The Defense Base Act and Borrowed Servant Rule Highlight Key Workers Comp Federal Issues

Tom Robinson, J.D. a noted authority for Larson’s Workers’ Compensation Law (LexisNexis) and Larson’s Workers’ Compensation, Desk Edition (LexisNexis).

The Defense Base Act and Borrowed Servant Rule
Tort Claim of Contract Worker Injured in Iraq Fails
Here’s what Tom Robinson, J.D., writer for Lexis Nexis Workers Comp Law Center reveals . . .

Here’s What Happened

Research Triangle Institute (RTI) contracted to rebuild municipal water and sewage facilities in Iraq following the 2003 United States invasion. RTI obtained Ladd’s services as a civilian engineer by contract with his direct employer, Chemonics International, Inc. (Chemonics). Ladd was seriously injured in Iraq when his vehicle’s left front tire blew, causing the vehicle to plunge into a canal.

He and his wife (the Ladds) subsequently sued RTI, contending in relevant part that RTI had failed to supply vehicles for operations in Iraq consistent with those promised during orientation; that Ladd’s driver, allegedly an RTI employee, had been negligent; and that the vehicle in which Ladd had been driven was defective or in poor condition.

RTI raised the affirmative defense that Ladd was receiving workers’ compensation benefits under the provisions of the Defense Base Act, 42 U.S.C. § 1651 (the DBA), which constituted his sole remedy. The district court awarded RTI summary judgment, finding that Ladd was a statutory employee of RTI under the borrowed servant doctrine and that the suit was barred under the DBA. The Ladds appealed.

Here’s How the Court Ruled

In Ladd v. Research Triangle Institute, 2009 U.S. App. LEXIS 14848 (4^th Cir. July 2, 2009), affirmed the district court’s decision. The Fourth Circuit first observed that the DBA provides that “the provisions of the Longshore and Harbor Workers’ Compensation Act [33 U.S.C. 901 et seq. (“the LHWCA”)] shall apply in respect to the injury or death of any employee engaged in any employment . . . under a contract entered into with the United States . . . where such contract is to be performed outside the continental United States . . . .” 42 U.S.C.A. § 1651(a)(4) and that in White v. Bethlehem Steel Corp., 222 F.3d 146 (4th Cir. 2000), it had determined that the borrowed servant doctrine applied under the LHWCA to provide immunity from suit both to an employee’s general or contract employer and to other “employers who ‘borrow’ a servant from” that employer.

Turning to the instant case, the Fourth Circuit said that it was clear that RTI exercised the requisite “authoritative direction and control” over Ladd. Ladd’s contract with Chemonics expressly stated that, “[w]hile in Iraq, [Ladd] will report directly to RTI’s Chief of Party ….” The contract also provided that Ladd’s salary was subject to approval by RTI. The relationship between Ladd and RTI was also explored in Ladd’s deposition, where Ladd stated that RTI had control over him in Iraq, that RTI had the power to have him fired, and that RTI could reassign him to different parts of Iraq.

Because the facts clearly showed RTI exercised “authoritative direction and control” over Ladd in Iraq, the Fourth Circuit held the district court did not err in concluding that Ladd was the borrowed servant of RTI for the purposes of fulfilling its USAID contract there. As a borrowed servant, Ladd was a statutory employee of RTI under the LHWCA and the DBA. Accordingly, the Ladd’s suit was barred by the DBA as a matter of law.

See generally Larson’s Workers’ Compensation Law, §§ 149.01 – 149.05.

Tom Robinson, J.D. is the primary upkeep writer for Larson’s Workers’ Compensation Law (LexisNexis) and Larson’s Workers’ Compensation, Desk Edition (LexisNexis). He is a contributing writer for California Compensation Cases (LexisNexis) and Benefits Review Board – Longshore Reporter(LexisNexis), and is a contributing author to New York Workers’ Compensation Handbook(LexisNexis).

Tom can be reached at: [email protected].
http://law.lexisnexis.com/practiceareas/Workers-Compensation

 

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