Insight

When No Higher Court Remains

Published on: December 10, 2014

On April 20, 2010, BP's Deepwater Horizon rig exploded at a cost of eleven lives. What followed was the largest accidental marine oil spill in history. In the aftermath, BP looked for a solution, ostensibly to cap its exposure and address a swirling PR disaster. BP began to actively negotiate a settlement.

On March 2, 2012, BP agreed to a detailed settlement which set forth specific criteria for recovery under the Fund created by the Agreement. In August of that year, BP asked U.S. District Judge Carl Barbier to approve the settlement. The Agreement was approved.

Despite championing the settlement, BP later filed a lawsuit seeking to set aside the settlement, unless it was interpreted as suggested by BP. BP's challenges were rejected by the Federal District Court. Thereafter, the New Orleans-based Fifth Circuit Court of Appeals affirmed that ruling in a 2-to-1 decision. BP then applied for a Petition of Writ for Certiorari with the United States Supreme Court in a final challenge to the settlement.

About BP's legal maneuvers, Samuel Issacharoff, a New York University Law Professor, said the following: "This case is about a contract that BP signed that it now wishes it hadn't."

One of BP's primary complaints was that, in effect, the settlement could be interpreted to provide recovery for individuals or businesses who could not show a direct link between a financial downturn and the spill. In response, it was stated that the settlement was crafted to use objective measures to gauge whether losses are recoverable.

On December 8, 2014, the U.S. Supreme Court rejected BP's Petition for Writ of Certiorari. As such, the settlement agreement first proposed by BP will remain in place. No higher court remains.

Under the Agreement, potential claimants have 6 months from the Supreme Court's Petition denial to file claims.

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Keogh Cox & Wilson, Ltd. provides this blog as a public service for general information only. The materials contained herein may not reflect the most current legal developments or even express the opinion of all or even most of Keogh Cox attorneys. Such material does not constitute legal advice or form any attorney-client relationship. Keogh Cox and all contributing author(s) expressly disclaim all liability to any person with respect to the contents of this Web site and Blog and expect that no reliance will be made upon the information provided.

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Insight

Keogh Cox's Win Prevents Plaintiff from Recovering Louisiana Lottery Jackpot

The United States District Court for the Eastern District of Louisiana grants defendant, Circle K's, Motion to Dismiss concluding that plaintiff has no right to claim loss of opportunity to win the Louisiana Lottery Powerball jackpot, $103,100,000.00, because of an expired ticket issued in error.

This matter arose from plaintiff's purchase of two sets of Powerball tickets on or about January 19, 2012. The drawing that was the subject of the purchase was to be held on January 21, 2012 with a jackpot of $103,100,000.00. Sometime after the drawing date, plaintiff discovered the purchased tickets were printed on January 18, 2012 and worthless for the January 21, 2012 drawing. Plaintiff filed suit seeking damages in the amount of the Powerball jackpot.

After removal to Federal Court, on behalf of Circle K, Keogh Cox moved to dismiss the suit by claiming that Louisiana law affords no relief to plaintiff for the alleged claims. Specifically, Louisiana law explicitly precludes any relief to the plaintiff.

Keogh Cox cited La. R.S. 47:9009 which states "that there shall be no liability on the part of and no cause of action shall arise against the corporation, its governing board, staff, agents, vendors, or employees, arising out of or in connection with the issuance, failure to issue, or delivery of a lottery ticket."

Moreover, Keogh Cox asserted that the Louisiana Statute precludes payment of prize money on the basis of lottery tickets produced or issued in error. The United States District Court found merit in these assertions after extensive briefing and arguments by Keogh Cox attorneys, John P. Wolff, III, Nancy B. Gilbert, Richard W. Wolff and Mark Assad.

The United States District Court found that Circle K was statutorily exempt from the suit and, under the directives of the lottery itself, it is the sole responsibility of plaintiff to verify the accuracy of the game play. Plaintiff failed to do so and, as such, was barred from suit.

Insight

Fifth Circuit Adds Clarity to “Seaman Status” Test

The Jones Act is a federal statute which enables maritime workers that are considered “seaman” to sue their employers for any injuries sustained while on the job. Sanchez v. Smart Fabricators of Texas, L.L.C., No, 19-20506, ____F.3d____, (2021). Because Congress never defined the term, courts have struggled to determine which maritime workers are “seaman.” The United States Fifth Circuit Court of Appeals is no stranger to this struggle. The Supreme Court in Chandris, Inc. v. Latsis, 515 U.S. 347, 368 (1995) established a two factor test to determine seaman status. The first prong asked whether the plaintiff’s work contributed to the function of a vessel or fleet of vessels. The worker in Sanchez satisfied this first prong. The “second prong” asked whether a worker has a connection to a vessel or fleet of vessels that is substantial in terms of duration and nature. The recent decision in Sanchez helps to gauge when a worker’s connection to a vessel will be regarded as substantial in its nature.

Gabriel Sanchez was employed by Smart Fabricators of Texas, LLC (“SmartFab”) as a land-based welder. Sanchez worked for SmartFab on two jack-up barges owned by SmartFab’s customer, Enterprise Offshore Drilling LLC. On August 8, 2018, while working on the deck of one of the jack-up barges, Sanchez fell and sustained injuries. He filed suit in state court. SmartFab removed the case to federal court.

Sanchez moved to remand the suit to state court, citing to his seaman status under the Jones Act. The district court denied Sanchez’s motion to remand. It also granted SmartFab’s motion for summary judgment on the grounds that Sanchez was not a seaman and thus was not covered under the Jones Act. On appeal, a Fifth Circuit panel initially held that Sanchez satisfied the requirements of the seaman status test. In an en banc opinion, this analysis was called into question.

The full Fifth Circuit explored a trilogy of Supreme Court’s cases it found “enormously helpful” in giving meaning to the term seaman: (1) McDermott International, Inc. v. Wilander, 498 U.S. 337 (1991), (2) Chandris, Inc. v. Latsis, and (3) Harbor Tug and Barge Co. v. Papai, 520 U.S. 548 (1997). After reviewing these cases, the Fifth Circuit concluded that simply asking whether a worker is exposed to the “perils of the sea” is not enough to resolve the nature element. Under Sanchez, courts must also consider the following:

(1) Does the worker owe his allegiance to the vessel, rather than simply to a shoreside employer;

(2) Is the work sea-based or involve seagoing activity; and

(3) (a) is the worker’s assignment to a vessel limited to performance of a discrete task after which the worker’s connection to the vessel ends, or

(3) (b) does the worker’s assignment include sailing with the vessel from port to port or location to location?

The established facts in Sanchez showed that the plaintiff’s work was not sea-based. He had no permanent connection to any vessel. Much of his work involved activities when the rig was “jacked-up” and therefore not in navigation. Following its redefined analysis, Sanchez held that seaman status was not present because the nature of the plaintiff’s work did not reflect a substantial connection to a vessel.

Insight

Keogh Cox Obtains Appellate Victory in Denial of Class Certification

Keogh Cox attorneys Andrew Blanchfield, Chris Jones, and Chelsea Payne successfully defeated class certification in an action students brought to recover a partial refund of tuition and fees they claim they were owed after in-person classes were converted to remote learning because of the COVID-19 global pandemic. See Miazza v. Board of Supervisors of Louisiana State University and Agricultural and Mechanical College.

In 2021, plaintiffs Taylor Gunter and Michael Miazza filed a lawsuit seeking a partial refund of the tuition they paid to LSU for Spring 2020 classes. They alleged that they were entitled to a partial refund of tuition and certain fees because in-person classes were cancelled in the wake of the COVID-19 pandemic. In lieu of in-person classes, remote learning went into effect after spring break, from March 30, 2020 through the end of the spring semester.

In addition to their own claims for partial refunds, the plaintiffs tried to bring the case as a class action and moved to certify a class defined as: “All students who, as of March 13, 2020, were enrolled at Louisiana State University's main campus in Baton Rouge who paid Tuition and/or Fees for the Spring 2020 semester, or on whose behalf such payment was made.”

After the completion of discovery for class certification, and after the dismissal of Plaintiff Michael Miazza’s claim, Plaintiff Taylor Gunter filed a Motion for Class Certification. After hearing, the Trial Court certified the class as alleged, finding all the requirements for class certification set forth in La. C.C.P. art. 591 were satisfied. LSU appealed the decision to the First Circuit Court of Appeals.

The First Circuit reversed the Trial Court’s judgment and found the Plaintiff failed to satisfy all of the requirements for class certification. After conducting a rigorous analysis of the class certification requirements, the Court concluded that “a multitude of individualized inquiries and proof make up the liability and damages issues essential to the putative plaintiffs’ implied contract claims.” The Court identified some of these “individualized inquiries” as follows:

• which representations in each school’s or college’s catalogs, bulletins, and website materials did the putative plaintiff rely upon in developing his or her expectation and what particular facilities and on-campus opportunities did a putative plaintiff expect to utilize;

• whether the putative plaintiff has historically utilized on-campus facilities and opportunities; which facilities and/or on-campus opportunities, if any, were necessary for a particular school's or college's course completion;

• whether a putative plaintiff was satisfied with the online instruction, course credits received, and grading options provided; and

• whether a putative plaintiff actually suffered any financial loss, mindful of each student’s particular situation.

Ultimately, the Court concluded that the record lacked sufficient evidence to support findings of offers and acceptances, where were necessary (1) to establish meetings of the mind and (2) conclude each putative plaintiff and LSU consented to an implied contract. Any determination of liability for an implied contract also is dependent upon proof of facts individual to each putative class member. Therefore, the class would degenerate into a series of individual trials.

The First Circuit concluded that certification of the case as a class action was an abuse of discretion. It reversed the Trial Court’s judgment and decertified the matter. Plaintiff filed a Writ Application with the Louisiana Supreme Court. On January 14, 2025, the Louisiana Supreme Court denied Plaintiff’s Writ Application, finally resolving the class certification issue. As a result, Plaintiff cannot pursue class certification, but rather may only pursue her own individual claim.

References:

Miazza v. Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, 2023-1194 (La. App. 1 Cir. 8/9/24), 394 So.3d 874, writ denied, 2025 WL 87255 (La. 1/14/25).

Christopher K. Jones

Managing Partner
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