Justia Admiralty & Maritime Law Opinion Summaries

Appellants, the M/V Akili, its owner, and manager, appealed from the district court's judgment holding that it was liable in rem for damage to cargo shipped aboard the vessel. Ferrostaal cross-appealed from the holding that the owner and manager were not liable in personam under a bailment theory. At issue was whether (1) an in rem proceeding rendering the Akili liable for damage to, or loss of, cargo was unavailable in this matter because a vessel was not a "carrier" within the meaning of the Carriage of Goods by Sea Act (COGSA), 46 U.S.C. 30701, and (ii) the free-in-and-out provision in the Voyage Charter Party purportedly absolving the Akili of in rem liability was enforceable. The court held that the first issue was essentially irrelevant because a vessel's in rem liability for damage to cargo existed under maritime common law, not COGSA, for a violation of a carrier's contractual or statutory obligations. The court resolved the second issue against enforcement of the free-in-and-out provision so far as it might be construed to prevent in rem liability of the vessel. In doing so, the court did not decide whether COGSA applied as a matter of law to this voyage because, even if it did not, the Voyage Charter Party's Clause Paramount contractually incorporated the Hague-Visby rules prohibiting a carrier from contracting for a waiver of its obligations regarding damage to cargo. The court also held that there was no in personam liability for the owner and manager where the carriers remained responsible for delivery of the goods and maintained exclusive control and custody over the cargos through agents they hired directly. View "Man Ferrostaal, Inc. v. M/V Akili" on Justia Law

GFK, a shipowner, appealed from the district court's dismissal of its action for declaratory judgment that it was not contractually bound to arbitrate a fuel agreement with AM, a marine fuel supply company. The court held that the district court properly exercised admiralty jurisdiction over the case even though plaintiff disclaimed the existence of any maritime contracts. However, concluding that the district court prematurely resolved disputed factual issues over whether the actual fuel purchaser had authority to bind GFK to the alleged contracts with AM, the court vacated the district court's judgment and remanded for further proceedings. View "Garanti Finansal Kiralama A.S. v. Aqua Marine and Trading Inc." on Justia Law

Plaintiff filed a lawsuit against Oceania Cruises after he became ill on the cruise and received allegedly substandard care. Plaintiff claimed that Oceania negligently hired, retained, and supervised the ship's doctor. Oceania attempted to bring this interlocutory appeal under 28 U.S.C. 1292(a)(3), contending that the district court erred when it held that a limitation-of-liability provision in Oceania's ticket contract was unenforceable. The district court concluded that the provision, which incorporated by reference portions of international treaties and the United States Code, was so confusing that it did not reasonably communicate to the passengers the cruise line's liability limits. The court dismissed the appeal for lack of jurisdiction pursuant to Ford Motor Co. v. S.S. Santa Irene, which held that the application of the limitation-of-liability provision was not an immediately appealable order under section 1292(a)(3). View "Wajnstat v. Oceania Cruises, Inc." on Justia Law

In 2008, MDS purchased a vessel and executed a note in favor of FirstBank, secured by a preferred ship mortgage, under an agreement that required that they maintain insurance. In 2009, Customs and Border Protection seized the vessel as part of a drug enforcement action. The search and seizure damaged the vessel, significantly decreasing its value. Customs notified FirstBank, which initiated an administrative forfeiture proceeding, intervened in the criminal case, obtained voluntary dismissal of the indictment against the vessel, then submitted an insurance claim for "loss of the vessel including, without limitation, the value of the Bank's collateral, legal fees incurred in attempting to secure its release, as well as any applicable costs and interests." The insurer denied the claim. The district court granted FirstBank partial summary judgment and awarded $74,512.50 in attorneys' fees for costs and expenses incurred in securing release of the vessel and defending the validity of the policy. The First Circuit affirmed, finding no genuine issues of material fact.View "Markel Am. Ins. Co. v. Diaz-Santiago" on Justia Law

Plaintiff appealed the district court's enforcement of the arbitration agreement in his employment contract with defendant. Plaintiff sued defendant on a single count of Jones Act negligence, pursuant to 46 U.S.C. 30104, claiming that defendant breached its duty to supply him with a safe place to work. The court held that, given the United Nations Convention on Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) and governing Supreme Court and Circuit Court precedent, the court must enforce the arbitration clause in plaintiff's employment contract, at least at this initial arbitration-enforcement stage. Therefore, after review and oral argument, the court affirmed the district court's order compelling arbitration of plaintiff's Jones Act negligence claim.View "Lindo v. NCL (Bahamas), LTD" on Justia Law

This suit arose out of a dispute between a ship repair contractor, barge owner, and insurance company over the terms of a ship repair service contract and a maritime insurance policy. The contractor appealed from the district court's ruling that that the contractor breached its contractual obligation to procure insurance coverage for the barge owner and that it was contractually obligated to defend and indemnify the barge owner against damages ensuing from a workplace injury that occurred while the barge was being repaired. The barge owner cross-appealed from the district court's ruling that it was not entitled to additional insured coverage under the contractor's insurance policy. The court affirmed the district court's holding that there was a written agreement between the contractor and the barge owner which obligated the contractor to defend, indemnify, and procure insurance for the barge owner. The court also affirmed the district court's holding that the barge owner, which was not named in the policy, was not an additional insured under the policy. The court held, however, that the district court made no ruling regarding attorney's fees and therefore, the court remanded to the district court for a determination of the barge owner's entitlement, if any, to attorney's fees.View "One Beacon Ins. Co. v. Crowley Marine Serv., Inc." on Justia Law

Plaintiff filed a complaint against defendant, seeking indemnity and/or contribution based on the damage defendant allegedly caused through gross negligence in removing plaintiff's vessel from a coral reef. At issue was whether the district court properly denied defendant's motion to compel arbitration of the dispute under the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq., where defendant alleged that the district court erred in refusing to apply English arbitrability law. The court held that based on the Supreme Court's reasoning in First Options of Chicago, Inc. v. Kaplan, courts should apply non-federal arbitrability law only if there was clear and unmistakable evidence that the parties intended to apply such non-federal law. Because there was no clear and unmistakable evidence in this case, federal arbitrability law applied. Under federal arbitrability law, the court's decisions in Mediterranean Enterprises, Inc. v. Ssangyong Construction Co. and Tracer Research Corp. v. National Environmental Services, Co., mandated a narrow interpretation of a clause providing for arbitration of all disputes "arising under" an agreement. Under this narrow interpretation, the present dispute was not arbitrable. Therefore, the court affirmed the district court's judgment.View "Cape Flattery Ltd. v. Titan Maritime, LLC" on Justia Law

This case involved the Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. 14706, which set up a framework for the timely filing of claims against carriers for damaged cargo. In this case, it was undisputed that neither the shipper nor the shipping broker filed either a claim or a lawsuit within the prescribed time limitations. Therefore, were the court to create some exception to the statutorily authorized, contractually mandated requirements of prompt filing, the court would blow a hole in the balance struck by the Carmack Amendment and undermine Congress's intent to protect carriers against stale claims. Therefore, the court reversed the judgment of the district court in favor of the shipping broker and remanded with instructions to dismiss the lawsuit. View "Dominion Resources Serv. v. 5K Logistics, Inc." on Justia Law

This case stemmed from plaintiff's allegations that, while she was employed with defendant on one of its cruise ships, she was drugged by other employees, raped, and physically injured while she was unconscious, and when she reported to officials of the cruise line what had happened to her, they treated her with indifference and even hostility, failed to provide her with proper medical treatment on board, and interfered with her attempts to obtain medical treatment and counseling ashore. Plaintiff subsequently asserted five claims against defendant involving violations of the Jones Act, 46 U.S.C. 30104, or the general maritime law applicable to the Seaman's Wage Act, 46 U.S.C. 10313. Plaintiff's remaining five claims involved common law tort claims. At issue was whether plaintiff's claims fell within the scope of the arbitration clause in the crew agreement. The court held that the district court did not err in holding that Counts VI, VII, VIII, IX, and X of plaintiff's complaint did not fall within the scope of the arbitration provision where all five of these claims involved factual allegations about how the cruise line and its officials treated plaintiff after learning that she had been raped, including allegations that she was kept on the ship against her will, that she was prevented from getting medical attention off the ship, that her rape kit was destroyed in the incinerator, and that her confidentiality as a rape victim was intentionally violated. The court held, however, that the remaining five counts arose directly from her undisputed status as a "seaman" employed by defendant and fell within the scope of the arbitration provision. Therefore, the district court erred in denying defendant's motion to compel arbitration for Counts I, II, III, IV, and V. View "Doe v. Princess Cruise Lines, Ltd." on Justia Law

In 2004, defendant had the used boat inspected. Although he could not test the engine, a certified marine surveyor concluded that the boat was good for cruising around Puerto Rico and coastal waters. Plaintiff, a first-time boat owner, purchased the boat "as is" for $38,000. During the next few years there were a number of problems; all repairs were done by defendant. Plaintiff paid $16,139.34 for repairs, $3,195.20 for towage and $2,990.00 for wharfage and insurance. During a period of 32 months, the boat was undergoing service or was otherwise unuseable for about nine months. Plaintiff filed claims under admiralty law and Article 1802 of the Puerto Rico Civil Code. The district court found that defendant breached its duty to a workmanlike performance upon which plaintiffs had a right to rely. The First Circuit reversed. Defendant was not liable; there was no evidence that its acts or omissions were the cause of the chronic problems. The court also vacated the award of damages for negligent infliction of emotional distress and pain and suffering under state law. View "Fairest-Knight v. Marine World Distrib., Inc" on Justia Law