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SUPREME COURT OF THE UNITED STATES
_________________
No. 10–507
_________________
PACIFIC OPERATORS OFFSHORE, LLP, et al.,
PETITIONERS
v. LUISA L. VALLADOLID et al.
on writ of certiorari to the united states
court of appeals for the ninth circuit
[January 11, 2012]
Justice Thomas delivered the opinion of the
Court.
The Outer Continental Shelf Lands Act (OCSLA)
extends the federal workers’ compensation scheme established in the
Longshore and Harbor Workers’ Compensation Act (LHWCA), 33
U. S. C. §901
et seq., to injuries “occurring
as the result of operations conducted on the outer Continental
Shelf” for the purpose of extracting natural resources from the
shelf. 43 U. S. C. §1333(b). The United States Court of
Appeals for the Ninth Circuit determined that the OCSLA extends
coverage to an employee who can establish a substantial nexus
between his injury and his employer’s extractive operations on the
Outer Continental Shelf. We affirm.
I
Petitioner Pacific Operators Offshore, LLP
(Pacific), operates two drilling platforms on the Outer Continental
Shelf off the coast of California and an onshore oil and gas
processing facility in Ventura County, California. Pacific employed
Juan Valladolid as a general manual laborer—known in the trade as a
roustabout—in its oil exploration and extraction business.
Valladolid spent about 98 percent of his time on one of Pacific’s
offshore drilling platforms performing maintenance duties, such as
picking up litter, emptying trashcans, washing decks, painting,
maintaining equipment, and helping to load and unload the platform
crane. Valladolid spent the remainder of his time working at
Pacific’s onshore processing facility, where he also performed
maintenance duties, including painting, sandblasting, pulling
weeds, cleaning drain cul-verts, and operating a forklift.
While on duty at the onshore facility,
Valladolid died in a forklift accident. His widow, a respondent
here, filed a claim for benefits under the LHWCA pursuant to the
extension of that Act contained within the OCSLA. The OCSLA
provides, in relevant part:
“With respect to disability or death of an
employee resulting from any injury occurring as the result of
operations conducted on the outer Continental Shelf for the purpose
of exploring for, developing, removing, or transporting by pipeline
the natural resources, or involving rights to the natural
resources, of the subsoil and seabed of the outer Continental
Shelf, compensation shall be payable under the provisions of the
[LHWCA].” 43 U. S. C. §1333(b).
After a hearing, an Administrative Law Judge
(ALJ) dismissed respondent’s claim. The ALJ reasoned that
Valladolid’s fatal injury was not covered under §1333(b) because
his accident occurred on land, rather than on the Outer Continental
Shelf. On appeal, the United States Department of Labor’s Benefits
Review Board affirmed, concluding that Congress intended to limit
the coverage provided by the OCSLA to injuries suffered by
employees within the “geographical locale” of the Outer Continental
Shelf.
L. V. v.
Pacific Operations Offshore,
LLP, 42 BRBS 67, 71 (2008)
(per curiam).
The Ninth Circuit reversed, holding that
§1333(b) neither contains a “situs-of-injury” requirement, as the
Fifth Circuit has held, nor imposes a “but for” causation
requirement, as the Third Circuit has held. See 604 F.3d 1126,
1130–1140 (2010) (rejecting the holdings of
Mills v.
Director, Office of Workers’ Compensation Programs, 877 F.2d
356 (CA5 1989) (en banc);
Curtis v.
Schlumberger Offshore
Service, Inc., 849 F.2d 805 (CA3 1988)). Instead, the Ninth
Circuit concluded that “the claimant must establish a substantial
nexus between the injury and ex-tractive operations on the shelf”
to qualify for workers’ compensation benefits under the OCSLA. 604
F. 3d, at 1139. We granted Pacific’s petition for a writ of
certiorari to resolve this conflict. 562 U. S. ___ (2011).
II
In 1953, Congress enacted the Submerged Lands
Act, 67Stat. 29, 43 U. S. C. §1301
et seq.,
which extended the boundaries of Coastal States three geographic
miles into the Atlantic and Pacific Oceans and three marine leagues
into the Gulf of Mexico. At the same time, Congress enacted the
OCSLA, affirming the Federal Government’s authority and control
over the “outer Continental Shelf,” defined as the submerged lands
subject to the jurisdiction and control of the United States lying
seaward and outside of the submerged lands within the extended
State bound-aries. 67Stat. 462, 43 U. S. C. §§1331(a),
1332(1). As defined by the OCSLA, the Outer Continental Shelf
includes the “submerged lands” beyond the extended state
boundaries, §1331(a), but not the waters above those submerged
lands or artificial islands or installations attached to the
seabed. For simplicity’s sake, we refer to the entire geographical
zone as the “OCS.”
Section 1333 extends various provisions of state
and federal law to certain aspects of the OCS. For example,
§1333(a)(1) extends the Constitution and federal laws of civil and
political jurisdiction “to the subsoil and seabed of the outer
Continental Shelf and to all artificial islands, and all
installations and other devices permanently or temporarily attached
to the seabed,” for the purpose of extracting its natural
resources. Section 1333(a)(2)(A) makes the civil and criminal laws
of each adjacent State applicable to “that portion of the subsoil
and seabed of the outer Continental Shelf, and artificial islands
and fixed structures erected thereon, which would be within the
area of the State if its boundaries were extended seaward to the
outer margin of the outer Continental Shelf.” Section 1333(b), the
provision involved in this case, makes LHWCA workers’ compensation
benefits available for the “disability or death of an employee
resulting from any injury occurring as the result of operations
conducted on the outer Continental Shelf ” for the purpose of
extracting its natural resources.
The question before us is the scope of coverage
under §1333(b). The parties agree that §1333(b) covers employees,
such as oil rig and drilling platform workers, who are injured
while working directly on the OCS to extract its natural resources.
They disagree, however, whether employees who are involved in
extraction operations but who are injured beyond the OCS are also
covered under the OCSLA. This dispute focuses on the meaning of the
phrase “any injury occurring as the result of operations conducted
on the outer Continental Shelf” in §1333(b).
The Courts of Appeals have offered competing
interpretations. In
Curtis v.
Schlumberger Offshore
Service, Inc., 849 F. 2d
, at 811, the Third Circuit
held that, because Congress intended LHWCA coverage to be
expansive, §1333(b) extends to all injuries that would not have
occurred “but for” operations on the OCS. The Third Circuit thus
concluded that an employee who worked on a semisubmersible drill
rig, but who was killed in a car accident on the way to the
helicopter that was to fly him to that rig, was eligible for
§1333(b) benefits.
Id., at 806, 811. As the Third Circuit
summarized, “ ‘But for’ [Curtis’] travelling to [his drill
rig] for the purpose of conducting ‘operations’ within §1333(b),
employee Curtis would not have sustained injuries in the automobile
accident.”
Id., at 811.
In
Mills v.
Director, supra, the
Fifth Circuit, sitting en banc, adopted a narrower interpretation
of §1333(b). The court concluded that Congress intended to
establish “a bright-line geographic boundary for §1333(b)
coverage,” and held that §1333(b) extends coverage only to
employees engaged in OCS extractive activities who “suffer injury
or death on an OCS platform or the waters above the OCS.”
Id., at 362. Applying its “situs-of-injury” test, the Fifth
Circuit held that a welder who was injured on land during the
construction of an offshore oil platform was not eligible for
§1333(b) benefits.
Id., at 357, 362.
In the case below, the Ninth Circuit rejected
the Fifth Circuit’s “situs-of-injury” requirement as unsupported by
the text of §1333(b), and the Third Circuit’s “but for” test as too
broad to be consistent with Congress’ intent. 604 F. 3d, at
1137, 1139. Instead, the Ninth Circuit adopted a third
interpretation of §1333(b), holding that a “claimant must establish
a substantial nexus between the injury and extractive operations on
the shelf ” to be eligible for §1333(b) benefits.
Id.,
at 1139. “To meet the standard,” the Ninth Circuit explained, “the
claimant must show that the work performed directly furthers outer
continental shelf operations and is in the regular course of such
operations.”
Ibid.
The Solicitor General suggests yet a fourth
interpretation of §1333(b).[
1]
This interpretation would extend coverage to two categories of
injuries: (1) all on-OCS injuries suffered by employees of
companies engaged in resource extraction on the OCS; and (2) the
off-OCS injuries of those employees who spend a substantial portion
of their worktime on the OCS engaging in extractive operations.
Brief for Federal Respondent 32–33. According to the Solicitor
General, this test would provide §1333(b) coverage for off-OCS
injuries only to those employees whose duties contribute to
operations on the OCS and who perform work on the OCS itself that
is substantial in both duration and nature.
Id., at 35.
III
Pacific argues that the Fifth Circuit’s
“situs-of-injury” test presents the best interpretation of
§1333(b). The crux of Pacific’s argument is that off-OCS injuries
cannot be “the result of operations conducted on the outer
Continental Shelf ” for purposes of §1333(b). Pacific asserts
that because Valladolid was injured on dry land, his death did not
occur as the result of extraction operations conducted on the OCS,
and therefore respondent is ineligible for LHWCA workers’
compensation benefits. We disagree.
A
The OCSLA extends the provisions of the LHWCA
to the “disability or death of an employee resulting from any
injury occurring as the result of operations conducted on the outer
Continental Shelf.” §1333(b). Contrary to the view of Pacific and
the Fifth Circuit, nothing in that language suggests that the
injury to the employee must occur on the OCS. Section 1333(b)
states only two requirements: The extractive operations must be
“conducted on the outer Continental Shelf,” and the employee’s
injury must occur “as the result of ” those operations.
Despite the lack of a textual “situs-of-injury”
requirement in §1333(b), Pacific argues that it is logically
impossible for an off-OCS employee to be injured “as the result
of ” on-OCS operations. Pacific offers no basis for this
assertion, and we find none. Indeed, given that many OCS platforms
are physically connected to onshore processing facilities via oil
and gas pipelines, it is not difficult to imagine an accident
occurring on an OCS platform that could injure employees located
off the OCS.
Moreover, if, as Pacific suggests, the purpose
of §1333(b) was to geographically limit the extension of LHWCA
coverage to injuries that occurred on the OCS, Congress could
easily have achieved that goal by omitting the following six words
in §1333(b)’s text: “as the result of operations conducted.” Had
Congress done so, the statute would extend LHWCA coverage to the
“disability or death of an employee resulting from any injury
occurring on the outer Continental Shelf.” But that is not the text
of the statute Congress enacted.
Pacific also argues that, because all of
§1333(b)’s neighboring subsections contain specific situs
limitations, we should infer that Congress intended to include a
situs-of-injury requirement in §1333(b). See,
e.g.,
§1333(a)(2)(A) (adopting the civil and criminal laws of the
adjacent State as federal law “for that portion of the subsoil and
seabed of the outer Continental Shelf, and artificial islands and
fixed structures erected thereon, which would be within the area of
the State if its boundaries were extended seaward to the outer
margin of the outer Continental Shelf ”).[
2] But our usual practice is to make the opposite
inference.
Russello v.
United States,
464 U.S.
16, 23 (1983) (“Where Congress includes particular language in
one section of a statute but omits it in another section of the
same Act, it is generally presumed that Congress acts intentionally
and purposely in the disparate inclusion or exclusion” (alteration
and internal quotation marks omitted)). Congress’ decision to
specify, in scrupulous detail, exactly where the other subsections
of §1333 apply, but to include no similar restriction on injuries
in §1333(b), convinces us that Congress did not intend §1333(b) to
apply only to injuries suffered on the OCS. Rather, §1333(b)
extends LHWCA workers’ compensation coverage to any employee
injury, regardless of where it happens, as long as it occurs “as
the result of operations conducted on the outer Continental
Shelf.”
Pacific argues that this conclusion is
foreclosed by language in
Herb’s Welding, Inc. v.
Gray,
470 U.S.
414 (1985), and
Offshore Logistics, Inc. v.
Tallentire,
477 U.S.
207 (1986); but neither of those cases held that §1333(b)
extends only to injuries that occur on the OCS. In
Herb’s
Welding, this Court considered whether an oil platform welder,
who worked both within the territorial waters of Louisiana and on
the OCS, was covered under the LHWCA after suffering an injury in
the waters of Louisiana. 470 U. S., at 416–417. The Court
explicitly declined to address whether the employee was eligible
for workers’ compensation benefits under §1333(b) because that
question was neither passed upon by the Court of Appeals nor fully
briefed and argued before this Court.
Id., at 426,
n. 12. Although the Court acknowledged that an employee might
walk in and out of workers’ compensation coverage during his
employment due to the “explicit geographic limitation to the
[OCSLA’s] incorporation of the LHWCA,”
id., at 427, the
exact meaning of that statement is unclear. We cannot ascertain
whether the comment was a reference to §1333(b)’s explicit
situs-of-operations requirement, as respondents suggest, or the
recognition of an implicit situs-of-injury requirement, as Pacific
argues. In any event, the ambiguous comment was made without
analysis in dicta and does not control this case.
The same is true of the Court’s opinion in
Offshore Logistics. In that case, the Court considered
whether the widows of oil platform workers who were killed when
their helicopter crashed into the high seas could file
wrongful-death suits under Louisiana law. In the Court’s analysis
of §1333, it stated, “Congress determined that the general scope of
OCSLA’s coverage . . . would be determined principally by
locale, not by the status of the individual injured or killed.” 477
U. S., at 219–220 (citing the situs requirement in
§1333(a)(2)(A)). In a footnote, the Court commented: “Only one
provision of OCSLA superimposes a status requirement on the
otherwise determinative OCSLA situs requirement; §1333(b) makes
compensation for the death or injury of an ‘employee’ resulting
from certain operations on the Outer Continental Shelf payable
under the [LHWCA].”
Ibid., n. 2. These comments about
the scope of the OCSLA’s coverage and its determinative “situs
requirement” do not provide definitive evidence that §1333(b)
applies only to injuries that occur on the OCS. As in
Herb’s
Welding, it is unclear whether the statement in the
Offshore
Logistics footnote regarding §1333(b) was referring to the
explicit situs-of-operations requirement or to an implicit
situs-of-injury requirement. Moreover, the entire footnote is
dictum because, as the Court explicitly stated, §1333(b) had no
bearing on the case. 470 U. S., at 219–220.
Finally, Pacific argues that including off-OCS
injuries within the scope of the workers’ compensation coverage
created by §1333(b) runs counter to Congress’ intent in drafting
the OCSLA. According to Pacific, Congress intended to create a
uniform OCS compensation scheme that both filled the jurisdictional
voids and eliminated juris-dictional overlaps between existing
state and federal pro-grams. Pacific points out that, without a
situs-of-injury requirement to narrow the scope of §1333(b), an
off-OCS worker could be eligible for both state and federal
workers’ compensation coverage.
There is no indication in the text, however,
that the OCSLA excludes OCS workers from LHWCA coverage when they
are also eligible for state benefits. To the contrary, the LHWCA
workers’ compensation scheme incorporated by the OCSLA explicitly
anticipates that injured employees might be eligible for both state
and federal benefits. An offsetting provision in the LHWCA provides
that “any amounts paid to an employee for the same in-jury,
disability, or death for which benefits are claimed under [the
LHWCA] pursuant to any other workers’ compensation law or [the
Jones Act] shall be credited against any liability imposed by [the
LHWCA].” 33 U. S. C. §903(e). This provision, in addition
to the lack of any textual support for Pacific’s argument,
convinces us that Congress did not limit the scope of 43
U. S. C. §1333(b)’s coverage to only those geographic
areas where state workers’ compensation schemes do not apply.
B
Pacific also offers an alternative argument
derived from the interaction of §1333(b) and a provision of the
LHWCA. Specifically, Pacific argues that because the LHWCA contains
an explicit situs-of-injury requirement, see 33 U. S. C.
§903(a) (providing benefits only for injuries occurring “upon the
navigable waters” of the United States), and because 43
U. S. C. §1333(b) extends the LHWCA workers’ compensation
scheme to the OCS, §1333(b) incorporates the strict LHWCA
situs-of-injury requirement from §903(a). According to Pacific, the
words “occurring as the result of operations” in §1333(b) impose a
status requirement in addition to the imported LHWCA
situs-of-injury requirement, with the result that employees who are
injured on the OCS, but whose jobs are not related to extractive
operations, are excluded from the workers’ compensation coverage
created by §1333(b). Thus, an accountant who is injured on a field
trip to the drilling platform would be ineligible under §1333(b)
despite being an employee who is injured on the OCS.
Although this alternative argument has the
advantage of assigning some meaning to the words “occurring as the
result of operations” in §1333(b), we still find it unpersuasive.
First, it is unlikely that Congress intended to impose a
situs-of-injury requirement in §1333(b) through such a nonintuitive
and convoluted combination of two separate legislative Acts. As we
have already noted, creating an express situs-of-injury requirement
in the text of §1333(b) would have been simple. Second, combining
the §1333(b) definition of “United States” with the LHWCA
situs-of-injury requirement in 33 U. S. C. §903(a) would
result in an OCS workers’ compensation scheme that applies only to
the seabed of the OCS and to any artificial islands and fixed
structures thereon. See 43 U. S. C. §1333(b)(3) (stating
that “the term ‘United States’ when used in a geographical sense
includes the outer Continental Shelf and artificial islands and
fixed structures thereon”). Pacific concedes that this scheme would
exclude the navigable waters above the shelf, including the waters
immediately adjacent to any drilling platforms. Consequently, under
Pacific’s view, even employees on a crew ship immediately adjacent
to an OCS platform who are injured during a platform explosion
would be excluded from §1333(b) coverage. That view cannot be
squared with the text of the statute, which applies to “any injury
occurring as the result of operations conducted” on the OCS.
C
Pacific also makes several policy arguments in
favor of a situs-of-injury requirement, but policy concerns cannot
justify an interpretation of §1333(b) that is inconsistent with the
text of the OCSLA. “[I]f Congress’ coverage decisions are mistaken
as a matter of policy, it is for Congress to change them. We should
not legislate for them.”
Herb’s Welding, 470 U. S., at
427. The language of §1333(b) simply does not support a categorical
exclusion of injuries that occur beyond the OCS.
IV
The Solicitor General urges us to adopt a
status-based inquiry that applies one test to on-OCS injuries and a
different test to off-OCS injuries. Specifically, the Government
proposes that when a worker is injured on the OCS, he is eligible
for workers’ compensation benefits if he is employed by a company
engaged in extractive operations on the OCS. But if the employee is
injured off the OCS, the employee will be covered only if his
“duties contribute to operations” on the OCS and if he performs
“work on the [OCS] itself that is substantial in terms of both its
duration and nature.” Brief for Federal Respondent 35. This
approach is derived from our decision in
Chandris, Inc. v.
Latsis,
515 U.S.
347 (1995) (establishing criteria by which an employee
qualifies as a “seaman” under the Jones Act), and might well have
merit as legislation. But it has no basis in the text of the OCSLA
as presently enacted. The “occurring as the result of operations”
language in §1333(b) plainly suggests causation. Although the
Government asserts that a status-based test would be preferable to
a causation-based test, we cannot ignore the language enacted by
Congress.
The Third Circuit’s “but for” test is nominally
based on causation, but it is also incompatible with §1333(b).
Taken to its logical conclusion, the “but for” test would extend
workers’ compensation coverage to all employees of a business
engaged in the extraction of natural resources from the OCS, no
matter where those employees work or what they are doing when they
are injured. This test could reasonably be interpreted to cover
land-based office employees whose jobs have virtually nothing to do
with extractive operations on the OCS. Because Congress ex-tended
LHWCA coverage only to injuries “occurring as the result of
operations conducted on the outer Continental Shelf,” we think that
§1333(b) should be interpreted in a manner that focuses on injuries
that result from those “operations.” This view is consistent with
our past treatment of similar language in other contexts. In
Holmes v.
Securities Investor Protection Corporation,
503 U.S.
258 (1992), we considered a provision of the Racketeer
Influenced and Corrupt Organizations Act that provided a cause of
action to “[a]ny person injured in his business or property
by
reason of a violation of section 1962.” 18 U. S. C.
§1964(c) (emphasis added). We rejected a “but for” interpretation,
stating that such a construction was “hardly compelled” and that it
was highly unlikely that Congress intended to allow all factually
injured plaintiffs to recover. 503 U. S., at 265–266. Instead, we
adopted a proximate-cause standard consistent with our prior
interpretation of the same language in the Sherman and Clayton
Acts.
Id., at 267–268. Similarly, 43 U. S. C.
§1333(b)’s language hardly compels the Third Circuit’s expansive
“but for” interpretation.
Accordingly, we conclude that the Ninth
Circuit’s “substantial-nexus” test is more faithful to the text of
§1333(b). We understand the Ninth Circuit’s test to require the
injured employee to establish a significant causal link between the
injury that he suffered and his employer’s on-OCS operations
conducted for the purpose of extracting natural resources from the
OCS.
Although the Ninth Circuit’s test may not be the
easiest to administer, it best reflects the text of §1333(b), which
establishes neither a situs-of-injury nor a “but for” test. We are
confident that ALJs and courts will be able to determine whether an
injured employee has established a significant causal link between
the injury he suffered and his employer’s on-OCS extractive
operations. Although we expect that employees injured while
performing tasks on the OCS will regularly satisfy the test,
whether an employee injured while performing an off-OCS task
qualifies—like Valladolid, who died while tasked with onshore scrap
metal consolidation—is a question that will depend on the
individual circumstances of each case. The Ninth Circuit remanded
the case for the Benefits Review Board to apply the
“substantial-nexus” test in the first instance, and we agree with
that disposition.
The judgment is affirmed, and the case is
remanded to the Court of Appeals for further proceedings consistent
with this opinion.
It is so ordered.