JAY C. ZAINEY, District Judge.
The following motion is before the Court:
Dale E. Loveall, Jr. filed this lawsuit for injuries that he allegedly sustained working aboard the M/V AMERICAN 12. Loveall claims that he is a Jones Act seaman and he has filed suit under the Jones Act and general maritime law against his employers, Nordic Underwater Services and AMI Consulting Engineers. In the event that Loveall is not a Jones Act seaman, Loveall has pleaded in the alternative a claim for benefits under the Longshore and Harbor Workers' Compensation Act ("LHWCA").
Nordic's LHWCA carrier is ALMA. MEL Underwriters is Nordic's maritime employer's insurer. MEL Underwriters has voluntarily paid maintenance and cure to Loveall even though it disputes whether Loveall is actually a Jones Act seaman.
Neither Loveall nor any defendant brought either of these insurers into this case. Instead, on June 9, 2016, counsel for Nordic, who also represents MEL Underwriters, attempted to file into the record an Intervention and Third Party Complaint on behalf of MEL Underwriters. (Rec. Doc. 10). The Clerk of Court struck that pleading because leave of court had not been requested or granted. The next day, MEL Underwriters was granted leave to Intervene and file its Third Party Complaint against ALMA.
ALMA now moves to dismiss the intervention and third party demand arguing inter alia that MEL Underwriters improperly intervened in this lawsuit and that the Court lacks subject matter jurisdiction over MEL Underwriters' claim against ALMA.
The Court begins by assuming for the sake of argument two legal points that the parties have mired themselves in unnecessarily. First, the Court assumes that if it is determined that Loveall is not a Jones Act seaman then MEL Underwriters will have a reimbursement claim against ALMA. Second, the Court will assume that any such reimbursement claim against ALMA is not one subject to the exclusive jurisdiction of either the Office of Workers' Compensation Programs or the Louisiana Office of Workers' Compensation Administration. In other words, if MEL Underwriters were to establish that a federal court has original jurisdiction over its reimbursement claim then there is no statutory bar to bringing the claim in a federal court. With these two issues out of the way, the Court turns its attention to the determinative question of whether the intervention itself was appropriate under Rule 24(a)(2).
Federal Rule of Civil Procedure 24(a)(2), entitled Intervention of Right, states in relevant part:
On timely motion, the court must permit anyone to intervene who:
Fed. R. Civ. P. 24.
The parts of the intervention test pertinent to this case are 1) an interest relating to the action, 2) that would be impaired or impeded by the case, 3) that is not adequately represented by the existing parties.
The main demand in this case—over which the Court has original jurisdiction grounded in admiralty—is Loveall's Jones Act claim against Nordic. Undisputedly, MEL Underwriters does not have a direct, substantial, legally protected interest in Loveall's case. MEL Underwriters will have no rights to assert against any recovery that Loveall obtains on his Jones Act claim because success on the Jones Act claim implies that MEL Underwriters was properly paying benefits all along, and therefore has no lien on the settlement proceeds.
MEL Underwriters' reliance on Chenevert v. Travelers Indemnity Co., 746 F.3d 581 (5
Although MEL Underwriters may potentially benefit from an adverse ruling on seaman status, MEL Underwriters' interest in the main demand is indirect, solely economic in nature, and completely tangential to the main demand. This is borne out by the fact that MEL Underwriters insinuated itself into this case not to assert a claim against any existing party but rather to pursue a new independent claim against a nonparty. MEL Underwriters has no right to litigate seaman status in Loveall's case beyond what its own insured — who is represented by the same attorney and who more than adequately can protect its interests — is already doing. The intervention in this case serves only to add new issues to an existing case, and the issues to be added need not be litigated as part of Loveall's case. And crucially, to the extent that MEL Underwriters would have a reimbursement claim, that claim would only arise when and if Loveall is determined not to be a seaman. MEL Underwriters cannot intervene in this case to prosecute a claim that has not even accrued and may never accrue. Simply, MEL Underwriters is an interloper in this case and the intervention is not proper.
Accordingly, and for the foregoing reasons;