The following are links to selected Circuit
Court opinions concerning admiralty and maritime law issued during the
period May through August, 2000.
Prima
U.S. Inc. v. M/V Addiriyah
Second Circuit Court of Appeals
August 24, 2000
Carriage of Goods: a freight forwarder
sued in indemnity for damages to ocean cargo did not issue a bill of lading,
and thus was not liable where it had acted reasonably in selecting the
parties that actually performed the transportation services.
In
re Dolphin Services Inc.
Fifth Circuit Court of Appeals
August 24, 2000
Limitation of Liability Act: an original
state court petition for personal injury damages that incorrectly identified
the subject vessel was not sufficient notice to trigger the Limitation
of Liability Act's provision requiring limitation actions to be filed within
six months of receiving written notice of claim.
Adams
v. Unione Mediterranea di Sicurta
Fifth Circuit Court of Appeals
August 14, 2000
Salvage: the law of salvage, rather
than the law of finds, is applicable absent clear and convincing evidence
that the owner of the sunken steel cargo made an express declaration abandoning
title, thus where owner had not expressly abandoned cargo, but had assigned
rights in the cargo to its underwriters, the underwriters retained title
to the sunken steel cargo; since the steel cargo had not been abandoned,
the salvors through their salvage efforts did not become owners of the
cargo and by selling the cargo were liable for negligent conversion; salvors
were, however, entitled to an offset for a salvage award since they had
not acted in bad faith in salvaging the cargo; Marine Insurance: the
negligent conversion was not an "accident" and thus the salvors' liability
was not covered under the relevant general liability policy.
Unocal
Co. v. United States
Ninth Circuit Court of Appeals
August 7, 2000
Oil Pollution Act of 1990 ("OPA 90"): Unocal,
the owner of an oil pipeline that ruptured causing contamination of a local
creek and river, was a responsible party under the Oil Pollution Act of
1990 and could state a complete defense to the strict liability of the
Act only if it could establish that (1) the discharge was caused solely
by the act or omission of a third party; (2) the responsible party exercised
due care with respect to the pipeline; and (3) the responsible party took
precautions against foreseeable acts or omissions of third parties and
the foreseeable consequences of those acts or omissions; the jury's finding
that Unocal had established its defense to strict liability was supported
by substantial evidence, thus the verdict awarding Unocal reimbursement
of the clean-up costs against the responsible third parties was upheld.
White
v. Bethlehem Steel Co.
Fourth Circuit Court of Appeals
August 2, 2000
Longshore & Harbor Workers' Act: plaintiff
longshore worker's tort claim against Bethlehem Steel was properly dismissed
since he was under the authoritative direction and control of Bethlehem
at the time of his accident, thus he was Bethlehem's borrowed servant and
the Act is his exclusive remedy.
Kreschollek
v. Southern Stevedoring
Third Circuit Court of Appeals
July 28, 2000
Longshore & Harbor Workers' Act: since
there is no federal government action involved in an insurer's unilateral
decision to terminate benefits under the Act, the Act is not unconstitutional
on its face in allowing employers and their insurance carriers to terminate
payment of workers' compensation benefits without notice.
Staftex
Staffing v. DOWCP
Fifth Circuit Court of Appeals
July 25, 2000 (Revised)
Longshore & Harbor Workers' Act: the
Administrative Law Judge's calculation of the average weekly wage for compensation
purposes was upheld, but the award of attorneys fees to the claimant was
reversed since the claimant failed to submit the question of average weekly
wages to an informal conference.
Sea
Hunt, Inc. v. Unidentified Vessels, Kingdom of Spain
Fourth Circuit Court of Appeals
July 21, 2000
Abandoned Shipwreck Act ("ASA"): under
admiralty law, where an owner comes forward to assert ownership in a shipwreck,
abandonment must be shown by express acts, thus salvor failed to prove
that Spain had abandoned its naval vessels for purposes of the Abandoned
Shipwreck Act where it failed to show an express abandonment by clear and
convincing evidence; International Law: a standard of express abandonment
is also required under the 1902 Treaty of Friendship and General Relations
between the United States and Spain; the 1763 Definitive Treaty of Peace
between France, Great Britain, and Spain, which ended the Seven Years War
and transferred most of Spain's territories in the new world to Great Britain,
does not contain clear and convincing evidence of the "express abandonment"
of the Spanish naval vessels; Salvage: the salvor is not entitled
to a salvage award since it is the right of the owner of any vessel to
refuse unwanted salvage.
Canal
Barge Co. v. Torco Oil Co.
Fifth Circuit Court of Appeals
July 20, 2000
Charter Parties: charterer and cargo
supplier held jointly and severally liable to barge owner for failure to
pay for the clean-up costs arising from loading a cargo of spent lube oil
that left a four inch residue of heavy, tar-like slug; Maritime Torts:
the liability of the cargo supplier to the barge owner was not based on
contract, but was based on the negligent loading of shore tank bottom residue
into the barge; Demurrage/Loss of Use: charterer and cargo supplier
were jointly and severally liable for 76 days of demurrage at the charter
party rate of $480 per day due to the loss of use of the barge during clean-up
operations.
International
Aircraft Recovery v. United States
Eleventh Circuit Court of Appeals
July 17, 2000
Salvage: the admiralty law of salvage
permits the owner of a vessel
in marine peril to decline the assistance
of others so long as only the owner's property interests are at stake,
thus the United States was entitled to reject the salvor's efforts to salvage
a Navy bomber sunk off the coast of Florida; whether the salvor is eligible
for a salvage award for efforts in obtaining the location of the submerged
bomber, videotaping the wreck, and returning the plane's canopy and radio
mast to dry land depends on when the United States rejected the salvage
efforts.
Flanagan
Stevedores, Inc. v. Gallagher
Fifth Circuit Court of Appeals
July 14, 2000
Longshore & Harbor Workers' Act: the
Court upheld the Administrative Law Judge's award which: entitled claimant
to two periods of disability, calculated claimant's weekly wage for determining
the disability award, awarded claimant penalties for late payment of compensation
and awarded claimant attorneys fees.
In
Re: Complaint of Transporter Marine, Inc.
Fifth Circuit Court of Appeals
July 13, 2000
Limitation of Liability Act/Coast Guard
Regulation: the Coast Guard's adjudication of charges arising from
the enforcement of its drug and alcohol testing regulations are exempt
from exoneration or limitation proceedings under the Limitation of Liability
Act.
Calhoun
v. Yamaha Motor Co.
Third Circuit Court of Appeals
June 23, 2000
Admiralty Jurisdiction: the court had
admiralty jurisdiction over a collision between a jet ski and an anchored
vessel in Puerto Rican territorial waters, thus federal choice of law principles
apply; Choice of Law: application of those principles results in
the choice of Pennsylvania law to determine compensatory damages and Puerto
Rican law to determine punitive damages; federal maritime law principles,
however, apply in determining the liability of the defendant in this admiralty
action for the death of a non-seaman brought pursuant to a state wrongful
death/survival statute.
Stevens
v. Premier Cruises, Inc.
Eleventh Circuit Court of Appeals
June 22, 2000
Government Regulation: the District
Court erred in concluding that Title III of the Americans with Disabilities
Act ("ADA") does not as a matter of law apply to foreign-flag cruise ships
sailing in United States waters, thus the dismissal of Plaintiff's complaint
under the ADA for failure to state a claim is reversed.
Polo
Ralph Lauren v. Tropical Shipping
Eleventh Circuit Court of Appeals
June 21, 2000
Carriage of Goods by Sea Act ("COGSA"):
although
Polo Ralph Lauren was not named in the bill of lading, the bill of lading's
reference to the "owner of the goods" could encompass Polo Ralph Lauren,
thus summary judgment dismissing Polo Ralph Laurens' cargo claim is reversed;
COGSA is the exclusive remedy in cases involving a carriage of goods between
the United States and foreign ports.
District
No. 1, Pacific Coast v. Maritime Administration
District of Columbia Circuit Court of
Appeals
June 16, 2000
Government Regulation: section
9 of the 1916 Shipping Act is not an unconstitutional delegation of legislative
authority to the executive branch, thus the Maritime Administration's granting
of applications to transfer the registry of eight vessels from the United
States to the Republic of Marshall Islands pursuant to section 9 will not
be disturbed.
In
re: UNITED STATES LINES, INC.
Second Circuit Court of Appeals
June 16, 2000
Bankruptcy: the Second Circuit upheld
the Bankruptcy Court's order that Appellant may not file a "Master Motion"
to transfer all of its 15, 000 claims to the Multidistrict Litigation Panel,
but must file separate civil actions for each of its personal injury claims
against the debtor United States Lines.
Local
1351 ILA v. Sea-Land Service
Fifth Circuit Court of Appeals
June 9, 2000
Arbitration: the District Court's decision
to order a tripartite arbitration where a final judgment had previously
been entered based on an arbitration award between two of the parties was
in error.
Solano
v. Gulf King 55
Fifth Circuit Court of Appeals
June 5, 2000
Choice of Law: Nicaraguan law applies
to plaintiffs' personal injury claims where: (1) the claims arose on shrimping
vessels operated exclusively in the territorial waters of Nicaragua, (2)
the plaintiffs were all Nicaraguan citizens and residents, and (3) the
employment contracts were entered into in Nicaragua; the law of the flag
and the national allegiance of the defendants Lauritzen-Rhoditis
factors, which supported application of American law, would be discounted
in this case where the shrimping vessels operated exclusively in
NIcaraguan waters and were more analogous to fixed drilling platforms than
vessels in traditional maritime commerce.
Mallard
Bay Drilling v. Herman
Fifth Circuit Court of Appeals
June 2, 2000
Coast Guard Regulation: OSHA has no
jurisdiction to regulate the working conditions of seamen aboard a drilling
barge, which is a vessel in navigation subject to the Coast Guard's exclusive
regulatory jurisdiction.
Jackson
v. North Bank Towing
Fifth Circuit Court of Appeals
June 2, 2000
Jones Act: seaman's foreign law tort
claims brought in federal district court must be dismissed on res judicata
grounds since they had previously been dismissed by a Louisiana state court.
(Note: this decision vacates the Court's January 31, 2000 decision which
held that the Jones Act did not bar a foreign seaman from bringing maritime
claims pursuant to foreign law in US courts.)
Thypin
Steel v. Asoma Corporation
Second Circuit Court of Appeals
May 25, 2000
Maritime Arrest/In Rem Action:
Supplemental
Admiralty Rule D explicitly applies to an in rem possessory action
to acquire title to maritime property, a category under which a bill of
lading clearly falls, thus the plaintiff was entitled to arrest a bill
of lading pursuant to Rule D and obtain in rem jurisdiction.
Neptune
Orient Lines v. Burlington
Ninth Circuit Court of Appeals
May 24, 2000
Carriage of Goods: the appropriate
measure of damages under the Carmack Amendment for the loss of a container
load of Nike shoes on the inland portion of a carriage from Indonesia to
Tennessee was the market value at destination, not the replacement cost.
Mooney
v. City of New York
Second Circuit Court of Appeals
May 22, 2000
Jones Act: a formal workers' compensation
award that settles all of the plaintiff's claims in their entirety
waives the plaintiff's Jones Act claim, thus the case will be remanded
to the District Court to determine if a waiver took place, which would
bar plaintiff from pursuing a Jones Act claim.
HIH
Marine Services, Inc. v. Fraser
Eleventh Circuit Court of Appeals
May 19, 2000
Marine Insurance: under the doctrine
of
uberrimae fidei, a material misrepresentation on an application
for marine insurance is grounds for voiding the policy; the insured's misrepresentation
that the insured yacht was in its custody pursuant to a charter party was
considered material since it might have had a bearing on the risk to be
assumed by the insurer, thus the policy was void and the insurer had no
obligation to pay a total loss claim; Choice of Law: American and
Jamaican law on this marine insurance issue are largely congruent, thus
the District Court's decision to apply American law will not be addressed.
Louisiana
Ins. Guaranty Assoc. v. Bunol & DOWCP
Fifth Circuit Court of Appeals
May 12, 2000
Longshore & Harbor Workers' Act: the
Benefit Review Board's determinations concerning the casual relationship
between the claimant's disability and a work-related injury, the extent
of that disability, the situs of the injury and the claimant's residual
wage earning capacity were all supported by substantial evidence and were
in accordance with the law, thus they were affirmed on appeal.
Motts
v. M/V Green Wave
Fifth Circuit Court of Appeals
May 9, 2000
Death on the High Seas Act ("DOHSA"): DOHSA
applies where the decedent is injured on the high seas, even if the defendant's
negligence is entirely land-based and begins subsequent to that injury. |