News

RECENT DECISIONS

For summaries of recent decisions, visit DCR's Recent Decisions web page by clicking here.

HURRICANE LITIGATION

For updates on hurricane litigation, visit DCR's Hurricane Litigation web page by clicking here.

Increase in the Federal Minimum Wage

Every employer of employees subject to the Fair Labor Standards Act’s minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments so as to permit employees to readily read it. Additionally, calculations of future wage loss for plaintiffs will be affected by the recent increase in the Federal Minimum Wage over the course of the next three years.

In May of 2007, the Federal Minimum Wage was increased. The increase is the first since 1997. The pay increase will be a total of $2.10 and will be increased in three increments:

$5.85 per hour, effective July 24, 2007
$6.55 per hour, effective July 24, 2008
$7.25 per hour, effective July 24, 2009

To be compliant with federal employment law, your business must post the Fair Minimum Wage Act of 2007.

Louisiana’s Third Circuit Affirms Exception of Prescription and Dismissing Plaintiff's Claims Against DCR's Client

The Louisiana Third Circuit affirmed Judge Marilyn Castle’s ruling sustaining a peremptory exception of prescription in a case dismissing all of plaintiff's claims against our client. The wireline worker filed suit against the platform owner and the crane operator within Louisiana’s prescriptive period, but failed to amend his Petition for Damages to assert a claim against the vessel owner until nearly four years after his initial Petition was filed.

In response to plaintiff’s untimely claim, on behalf of our client, we filed a Peremptory Exception of Prescription, arguing general maritime law applied to plaintiff’s claims against it and, consequently, the Uniform Statute of Limitations for Maritime Torts, 46 U.S.C.A. §763(a), applied, barring plaintiff’s claim.  The trial court sustained the vessel owner’s Exception and plaintiff appealed the ruling.

The Third Circuit found plaintiff’s claim was governed by general maritime law because plaintiff’s accident occurred on navigable waters and the alleged tortious activity of the vessel owner was so closely related to activity traditionally subject to admiralty law that the reasons for applying special admiralty rules would apply.  Accordingly, plaintiff's claims against our client were dismissed.

For the complete opinion, click here to see Bell v. American Intern. Group, 2007 WL 397263; 2006-1242 (La. App. 3 Cir. 2/7/07).

Texas passes House Bill 1602: Venue in civil actions under the Jones Act

Prior to the passing of Texas House Bill 1602 in May 2007, there was a loophole that allowed cases brought under the Jones Act to be filed in the county of the plaintiff's residence. This loophole caused an explosion of lawsuits under the Jones Act in Hidalgo and Starr counties, largely affecting dredging companies.

The bill establishes venue for Jones Act claims filed in Texas state courts as follows:

If the accident occurred in Texas on land:

(1) In the county in which all or a substantial part of the events or omissions giving rise to the claim occurred; or (2) in the county where the defendant's principal office in Texas is located; (3) if venue is unavailable in one of the counties described in (1) or (2) above, then the claimant can file a Jones Act claim in the county where the plaintiff resided at the time the cause of action accrued.

If the accident occurred ashore in Texas or on the inland waters of Texas:

The plaintiff can file a civil action in the county in which the incident occurred or in the county where the defendant’s principal office in Texas is located. 

If all or most of the incident occurred in a Gulf Coast state or waters, other than Texas:

The plaintiff can file a civil action in the county where (1) the defendant’s principal office in Texas is located, or (2) if the defendant has none, in the county where the plaintiff resided at the time the cause of action accrued.