Jury Finds Overwork of Crew Recoverable Under Jones Act

July 08, 2012

In Skye v. Maersk Line, 11-21589-CIV-ALTONAGA, a Miami federal court jury decided that extreme, compulsory overwork of a ship's crew member impaired his physical health and amounted to a shipboard condition for which the Jones Act is applicable.

On May 16, the case resulted in a significant jury award against a worldwide cargo shipping company. Although the $2.36 million award was reduced to $590,000 because of comparative negligence, this case of first impression may minimize the distinction between physical and nonphysical injuries established by Consolidated Rail Corp. v. Gottshall , 512 U.S. 532 (1994).

In Gottshall, the plaintiff, a Conrail employee, watched a fellow worker die of a heart attack while on duty. Gottshall's boss put off seeking medical treatment when the worker was stricken, kept the crew working and left the body at the work site for the rest of the day. Shortly thereafter, Gottshall entered a psychiatric facility. He sued Conrail under the Federal Employers' Liability Act ("FELA"), claiming the distress that Conrail's managers put him through caused his illness. Jones Act cases follow the case law interpretations under FELA.

The trial court dismissed the case. However, the U.S. Court of Appeals for the Third Circuit reversed, finding Gottshall's injuries were "genuine and severe" and could be pursued under FELA's liberal policy for on-the-job injury. The U.S. Supreme Court took a different view. Rejecting the Third Circuit's application of FELA, Justice Clarence Thomas wrote for a 7-2 court majority that adopted from common law the "zone of danger" test. This test limits relief to employees who are physically injured as the result of emotional stress caused by employer negligence.

In this recent case, William Skye, a chief mate aboard cargo vessels operated by Maersk Lines, had to retire 10 years early after he developed left ventricular hypertrophy. This condition makes it difficult for the heart to pump blood and sharply increases the risk of a heart attack. Skye alleged and proved that his cardiac problem resulted from intentionally being overworked by Maersk, to the point where he slept fewer than six hours a night for four years, and had shifts of almost 16 hours.

Skye sued under the Jones Act, which was enacted to provide a remedy to seamen injured in the course of their duties. The Jones Act gives crew members a remedy for intentionally or negligently caused injuries as well as injuries caused by a vessel's unseaworthy condition. It is the seamen's equivalent of FELA for railway employees, and courts have consistently held that case law under each statute is applicable to the other.

In Skye, Maersk Lines sought summary judgment based in part on the Gottshall distinction between physical and nonphysical injuries. U.S. District Judge Cecilia Altonaga let the case go to the jury. She refused to conclude as a matter of law that Gottshall was dispositive. The judge acknowledged the jury could decide injuries such as heart attacks may result from nonphysical stress and fall within the Gottshall rule.

Altonaga found that the evidence in Skye created a genuine issue of material fact. In testimony, Skye's cardiologist tied his patient's physical ailment directly to his working conditions. According to the plaintiff's case, extreme and persistent sleep deprivation, such as the deprivation Skye suffered, can amount to a physical condition; it is not a mere emotional stresser.

Apparently, the jury was satisfied by the proof that a direct causal relationship existed between Skye's overexertion and his cardiac condition. The jury found that Maersk was negligent and its negligence was the legal cause of Skye's injuries.

This case is currently being fought in post-trial motions. Regardless of what occurs inSkye post trial, it is expected that unless the parties are willing to settle for reasonable amounts, the case will be appealed as it is one potentially opening shipowner liability for physically damaging "overwork" of crewmembers and setting the stage for what the Daily Business Review reports in their article of June 14, 2012 as "discourag[ing] ship owners from the irresponsible practice of maximizing profits without regard for crew well-being even if it jeopardizes health." 

If you are interested in receiving a copy of the jury's verdict in Skye or you have any questions regarding this case,  please feel free to contact me to obtain a copy at either miamipandi@comcast.net or mov@chaloslaw.com.

Webinar on "Vessel Arrests and In Rem Proceedings in Admiralty Law"

June 13, 2012

I have presented a webinar for Lawline.com titled "Vessel Arrest and In Rem Proceedings in Admiralty Law." The course provides lawyers in most states CLE if you hear the entire presentation. You can hear the program, free of charge, by registering with Lawline.com by clicking on the following link:

http://bit.ly/yFbATR 

This seminar is geared towards vessel necessaries providers and in particular, small boat service providers, as it gives "real life" examples of cases I have handled and how the provider managed to get ahead in what initially appeared to be a hopeless case.

If you are interested in obtaining the complete materials, including the Powerpoint presentation and video, you will need to pay for the seminar on Lawline.com. I hope you enjoy the presentation and if you have any questions on any aspect of the presentation, please feel free to contact me at miamipandi@comcast.net or mov@chaloslaw.com

The Insurance Implications of the COSTA CONCORDIA

May 30, 2012

On May 2, 2012, during MLA week, I was asked by the joint committees of Marine Torts  and Casualties and Cruise Lines and Passenger Ships to speak as part of a panel on the COSTA CONCORDIA casualty. The thrust of my discussion was on the insurance ramifications of the event. In a nutshell, I discussed the breakdown of the insurance coverages for first party and third party insurances. Carnival, the parent company of the owner of the ship, Costa Crociere, reported to have insurance coverage for damage to the ship above a $30 million retention and third-party personal liability coverage above a $10 million retention. Claims are the casualty will cost $1 billion.

My ultimate conclusion in my presentation is that the casualty would not result in a hardening of the hull market and that the liability insurers were well placed to adequately deal with the matter.

Because I have received numerous requests to obtain a copy of my Power Point presentation, please let me know if you are interested in receiving a copy as well by emailing me at miamipandi@comcast.net or mov@chaloslaw.com.

 

Man Convicted for Obstruction of Justice & False Statements for Certifying Ships Safe for Sea

May 29, 2012

The Maritime Executive reports that a federal jury in Miami convicted a Miami-based ship surveyor for lying to the Coast Guard and for falsely certifying the safety of ships at sea. Alejandro Gonzalez, 60, of Miami-Dade County was convicted by a federal jury in Miami of three counts of making false statements to the U.S. Coast Guard and one count of obstruction of an agency proceeding. The defendant faces a maximum statutory penalty of five years in prison on each count.

The jury found Gonzalez guilty of lying to U.S. Coast Guard inspectors and a criminal investigator during an interview in April 2009 about the dry-docking of the M/V CALA GALDANA, a 68 mt cargo vessel, in San Juan, Puerto Rico.  Gonzalez repeatedly claimed the vessel was dry-docked in Cartagena, Colombia, in March 2006, while evidence at the trial proved conclusively that the vessel was never in Colombia during 2006.

Gonzalez was also convicted of falsifying documents in December 2009 for the M/V COSETTE, a 92 mt cargo vessel.  As the surveyor on behalf of Bolivia, Gonzalez certified the ship as safe for sea while the vessel was docked in Fort Pierce in November 2009.  When the vessel shortly thereafter arrived in New York City harbor, U.S. Coast Guard inspectors discovered exhaust and fuel pouring into the ship’s engine room, endangering the crew and the ship.  For his action, Gonzalez was convicted of making a false statement and obstructing a U.S. Coast Guard Port State Control examination.
The prosecution was handled by Assistant U.S. Attorney Jaime Raich (a former colleague for a short time) and Trial Attorney Kenneth Nelson, of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division. Sentencing is currently scheduled for August 2, 2012, in Miami.

The full article from the Maritime Executive can be seen here => http://www.maritime-executive.com/article/man-convicted-for-obstruction-of-justice-false-statements-for-certifying-ships-safe-for-sea.

If you are interested in contacting me, you may do so at miamipandi@comcast.net