## Facts

- James Hefren worked as a lead operator on the Front Runner Spar, an offshore drilling and production facility located on the outer continental shelf adjacent to Louisiana.
- Murphy Exploration & Production Company contracted with McDermott, Inc. to design and construct the Spar.
- Murphy accepted the Spar in May 2004 and affixed it to the seafloor, where it remained operating as a stationary platform with multiple decks for housing, drilling, and production.
- On June 6, 2011, Hefren was injured on the Spar when a valve flange struck his face.
- Hefren alleged McDermott’s defective design and construction caused his injuries, including unsafe equipment layout and failure to provide a safe work environment.
- Hefren sued Murphy and McDermott in Louisiana state court on June 4, 2012, asserting negligence under the Jones Act and general maritime law.
- The case was removed to federal court under the Outer Continental Shelf Lands Act (OCSLA).
- The district court ultimately granted summary judgment to McDermott, holding Louisiana’s five-year peremption statute for design/construction of immovables barred the claims.

## Issues

1. Whether OCSLA required application of Louisiana law as surrogate federal law to claims arising from an injury on the Front Runner Spar on the outer continental shelf.
2. Whether the Front Runner Spar, permanently affixed to the seabed, is an “immovable” under Louisiana law for purposes of applying La. Rev. Stat. § 9:2772.
3. Whether Hefren’s claims against McDermott, filed more than five years after the owner’s acceptance of the work, were perempted under La. Rev. Stat. § 9:2772.

## Decision

- The Fifth Circuit affirmed summary judgment for McDermott.
- The court held OCSLA applied and incorporated Louisiana law because the controversy arose on an OCSLA situs, maritime law did not apply of its own force, and Louisiana law was not inconsistent with federal law.
- The court classified the Spar as an immovable under Louisiana property law because it was a construction permanently attached to the seafloor and functioned as a stationary production platform rather than a means of maritime transportation.
- Applying La. Rev. Stat. § 9:2772, the court held the five-year peremptive period ran from Murphy’s acceptance in May 2004 and expired in May 2009, extinguishing claims filed in June 2012.

## Legal Principles

- Under OCSLA, adjacent state law applies as surrogate federal law when the dispute arises on an OCSLA situs, maritime law does not apply of its own force, and state law does not conflict with federal law.
- Under Louisiana law, a construction permanently attached to the ground (including the seabed) is an immovable; permanent affixation and stationary function support immovable status for offshore production structures.
- La. Rev. Stat. § 9:2772 perempts (extinguishes) actions arising from the design, planning, or construction of immovable property if brought more than five years after the owner’s acceptance of the work.
- When incorporated through OCSLA, Louisiana peremption may bar contractor design-and-construction claims arising from injuries on fixed-type offshore structures.

## Conclusion

The Fifth Circuit held that OCSLA incorporated Louisiana law, the Front Runner Spar was an immovable due to its permanent attachment and stationary production function, and Louisiana’s five-year peremption statute extinguished Hefren’s design-and-construction claims against McDermott because suit was filed more than five years after the owner accepted the work.


Hefren v. McDermott, Inc., 820 F.3d 767 (5th Cir. 2016)