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Page 20: of Marine News Magazine (February 2012)
Inland Bulk Transportation
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20MNFebruary 2012 LEGALaward of punitive damages provides a legitimate issue to be resolved. As the DEEPWATER HORIZON incident has changed the way that our indus-try operates, it is fitting that it should shape this issue as well. The District Judge in the In re Oil Spill litigation recently ruled that punitive damages are available to maritime personal injury plaintiffs who are not seamen. In a September 30, 2011 opinion, the court found that punitive damages are available to ?B3 Master Complaint claimants? who are not seamen. In so finding, the Judge stat- ed: ?As explained in Townsend, nei- ther the Jones Act nor the Death on the High Seas Act speaks to negli- gence claims asserted by non-seamen under general maritime law, and punitive damages are available at common law.? Thus, on appeal, this ruling will provide the appellate court with an opportunity to clarify the issue as to whether punitive damages are available to non-seaman plaintiffs. As the industry saw when the Supreme Court issued the Townsend decision, allowing punitive damages for the denial of maintenance andcure benefits, the paradigm in which we operate can change with the stroke of a pen. As a portion of the In re Oil Spill litigation is based upon this murky area of the law, it is ripe for consideration by both the Federal Fifth Circuit Court of Appeals and possibly the United States Supreme Court. Then, and only then, will we gain any degree of certainty as to whether this small class of offshore workers are entitled to seek punitive damages in vessel negligence cases brought under the LHWCA. Until then, it is probably a good idea to take a look at your insurance policies and sit down with your broker to determine if you are adequately cov- ered in the event that your company is found liable for punitive damages. Mr. DeMarcay is a partner in the law firm of Fowler Rodriguez Valdes- Fauli. Based in New Orleans, LA, Larry is admitted to practice in Louisiana, Texas and Florida. His areas of practice include Commercial Litigation, Admiralty, Personal Injury, Transportation, Real Estate, Construction and Corporate Law. Mr. DeMarcay received his B.A. from the University of Florida, M.B.A. from The George Washington University and his law degree from Loyola University. Prior to attending law school, Mr. DeMarcay served on the Washington based legislative staff of Congressman Jimmy Hayes. On the WEB: www.frvf-law.com As the DEEPWATER HORIZON incident has changed the way that our industry operates, it is fitting that it should shape this issue as well. The District Judge in the In re Oil Spill litigation recently ruled that punitive damages are available to maritime personal injury plaintiffs who are not seamen. MN#2 (18-31):MN 2011 Layouts 2/3/2012 11:31 AM Page 20