Justia Admiralty & Maritime Law Opinion Summaries
Articles Posted in Admiralty & Maritime Law
XL Insurance America v. Turn Services
Plaintiff-Appellant XL Insurance America, Inc. (“XL”), as subrogee of Boh Bros. Construction Co., L.L.C. (“Boh Bros.”), challenged the district court’s summary judgment in favor of Defendant-Appellee Turn Services, L.L.C. (“Turn”).
On appeal, Turn devotes significant ink to its contention that Boh Bros.’s responsibility for repairing the dolphin does not equate to a proprietary interest in it.
The Ninth Circuit vacated and remanded. The court held that Robins Dry Dock is not implicated by the $1.2 million that XL paid Boh Bros. to cover the repairs. The court explained that for nearly a century, Robins Dry Dock & Repair Co. v. Flint, 275 U.S. 303 (1927), has limited plaintiffs’ ability to recover “purely economic claims . . . in a maritime negligence suit.”1 “[A]bsent physical injury to a proprietary interest”—or one of a few other limited exceptions—plaintiffs asserting such claims are out of luck. The court explained the “spectre of runaway recovery lies at the heart of the Robins Dry Dock rubric.”
Further, the court concluded that it is clear that the doctrine would be inapplicable here if XL had paid the money directly to Plains because Plains had a proprietary interest in the damaged dolphin. That the money passes through the hands of an intermediary—here, Boh Bros.—is irrelevant to the concerns animating Robins Dry Dock. View "XL Insurance America v. Turn Services" on Justia Law
J-Way Southern, Inc. v. United States Army Corps of Engineers
The First Circuit affirmed the order of the district court granting the government's motion to dismiss this lawsuit alleging improper termination and breach of contract for failure to state a claim on the grounds that the claims were time-barred, holding that there was no basis to disturb the district court's decision.This matter arose out of a contract for between J-Way Southern and the United States Army Corps of Engineers (USACE) for dredging water waters in Menemsha Harbor, Martha's Vineyard. After USACE terminated the contract J-Way filed suit, alleging improper termination and breach of contract. The district court granted USACE's motion to dismiss, concluding that J-Way's claims were time-barred. The First Circuit affirmed, holding (1) the district court had jurisdiction over this maritime contract dispute; and (2) the district court properly denied the government's motion to dismiss. View "J-Way Southern, Inc. v. United States Army Corps of Engineers" on Justia Law
WILLIAM MARTZ V. ANDREW HORAZDOVSKY
The case involves two ships, each of which was involved in an accident. The victims injured in the accident provided notice to the ship owners that they might be interested in pursuing litigation against the responsible parties. However, the ship owners failed to bring a limitation-of-liability action under the Shipowner's Limitation of Liability Act within six months. The district court determined that the letter constituted written notice of a claim, dismissing actions as untimely.The Ninth Circuit held that the six-month statute of limitations in § 30511(a) is a claims-processing rule rather than a jurisdictional rule, and thus, it may be addressed on summary judgment. Additionally, the court determined that “written notice of a claim” has three elements: the notice must (1) be in writing, (2) clearly state that the victim intends to bring a claim against the owner, and (3) include at least one claim that is reasonably likely to be covered by the Act.Thus, the Ninth Circuit held that neither claimant filed "written notice" to the vessel owner before filing suit. As a result, the ship owners' limitation-of-liability actions were timely. View "WILLIAM MARTZ V. ANDREW HORAZDOVSKY" on Justia Law
Mary Brady v. Carnival Corporation
Plaintiff slipped on a puddle of water and broke her hip shortly after boarding a Carnival cruise ship. She then sued the cruise line for negligence. The district court granted summary judgment for Carnival, holding that it lacked a duty to protect Plaintiff because its crewmembers had neither actual nor constructive notice of the particular puddle that caused her fall.
The Eleventh Circuit reversed and remanded to the district court, holding that the district court’s grant of summary judgment to Defendant on the basis that Defendant lacked notice was improper. The court found that the district court failed to faithfully follow Carroll. (Carroll v. Carnival Corp., 955 F.3d 1260, 1264 (11th Cir. 2020.) The relevant question, in this case, was whether Carnival “had actual or constructive knowledge that the pool deck where [Plaintiff] fell could be slippery (and therefore dangerous) when wet.” The fact that warning signs were “posted on the pool deck” in the general area of Plaintiff’s fall, when “viewed in the light most favorable to [Plaintiff], is enough to withstand summary judgment as to notice.” View "Mary Brady v. Carnival Corporation" on Justia Law
Reinier Fuentes v. Classica Cruise Operator Ltd, Inc.
Plaintiff and his wife were passengers on a cruise aboard a ship operated by Defendant. A verbal altercation between Plaintiff and another passenger ensued and while the security officer turned to speak to Plaintiff, the other passenger punched Plaintiff in the face.
Plaintiff alleged that Defendant was negligent because it failed to (a) reasonably and properly train security personnel; (b) have adequate security measures, including adequate security presence and surveillance cameras; (c) warn him of the danger of being physically assaulted while onboard the vessel; (d) promulgate and enforce policies and procedures designed to prevent passengers from physically assaulting other passengers; and (e) exercise reasonable care under the circumstances. The district court granted summary judgment in favor of Defendant, ruling that there was no evidence suggesting that Defendant had actual or constructive notice of the risk of harm.
The Eleventh Circuit affirmed the grant of summary judgment to Defendant and denied Plaintiff’s motion for sanctions. The court held that Plaintiff has not presented sufficient evidence to create an issue of fact as to whether Defendant had actual notice that any passengers would attack him. The court reasoned that in the context of passenger-on-passenger violence, a cruise line has a duty to warn and/or protect when it or its employees reasonably apprehend the danger such that the attack was foreseeable. However, while the presence of a security officer during disembarkation connotes some awareness of the importance of order, a verbal dispute does not provide actual notice that a physical assault is to follow. View "Reinier Fuentes v. Classica Cruise Operator Ltd, Inc." on Justia Law
SHERRI DEEM V. THE WILLIAM POWELL COMPANY
Plaintiff, acting as the representative for her deceased husband, filed a suit in federal court seeking damages under a wrongful death theory from entities who manufactured, sold, and distributed asbestos-containing products to which her husband could have been exposed. Her husband worked as an outside machinist onboard a ship at Puget Sound Naval Shipyard. His duties included removing and installing piping insulation, gaskets, and other parts that may have contained asbestos in various compartments throughout the ships. He was diagnosed with mesothelioma on February 20, 2015, and he died on July 3, 2015.
The Ninth Circuit reversed the district court’s dismissal of a wrongful death claim under admiralty jurisdiction and remanded for reconsideration of Plaintiff’s claims in light of the court’s holding that the statute of limitations began to accrue on the date of her husband’s death. The court held that a wrongful death claim in admiralty can only accrue on or after the death of the seaman, and not before. The court applied federal law and distinguished wrongful death claims from survival statutes permitting personal injury claims of an injured individual after death. Thus, the accrual of the three-year statute of limitations for maritime torts, 46 U.S.C. Sec. 30106, began to run on the date of death of her husband and not on the date of discovery of the injury or illness that ultimately resulted in his death. View "SHERRI DEEM V. THE WILLIAM POWELL COMPANY" on Justia Law
Wooley v. N&W Marine Towing
N&W filed a maritime limitation action in federal district court after Plaintiff was injured on a ship owned by N&W Marine Towing. The district court initially stayed Plaintiff from prosecuting claims against N&W in other forums, however, the court lifted its stay after Plaintiff made certain stipulations.The Fifth Circuit reasoned that under the Limitation of Liability Act, shipowners “may bring a civil action in a district court of the United States for limitation of liability.” The Limitation Act allows shipowners to limit their liability for an array of incidents, as long as the incident giving rise to liability occurred without the p knowledge of the owner.Here, after N&W filed its limitation action, three parties filed claims: Wooley, Turn Services, and RCC. However, RCC and N&W settled, and Turn Services assigned its claims to Plaintiff, leaving him as the only remaining claimant. The court found that Plaintiff’s stipulation both recognized the district court’s exclusive jurisdiction over the limitation proceeding and stated that Plaintiff would not seek to enforce a damage award greater than the value of the ship and its freight until the district court had adjudicated the limitation proceeding. Thus, the court found that the district court did not abuse its discretion by lifting the stay and allowing Plaintiff to pursue remedies in other forums. Further, the court found that N&W’s arguments regarding removal are not relevant to the issue of whether the district court abused its discretion by lifting the stay. View "Wooley v. N&W Marine Towing" on Justia Law
In re: Application of Newbrook
Nadella Corporation bought a ship, the MV Falcon Carrier, for scrap from Falcon Carrier Shipping Limited. Unbeknownst to Nadella, the ship was encumbered by a $368,000 debt. To recover that debt, the debt holder “arrested” Nadella’s new ship. Nadella then tried to recover that debt from the ship’s seller Falcon Carrier Shipping. Newbrook Shipping—the owner of those two ships arrested by Nadella—sued Nadella in South Africa and was considering another lawsuit in Nevis. Newbrook applied in Maryland federal court for an ex parte order under Sec. 1782 authorizing discovery from Nadella’s purported parent company, Global Marketing Systems. The district court rejected discovery for the speculative “proceeding” in Nevis but then granted the full application.On appeal, Global Marketing argues that the district court substantively erred in granting the entire application and approving service of process. The court stated that Sec. 1782 identifies four mandatory conditions that must be satisfied before an application can be granted. Here, the last condition, that the evidence sought must be “for use” in a foreign proceeding, is not fully satisfied.The court held that Section 1782 gives litigants access to federal courts to obtain discovery for use in international litigation. But that access is not unlimited. The district court erred by granting the full application when it held the speculative proceeding in Nevis did not provide a basis for Sec. 1782 discovery. The court remanded for the district court to consider Global Marketing’s arguments. View "In re: Application of Newbrook" on Justia Law
Central Boat Rentals v. M/V Nor Goliath
Epic Companies, LLC ("Epic") was a general contractor specializing in the decommissioning of oil platforms. Epic hired the vessel Nor Goliath to lift oil platform components out of the water. These components were then transported to shore by tugboats, which were owned by various other companies.When Epic went bankrupt, the company's suppliers filed suit in the district court to recoup their costs. Several towing companies joined in the suit, asserting maritime liens under the Commercial Instruments and Maritime Liens Act ("CIMLA") against the Nor Goliath. The towing companies claimed that they provided "necessary services" by towing the barges ashore. The district court granted summary judgment in Nor Goliath's favor.The Fifth Circuit affirmed. CIMLA provides that those who provide "necessary services" to a vessel obtain a maritime lien against the vessel and may bring a civil claim to enforce this lien. Under 46 U.S.C. Sec. 31301(4), necessary services include repairs, supplies, towage, and the use of dry dock or marine railway. Here, the Nor Goliath's role was to lift platform components out of the water and place them on barges. Thus, the Nor Goliath's necessaries were the goods and services used to accomplish this task, but not those related to Epic's larger goal of decommissioning oil platforms. Thus, the Fifth Circuit held that the towing companies did not perform necessary services to the Nor Goliath. View "Central Boat Rentals v. M/V Nor Goliath" on Justia Law
Curtin Maritime Corp. v. Pacific Dredge etc.
Curtin Maritime Corp. (Curtin) filed suit against its competitor, Pacific Dredge and Construction, LLC (Pacific), asserting one cause of action for violation of the Unfair Competition Law. The parties operated dredging vessels, and competed for contracts awarded by the U.S. Army Corps of Engineers (USACE). In its complaint, Curtin alleged Pacific was ineligible for two contracts it was awarded over Curtin because
its vessel was not “entirely” built in the United States, a violation of the federal Merchant Marine Act of 1920 (commonly referred to as the Jones Act), and Pacific defrauded the Coast Guard in its successful application for certification that the vessel was U.S.-built. These allegations served as the sole basis for Curtin’s UCL claim. In response to the complaint, Pacific brought a motion under Code of Civil Procedure section 425.16 to strike Curtin’s claim, asserting it arose from protected speech and that Curtin could not show a probability of prevailing on the merits of its claim. The trial court agreed with Pacific that the claim arose from protected activity, but concluded Curtin had met its burden at this early stage of litigation to show the claim had minimal merit and denied the motion. Pacific appealed the ruling, contending the trial court erred because the claim was preempted by the Jones Act. After Pacific filed its notice of appeal, Curtin dismissed the underlying lawsuit and moved to dismiss the appeal as moot. Pacific opposed the motion, asserting the appeal was viable since reversal of the trial court’s order would provide Pacific the opportunity to seek attorney fees under the anti-SLAPP statute. The Court of Appeal agreed with Pacific that the appeal was not moot, and dismissal of the appeal was not appropriate. Further, the Court concluded Curtin did not show a probability of prevailing on the merits of its claim. Accordingly, the Court reversed the trial court’s order denying Pacific’s motion to strike, and directed the trial court to reinstate the case and issue an order granting the anti-SLAPP motion and striking Curtin’s claim. View "Curtin Maritime Corp. v. Pacific Dredge etc." on Justia Law