Ellenwood, et al. v. Exxon Shipping Co.
Case Date: 01/14/1993
Court: United States Court of Appeals
Docket No: 92-1473
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January 14, 1993 UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT ____________________ No. 92-1473 THEODORE M. ELLENWOOD, ET AL., Plaintiffs, Appellees, v. EXXON SHIPPING CO., Defendant, Appellant. ____________________ STATE OF MAINE, Intervenor. _____________________ No. 92-1474 THEODORE M. ELLENWOOD, ET AL., Plaintiffs, Appellants, v. EXXON SHIPPING CO., Defendant, Appellee. ____________________ STATE OF MAINE, Intervenor. ____________________ APPEALS FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MAINE [Hon. D. Brock Horny, U.S. District Judge] ___________________ ____________________ Before Breyer, Chief Judge, ___________ Coffin, Senior Circuit Judge, ____________________ and Cyr, Circuit Judge. _____________ ____________________ Peter Bennett with whom Daniel W. Bates was on brief for the ______________ ________________ Ellenwoods. Thomas D. Warren, Deputy Attorney General, with whom Michael E. _________________ __________ Carpenter, Attorney General, was on brief for the State of Maine. _________ Robert M. Hayes with whom Charles G. Bakaly, Jr., Richard G. ________________ ________________________ __________ Moon, and Linda D. McGill were on brief for Exxon Shipping Company. ____ _______________ ____________________ ____________________ COFFIN, Senior Circuit Judge. Shortly after the Exxon _____________________ _____ Valdez struck a reef off the Alaskan coast in 1989, defendant ______ Exxon Shipping Company adopted a new policy barring any employee who had ever participated in an alcohol rehabilitation program from holding designated jobs within the company. Pursuant to this policy, plaintiff Theodore Ellenwood, who had no connection to the Valdez incident, was removed from his position as chief ______ engineer of another Exxon oil tanker, the Exxon Wilmington. _________________ Ellenwood voluntarily had entered, and successfully had completed, a month-long alcohol rehabilitation program a year before the Valdez accident. Despite his concerns about his ______ drinking, Ellenwood never had had an on-the-job problem with alcohol. A psychiatrist who examined Ellenwood in connection with this case concluded, in fact, that he had never been an alcoholic. See Tr. Vol. V, at 133. ___ Relying primarily on the company's previous written policy that "[n]o employees with alcoholism will have their job security or future opportunities jeopardized due to a request for help or involvement in a rehabilitation effort," Ellenwood and his wife brought suit against Exxon alleging tort and contract claims as well as violations of state statutes prohibiting discrimination against the handicapped.1 Ellenwood ultimately received a ____________________ 1 The complaint set forth the following causes of action: breach of contract (Count I); breach of a duty of good faith arising out of Exxon's use of confidential information concerning Ellenwood's alcohol treatment as a basis for removing him (Count II); estoppel arising out of Exxon's representations and promises (Count III); wrongful discharge in violation of the public policy promoting responsible treatment of alcoholism (Count IV); -3- judgment for $677,648 on his contract and promissory estoppel causes of action. In these appeals, both sides contend, inter alia, that the _____ ____ district court committed legal error in defining the actionable counts. Ellenwood claims the judge eliminated too many claims on various legal grounds, depriving him of additional relief, while Exxon claims that the court allowed too many counts to be tried.2 We affirm most of the court's rulings. We conclude, however, that the district court overestimated the preemptive effects of admiralty law and the Rehabilitation Act of 1973, 29 U.S.C. 701-796, and, accordingly, we must remand for trial on Ellenwood's state statutory claims of handicap discrimination.3 ____________________ discrimination against the handicapped contrary to various state laws (Count V); misrepresentation over the career consequences of seeking alcohol treatment (Count VI); intentional and negligent infliction of emotional distress on both Ellenwoods in ending Ellenwood's career and disseminating confidential information concerning his condition (Counts VII and VIII); defamation in removing Ellenwood from his position as chief engineer (Count IX); invasion of privacy in the manner in which Exxon obtained the information about Ellenwood's treatment and disclosed it (Count X); invasion of privacy in placing Ellenwood in a false light (Count XI); invasion of privacy in publicizing confidential information (Count XII); Mrs. Ellenwood's loss of consortium (Count XIII); and punitive damages (Count XIV). 2 This court granted the State of Maine provisional permission to intervene on the issue of whether Ellenwood's claim based on the Maine Human Rights Act, 2A Me. Rev. Stat. Ann. tit. 5, 4571-72 (Supp. 1992), is preempted by federal law. 3 The complaint referred to statutes in Maine, New Jersey and Texas, and we offer no view as to the applicable law. We note, however, that the district court applied Texas law to Count XII of the complaint, which alleged an invasion of privacy. See ___ Memorandum of Decision, Oct. 28, 1991. -4- I. Preemption and the Rehabilitation Act4 _____________________________________ A. Background __________ Section 503 of the Rehabilitation Act of 1973, 29 U.S.C. 793, requires any contract with the federal government in excess of $2,500 to include a provision obligating the federal contractor to "take affirmative action to employ and advance in employment qualified individuals with handicaps." 29 U.S.C. 793(a). Any handicapped individual who believes a contractor has failed to comply with this provision may file a complaint with the Department of Labor, which must conduct an investigation and take appropriate action. 29 U.S.C. 793(b). Regulations promulgated pursuant to 503 specify a detailed administrative enforcement mechanism for its breach. See 41 C.F.R. 60-741.1- ___ 741.32 (1991). The Department's Office of Federal Contract Compliance Programs (OFCCP) is empowered, for example, to seek injunctive relief in court, terminate or cancel a contract, or bar a contractor from receiving future contracts. 41 C.F.R. 60-741.28(b)-(e) (1991). It also may seek such remedies as back pay and reinstatement for affected employees. See Dep't of Labor ___ ______________ v. Texas Indus., Inc., 47 Fair Empl. Prac. Cas. (BNA) 18, 28 ___________________ (Dep't Labor 1988). See Howard v. Uniroyal, Inc., 719 F.2d 1552, ___ ______ ______________ 1559 (11th Cir. 1983) (detailing enforcement procedures). In a motion for summary judgment, Exxon, which is a federal contractor, argued that 503 preempts virtually all of ____________________ 4 Our review of the district court's preemption decisions, which were rulings of law, is plenary. -5- Ellenwood's state law claims,5 and that Ellenwood's only recourse on matters related to his alcohol treatment is the claim he has filed with the OFCCP. The district court rejected this contention, finding no evidence that Congress intended the provision to eliminate conventional state law claims such as breach of contract, misrepresentation, defamation or infliction of emotional distress, because these claims "are in no way related to the federal Rehabilitation Act, any affirmative action clause in a government contract, or handicap discrimination." See Memorandum of Decision, Oct. 15, 1991, at 3. The court also ___ ruled, however, that 503 did preempt Count V's direct claim of discrimination on the basis of handicap in violation of various state statutes, and Count IV's common law claim that Ellenwood's discharge violated a public policy promoting responsible treatment of alcoholism. Neither party is satisfied with this Solomonic division of the claims. Accordingly, on appeal, we are asked to consider both Ellenwood's claim that the district court erred in ruling that 503 preempts Counts IV and V and Exxon's contrary assertion that the district court erred in finding that the federal statute does not preempt the contract and promissory estoppel claims on which Ellenwood received a jury verdict. The State of Maine joins Ellenwood in arguing that 503 does not preempt a claim of handicap discrimination brought under its ____________________ 5 According to Exxon, only Counts X and XII of the complaint, charging the company with obtaining and disclosing private information, survived preemption. -6- Human Rights Act, 2A Me. Rev. Stat. Ann. tit. 5, 4571-72 (Supp. 1992). We take up each plea for reversal in turn, following a brief review of the well established contours of preemption law. B. Preemption Principles _____________________ The preemption doctrine is rooted in the Supremacy Clause, which invalidates state laws that "interfere with, or are contrary to, the laws of congress." Gibbons v. Ogden, 22 U.S. (9 _______ _____ Wheat.) 1, 211 (1824). See also Cipollone v. Liggett Group, ___ ____ _________ ______________ Inc., 112 S. Ct. 2608, 2617 (1992). A court's sole task in ____ determining whether a state statute is preempted is to ascertain whether Congress intended the federal law to have such effect. California Federal Savings & Loan Ass'n v. Guerra, 479 U.S. 272, ________________________________________ ______ 280 (1987); Massachusetts Medical Society v. Dukakis, 815 F.2d ______________________________ _______ 790, 791 (1st Cir. 1987). Although Congress may articulate its intent explicitly, see, e.g., Jones v. Rath Packing Co., 430 U.S. ___ ____ _____ ________________ 519, 532 (1977), it does not always do so, and the challenge of preemption law is to identify occurrences of implied preemption. Preemption by implication may take place in different ways. First, congressional intent to preempt state law may be inferred when the scheme of federal regulation in a particular area is sufficiently pervasive and complex "to make reasonable the inference that Congress `left no room' for supplementary state regulation," California Federal Savings & Loan Ass'n, 479 ________________________________________ U.S. at 281 (quoting Rice v. Santa Fe Elevator Corp., 331 U.S. ____ ________________________ 218, 230 (1947)); see also Dukakis, 815 F.2d at 791. Second, in ___ ____ _______ areas where Congress has not entirely displaced state regulation, -7- state law will be deemed preempted to the extent it actually conflicts with federal law. Such a conflict occurs either because "`compliance with both federal and state regulations is a physical impossibility,'. . . , or because the state law stands `as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.'" California Federal Savings __________________________ & Loan Ass'n, 479 U.S. at 281 (quoting Florida Lime & Avocado _____________ _______________________ Growers, Inc. v. Paul, 373 U.S. 132, 142-143 (1963) and Hines v. _____________ ____ _____ Davidowitz, 312 U.S. 52, 67 (1941)). See also O'Brien v. __________ ___ ____ _______ Consolidated Rail Corp., 972 F.2d 1, 3 (1st Cir. 1992). _______________________ These alternative avenues to preemption do not mean that either route is to be chosen lightly. The Supreme Court recently reiterated the longstanding principle that "`the historic police powers of the States [are] not to be superseded by . . . Federal Act unless that [course is] the clear and manifest purpose of Congress.'" Cipollone, 112 S. Ct. at 2617 (quoting Rice, 331 _________ ____ U.S. at 230). Thus, the presumption is against preemption. Id. __ at 2618. C. Applying the Principles _______________________ 1. State handicap discrimination statutes. ______________________________________ Section 503 contains no express language regarding preemption. Our task, therefore, is to determine whether there are other indicia of Congressional intent to render state discrimination laws ineffectual against federal contractors. Exxon essentially makes a two-pronged argument. First, it cites legislative history suggesting that Congress sought a uniform -8- federal remedy for violations of 503, which would be frustrated if contractors additionally were subject to varying state laws. Thus, according to Exxon, Congress must have intended to preempt state provisions. Second, Exxon suggests that the detailed nature of the administrative scheme promulgated under 503 demonstrates Congress's intent to foreclose other types of remedies against federal contractors. Exxon maintains that, while Congress has not fully occupied the field of handicap discrimination, with respect to federal contractors, it has "`left no room' for supplementary state regulation," California Federal Savings & ______________________________ Loan Ass'n, 479 U.S. at 281. __________ In our view, what Exxon offers as proof of an intent to preempt falls short of the mark. The legislative history on which the company relies is a single passage in a Senate Committee Report relating to amendments to the Rehabilitation Act that were enacted a year after the Act itself. The amendments made no change in either sections 503 or 504 of the Act,6 but the Senate Report commented: It is intended that sections 503 and 504 be administered in such a manner that a consistent, uniform, and effective Federal approach to discrimination against handicapped persons would result. Thus, Federal agencies and departments should cooperate in developing standards and policies so that there is a uniform, consistent Federal approach to these sections. ____________________ 6 Section 504, 29 U.S.C. 794, prohibits discrimination against the handicapped in federally funded programs, the United States Postal Service, and in Executive agencies. -9- S. Rep. No. 1297, 93d Cong., 2d Sess., reprinted in 1974 _____________ U.S.C.C.A.N. 6373, 6391. Exxon claims this passage demonstrates that Congress was seeking an exclusive approach to handicap discrimination by federal contractors, and that, consequently, it must have intended 503 to displace parallel state laws governing the same conduct. Even without regard for the lesser weight accorded this subsequent history than would be accorded contemporaneous legislative comments, see Heckler v. Turner, 470 U.S. 184, 209 ___ _______ ______ (1985), we believe Exxon has read far too much into the quoted remarks. We are persuaded that the passage in no way implicates state law but instead reflects Congress's concern about the lack of coordination on the federal level between the two agencies _______________________ responsible for implementing sections 503 and 504. The Senate Report continues from the portion quoted above to elaborate on the agencies' relationship: The Secretary of the Department of Health, Education, and Welfare, because of that Department's experience in dealing with handicapped persons and with the elimination of discrimination in other areas, should assume responsibility for coordinating the section 504 enforcement effort and for establishing a coordinating mechanism with the Secretary of the Department of Labor to ensure a consistent approach to the implementation of sections 503 and 504. S. Rep. No. 1297, 93rd Cong., 2d Sess., reprinted in 1974 ____________ U.S.C.C.A.N. 6373, 6391. In our view, Congress was calling for a more uniform and consistent "Federal approach to discrimination _______ against handicapped persons," id. (emphasis added); nothing in __ -10- the passage indicates that it was seeking to eliminate any role for state law. See D'Amato v. Wisconsin Gas Co., 760 F.2d 1474, ___ _______ _________________ 1482 (7th Cir. 1985) (by insisting on coordination, Congress was directing "that the two responsible agencies were not to work at cross purposes or to duplicate each other's efforts") (citation omitted). Exxon's second basis for inferring an intent to preempt -- the comprehensive and detailed regulations promulgated under 503 -- is equally unavailing. The fact that Congress has implemented an extensive regulatory scheme in a particular area does not lead necessarily to the conclusion that it intended to displace parallel state remedies. As the Supreme Court stated in Hillsborough County v. Automated Medical Laboratories, Inc., 471 ____________________ ____________________________________ U.S. 707, 716-18 (1985): To infer pre-emption whenever [a federal agency] deals with a problem comprehensively is virtually tantamount to saying that whenever a federal agency decides to step into a field, its regulations will be exclusive. Such a rule . . . would be inconsistent with the federal-state balance embodied in our Supremacy Clause jurisprudence. See also R.J. Reynolds Tobacco Co. v. Durham County, 479 U.S. ___ ____ ___________________________ ______________ 130, 149 (1986) (preemption should not be inferred simply because federal agency's regulations are comprehensive). Exxon cites nothing in the state provisions that would make compliance with both state law and the detailed 503 scheme a "physical impossibility," Florida Avocado & Lime Growers, 373 U.S. at 143, _______________________________ and, in the absence of other evidence of preemptive intent, there is no basis for displacing the state law. -11- In accepting Exxon's argument that Congress intended to preempt state anti-discrimination remedies against federal contractors, the district court relied entirely on the analysis of the Eleventh Circuit in Howard v. Uniroyal, Inc., 719 F.2d ______ _______________ 1552 (1983). In Howard, the plaintiff had alleged a claim under ______ Alabama law as a third party beneficiary of the 503 affirmative action clause contained in contracts between his employer and the federal government. The Eleventh Circuit rejected this claim. It held that state contract remedies could not be used to enforce 503 essentially for the reasons Exxon has offered to us in support of its preemption argument. Emphasizing the Senate Report's reference to federal uniformity and the comprehensiveness of the 503 administrative scheme, the Howard court found it ______ "reasonable to infer that Congress left no room in section 503(b) for state contract actions to supplement it," id. at 1559. The __ court concluded that allowing the plaintiff to broaden enforcement of the affirmative action clause by means of state law could frustrate directly the specific scheme designed by Congress, allowing a private claim through the back door that couldn't come through the front door. An inference of preemption was further warranted, the court held, because Congress's substantial interest in enforcing the affirmative action clause -- determining appropriate terms, conditions and remedies -- was "more substantial" than the -12- state's interest in providing a remedy for third party beneficiaries seeking to enforce the same clause. Id. at 1561. __ We believe Exxon and the district court have relied unwisely on Howard, which differs from this case in a crucial respect. ______ There, the plaintiff sought to use state law to enforce 503 itself; the court ruled that Congress intended the federal administrative remedy to be the plaintiff's sole means of enforcing the affirmative action clause. Here, however, Ellenwood is seeking to enforce not 503, but independent obligations created by state anti-discrimination statutes. The claim in this case does not threaten the uniformity of __________ the 503 system. Rather, the issue here is one of compatibility, specifically, whether there is any basis for _____________ inferring that Congress believed an independent state remedy could not co-exist with the 503 system. Howard is not helpful ______ in this context. In the employment discrimination field, Congressional enactments "have long evinced a general intent to accord parallel or overlapping remedies against discrimination." Alexander v. Gardner-Denver Co., 415 U.S. 36, 47 (1974). See _________ ___________________ ___ also California Federal Savings & Loan, 479 U.S. at 282-83; ____ ___________________________________ Kremer v. Chemical Construction Corp., 456 U.S. 461, 468-69 ______ ____________________________ (1982); Muncy v. Norfolk and Western Railway Co., 650 F. Supp. _____ ________________________________ 641, 644 (S.D.W. Va. 1986) (ruling that 503 does not preempt state human rights act). Nothing in 503, which is focused narrowly on the contractual requirement for an affirmative action -13- clause, provides a basis to infer a departure from that traditional approach. In addition, several references in 503's legislative history suggest that, rather than seeking to preempt state law through comprehensive legislation, Congressional leaders recognized that the federal statute was a modest one: "We are just beginning to do too little as the dimension of the problem grows in geometric proportion." Congressman Vanik, Congressional Record - - House 18137 (June 5, 1973); "[W]e have only begun to scratch the surface in meeting the needs of our disabled fellow citizens." Congressman Brademus [sic], Congressional Record -- House 30149 (September 18, 1973); "I do not consider [this bill] to be a perfect bill, or in all honesty, even an adequate bill." Senator Randolph, Congressional Record -- Senate 34586 (July 18, 1973).7 Raytheon Co. v. Fair Employment and Hous. Comm'n, 46 Fair Empl. ____________ _________________________________ Prac. Cas. (BNA) 1089, 1099 (Cal. Sup. Ct. 1988), aff'd, 212 Cal. _____ App. 3d 1242, 261 Cal. Rptr. 197 (2d Dist. 1989). A year later, in the Rehabilitation Act Amendments of 1974, Congress added a provision requiring state agencies that administer programs funded under the Act to take affirmative action to employ and advance qualified handicapped individuals who are covered under 503. See Senate Report No. 1297, ___ reprinted in 1974 U.S.C.C.A.N., at 6391-92. The Senate Committee ____________ Report noted that these agencies "are expected to adopt strong affirmative action programs which are at least equivalent to _________ those now being developed for Federal agencies." Id. at 6392 __ ____________________ 7 Both Congressman Brademas and Senator Randolph were among the managers of the legislation. See Conf. Rep. No. 500, 93rd ___ Cong., 1st Sess., reprinted in 1973 U.S.C.C.A.N. 2143, 2154. ____________ -14- (emphasis added). These comments, although referring to administering agencies rather than federal contractors, nevertheless suggest that Congress both acknowledged the role played by states in the area of handicap discrimination and assumed that states might choose to provide different -- greater -- protection than that afforded by the federal government. See ___ Raytheon, 46 Fair Empl. Prac. Cas., at 1099.8 ________ Finally, we note that, in the recent Americans with Disabilities Act of 1990, 42 U.S.C. 12101-12213, which amended the Rehabilitation Act and extended remedies for handicap discrimination against many more private employers, Congress stated explicitly that the legislation did not "limit the remedies, rights, and procedures of any . . . law of any State . . . or jurisdiction that provides greater or equal protection for the rights of individuals with disabilities than are afforded by this chapter." 42 U.S.C. 12201(b). While this provision obviously can have no effect on our view of Congressional intent in 1973, it is a particularly pertinent example of Congress's historical practice of allowing overlapping remedies for employment discrimination.9 ____________________ 8 We ackowledge that this post-enactment legislative history is of less weight than contemporary commentary, but it is nevertheless of some significance. See, e.g., Heckler, 470 U.S. ___ ____ _______ at 209; Cannon v. University of Chicago, 441 U.S. 677, 686-687, ______ _____________________ n.7 (1979). 9 The absence of a provision disclaiming preemption from the Rehabilitation Act of 1973 does not demonstrate, in the absence of other evidence, an intent to foreclose state remedies. Because of its far more comprehensive reach, the ADA is likely to have appeared more preemptive than the earlier legisation. -15- Exxon attempts to distance this case from the tradition of overlapping remedies in two ways. First, it asserts that Congress has a unique interest in regulating federal contractors and, second, it claims that the area of handicap discrimination requires an extraordinary balancing of competing interests that distinguishes it from other types of employment discrimination, such as those involving race, gender or age. In the handicap discrimination field, Exxon maintains, the possibility of conflicting judgments is much greater because courts in different jurisdictions could reach widely disparate conclusions on such basic questions as what constitutes a "handicap" and which handicapped persons are "qualified" to hold particular positions. Restricting individuals to their 503 remedy would ensure that a federal contractor doing business in more than one state would face uniform obligations nationwide. We think it unlikely that Congress has a special interest in immunizing federal contractors from obligations otherwise applicable to them under state handicap discrimination statutes. These companies may do only $2,500 in business with the federal government, with the bulk of their enterprise devoted to commerce within a single state. This division gives the state a substantial interest in protecting the employment interests of its handicapped citizens. The developing nature of the issues raised in the field of handicap discrimination strikes us as ____________________ Congress evidently made the sensible decision to avoid confusion by including an express provision. -16- insufficient justification for excusing these employers from obligations imposed on others who differ only in that the federal government is not one of their customers. Moreover, Exxon's obligation is not simply to identify reasons why Congress might have departed from its usual practice, but to demonstrate a reasonable basis for inferring that Congress did, in fact, intend to make the federal remedy exclusive in this single area of employment discrimination law. Exxon has offered nothing from which we can discern such an intent. In sum, we find no "clear and manifest" intent on the part of Congress to preempt state handicap discrimination claims against federal contractors. Indeed, we find no signals of such an intent.10 2. Contract and promissory estoppel. ________________________________ In its appeal, Exxon contends that the district court should have extended its 503 preemption ruling to Ellenwood's contract and promissory estoppel claims as well. Exxon points out that these claims allege that the company breached an agreement or promise not to discriminate on the basis of Ellenwood's "handicap" of alcohol abuse. Again relying solely on the uniformity rationale, Exxon argues that all state claims based on the same assertedly discriminatory conduct are foreclosed by 503. ____________________ 10 Our preemption analysis applies as well to Ellenwood's claim for wrongful discharge based on public policy. We offer no view, however, as to whether such a claim exists under the applicable state law. -17- Our ruling on the statutory claims also is dispositive here. We note, however, one instance in which a contract claim based on statements in a company policy manual may be preempted by 503. Regulations promulgated under the statute require employers to post notices of their Rehabilitation Act obligations and of employee rights under 503 in "conspicuous places." See 41 ___ C.F.R. 60-741.4(d). If an employer included such a notice in its policy manual solely to comply with this regulation, a state contract claim based on a breach of the manual provision arguably would be preempted by the federal law. See Arellano v. Amax Coal ___ ________ _________ Co., 56 Fair Empl. Prac. Cas. (BNA) 1519, 1524-25 (D. Wy. 1991). ___ Such a claim, though in the guise of a contract claim based on the manual, would seem no different from one directly asserting a breach of 503. A direct claim under 503 unquestionably would be preempted for the reasons set out in Howard. ______ Exxon does not contend that the statements at issue here were required by 503. Indeed, such a contention would be patently unsupportable. Ellenwood's contract and estoppel claims are not premised on a general notice of Exxon's affirmative action obligations toward handicapped individuals, but on a very specific written assurance from the company that it would not disadvantage employees for seeking treatment for alcoholism. We therefore hold that the district court correctly determined that Ellenwood's contract and estoppel claims were not preempted by 503. -18- II. The Role of Admiralty Law _________________________ Our conclusion that 503 does not preempt Ellenwood's state statutory and common law claims does not end our inquiry into whether those claims are foreclosed by federal law. Exxon also contends that, even if 503 does not preempt them, maritime law does. We consider this contention first as to the state statutes and second as to the contract and estoppel claims. A. State handicap discrimination statutes. ______________________________________ In a brief footnote, the district court observed that, even if it had erred in its judgment about 503 preemption, the state handicap discrimination claims nevertheless would be foreclosed because maritime law, rather than state law, governs all issues surrounding Ellenwood's employment as a chief engineer on board ship. The court stated that, "I am not aware of any basis under maritime law for such a recovery." Memorandum of Decision, Oct. 15, 1991, at 4 n.3. The district court underestimated the role state law plays in maritime cases. Supreme Court cases make it clear that courts in admiralty cases may reach beyond maritime precedents and apply state laws "absent a clear conflict with the federal [maritime] law," Askew v. American Waterways Operators, Inc., 411 U.S. 325, _____ __________________________________ 341 (1973). See also Romero v. International Terminal Co., 358 ___ ____ ______ ___________________________ U.S. 354, 373-75, 378, n.42 (1959); Just v. Chambers, 312 U.S. ____ ________ 383, 391 (1941); Lyon v. Ranger III, 858 F.2d 22, 27 (1st Cir. ____ ___________ 1988); 1 S. Friedell, Benedict on Admiralty 112, at 7-36 (7th ______________________ ed. 1991); 14 C. Wright, A. Miller & E. Cooper, Federal Practice ________________ -19- and Procedure (hereafter Wright & Miller) 3672, at 441-444 _____________ _________________ (1985). Exxon contends that this is a case of conflict. It asserts that applying state non-discrimination statutes in an admiralty case will contravene federal maritime law by undermining that "most fundamental and long established characteristic of maritime law: the need for `harmony and uniformity' of that law." Exxon Brief at 21 (quoting Southern Pacific Co. v. Jensen, 244 U.S. _____________________ ______ 205, 216 (1917)). See also Miles v. Apex Marine Corp., 111 S. ___ ____ _____ __________________ Ct. 317, 322-23 (1990) (noting "`the constitutionally based principle that federal admiralty law should be "a system of law coextensive with, and operating uniformly in, the whole country"'") (quoting Moragne v. States Marine Lines, Inc., 398 _______ __________________________ U.S. 375, 398 (1970) (quoting The Lottawanna, 21 Wall. 558, 575 ______________ (1875))); Carey v. Bahama Cruise Lines, 864 F.2d 201, 207 (1st _____ ____________________ Cir. 1988). Once again, however, Exxon heralds the need for uniformity without an appreciation for the boundaries of its relevance. All state laws, if given effect in admiralty cases, will interfere to a degree with the uniformity of admiralty law. See 1 Benedict on ___ ___________ Admiralty 112, at 7-36. But when Congress established a _________ separate admiralty jurisdiction and empowered the judiciary to develop substantive maritime principles for use nationwide, 14 Wright & Miller 3671, it simultaneously assured that state law ________________ would continue to play some role in maritime affairs through the -20- "saving to suitors" clause.11 This provision allows plaintiffs to pursue, in addition to maritime relief, ordinary civil remedies provided by state law, so long as they do not conflict with the national substantive maritime law. See 14 Wright & ___ Miller 3672, at 440-444. Through the years, the Supreme Court has confirmed that "[t]he State and Federal Governments jointly exert regulatory powers" in maritime matters, Romero, 358 U.S. at 374, and it is ______ by now well established that state law is displaced only when it materially prejudices "the characteristic features of maritime law," 1 Benedict on Admiralty 112, at 7-36. As we observed in _____________________ Carey, "the Supreme Court . . . no longer construes the Admiralty _____ Clause as requiring `rigid national uniformity in maritime legislation.'" 864 F.2d at 207 (citation omitted). See also Lyon ___ ____ ____ v. Ranger III, 858 F.2d at 27; G. Gilmore & C. Black, The Law of __________ ___________ Admiralty, at 49-50 (2d ed. 1975). In other words, a state law _________ claim should not be dismissed simply because it would result in differing remedies for plaintiffs in different parts of the country; such a claim is foreclosed only if the state law in question frustrates a fundamental tenet of admiralty law. See ___ ____________________ 11 The Judiciary Act of 1789 granted the federal trial courts "exclusive original cognizance of all civil causes of admiralty and maritime jurisdiction," but also reserved to "suitors, in all cases, the right of a common law remedy, where the common law is competent to give it." See Southern Pacific ___ ________________ Co., 244 U.S. at 215-216. In its present form, see 28 U.S.C. ___ ___ 1333(1), the clause gives the district courts original jurisdiction, "exclusive of the courts of the States," of: "Any civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled." -21- Steelmet, Inc. v. Caribe Towing Corp., 779 F.2d 1485, 1488 (11th _______________ ___________________ Cir. 1986). For example, in Carey, 864 F.2d at 207, we held that a _____ Massachusetts rule barring tort recovery when a plaintiff is more than 50 percent negligent could not be applied in a maritime case because "[o]ne of the essential and longstanding features of substantive admiralty law is that contributory negligence can be considered only in mitigation of damages." The rule wholly foreclosing recovery is "`completely incompatible' with modern admiralty practice." Id. (quoting Pope & Talbot, Inc. v. Hawn, __ ___________________ ____ 346 U.S. 406, 409 (1953)). Although the rule barring state claims only if they directly conflict with basic maritime principles often requires "a delicate accommodation of federal and state interests," Carey, _____ 864 F.2d at 207, we have been shown nothing in substantive maritime law that is even potentially at odds with state human rights statutes such as those underlying Count IV of Ellenwood's complaint. Congress's only legislation in the area of handicapped rights has not been directed at maritime cases and, as discussed supra, its legislation did not preempt state _____ remedies. We find no indications that the absence of substantive maritime law governing issues concerning individuals with handicaps reflects a federal interest in protecting maritime employers from such obligations. See 1 Benedict on Admiralty ___ ______________________ 112, at 7-37. To the contrary, the Rehabilitation Act's -22- applicability to maritime employers demonstrates federal approval of such obligations. Thus, the district court's observation that maritime law has not addressed handicap discrimination specifically is not a reason to dismiss the state claim but a basis upon which to give effect to the state provisions. Maritime law historically has appreciated the leading role of state statutes in creating additional bases of recovery. In maritime wrongful death cases, for example, remedies first were provided solely under state law. See Miles, 111 S. Ct. at 320-23; Moragne v. States Marine Lines, ___ _____ _______ ____________________ Inc., 398 U.S. 375, 397 (1970). When Congress enacted maritime ____ wrongful death legislation in 1920, it provided remedies only where state law did not. Miles, 111 S. Ct. at 321; Moragne, 398 _____ _______ U.S. at 397-98. State statutes continued to play a primary role for another fifty years, until the Supreme Court created a general maritime cause of action for wrongful death. See Miles, ___ _____ 111 S. Ct. at 321-323; Moragne, 398 U.S. at 398-402.12 _______ In its reply brief, the State of Maine notes a possible concern that strict state standards regarding employment of the handicapped would conflict with the maritime doctrine of seaworthiness. The State emphasizes, however, that under its law, any legitimate physical requirements for crew members under ____________________ 12 Even today, plaintiffs may invoke state wrongful death statutes under the saving clause insofar as they involve accidents in territorial waters and do not conflict with the substantive principles developed under the maritime wrongful death doctrine. See Offshore Logistics, Inc. v. Tallentire, 477 ___ ________________________ __________ U.S. 207, 227 (1986). -23- the seaworthiness doctrine would constitute bona fide occupational requirements that would provide a defense to claims brought under the statute. See 2A Me. Rev. Stat. Ann. tit. 5, ___ 4572(1) (Supp. 1992). Of course, whether or not a state's statute specifically included such a defensive provision, vessel owners obviously could not be held liable for damages under state anti-discrimination laws when federal maritime principles required the employer to make the contested employment decision. In that narrow way, maritime law would be preemptive. As a general matter, however, we conclude that state human rights statutes may be applied in maritime cases. Indeed, it would be anomalous for maritime law, which has always shown "a special solicitude for the welfare of seamen and their families," Miles, 111 S. Ct. at 327, to reject such an employee-sensitive _____ provision. See also Smith v. Atlas Off-Shore Boat Serv., Inc., ___ ____ _____ _________________________________ 653 F.2d 1057, 1063 (5th Cir. Unit A 1981) (noting "the admiralty court's protective attitude towards the seaman). "`[C]ertainly it better becomes the humane and liberal character of proceedings in admiralty to give than to withhold the remedy.'" Miles, 111 _____ S. Ct. at 327 (quoting Moragne, 398 U.S. at 387 (quoting Chief _______ Justice Chase in The Sea Gull, 21 F. Cas. 909, 910 (No. 12,578) ____________ (CC Md. 1865))). See also Austin v. Unarco Industries, Inc., 705 ___ ____ ______ _______________________ F.2d 1, 6 n.1 (1st Cir. 1983) (state law "is generally referred to only when it affords greater protection to maritime employees than that afforded by admiralty law"). B. Contract and promissory estoppel. ________________________________ -24- Exxon contends that, in allowing the jury to consider Ellenwood's contract and estoppel claims, the district court improperly created an exception to the well-established rule that maritime employment is terminable at will by either party in the absence of a contract setting a specific term. According to Exxon, maritime law has "clung tenaciously" to the at-will principle, and only one narrow exception previously has been carved from it. In Atlas Off-Shore Boat Serv., 653 F.2d at 1062- __________________________ 63, the court permitted a claim for wrongful discharge when a seaman was fired for filing a personal injury claim that he was entitled to file by statute. No additional exceptions should be allowed to erode the strength of the at-will doctrine, Exxon argues, since the seaman's rights as an employee already are well protected by federal statute. See generally, e.g., 46 U.S.C. ___ _________ ____ 10302, 10303, 10313, 10502, 10504, 10505, 10506 (prescribing procedures governing meals, hours and wages for seamen). Exxon misperceives the district court's ruling. The court did not devise a new "wrongful discharge" cause of action on behalf of Ellenwood. It simply recognized the obvious fact that -- notwithstanding the general rule that a seaman's employment is at-will -- a maritime employer may make a contractual agreement with, or an enforceable promise to, its employees. In this case, Ellenwood claimed that Exxon had promised that his job security and future opportunities would not be jeopardized if he sought treatment for alcoholism. The jury found that the requirements for establishing a binding obligation -25- were met. We see no reason why maritime law would invalidate this self-imposed obligation.13 Accordingly, we affirm the district court's judgment on the breach of contract and estoppel claims. See infra Section V. ___ _____ III. Negligent Infliction of Emotional Distress __________________________________________ The jury awarded Theodore Ellenwood $50,000 and his wife $25,000 on their claims for negligent infliction of emotional distress. The district court overturned these verdicts on the ground that maritime plaintiffs may not recover for negligently caused emotional damages unless they demonstrate accompanying physical injury or impact.14 The Ellenwoods presented no evidence of physical harm. In granting judgment for defendants, the district court noted that the Supreme Court in Atchison, Topeka and Santa Fe Ry. _________________________________ ____________________ 13 Exxon does not argue that the district court improperly instructed the jury on the elements necessary to establish a contract or promissory estoppel claim in these circumstances, and we therefore do not delve into this issue. See, e.g., Pearson v. ___ ____ _______ John Hancock Mutual Life Ins. Co., No. 92-1684, slip op. (1st ___________________________________ Cir. Nov. 10, 1992) (discussing factors necessary to establish contract based on employee manual). We do note that, as Exxon recognizes in its reply brief, a contract must be "reasonably certain" to be enforceable. See ___ Restatement (Second) of Contracts 33 (1981). An estoppel claim _________________________________ similarly must be supported by a sufficiently definite promise. See Santoni v. Federal Deposit Ins. Corp., 677 F.2d 174, 178-79 ___ _______ ___________________________ (1st Cir. 1982). Exxon does not -- and, in our view, cannot reasonably -- argue that its policy statement assuring no adverse consequences based on alcoholism treatment is insufficiently definite to support a contract or estoppel claim. 14 The court very prudently allowed the claims to go to the jury, thus foreclosing the possibility of a later heavy investment of time and expense in the event that it should render a judgment notwithstanding the verdict and that we would disagree. -26- Co. v. Buell, 480 U.S. 557, 568 (1987), had raised the |