MARTIN L. C. FELDMAN, District Judge.
Before the Court is Gulf Horizon's motion for partial summary judgment to dismiss Campbell's claim for punitive damages related to maintenance and cure. For the reasons that follow, the motion is GRANTED.
This litigation arises out of personal injuries sustained by Scott Campbell while he was a cook aboard a docking vessel.
Gulf Horizon Services, LLC assigns, as part of its business, current employees to other companies for both sea- and land-based jobs upon request. Before the incident on July 24, 2014, Campbell was a Gulf Horizon employee, assigned to work as a cook on a vessel owned and operated by Offshore Liftboats. On July 24, 2014, Campbell was aboard the vessel while it was deployed, and when the Offshore Liftboats' captain maneuvered the vessel into the dock, it collided with the dock, causing Campbell to sustain injuries when he fell into a wall.
Gulf Horizon contends that a Gulf Horizon director, Will Constant, made arrangements to have Campbell transported to Occupational Medicine Services (OMS) in response to the incident, and that OMS diagnosed Campbell with a lower back contusion, directed Campbell to take Aleve and apply ice, and released Campbell to full duty.
Gulf Horizon submits that Constant followed up with Campbell, but that his phone calls went unanswered. Campbell never returned to work. On August, 22, 2014, Gulf Horizon received a letter from Ryan Zehl, an attorney, threatening punitive damages for Gulf Horizon's failure to pay Campbell maintenance and cure for his medical treatment. Gulf Horizon notes that this was the first time that it was put on notice that Campbell did not intend to return to work and that he demanded maintenance and cure.
Gulf Horizon contends that on August 25, 2014, it began investigating whether it owed Campbell maintenance and cure, and if so, the reasonable local rate. Gulf Horizon maintains that, to date, it has not received any medical reports other than the one from OMS.
On September 8, 2014, ten business days from beginning the investigation, Gulf Horizon issued maintenance pay "under protest" at the rate of $35 per day. Gulf Horizon contends that it has compensated Campbell each day since July 25, 2014, the day after the accident.
On September 25, 2014, Campbell filed this lawsuit, and on November 11, 2014, he amended his complaint. Campbell claims that he is entitled to relief from his employers, Offshore Liftboats and Gulf Horizons, under the Jones Act and general maritime law for general maritime negligence, unseaworthiness, punitive damages, and for maintenance and cure because he suffered severe spine injuries in the dock collision. Defendant, Gulf Horizon, now seeks to have Campbell's claim for punitive damages related to maintenance and cure dismissed on summary judgment.
Federal Rule of Civil Procedure 56 instructs that summary judgment is proper if the record discloses no genuine issue as to any material fact such that the moving party is entitled to judgment as a matter of law. No genuine issue of fact exists if the record taken as a whole could not lead a rational trier of fact to find for the non-moving party.
The Court emphasizes that the mere argued existence of a factual dispute does not defeat an otherwise properly supported motion.
"Maintenance and cure is an ancient duty imposed on a shipowner to provide for a seaman who becomes ill or injured during his service to the ship."
The Court is not called upon at this time to determine whether Campbell is entitled to maintenance and cure for the July 24 incident. Instead, Gulf Horizon seeks a ruling that it cannot be liable as a matter of law for punitive damages related to the payment of maintenance and cure. A seaman is entitled to seek punitive damages for his employer's alleged willful and wanton disregard of its maintenance and cure obligation.
Gulf Horizon seeks to dismiss Campbell's claim for punitive damages related to maintenance and cure for the July 24 injury. Gulf Horizon points out that after the injury, Campbell was cleared to return to full duty, and even acknowledged that he was feeling better and could not wait to return to work. After receiving Ryan Zehl's letter, Gulf Horizon initiated an investigation of Campbell's claims and started paying maintenance and cure within ten business days, despite not having been provided any evidence corroborating his injuries or expenses. Gulf Horizon correctly maintains that the law provides time for investigation and, further, that the amount of maintenance and cure paid is reasonable in the applicable locale under Fifth Circuit case law. Thus, it is urged, Gulf Horizon's conduct was reasonable, and certainly does not rise to the level of willful, arbitrary or callous behavior required for a punitive damages award.
Campbell responds that fact issues as to whether Gulf Horizon is willfully and wantonly paying a capriciously low maintenance rate and whether Gulf Horizon failed to conduct a proper investigation preclude summary judgment. Further, Campbell claims that because he has not reached maximum medical improvement, more medical bills are expected, and because it is unclear whether the defendant will honor its obligation to pay for the treatment, summary judgment is likewise premature.
The undisputed facts
Campbell also fails to provide support for his punitive damages claim based on his that the defendant might, in bad faith, terminate the maintenance and cure payments before he reaches maximum medical improvement. Certainly, a seaman is entitled to seek punitive damage for his employer's alleged willful and wanton disregard of its maintenance and cure obligation.
Accordingly, IT IS ORDERED: that Gulf Horizon's motion for partial summary judgment to dismiss Campbell's claim for punitive damages is hereby GRANTED.