Seaman's receipt of workers' comp benefits did not waive Jones Act claim

Law Reporter, Apr 2000

Reyes v. Delta Dallas Alpha Corp., 199 F.3d 626 (2d Cir. 1999).

The Second Circuit Court of Appeals held that a seaman's receipt of state workers' compensation benefits did not waive his rights to bring claim under the Jones Act, 46 U.S.C. 688 etseq.

Here, a seaman was injured while working for a tour boat restaurant operator. He applied for and received state workers' compensation benefits. He later sued his employer under the Jones Act. The trial court granted defendant summary judgment, finding that by receiving compensation payments, plaintiff had waived his rights under the Jones Act.

Reversing, the Second Circuit cited Southwest Marine, Inc. v. Gizoni, 112 S. Ct. 486 (1991), in which the U.S. Supreme Court held that receiving voluntary workers' compensation payments under a federal workers' compensation arrangement does not preclude a later Jones Act claim, unless the compensation board gave the claimant a formal award settling all his claims. Although Gizoni involved the Longshore and Harbor Workers' Compensation Act, 33 U.S.C. 901 et seq., the Second Circuit found it instructive in this case. Here, plaintiff accepted voluntary payments from the New York Workers' Compensation Board, but never received a formal award settling the matter. Analogizing the voluntary payments to the traditional maritime remedy of "maintenance and cure," the court noted that such a remedy has not historically barred later tort actions by injured seamen. Accordingly, the court held federal law does not treat plaintiff's receipt of interim compensation payments as a waiver of his Jones Act claim.

The court also held that state law yields the same result. The trial court relied on N.Y. Work. Comp. Law 113, which states that awards may be made as to injuries subject to federal laws "in case the claimant, the employer and the insurance carrier waive their admiralty or interstate commerce rights and remedies." New York courts would not consider plaintiff's actions a waiver under 113 because he never indicated an intent to waive his Jones Act rights, the court said.

Accordingly, the court remanded.

Plaintiff's Counsel

*Elizabeth Blair Starkey, New York, N.Y.

An asterisk (*) appearing beside the name of plaintiff's counsel indicates that the attorney is an ATLA member. To obtain additional information about a case report, contact counsel through your ATLA membership directory.