Justia U.S. 1st Circuit Court of Appeals Opinion Summaries

Articles Posted in Admiralty & Maritime Law
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In this case, Defendant-Appellee Martin Andersson purchased an insurance policy for his vessel from Plaintiff-Appellant Great Lakes Insurance SE. The vessel ran aground off the coast of the Dominican Republic, and Great Lakes brought a declaratory judgment action to determine coverage under the policy. Andersson filed counterclaims for breach of contract and equitable estoppel. Great Lakes' motion for summary judgment was denied, and Andersson was granted partial summary judgment on his breach of contract claim. Great Lakes appealed, claiming the district court erred in refusing to apply the policy's definition of seaworthiness.The United States Court of Appeals for the First Circuit held that under the absolute implied warranty of seaworthiness, the insured vessel must be seaworthy at the policy's inception, and if not, the policy is void. The court affirmed the district court's ruling, stating that Great Lakes' argument that the absolute implied warranty required the vessel to carry up-to-date charts for all geographic areas covered by the policy in order to be considered seaworthy was unsupported by admiralty case law and was unreasonable.Additionally, the court held that Great Lakes' argument that the express terms of the policy required updated paper charts for every location that could be navigated under the entirety of the policy coverage area was unsupported by the express language of the policy itself. The court found no precedent supporting the claim that updated paper charts for every location covered by the policy were required to be onboard the vessel at the inception of the policy. As a result, the Court of Appeals affirmed the district court's decision in favor of Andersson. View "Great Lakes Insurance SE v. Andersson" on Justia Law

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In this case, a law firm, Thompson, MacColl & Bass, LLC, P.A. (TM&B), was sued by its former client, ST Engineering Marine, Ltd. (STEM), for professional negligence. STEM owned a vessel that was arrested due to several entities, including Sprague Operating Resources, LLC (Sprague), asserting maritime liens for unpaid services. STEM had sought advice from TM&B to analyze these lien claims. TM&B advised STEM that Sprague's lien was valid and should be paid. Acting on this advice, STEM paid Sprague and subsequently sued TM&B, alleging that TM&B's advice was negligent as it failed to consider the unsettled state of relevant maritime lien law.The United States Court of Appeals for the First Circuit affirmed the decision of the United States District Court for the District of Maine, which had found in favor of STEM. The Court of Appeals held that TM&B breached its duty of care to STEM by failing to conduct adequate legal research and by not appropriately counseling STEM about the uncertainty of Sprague's lien claim. The court also found that TM&B's negligence was the actual and proximate cause of STEM's loss, concluding that STEM would have prevailed in contesting Sprague's lien claim but for TM&B's erroneous advice. The court ordered TM&B to pay STEM $261,839.04 in damages. View "ST Engineering Marine, Ltd. v. Thompson, MacColl & Bass, LLC, P.A." on Justia Law

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The First Circuit affirmed the district court's default judgment in a tort action brought against the owner of a boat that Plaintiff was working on at the time of his injury, holding that the district court did not err in granting default judgment and denying Appellant's request for leave to file a late claim under Supplemental Rule F of the Federal Rules of Civil Procedure.Appellant, a commercial fisherman, filed a complaint in a Massachusetts state court alleging that he was injured while working on a vessel owned by G&J Fisheries, Inc. and that G&J was liable for unseaworthiness and negligence under the Jones Act, 46 U.S.C. 30104. G&J filed a complaint in the federal district court seeking exoneration from liability under 46 U.S.C. 30501-12 and Supplemental Rule F. The district court enjoined all other lawsuits against G&J pursuant to Supplemental Rule F(3) and then granted default judgment for G&J on the grounds that Appellant failed to file a claim as required under the rule. The First Circuit affirmed, holding that the district court did not err in granting default judgment and in denying Appellant's request to file a late claim under Supplemental Rule F(4). View "G&J Fisheries, Inc. v. Costa" on Justia Law

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The First Circuit vacated in part and reversed in part the judgment of the district court in favor of Defendants in this action brought against the owners of a fishing vessel on which Plaintiff was a seaman alleging that the owners breached a federal common law obligation under admiralty law known as the "duty of cure," holding that the district court's holding rested on an impermissible ground for distinguishing Gauthier v. Crosby Marine Service, Inc., 752 F.2d 1085 (5th Cir. 1985).Plaintiff alleged that Defendants failed adequately to pay him for the costs of the medical care he received after falling ill from an infection he acquired while working on their vessel and that, even if Defendants' various payments to Plaintiff and his private health insurer satisfied their duty of cure, their delay in paying him warranted an award of compensatory damages, punitive damages, and attorney's fees. The district court entered judgment for Defendants. The First Circuit largely vacated the judgment, holding (1) the district court's holding rested on an impermissible ground for distinguishing Gauthier and did not otherwise explain why Gauthier did not apply; and (2) Defendants' proposed alternative ground for affirming the district court's grant of judgment to Defendants on Plaintiff's breach-of-the-duty-of-cure claim failed. View "Aadland v. Boat Santa Rita II, Inc." on Justia Law

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The First Circuit affirmed the order of the district court granting the government's motion to dismiss this lawsuit alleging improper termination and breach of contract for failure to state a claim on the grounds that the claims were time-barred, holding that there was no basis to disturb the district court's decision.This matter arose out of a contract for between J-Way Southern and the United States Army Corps of Engineers (USACE) for dredging water waters in Menemsha Harbor, Martha's Vineyard. After USACE terminated the contract J-Way filed suit, alleging improper termination and breach of contract. The district court granted USACE's motion to dismiss, concluding that J-Way's claims were time-barred. The First Circuit affirmed, holding (1) the district court had jurisdiction over this maritime contract dispute; and (2) the district court properly denied the government's motion to dismiss. View "J-Way Southern, Inc. v. United States Army Corps of Engineers" on Justia Law

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The First Circuit reversed the judgment of the district court granting Defendant's motion to dismiss this action seeking damages for injuries received in a boating accident, holding that this case was allowed to proceed in Plaintiffs' chosen forum.Plaintiffs were ferrying in a small boat when another boat, owned by Defendant, plowed into Plaintiffs' boat and sunk it. The crash also left one of the Plaintiffs with serious personal injuries. Plaintiffs filed suit against Defendant, a U.S. citizen, in Massachusetts, bringing claims for maritime negligence, loss of consortium, and property damages. Defendant moved to dismiss the complaint for forum non conveniens, arguing that Greece was the most appropriate venue for the case. The district court granted the motion and dismissed the case. The First Circuit reversed, holding that the district court abused its discretion in failing to hold Defendant to his burden of showing that the public and private interest factors displaced the presumption weighing in favor of Plaintiffs' initial forum of choice. View "Curtis v. Galakatos" on Justia Law

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In this dispute between a boat owner and his insurance company, the First Circuit affirmed the judgment of the district court in favor of the insurer, holding that the district court properly applied the doctrine of uberrimae fidei in this case.When Defendant applied for an insurance policy for his yacht from an entity later acquired by Plaintiff he failed to disclose that he had grounded a forty-foot yacht in Puerto Rico. Plaintiff later sought a declaratory judgment voiding the policy on the grounds that Defendant had failed to honor his duty of utmost good faith, known as uberrimae fidei in maritime law, in acquiring the policy and had therefore breached the warranty of truthfulness contained in the policy. The district court concluded that Plaintiff was entitled to void the policy. The First Circuit affirmed, holding that the district court correctly concluded that the uberrimae fidei doctrine entitled Plaintiff to a declaration that the policy was void. View "QBE Seguros v. Morales-Vazquez" on Justia Law

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The First Circuit vacated the district court's order denying in part Defendants' motions to dismiss this suit brought Plaintiffs, a putative class of shippers who use the services of ocean freight carriers to import goods into Puerto Rico through the Port of San Juan, holding that Plaintiffs lacked standing to sue for a declaration that the collection of a fee from the carriers was unlawful.Plaintiffs' claims stemmed from a cargo scanning program implemented by the Puerto Rico Ports Authority (PRPA). Pursuant to that program, PRPA contracted with Rapiscan Systems, Inc. to provide the technology and services needed to scan all containerized inbound cargo. Rapsican assigned its rights and obligations to S2 Services Puerto Rico LLC (S2). PRPA charged ocean freight carriers a fee for their use of the of the scanning facilities at the maritime port. Plaintiffs sued PRPA, Rapiscan, and S2 (collectively, Defendants) alleging that, in response to the fee, the carriers were forced to be collection agents that collected fees from the shipper entities. The district court granted in part and denied in part Defendants' motions to dismiss. The First Circuit remanded this case for dismissal on jurisdictional grounds, holding that Plaintiffs failed to set forth allegations that were sufficient to establish their standing. View "Dantzler, Inc. v. S2 Services Puerto Rico, LLC" on Justia Law

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The First Circuit vacated the decision of the district court dismissing for failure to state a claim this suit challenging the federal government's decision not to waive indefinitely the cabotage provision of the Jones Act for Puerto Rico following the destruction wrought by Hurricane Maria, holding that Plaintiffs lacked standing and dismissal was required on jurisdictional grounds.In this suit, Plaintiffs challenged the provision of the Jones Act, which applies to Puerto Rico and prohibits foreign-flag vessels from transporting merchandise between United States coastwise points. The district court granted Defendants' motion to dismiss for failure to state a claim. The First Circuit vacated the judgment below and remanded for the claims to be dismissed on jurisdictional grounds, holding that Plaintiffs, each of whom owned real estate and/or personal property in Puerto Rico, failed to set forth allegations in their complaint that were sufficient to establish standing. View "Perez-Kudzma v. United States" on Justia Law

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The First Circuit affirmed Appellants' convictions for drug trafficking under the Maritime Drug Law Enforcement Act (MDLEA), 46 U.S.C. 70501-70508, holding that the protective principle of international law permitted the United States to arrest and prosecute Appellants even if, as they argued, their vessel possessed Costa Rican nationality.Appellants were on a small speed boat in the western Caribbean Sea when they were interdicted by the U.S. Coast Guard and subsequently arrested. Appellants moved to dismiss their indictment under the MDLEA, which allows U.S. law enforcement to arrest foreign nationals for drug crimes committed in international waters, arguing that the statute exceeds Congress's authority under Article I of the Constitution and violates the Due Process Clause. The district court denied the motion to dismiss, and Appellants pleaded guilty. On appeal, Appellants again challenged the constitutionality of the MDLEA, arguing that their vessel was not properly deemed stateless. The First Circuit affirmed, holding (1) the protective principle of international law, as applied by the First Circuit, permits prosecution under the MDLEA even of foreigners on foreign vessels; and (2) there was no abuse of discretion in the sentence imposed. View "United States v. Davila-Reyes" on Justia Law