Justia Admiralty & Maritime Law Opinion Summaries

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

In this personal injury action, Plaintiff sued Employer under the Jones Act for an injury to his back sustained in the course of his employment with Employer as a crew member aboard a commercial fishing vessel. Plaintiff's ultimate negligence liability theory at trial was that Employer breached its duty of care by not obtaining an MRI as part of his pre-employment physical. The trial court awarded damages to Plaintiff upon a jury verdict. The Supreme Court reversed and entered final judgment in favor of Employer, holding that, as a matter of law, there was no evidence of causation presented in the trial of Plaintiff's negligence claim against Employer under the Jones Act. View "Omega Protein, Inc. v. Forrest" on Justia Law

Plaintiffs, Decedent's wife and estate, filed suit under general maritime law against John Crane, Inc. (JCI) seeking compensatory and punitive damages, alleging that Decedent, a former seaman, was exposed to asbestos contained in products manufactured by JCI and that he contracted mesothelioma as a result of such exposure. Plaintiffs' third amended complaint included revived personal injury survival claims - which sought damages for Decedent's pre-death pain and suffering - and Plaintiffs' wrongful death claims. A jury awarded $2 million in damages for Decedent's pre-death pain and suffering. The Supreme Court vacated the award. Plaintiffs petitioned for a rehearing, which the Court granted. The Court then reinstated the award and modified its opinion, holding that because the Jones Act permits recovery for the losses suffered during a decedent seaman's lifetime in a survival action, including pre-death pain and suffering, Decedent's estate may recover for his pre-death pain and suffering under general maritime law. View "John Crane, Inc. v. Hardick" on Justia Law

Seaman filed this action to recover maintenance and cure and compensatory and punitive damages from his former employer (Employer), claiming that he suffered PTSD and depression as a result of being gang-raped by uniformed Korean police officers while he was on shore leave from Employer's ship docked in Korea. The jury awarded Seaman $20,000,000 in compensatory damages and $5,000,000 in punitive damages. The circuit court granted Employer's motion for partial summary judgment precluding Seaman's denial of maintenance and cure, set aside the punitive damages award, and remitted the compensatory damages award to $2,000,000. Both parties appealed. The Supreme Court reversed and remanded the case for a new trial on all issues relating to the seaworthiness and Jones Act claims regarding Employer's actions after Seaman returned to the ship, and Seaman's claim for maintenance and cure benefits, holding (1) the circuit court erred by not ordering a new trial after concluding that the maintenance and cure claim for compensatory and punitive damages should not have been submitted to the jury; and (2) the circuit court erred in refusing the instruction proffered by Employer quoting the circuit court's pre-trial ruling on the Jones Act and seaworthiness claims, and the refusal was not harmless. View "Hale v. Maersk Line Ltd." on Justia Law

This case arose when an oil tanker sank off the cost of Spain, releasing large quantities of oil into the ocean. Spain subsequently appealed the district court's holding that defendants were entitled to summary judgment because, in the circumstances presented, Defendant ABS and its subsidiaries did not owe Spain a duty in tort in connection with ABS's inspection of the tanker. Without reaching that issue, the court concluded that even if such a duty were owed, Spain did not introduce evidence sufficient to create a genuine issue of material fact as to whether defendants recklessly breached the duty. Therefore, the court affirmed the judgment. View "Reino De Espana v. Bureau of Shipping" on Justia Law

Plaintiff, a former seaman employee of defendant, was injured on the job and sued defendant in Florida state court claiming that defendant was negligent under the Jones Act, 46 U.S.C. 30104, and failed to provide maintenance and care as required by U.S. maritime law. Defendant, noting that plaintiff's employment contract required the parties to submit disputes to arbitration, removed the case to federal district court under 9 U.S.C. 205. After the removal, the district court in a single order denied defendant's motion to enforce the arbitration clause on the basis that the arbitration clause was void under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (Convention) for violating public policy and remanded the matter back to state court. Defendant appealed this order. Plaintiff moved to dismiss the appeal and argued that by concluding that the arbitration clause was null and void, there was no longer a basis for jurisdiction. The district court dismissed the case for lack of subject-matter jurisdiction and the court subsequently granted plaintiff's motion to dismiss defendant's appeal for lack of jurisdiction. View "Harrisson v. NCL (Bahamas) Ltd." on Justia Law

This case required the Fifth Circuit Court of Appeals to decide whether vicarious liability principles under the Jones Act allowed a seaman's wife to recover from her husband's employer for the events that led to his death. Keith Beech died after his co-worker, Michael Cosenza, accidentally shot him aboard a Hercules Drilling Company-owned vessel. The district court determined that Cosenza was acting in the course and scope of his employment at the time of the accident, and therefore, Hercules was liable for Mr. Beech's wrongful death. The Fifth Circuit Court of Appeals reversed, holding that Cosenza was not acting in the course of his employment when he accidentally shot Beech, and therefore, the district court's judgment in favor of Mrs. Beech must be reversed. View "Beech v. Hercules Drilling Co., LLC" on Justia Law

Nicole Walker and Bart Hyde pled guilty to conspiring to manufacture and distribute methamphetamine. Defendants appealed their respective sentences, arguing that the district court clearly erred in calculating the drug quantity attributable to each of them. Hyde also argued that the district court erred in imposing an obstruction of justice enhancement and failed to reduce Hyde's sentence for acceptance of responsibility. The Eighth Circuit Court of Appeals affirmed, holding (1) the district court did not rely on unreliable evidence or apply an overly broad definition of conspiracy; (2) the district court did not clearly err in determining Defendants distributed "ice" as defined in the Sentencing Guidelines; (3) the district court did not err in applying an obstruction of justice enhancement based on the court's determination that Defendant intentionally gave false testimony; and (4) the district court did not err in denying a reduction for acceptance of responsibility. View "United States v. Walker" on Justia Law

From the 1930s through the 1970s, Skinner manufactured ship engines and parts, allegedly containing asbestos. Merchant mariners began bringing injury claims in the 1980s. In 1998, AC acquired all of Skinner’s common stock. Based on lack of cash flow to maintain operations or service secured debt, Skinner and AC filed petitions for Chapter 11 bankruptcy in 2001; more than 29,000 asbestos claims were pending against Skinner. The Bankruptcy Court converted to Chapter 7 on the basis that the plan was patently unconfirmable. Insurers, legal representative for future asbestos claimants, Maritime Asbestosis Legal Clinic, and the Trustee, joined an appeal. The Third Circuit affirmed. The court properly found, based on the disclosure statement hearing, that the fifth plan was patently unconfirmable under 11 U.S.C. 1129(a)(3) because its success is entirely contingent on speculative future litigation, and because it asks third-party asbestos claimants, who were not a cause of the bankruptcy, to serve as the sole funding source for attorneys and other creditors, under circumstances involving inherent conflict of interest and inequitable procedural provisions. Given the futility of pursuit of a Chapter 11 plan and mounting liabilities, the court acted within its discretion by converting the case. View "In Re: Am. Capital" on Justia Law

Plaintiff, a seaman, contracted lymphoma and sued his former employer, a tugboat operator, seeking maintenance and cure. The doctrine of maintenance and cure concerns the vessel owner’s obligation to provide food, lodging, and medical services to a seaman injured while serving the ship. Undisputed evidence established that the seaman had lymphoma during his maritime service, but the disease did not present any symptoms at all until after his service. The district court granted summary judgment for the tugboat operator. The Second Circuit reversed. Because the seaman’s illness indisputably occurred during his service, he is entitled to maintenance and cure regardless of when he began to show symptoms. View "Messier v. Bouchard Transp." on Justia Law