Sanders v. Vigor Fab, LLC

Tort claims are barred in Longshore and Harbor Workers’ Compensation Act (LHWCA) complaints when multiple entities are subject to single management which in turn functionally operates as a “single entity.” Claudio v. United States, 907 F Supp 581, 588 (EDNY 1995). The elements to find a single entity are: (1) operations are interrelated; (2) both entities have central management; (3) labor relations are centrally run; and (4) there is common ownership. Id. at 588.

Employee brought a negligence claim against Vigor Fab under Oregon’s Employer Liability Act but had previously filed a workers’ compensation claim against Vigor Marine under the Longshore and Harbor Workers’ Compensation Act (LHWVA). Because the trial court found Vigor Fab and Vigor Marine were a “single entity” under the LHWCA, summary judgment was granted in favor of Vigor Fab. Employee argued summary judgment was in error because there was a genuine issue of fact regarding whether Vigor Marine and Vigor Fab were separate entities. Tort claims are barred in LHWCA complaints when multiple entities are subject to single management which in turn functionally operates as a “single entity.” Claudio v. United States, 907 F Supp 581, 588 (EDNY 1995). The elements to find a single entity are: (1) operations are interrelated; (2) both entities have central management; (3) labor relations are centrally run; and (4) there is common ownership. Id. at 588. The Court held the trial court did not err because integration was shown through engagement in shipbuilding and ship repair on the same property. Further, the two share common management with their parent company, neither company could make hiring or firing decisions without their parent company’s HR department, and the two were both owned by Vigor Industrial. Affirmed.