Damages
The following are digests and case links to
Circuit Court Admiralty Cases that have as an issue damages:
South
Port Marine v. Gulf Oil Ltd.
First Circuit Court of Appeals
December 7, 2000
Admiralty Jurisdiction: plaintiff's
floating docks that were damaged by an oil spill were extensions of the
land and hence a tort that causes damage to them does not occur wholly
on navigable waters and therefore constitutes an action at law, rather
than in admiralty; OPA 90/Jury Trial: although the Oil Pollution
Act (OPA) does not create a statutory right to a jury trial, plaintiff
has a Seventh Amendment right to a jury trial of its claims under the Act
since they are analogous to causes of action at common law, rather than
causes of action in admiralty; Punitive Damages: punitive damages
are not available under OPA for marine pollution claims, nor are they available
under the general maritime law in view of the enactment of OPA, which has
supplanted the existing maritime law of punitive damages in cases of marine
pollution.
Diefenbach
v. Sheridan Transportation
First Circuit Court of Appeals
October 6, 2000
Experts: the district court did not
abuse its discretion when it allowed plaintiff's expert witness to present
expert testimony concerning docking and undocking procedures since the
witness had the knowledge, skill, experience, training and education to
qualify him as an expert and his testimony assisted the trier of fact to
better understand the case; Damages: defendant's motion for remittitur
on the grounds that the jury awarded excessive damages was properly denied
since there was sufficient supporting evidence introduced regarding the
plaintiff's injury, his inability to earn a living and the pain and suffering
he experienced, is experiencing and will experience in the future; Jury
Trials: defendant failed to request that the jury be instructed to
reduce lost wages to present value and that any award is not subject to
taxes, thus the district court's failure to so instruct is not reversible
error.
New
York Marine & General Insurance Co. v. Tradeline
Second Circuit Court of Appeals
September 28, 2001
Marine Insurance: the policyholder
and cargo seller had been authorized by the cargo underwriter to issue
certificates of insurance to its customers under an open cargo policy,
thus it acted as the underwriter's agent in issuing the certificates; the
prediction of severe rainy weather at the discharge port was a material
fact that would have affected the underwriter's decision whether to issue
extended coverage under the policy for rainwater damage and thus had to
be disclosed under the doctrine of uberrimae fidae; the buyer's
disclosure of that weather prediction to the policyholder/cargo seller
(but not to the underwriter) before coverage was extended was sufficient
since the policy holder/cargo seller was the underwriter's agent, thus
the extended coverage was not void based on the doctrine of uberrimaefidae;
Damages:
the buyer could not recover under the extended coverage for cargo that
had been deposited from lightering barges onto the shore area and was washed
away as a result of rising tides and tidal waves and for other cargo that
was damaged by the cyclone on shore because coverage terminated once the
cargo had been delivered to "any other warehouse of place of storage" and
was no longer in the "ordinary course of transit"; Clause 12 of the Institute
Cargo Clauses (C)did not cover the extra charges incurred in unloading,
storing and forwarding the cargo to its destination since this resulted
from the closing of the discharge port, which was not a risk covered under
the policy; the district court properly refused to award attorneys' fees
to the assureds because the underwriter did not act in bad faith in denying
the claim or in instituting the declaratory action; the district court
did not abuse its broad discretion with respect to prejudgment interest
by applying the United States Treasury Bill rate, rather than the 17% rate
urged by cargo interests.
Project
Hope v. Neptune Orient Lines
Second Circuit Court of Appeals
May 4, 2001
Carriage of Goods: the district court
properly found that the land carrier of a shipment from Winchester, Virginia
to Egypt via the port of Norfolk, Virginia was jointly and severally liable
for cargo damage pursuant to the Carmack Amendment, 49 U.S.C. § 14706;
Damages:
damages under the Carmack Amendment should generally be based on the fair
market value, but they need not be if circumstances suggest a more appropriate
alternative, which in this case was properly the replacement cost of the
damaged goods.
Chisholm
v. UHP Products, Inc.
Fourth Circuit Court of Appeals
March 8, 2000
Damages: the Supreme Court's decision
in McDermott is held not applicable in situations where the liable
parties are not joint tort-feasors, thus the injured plaintiff is not entitled
to jury verdict of $90,000 against one liable party since he had previously
settled his claim against another liable party for an amount greater than
the jury verdict.
Karim
v. Finch Shipping
Fifth Circuit Court of Appeals
September 5, 2001
Procedure (Jurisdiction)/Limitation of
Liability: the shipowner waived its jurisdictional defense where it
voluntarily provided the district court
inrem jurisdiction by commencing
the limitation proceeding and placing the res, or the bond, in the
hands of the court, and where it invoked the powers of the court to require
the plaintiff seaman to halt his proceeding in another forum and to file
in the limitation action;
Procedure (Forum Non Conveniens): the
relevant private and public interest factors under
Gulf Oil/Piper Aircraft,
such as Plaintiff receiving medical treatment in the United States, evidence
and testimony being easily accessible in this forum, counsel for both parties
being based in this forum, and the fact that United States limitation law
applied, weighed against dismissal;
Choice of Law: the district
court did not err in making a determination of quantum of personal injury
damages under Bangladeshi law by applying English and Indian precedent
since experts informed the court that Bangladeshi courts would look to
Indian and British cases for guidance where their precedents were lacking;
Damages
(Prejudgment Interest): the award of prejudgment interest is discretionary
(both under Bangladeshi and United States law) and the district court did
not abuse its discretion in setting the initial date of the interest accrual
to be the date the limitation action was reactivated in federal court,
rather than the date of injury.
Reserve
Mooring v. American Commercial Barge Line
Fifth Circuit Court of Appeals
May 16, 2001
Maritime Torts/Damages: physical injury
to a proprietary interest is a prerequisite to recovery of economic damages
in cases of an unintentional maritime tort, thus because plaintiff's mooring
facility suffered no physical injury when a wreck blocked its use, its
claim for purely economic damages must be denied.
BP
North America v. Solar ST
Fifth Circuit Court of Appeals
May 14, 2001
Carriage of Goods/Damages: BP's futures
trading in the diesel oil market after it discovered its diesel oil cargo
was damaged is inapposite to a "market value" damages calculation, thus
the district court should simply have calculated BP's damages as the difference
between the market value of sound oil on the date of discharge and an estimated
market valuation of the contaminated oil on the date of discharge.
American
River Trans Co. v. Kavo Kaliakra S.S.
Fifth Circuit Court of Appeals
March 8, 2000
Damages: the
Robins Dry Dock
rule bars recovery for economic damages in negligence unconnected to an
injury to a property interest, thus Longshore employer has no claim against
tort-feasor for increased insurance costs associated with compensation
payments to its injured employees.
ConAgra
Inc. v. Indian River Towing Co.
Eighth Circuit Court of Appeals
June 8, 2001
Damages: proving loss-of-use damages
in an admiralty case involves two elements: first, a vessel owner must
prove that profits have actually been, or may be reasonably supposed to
have been, lost; and second, the amount of lost profits must be proven
with reasonable certainty; the owner of a fleet of barges in this case
met this burden by showing that there was a ready market for its barges
and that it had no spare barges available to substitute for the damaged
barges; Damages (Prejudgment Interest): prejudgment interest was
properly awarded for the loss-of-use claim since it is awarded in admiralty
suits to ensure full compensation for the injured party and should be granted
unless there are exceptional or peculiar circumstances.
In
re the EXXON VALDEZ, Baker v. Hazelwood
Ninth Circuit Court of Appeals
November 7, 2001
Damages (Punitive Damages): punitive
damages against Exxon for the Valdez oil spill are not barred because Exxon
has already been subject to criminal and civil sanctions and cleanup expenses
as a result of the spill; further, admiralty law does not bar an award
of punitive damages; and the Clean Water Act does not preempt a private
remedy for punitive damages; the district court properly instructed the
jury that it could impose punitive damages on Exxon even if all the recklessness
was by its employee Captain Hazelwood rather than by Exxon itself; but,
the $5 billion punitive damages award is too high to withstand review under
the recent Supreme Court decisions in BMW of North America and Cooper
Industries, which established three guideposts for reviewing punitive
damages awards: (1) the degree of reprehensibility of the person's conduct;
(2) the disparity between the harm or potential harm suffered by the victim
and his punitive damage award; and (3) the difference between the punitive
damage award and the civil penalties authorized or imposed in comparable
cases; the case is remanded to the district court to consider the constitutionality
of the amount of the award in light of the guideposts established in BMW.
(See also the Press
Release from the Ninth Circuit Court of Appeals concerning this decision.)
Simeonoff
v. M/V Saga
Ninth Circuit Court of Appeals
May 8, 2001
Jones Act/Comparative Negligence: a
seaman may not be held contributorily negligent for carrying out orders
that result in injury, even if the seaman recognizes possible danger and
does not delay to consider a safer alternative; further, a seaman who responds
to a superior's urgent call for help cannot be found contributorily negligent,
thus the plaintiff, who knew of the dangers when he responded to the call
of assistance from the engineer in fixing a pot launcher, was not contributorily
negligent when the pot launcher gave way, fell and crushed his foot; Damages:
the court's economic damage award was sufficiently detailed and supported
by the evidence and the court's non-economic damage award of $18,900 for
pain and suffering was not inadequate, was supported by the evidence and
did not shock the conscience; Damages (Prejudgment Interest): in
personal injury cases under admiralty jurisdiction, prejudgment interest
must be granted unless peculiar circumstances justify its denial; thus
the matter of prejudgment interest would be remanded to the district court
to articulate its reasons for denying that interest.
Central
State Transit & Leasing Yard Co. v. Jones Boat Yard, Inc.
Eleventh Circuit Court of Appeals
March 20, 2000
Damages: a pleasure boat owner is entitled
to receive loss of use damages only if able to prove, with reasonable certainty,
that profits had actually been, or may reasonably be supposed to have been,
lost, which owner in this case was unable to do; the District Court was
correct to limit the liability of the defendant to its proportionate share
under
McDermott even though its liability was based in contract,
not tort. |