When an accident occurs on an oil platform out in the Gulf of Mexico, there are almost always several parties involved in the operation. Those parties consist of the oil company that owns the rights to extract oil in the Gulf, the company that drills for the oil, the company that owns the digging equipment, and others.
Because there are various parties with different interests, the “borrowed servant doctrine” becomes relevant. When someone is injured, his or her remedies for redress may depend on whether the injured person falls under the borrowed servant doctrine.
Borrowed Servant Doctrine
Employees injured on the job have redress under a specific state’s workers’ compensation laws or under the Federal Longshore and Harbor Workers Compensation Act, better known as the LHWCA. In general, workers on an oil platform would fall under the LHCWA. These types of workers’ compensation are generally limited and protect the employer.
If, however, the injured party is considered a “seaman” under the Jones Act, the injured party can potentially collect significantly more based on the injury (see previous posts with respect to redress and remedies under the Jones Act).
The borrowed servant doctrine, if leveraged correctly, can provide an injured worker on an oil platform, under certain circumstances, with redress under the Jones Act. Therefore, if you have been injured in an accident, understanding this doctrine is crucial to how much you can collect from your employer.
It may be that under the injured party’s initial employer, he or she is a longshoreman or harbor worker and therefore, in theory, limited to compensation under the LHCWA. However, via invoking the borrowed servant doctrine, the injured person can be considered a seaman because his or her employment has been “borrowed” by and employer covered under the Jones Act.
Determining the Application of the Borrowed Servant Doctrine
The facts and circumstances of each case will determine whether to apply the borrowed servant doctrine. The Fifth Circuit Court of Appeals, in the 1988 case of Ruiz v. Shell Oil Co. created a nine step test for determining whether an employee is considered a borrowed servant:
“(1) who has control over the employee and the work he is performing, beyond mere suggestion of details or cooperation;
(2) whose work is being performed by the employee;
(3) whether an agreement, understanding, or meeting of the minds exists between the nominal and the borrowing employer;
(4) whether the employee acquiesced in the new work situation;
(5) whether the original employer terminated his relationship with the employee;
(6) who furnished the employee’s tools and place of performance;
(7) whether the employee’s new employment was over a considerable length of time;
(8) whether the nominal or the borrowing employer had the right to discharge the employee; and
(9) whether the nominal or the borrowing employer had the obligation to pay the employee.”
Borrowed Servant FAQs
What is the Borrowed Servant Doctrine?
The borrowed servant doctrine is a legal concept that allows an injured worker, who is technically employed by one company, to seek compensation from another company if that company temporarily “borrowed” the worker’s services and controlled the work at the time of the accident.
How Do I Know if I Qualify as a ‘Borrowed Servant’?
To determine if you qualify as a “borrowed servant,” courts will assess several factors, such as which company controlled your work, who paid you, and whether there was an understanding between your direct employer and the borrowing employer. A maritime injury lawyer can evaluate your case and help you determine if you qualify.
How Does the Borrowed Servant Doctrine Affect My Workers’ Compensation Claim?
The borrowed servant doctrine may allow you to pursue compensation beyond traditional workers’ compensation benefits. If you are classified as a “borrowed servant,” you may be able to file a claim under the Jones Act, which provides greater compensation than the LHWCA.
How Long Do I Have to File a Claim Under the Borrowed Servant Doctrine?
The statute of limitations for filing a claim under the Jones Act is typically three years from the date of the injury. However, deadlines can vary depending on the details of your case, so it’s crucial to consult with an attorney as soon as possible.
What Benefits Can I Receive Under the Jones Act as a Borrowed Servant?
If you qualify as a “borrowed servant” under the Jones Act, you may be entitled to compensation beyond what is available through workers’ compensation, including lost wages, medical expenses, pain and suffering, and other damages related to your injury.
Learn How the Borrowed Servant Doctrine Applies to You
If you are working on an oil platform and have been injured in an accident, know your rights. You may be entitled to more than just workers’ compensation. Contact The Kolodny Law Firm, a maritime injury law firm.
(image courtesy of Clyde Thomas)