Justia Admiralty & Maritime Law Opinion Summaries
Travelers Property Casualty Company of America v. Ocean Reef Charters LLC
The district court held on summary judgment that, under Eleventh Circuit precedent, federal maritime law requires strict compliance with captain and crew warranties in a marine insurance policy. The district court concluded that, because Ocean Reef breached those warranties, there was no coverage for the loss of its yacht under a policy issued by Travelers.The Eleventh Circuit applied Wilburn Boat Co. v. Firearm’s Fund Ins. Co., 348 U.S. 310, 316 (1955), and concluded that there does not exist entrenched federal maritime rules governing captain or crew warranties in this case. Therefore, Florida law applies to determine the effect of Ocean Reef's breaches. The court reversed and remanded for further proceedings. View "Travelers Property Casualty Company of America v. Ocean Reef Charters LLC" on Justia Law
Seachris v. Brady-Hamilton Stevedore Co.
The Ninth Circuit granted a petitioner for review of the BRB's decision upholding the ALJ's award of attorney's fees and costs under the Longshore and Harbor Workers' Compensation Act (LHWCA), in an action brought by petitioner for death benefits.The panel held that aspects of the decisions under review constitute legal error and are not supported by substantial evidence. Specifically, the panel held that the ALJ improperly rejected the fee applicant's evidence of prevailing market rates, erroneously established a paralegal's hourly rate by reference to other ALJ decisions rather than evidence of prevailing market rates in the relevant community, and improperly denied fees for hours reasonably expended. Furthermore, the ALJ and the BRB erred in concluding that the LHWCA does not authorize an award of interest on costs. Therefore, the panel remanded to the BRB for further proceedings and ordered the BRB to reassign this matter to a different ALJ on remand. View "Seachris v. Brady-Hamilton Stevedore Co." on Justia Law
Buland v. NCL (Bahamas) Ltd.
Plaintiff filed suit against NCL, alleging that its medical staff failed to diagnose and properly manage his status and failed to evacuate him from a cruise ship he was aboard. The district court granted NCL's motion for a directed verdict and the jury found NCL negligent, awarding non-economic damages, future medical expenses, and lost services.The Eleventh Circuit affirmed and concluded that the cruise-line medical negligence claims are cognizable in admiralty jurisdiction; the district court did not err by excluding testimony from plaintiff's expert economist and granting a directed verdict on loss earning capacity where the testimony was unreliable and plaintiff failed to prove the amount of his loss-earning-capacity damages; NCL is not entitled to a new trial where the district court correctly instructed the jury and sufficient evidence supported the verdict against NCL. View "Buland v. NCL (Bahamas) Ltd." on Justia Law
Pacific Gulf Shipping Co. v. Vigorous Shipping & Trading S.A.
In this admiralty case, Pacific Gulf, in possession of an arbitral award against Adamastos Shipping, tried to collect from Blue Wall and Vigorous Shipping on the grounds that they are either successors to or alter-egos of Adamastos. The district court dismissed the successor-liability claim and granted summary judgment to Blue Wall and Vigorous on the alter-ego claim.After determining that Pacific Gulf has standing, the panel applied federal common law and joined other courts in holding that maritime law requires a transfer of all or substantially all of the predecessor's assets to the alleged successor before successor liability will be imposed on that alleged successor. In this case, the panel concluded that Pacific Gulf has failed to plead that Blue Wall and its subsidiaries "comprise successor corporate business entities of" Adamastos. The panel explained that Pacific Gulf alleged no transfer of any assets (let alone all or substantially all) from Adamastos to Blue Wall or its subsidiaries. Therefore, because Pacific Gulf failed to plead a factual prerequisite to corporate successorship, the district court correctly dismissed the claim based on that theory.The panel also agreed with the district court that Pacific Gulf's discovery revealed nothing to allow a reasonable juror to rule in its favor on the alter-ego theory. Viewing the record as a whole, the panel considered the factors for determining whether a party has pierced the corporate veil and agreed with the district court that Pacific Gulf came away "empty handed" from discovery. Therefore, there is insufficient evidence to support a finding that either Blue Wall or Vigorous was operated as an alter-ego of Adamastos. View "Pacific Gulf Shipping Co. v. Vigorous Shipping & Trading S.A." on Justia Law
Adams v. All Coast, LLC
Plaintiff filed a collective action on behalf of himself and others employed on All Coast's fleet of liftboats, alleging that, although they were hired for various maritime jobs, they spent most of their time doing something completely terrestrial: using cranes attached to the boats to move their customers' equipment on and off the boats, the docks, and the offshore oil rigs. All Coast classified plaintiffs as seamen and did not pay them overtime pursuant to the Fair Labor Standards Act (FLSA).The Fifth Circuit reversed the district court's grant of summary judgment in favor of All Coast. The court held that the district court's conclusion that the employees' work served the liftboats' operation "as a means of transportation" runs contrary to the regulatory language and the court's precedent interpreting it. Rather, the plain meaning of 29 C.F.R. 783.31, and the illustrative examples in sections 783.32 and 783.34, suggest the employees were not engaged in seamen's work when operating the cranes. Furthermore, the court's previous decision in Coffin v. Blessey Marine Servs., Inc., 771 F.3d 276, 279 (5th Cir. 2014), only reinforce that conclusion. In this case, plaintiffs were not doing seamen's work when they were operating the cranes. Finally, it follows that All Coast was not entitled to summary judgment as to the cooks either. View "Adams v. All Coast, LLC" on Justia Law
Addax Energy SA v. M/V Yasa H. Mulla
Addax filed an in rem action against the vessel to enforce a maritime lien under the Commercial Instruments and Maritime Lien Act (CIMLA) and Supplemental Admiralty Rule C. The vessel asserted that Addax's right to a maritime lien was extinguished when Addax settled its breach of contract claim with the charterer in a separate proceeding.The Court of Appeal first concluded that the district court correctly rejected the vessel's affirmative defense that Addax was not the party legally entitled to bring this claim. The court affirmed the district court's grant of summary judgment to Addax, concluding that the settlement agreement did not extinguish Addax's right to a maritime lien, and that Addax was entitled to enforce that right in the district court. The court explained that the settlement agreement does not reference the maritime lien, and includes no language limiting the obligations of the vessel or Addax's ability to pursue an in rem action to satisfy the debt. The court also rejected the vessel's arguments regarding the value of the lien, the expenses awarded to Addax, and the vessel's due process rights. View "Addax Energy SA v. M/V Yasa H. Mulla" on Justia Law
Ortega Garcia v. United States
Patricia Guadalupe Garcia Cervantes, a Mexican citizen who was attempting to enter the United States illegally by swimming across the Brownsville Ship Channel, was struck and killed by a Coast Guard vessel patrolling the area. Plaintiff, individually and on behalf of his and Cervantes' daughter, filed suit alleging negligence and wrongful death claims against the United States, as well as products liability, gross negligence, and wrongful death claims against the manufacturers of the vessel and its engines, Safe Boats and Mercury Marine.After determining that the district court had subject matter jurisdiction based on admiralty, the Fifth Circuit concluded that, notwithstanding plaintiff's own lack of standing, he may still maintain claims as next-of-friend for his daughter. Reviewing the district court's grant of summary judgment and its duty determination de novo, the court affirmed the district court's dismissal of plaintiff's claims. The court held that the negligence claim failed because the United States owed no duty to Cervantes; the district court did not err in dismissing plaintiff's defective design claims against Safe Boats and Mercury Marine where Cervantes lacked standing to bring those claims under Section 402A of the Second Restatement in regard to maritime products liability claims; even assuming plaintiff could bring these products liability claims, plaintiff failed to show that the asserted defective products proximately caused Cervantes' death; plaintiff's failure-to-warn claims were also properly dismissed; and the district court correctly dismissed the wrongful death claims after dismissing all the underlying tort claims. The court rejected plaintiff's remaining claims and affirmed the dismissal. View "Ortega Garcia v. United States" on Justia Law
QBE Seguros v. Morales-Vazquez
In this dispute between a boat owner and his insurance company, the First Circuit affirmed the judgment of the district court in favor of the insurer, holding that the district court properly applied the doctrine of uberrimae fidei in this case.When Defendant applied for an insurance policy for his yacht from an entity later acquired by Plaintiff he failed to disclose that he had grounded a forty-foot yacht in Puerto Rico. Plaintiff later sought a declaratory judgment voiding the policy on the grounds that Defendant had failed to honor his duty of utmost good faith, known as uberrimae fidei in maritime law, in acquiring the policy and had therefore breached the warranty of truthfulness contained in the policy. The district court concluded that Plaintiff was entitled to void the policy. The First Circuit affirmed, holding that the district court correctly concluded that the uberrimae fidei doctrine entitled Plaintiff to a declaration that the policy was void. View "QBE Seguros v. Morales-Vazquez" on Justia Law
Wilson v. Creamer-Sanzari Joint Venture
Wilson was a marine construction worker on the New Jersey Route 3 bridge replacement project, which spans the Lower Passaic River from Clifton to Rutherford, at a location where the navigation channel was authorized to be 150 feet wide and 10 feet deep. Wilson drove steel piles for a cofferdam, a watertight structure that allows construction below the waterline, and was routinely exposed to extremely loud working conditions. He was diagnosed with a permanent hearing impairment resulting from those conditions. Wilson sought compensation benefits under the Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. 901–50. An ALJ and the Benefits Review Board dismissed Wilson’s claim, finding that he was not covered under the LHWCA because he was not injured on navigable waters of the United States.The Third Circuit reversed. The waters where Wilson was injured were navigable, looking to whether a waterway “by itself or by uniting with other waterways, forms a continuous [commercial] highway,” and whether commercial vessels could navigate within the noted physical constraints. There were no impediments blocking the navigation channel between its confluence with the Newark Bay and the Route 3 bridge. At all points in between, the channel exceeded four feet in depth and 72 feet in width. View "Wilson v. Creamer-Sanzari Joint Venture" on Justia Law
Potter v. Great Falls Insurance Co.
The Supreme Judicial Court affirmed the opinion of the Workers' Compensation Board Appellate Division agreeing with the conclusion of the administrative law judge (ALJ) that Darla Potter, an aquaculture worker, was not a "seaman" within the meaning of the Jones Act, 46 U.S.C.S. 30104, holding that the Appellate Division did not err.The Appellate Division affirmed the decree of the ALJ granting Potter's petitions for award of compensation for injuries sustained in the course of her employment with Cooke Aquaculture USA, Inc. At issue on appeal was whether Potter's claims fell within the jurisdiction of federal admiralty law or state workers' compensation law. The Supreme Judicial Court affirmed, holding that Potter was not a seaman within the purview of the Jones Act. View "Potter v. Great Falls Insurance Co." on Justia Law