately
    twenty-five percent of Fields’s total sales and accounted for
    approximately seventy-five percent of the work performed by Guidry.
    Richard    Romaine,      Fields’s     president,    testified    that    Fields
    specializes in, but is not limited to, marine work, and that Fields
    recognizes that the location of its facility is advantageous in
    that it is near its customers.              As was the situs in Winchester,
    Shop #2 is a covered situs because it is in the vicinity of the
    navigable water, it is as close to the docks as is feasible, and it
    has a nexus to maritime activity.            See also Jenkins v. McDermott,
    8
    Inc., 
    734 F.2d 229
    , 231-32 (holding that plaintiff, who worked on
    the construction of an offshore drilling platform and whose injury
    occurred over 250 feet from navigable waters, satisfies the status
    and situs requirements of the LHWCA), vacated in part on other
    grounds, 
    734 F.2d 191
     (5th Cir. 1984); Alford v. American Bridge
    Div., 
    642 F.2d 807
    , 813-14 (5th Cir. 1981) (finding that a shipyard
    which fabricated steel components for vessels is a covered situs);
    Brady-Hamilton Stevedore Co. v. Herron, 
    568 F.2d 137
    , 141-43 (9th
    Cir. 1978) (concluding that a gear locker located 2,050 feet
    outside the entrance of a port satisfies the situs test).
    CONCLUSION
    Upon review of the record evidence and briefing submitted by
    the parties, we agree with the BRB that substantial evidence
    supports the administrative law judge’s finding that Guidry’s
    injury occurred on a maritime situs under the LHWCA.
    We AFFIRM.
    9