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$300 Million Project Rejoins Storm-Damaged Ship Islands in Mississippi...
Posted on 10/12/2011
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One Killed in Virginia When Commercial Fishing Boat Rams Private Boat...
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New Orleans Seaman Sues Employer After Tugboat Collides with Bridge . . . Twice...
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Caution: Do You Know Who You Work For?

We are currently involved in a case which is unfortunately similar to a few others which we have addressed in recent years. Our client works for an entity controlled by Diamond Offshore Drilling, Inc., the large Houston based drilling company with which any maritime worker in the Gulf of Mexico is familiar. Our client "technically" received his W 2 from a Diamond entity which is incorporated in Bermuda. This entity is known as Diamond Offshore Services, Limited.

Our claim centers around the tuberculosis which we allege our client contracted while he was overseas working for Diamond. Our client is a very nice career worker with Diamond who has lived in Alabama his entire life. When we filed suit Diamond immediately filed preliminary motions objecting to what is known as "jurisdiction". In short, Diamond's argument is that our client cannot sue any Diamond entity in the United States since he was technically employed by a Bermuda company.

I am personally embarrassed for Diamond in taking this type of an approach against one of its own career employees. While I certainly understand the tax benefits of incorporating offshore and overseas, and ultimately this may be in Diamond's best interest, I find it disappointing that an obviously American based company benefiting from a significant workforce at Houston, Texas as well as hundreds of employees in the Gulf South would hide behind such a technicality. The court in our case has not yet determined the extent to which we can pierce through the technicalities and present our client's case in an American court. Regardless of the court's decision in this regard, our client certainly sees his previous employer in a very different light.

If you sign any type of contract with Diamond or receive a W 2 from Diamond, you should pay close attention to such documents. I would be curious how Diamond would answer a simple question of "what rights do I have against your company in an American court if I am ultimately injured working for you?" I am sure it the answer would be a long “...it depends”.