Gueho v. Diamond M. Drilling Co., 75-2742
| Citation | 524 F.2d 986 |
| Decision Date | 17 December 1975 |
| Docket Number | No. 75-2742,75-2742 |
| Parties | Joseph S. GUEHO, Plaintiff-Appellee, v. DIAMOND M. DRILLING COMPANY, et al., Defendants-Appellants. Summary Calendar. * |
| Court | United States Courts of Appeals. United States Court of Appeals (5th Circuit) |
Joseph J. Weigand, Jr., Joseph L. Waitz, Houma, La., for defendants-appellants.
E. M. Nichols, Lake Charles, La., for plaintiff-appellee.
Appeal from the United States District Court for the Western District of Louisiana.
Before THORNBERRY, MORGAN and RONEY, Circuit Judges.
The plaintiff in this action, a Jones Act, 46 U.S.C. § 688 et seq., employee of Diamond M. Drilling Company, sustained an injury to his knees when the crew boat in which he was riding ran aground in St. Mary Parish, Louisiana. The plaintiff, who was not represented by counsel, and the defendant, who was represented by an insurance adjuster, entered into a settlement for the sum of $18,000 on February 8, 1974. After interviewing the plaintiff, Judge Edwin F Hunter, Jr., of the Western District of Louisiana approved the settlement. Later, on the evening of the day of the settlement, defendant terminated plaintiff's employment. Plaintiff filed an action to have the settlement set aside contending that during the negotiations he had been led to believe that he would retain his employment. Judge Richard J. Putnam vacated the settlement and after trial rendered judgment in favor of the plaintiff for the sum of $25,000. Defendant appeals from the order of the district judge vacating the settlement.
The only issue before this court is whether there was a factual basis for the decision of the trial court in setting aside the settlement. Settlements involving seamen's rights are subject to careful scrutiny. See, Garrett v. Moore-McCormack Co., 317 U.S. 239, 248, 63 S.Ct. 246, 87 L.Ed. 239 (1942). In an action under the Jones Act, the burden is upon the party claiming settlement as a defense to show that it was entered into by the seaman with an informed understanding of his rights and a full appreciation of the settlement's consequences. See, Blanco v. Moran Shipping Company, 483 F.2d 63 (5th Cir. 1973); Cates v. United States, 451 F.2d 411 (5th Cir. 1971). In this case, there was ample evidence to demonstrate that the plaintiff was led to believe that he would maintain his employment. Gueho questioned the insurance adjuster whether the settlement would affect his job and received the reply that there would be no effect. Moreover, when the plaintiff had...
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...a conclusive presumption of an intent to deceive” are obviously distinguishable and unhelpful. See, e.g., Gueho v. Diamond M. Drilling Co., 524 F.2d 986, 987 (5th Cir.1975) (setting aside agreement where “there was ample evidence to demonstrate that the plaintiff was led to believe that he ......
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