Aguilera v. Alaska Juris F/V ( 2008 )


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  •                     FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    RAFAEL AGUILERA,                          
    Plaintiff-Appellant,
    v.
    No. 07-35148
    ALASKA JURIS F/V, O.N. 569276,
    Defendant,                D.C. No.
    CV-05-01902-JLR
    and
    OPINION
    FISHING COMPANY OF ALASKA, INC;
    et al.,
    Defendants-Appellees.
    
    Appeal from the United States District Court
    for the Western District of Washington
    James L. Robart, District Judge, Presiding
    Submitted July 9, 2008*
    Seattle, Washington
    Filed August 4, 2008
    Before: Richard R. Clifton and N. Randy Smith,
    Circuit Judges, and Brian E. Sandoval,** District Judge.
    Opinion by Judge N. Randy Smith
    *The panel unanimously finds this case suitable for decision without
    oral argument. See Fed. R. App. P. 34(a)(2).
    **The Honorable Brian E. Sandoval, United States District Judge for
    the District of Nevada, sitting by designation.
    9899
    9902       AGUILERA v. FISHING COMPANY OF ALASKA
    COUNSEL
    John W. Merriam, Seattle, Washington, counsel for the appel-
    lant.
    Michael A. Barcott, Seattle, Washington, counsel for the
    appellees.
    OPINION
    N. RANDY SMITH, Circuit Judge:
    We hold that maintenance and cure payments are subject to
    withholding for child support obligations, so long as those
    payments constitute income under relevant state law. The dis-
    trict court therefore correctly held that Rafael Aguilera’s
    maintenance and cure payments are subject to withholding
    pursuant to a Texas child support order. We have jurisdiction
    under 28 U.S.C. § 1291, and we affirm.
    I.
    Aguilera was injured on May 1, 2004, while working
    onboard the F/T Alaska Juris, a factory trawler fishing vessel.
    At the time of his injury, Aguilera was employed by the Fish-
    ing Company of Alaska (“FCA”). As a result of his injury,
    FCA began paying Aguilera maintenance and cure in the
    amount of $20 per day. Shortly thereafter, FCA began with-
    holding $10 per day from those payments in satisfaction of a
    child support order that FCA received from the state of Texas
    (“Order”). The Order stated that FCA was “required by law”
    to deduct $241 per month from Aguilera’s “income.”
    AGUILERA v. FISHING COMPANY OF ALASKA           9903
    Aguilera filed a complaint against FCA for additional
    maintenance and cure payments. Aguilera alleged that he was
    entitled to the additional payments because FCA improperly
    deducted $10 from the $20 per day to which he was entitled.
    Aguilera next filed what we perceive to be a motion for par-
    tial summary judgment styled as a “Motion for an Order
    Declaring that Child Support Not be Deducted from Mainte-
    nance.” The district court denied the motion, after concluding
    that Aguilera’s maintenance and cure payments were subject
    to withholding under the Order.
    II.
    We review the district court’s denial of Aguilera’s motion
    for partial summary judgment de novo. See Amdahl Corp. v.
    Profit Freight Sys. Inc., 
    65 F.3d 144
    , 146 (9th Cir. 1995). We
    may affirm on any basis supported by the record. See E. & J.
    Gallo Winery v. EnCana Corp., 
    503 F.3d 1027
    , 1049 (9th Cir.
    2007).
    III.
    [1] Under principles of general maritime law, seamen are
    “entitled to ‘maintenance and cure’ from their employer for
    injuries incurred ‘in the service of the ship[.]’ ” Sentry Select
    Ins. Co. v. Royal Ins. Co. of Am., 
    481 F.3d 1208
    , 1214 n.1
    (9th Cir. 2007) (quoting Chandris, Inc. v. Latsis, 
    515 U.S. 347
    , 354 (1995)). “Maintenance and cure is designed to pro-
    vide a seaman with food and lodging when he becomes sick
    or injured in the ship’s service; and it extends during the
    period when he is incapacitated to do a seaman’s work and
    continues until he reaches maximum medical recovery.”
    Vaughan v. Atkinson, 
    369 U.S. 527
    , 531 (1962).
    [2] The district court held that state law, instead of mari-
    time law, governed the question whether Aguilera’s mainte-
    nance and cure payments were subject to attachment under
    the Order. This holding was correct under applicable federal
    9904        AGUILERA v. FISHING COMPANY OF ALASKA
    law. Congress stated in 28 U.S.C. § 1738B(h)(2) that “[i]n
    interpreting a child support order including the duration of
    current payments and other obligations of support, a court
    shall apply the law of the State of the court that issued the
    order.” We reject as unfounded Aguilera’s suggestion that
    maritime law excepts maintenance and cure payments from
    this general rule. Congress expressly recognized that a sea-
    man’s wages are subject to attachment under a valid support
    order. See 46 U.S.C. § 11109(a) (“Wages . . . are not subject
    to attachment . . . , except for an order of a court about the
    payment by a master or seaman of any part of the master’s or
    seaman’s wages for the support and maintenance of the
    spouse or minor children of the master or seaman, or both.”
    (emphasis added)). We find no reasoned basis to distinguish
    between a seaman’s wages and a seaman’s maintenance and
    cure payments for purposes of satisfying a valid child support
    obligation.
    [3] As noted, the Order was issued under Texas law. There-
    fore, it was appropriate to interpret Texas law when determin-
    ing whether the maintenance and cure payments are subject to
    withholding under the Order. See 28 U.S.C. § 1738B(h)(2).
    Texas law requires courts to calculate “resources” for pur-
    poses of determining child support liability. See Tex. Fam.
    Code Ann. § 154.062(a). “Resources” are defined broadly
    under Texas law to include “all other income actually being
    received, including . . . disability and workers’ compensation
    benefits . . . .” 
    Id. § 154.062(b)(5).
    The only items that a court
    may deduct to calculate the “net resources” that are subject to
    withholding are (1) social security taxes; (2) federal income
    taxes; (3) state income taxes; (4) union dues; and (5) health
    insurance expenses or cash medical support for the obligor’s
    child pursuant to court order. 
    Id. § 154.062(d).
    Notably, Texas
    law does not exclude maintenance and cure payments from its
    definition of “resources.”
    [4] In light of this broad definition, the district court cor-
    rectly denied Aguilera’s motion seeking a ruling that his
    AGUILERA v. FISHING COMPANY OF ALASKA       9905
    maintenance and cure payments did not constitute income.
    Therefore, FCA acted appropriately when it withheld portions
    of those payments in order to satisfy its duties under the
    Order.
    AFFIRMED.