Jones Act Cases in Texas State Court After HB 1602
Brian Beckcom
Vujasinovic & Beckcom, L.L.P.
1001 Texas Avenue, Suite 1020
Houston, Texas 77002
(713) 224-7800
Brian@vbattorneys.com
www.vbattorneys.com
I. Introduction
On May 24, 2007, a sea change occurred in Texas state court Jones Act cases. On that day, Governor Rick Perry signed HB 1602. HB 1602 dramatically alters the special venue statute that applies to Texas Jones Act seamen.
Before HB 1602, Jones Act seamen and FELA railroad workers who lived in Texas when they were injured were allowed to file their FELA or Jones Act lawsuits in the county where they “resided” when they were injured. The advantages for injured seamen and railroad workers were many, including local juries, local doctors, the ability to stay close the their family during trial, and the many other advantages inherent in local venues.
HB 1602 modifies the venue options for Jones Act seamen and eliminates the home county option is some cases. Before filing a Jones Act personal injury lawsuit, the prudent practitioner will be well advised to study HB 1602 and consider all the various venue options before filing a Jones Act lawsuit. This paper summarizes and analyzes the changes HB 1602 brings to Jones Act cases in Texas state courts.
A. HB 1602 - Background
The impetus behind HB 1602 was a perceived increase in Jones Act filings in four South Texas counties against dredging companies, in particular two out-of-state dredge companies, Great Lakes and Weeks Marine. The dredge companies, with the backing of the anti-civil justice group Texans for Lawsuit Reform, attempted at first to eliminate the home county as a venue option for all Texas-based Jones Act seamen and FELA railroad workers. The original version of the bill would have forced the vast majority of Texas-resident Jones Act seamen and FELA railroad workers to file suit in their employers’ home county.
Recognizing the unfairness of the original bill, HB 1602 represents a compromise reached after many months of negotiation. HB 1602 makes Harris County and Galveston County permissible venues for some out-of-state Jones Act cases, regardless of where the plaintiff lived in when he or she was injured. HB 1602 provides special venue protections for dredge companies. It allows the dredge companies to hire workers from South Texas (and other Texas counties) but prevents the dredge companies from being sued in those counties.
Finally, the venue option for FELA railroad workers was left untouched.
II. HB 1602 Analysis
A. FELA railroad workers
Before HB 1602, FELA railroad workers and Jones Act seaman were treated the same for venue purposes. The precursor to HB 1602 would have treated FELA railroad workers and Jones Act seamen the same by repealing CPRC 15.018 (the special venue statute) in its entirety. The modified final version, HB 1602, carves out FELA railroad workers and separates them from Jones Act seamen. As a result, FELA workers can still file in their home county, as well as the county where the incident occurred or the county where the defendant maintains its principal place of business in Texas.
In summary, FELA railroad workers are unaffected by the modified, passed version of HB 1602.
B. Jones Act – Non-dredge workers
HB 1602 applies only to lawsuits filed under the Jones Act. It contains a general venue rule then engrafts special venue rules for certain kinds of Jones Act cases, based on the type of work being performed by the injured employee or the locale of the injury.
(i) HB 1602 – General Venue Provision for Jones Act cases
Under the general venue provisions of HB 1602, injured Jones Act seamen have two venue options from which to choose:
(1) the county where the defendant’s principal office is located in the state; or
(2) the county where the plaintiff resided at the time the cause of action accrued.
Under the general Jones Act venue statute, for example, an offshore oil rig worker who qualifies as a Jones Act seaman, injured in the Gulf of Mexico, can file in his home county or in the defendant’s home county in Texas. A sailor injured on the high seas can also still file in his home county, or in the defendant’s home county if the defendant maintains a principal office in Texas.
(ii) Jones Act – Texas-based inland injuries and dredge worker injuries
The Jones Act venue options are different for inland injuries, onshore injuries, or dredge worker injuries in Texas. If all or a substantial part of the events or omissions giving rise to the claim occurred in Texas inland waters, onshore in Texas, or during the course of an “erosion response project in Texas,” there are two venue options:
(1) file in the county in which all or a substantial part of the events giving rise to the claim occurred; or
(2) file in the defendant’s principal office in the state.
As a result of this first exception, a dredge worker injured in the Port of Houston must file in Harris County or in the county where the employer’s principal office in Texas is located. A Jones Act seaman injured in transit to his job can file in the county where he was injured, or in the county where the employer’s principal office in Texas is located.
(iii) Jones Act – Out-of-state inland injuries and dredge worker injuries occurring outside of Texas
There is yet another exception for injuries occurring inland outside of Texas, shore-based injuries occuring outside of Texas, or dredging-type injuries in “Gulf Coast” states.
If the injury occurs in any inland waters anywhere other than Texas, or onshore or during an erosion response project in a “Gulf Coast state,” then the injured Jones Act seamen has four venue options:
(1) the defendant’s principal office in the state if such office is in a “coastal county”;
(2) Harris County (Houston) if the plaintiff lived anywhere other than Galveston when the cause of action accrued;
(3) Galveston unless the plaintiff lived in Harris County; or
(4) if the defendant does not have a principal office in a Texas coastal county, then where the plaintiff lived when the cause of action accrued.
“Gulf Coast” states are defined as Texas, Louisiana, Alabama, Mississippi, and Florida. A “Coastal county” is defined as a county having a U.S. Customs port through which waterborne freight is transported. “Coastal erosion project” and “erosion response project” are also defined. Basically, erosion projects are dredging projects.
As a result of this exception, a Dallas-based Texas resident injured on the Mississippi river could file in Harris or Galveston county, in the employer’s home county in Texas if one exists along the coast, or if not, in Dallas. A Galveston-based Texas resident under the same facts loses the Harris County option. Houston-based Texas residents lose the Galveston option.
C. HB 1602 – Practical effects
In addition to adding to the complexity of the venue analysis in Jones Act cases, perhaps the most dramatic change resulting from HB 1602 is the likely increase in Jones Act filings in Harris and Galveston state courts.
Both Harris and Galveston counties are now viable venues for out-of-state injuries that occur in inland waters or ashore or during Gulf Coast dredging projects. Formerly, a worker injured outside of Texas under these circumstances could file in their home county. That option has been eliminated.
As a natural result of the changes in Jones Act venue options, expect to see increased Jones Act filings in Harris and Galveston state courts.
The other significant effect of HB 1602 is to Jones Act seamen injured in Texas waterways or doing dredging work in Texas. Essentially, workers injured in Texas waterways or on a Texas dredging project, regardless of where they lived when injured, will lose the option of filing suit where they lived when injured.
For example, a dredge worker injured while performing dredging work in the Port of Houston who lived in El Paso when he was injured will be required to file his suit in Harris County or where the dredging company has its principal office in Texas (assuming the company has a principal office in Texas).
As a practical matter, this will force some dredge workers to travel long distances for their lawsuit and will increase the costs of litigation to both the employee and employer.
For more on this and other Jones Act and maritime law topics, please review this website or visit the firm's main website at www.vbattorneys.com.
