Paschal v. Lykes Bros. Steamship Co.
Heard W. Paschal, a longshoreman, initiated a third-party suit against Lykes Bros. Steamship Co., Inc., the owner of the SS CHARLES LYKES and Paschal's employer. Subsequently, Lykes, joined by its insurer Hartford Accident and Indemnity Company, filed a petition for declaratory judgment. They sought judicial construction of Section 33 of the Longshoremen’s and Harbor Workers’ Compensation Act concerning their continuing liability for compensation payments if Paschal settled his third-party claim. The court, presided over by District Judge Singleton, granted Paschal's motion to strike the petition, finding that no actual or justiciable controversy existed since no settlement had been reached and the Deputy Commissioner had not issued an official ruling. The court also underscored that the Declaratory Judgment Act should not be used to bypass the administrative review procedures mandated by the Longshoremen’s and Harbor Workers’ Compensation Act. A later motion for reconsideration filed by Lykes and Hartford was also denied, with the judge affirming the discretionary nature of declaratory relief and the absence of new facts to warrant a rehearing.