5th Circuit Rejects Transocean’s Claim to Restitution for Maritime Worker’s Undisclosed Injury

NEW ORLEANS — The 5th Circuit Court of Appeals has rejected Transocean Deepwater Inc.’s (NYSE: RIG) assertion of automatic entitlement to restitution for benefits paid to a seaman who was found to have a related, undisclosed, pre-employment injury.

A 2-1 panel majority March 14 reversed a decision by a lower court allowing Transocean to recover benefits it paid to a maritime worker who claimed a worksite back injury but failed to disclose that he had suffered a similar injury before his hiring.

The majority judges said that the request for restitution after a successful defense to liability under …