United States admiralty law
Encyclopedia
United States admiralty law (or maritime law) is the body of admiralty law
in the United States
.
in admiralty matters to the federal courts
. The federal courts have exclusive jurisdiction
over most admiralty and maritime claims pursuant to . Under this statute, federal district courts are granted original jurisdiction over admiralty actions "saving to suitors," a right to file suit
for most of these actions in state court.
Despite the savings to suitors clause, certain actions are only permitted to be filed in admiralty in federal court. Those include all in rem
maritime actions. This includes suits seeking forfeiture
of ship
s to enforce maritime mortgages
and lien
s, petitions to limit a shipowner's liability
to the value of a ship after a major accident, and actions seeking to partition ownership
of a ship. However, the vast majority of maritime actions, such as suits for damage to cargo
, injuries to seamen, collisions between vessels
, wake
damage, and maritime pollution cases may be brought in either federal court or state court by virtue of the savings to suitors clause.
In federal courts in the United States, there is generally no right to a jury trial
in admiralty cases. However, Congress has created some limited rights of jury trial in seamen's personal injury actions brought under the Merchant Marine Act of 1920 (the Jones Act) where a jury trial is otherwise permitted. In state courts, the right to trial by jury is determined by the law of the state
where the case is brought. Consequently, admiralty cases brought in state courts can be tried before a jury.
, derived from Erie Railroad Co. v. Tompkins
, directs that federal courts hearing state actions must apply state law. The "reverse-Erie doctrine" directs that state courts hearing admiralty cases must apply federal admiralty law. This distinction is critical in some cases.
For instance, U.S. maritime law recognizes the concept of joint and several liability
among tort
feasors, while many states do not. Under joint and several liability, where two or more people create a single injury or loss, all are equally liable, even if they only contributed a small amount. A state court hearing an admiralty case would be required to apply the doctrine of joint and several liability even if state law does not contemplate the concept.
to file a limitation of liability proceeding. The Limitation Act provides that if an accident happens due to a circumstance which is beyond the "privity
and knowledge" of the ship's owners, the owners can limit their liability to the value of the ship after it sinks.
After the Titanic sank, the only portion of the ship remaining were the 14 lifeboats
, which had a collective value of about $3,000, and the "pending freight," bringing the total to about $91,000. The cost of a first-class, parlor suite ticket was over $4,350. The owners of the Titanic were successful in showing that the sinking occurred without their privity and knowledge, and therefore, the families of the deceased passengers, as well as the surviving passengers who lost their personal belongings, were entitled to split the $91,000 value of the remaining lifeboats and pending freight.
Another example was when Transocean filed in the U.S. District Court for the Southern District of Texas in 2010 to limit its liability to just its interest in the Deepwater Horizon
which it valued at $26,764,083. This was in the wake of billions of dollars liabilities resulting from the Deepwater Horizon oil spill
that followed the sinking.
The theory behind the Act was that a shipowner who properly equipped and crewed a ship shouldn't be liable for something that happens when the ship is out of his control. Modern ships are seldom out of the control of their shoreside owners, but the Act remains a viable protection to them.
The Limitation Act doesn't just apply to large ships. It can be used to insulate a motorboat owner from liability when he loans his boat to another who then has an accident. Even jet ski
owners have been able to successfully utilize the Limitation Act to insulate themselves from liability.
(COGSA), which is the U.S. enactment of the Hague Rules. One of its key features is that a shipowner is liable for cargo damaged from "hook to hook," meaning from loading to discharge, unless it is exonerated under one of 17 exceptions to liability, such as an "act of God
," the inherent nature of the goods, errors in navigation
, and management of the ship. A shipowner is generally entitled to limit its liability to $500 per package, unless the value of the contents is disclosed and marked on the container. The ability to treat an ocean shipping container
as a package has enabled shipowners to effectively limit their liability to $500 per container, even though the value of the cargo inside container can be over one thousand times that amount. This practice has resulted in substantial and continuing litigation in the United States. The statute of limitations
on cargo claims is one year.
. The doctrine of unseaworthiness makes a shipowner liable if a seaman is injured because the ship, or any appliance of the ship, is "unseaworthy," meaning defective in some way. The Jones Act allows a sailor, or one in privity to him, to sue the shipowner in tort for personal injury or wrongful death, with trial by jury. The Jones Act incorporates the Federal Employers Liability Act
(FELA), which governs injuries to railway workers, and is similar to the Coal Miners Act. A shipowner is liable to a seaman in the same way a railroad operator is to its employees who are injured due to the negligence of the employer. The statute of limitation is three years.
Not every worker injured onboard a vessel is a "seaman" entitled to the protections offered by the Jones Act, doctrine of unseaworthiness, and principle of maintenance and cure. To be considered a seaman, a worker must generally spend 30% or more of his working hours onboard either a specific vessel or a fleet of vessels under common ownership or control. With few exceptions, all non-seamen workers injured over navigable waters are covered instead by the Longshore and Harbor Workers' Compensation Act, , a separate form of workers' compensation.
Admiralty law
Admiralty law is a distinct body of law which governs maritime questions and offenses. It is a body of both domestic law governing maritime activities, and private international law governing the relationships between private entities which operate vessels on the oceans...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
Jurisdiction
Section 2 of Article III of the United States Constitution gives original jurisdictionOriginal jurisdiction
The original jurisdiction of a court is the power to hear a case for the first time, as opposed to appellate jurisdiction, when a court has the power to review a lower court's decision.-France:...
in admiralty matters to the federal courts
United States federal courts
The United States federal courts make up the judiciary branch of federal government of the United States organized under the United States Constitution and laws of the federal government.-Categories:...
. The federal courts have exclusive jurisdiction
Exclusive jurisdiction
In civil procedure, exclusive jurisdiction exists where one court has the power to adjudicate a case to the exclusion of all other courts. It is the opposite situation from concurrent jurisdiction, in which more than one court may take jurisdiction over the case.Exclusive jurisdiction is typically...
over most admiralty and maritime claims pursuant to . Under this statute, federal district courts are granted original jurisdiction over admiralty actions "saving to suitors," a right to file suit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
for most of these actions in state court.
Despite the savings to suitors clause, certain actions are only permitted to be filed in admiralty in federal court. Those include all in rem
In rem
In rem is Latin for "against a thing." In a lawsuit, an action in rem is directed towards a piece of property rather than against a person . The action disputes or seeks to transfer title to property. When title to real estate In rem is Latin for "against a thing." In a lawsuit, an action in rem...
maritime actions. This includes suits seeking forfeiture
Asset forfeiture
Asset forfeiture is confiscation, by the State, of assets which are either the alleged proceeds of crime or the alleged instrumentalities of crime, and more recently, alleged terrorism. Instrumentalities of crime are property that was allegedly used to facilitate crime, for example cars...
of ship
Ship
Since the end of the age of sail a ship has been any large buoyant marine vessel. Ships are generally distinguished from boats based on size and cargo or passenger capacity. Ships are used on lakes, seas, and rivers for a variety of activities, such as the transport of people or goods, fishing,...
s to enforce maritime mortgages
Chattel mortgage
Chattel mortgage, sometimes abbreviated CM, is the legal term for a type of loan contract used in some states with legal systems derived from English law....
and lien
Lien
In law, a lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation...
s, petitions to limit a shipowner's liability
Legal liability
Legal liability is the legal bound obligation to pay debts.* In law a person is said to be legally liable when they are financially and legally responsible for something. Legal liability concerns both civil law and criminal law. See Strict liability. Under English law, with the passing of the Theft...
to the value of a ship after a major accident, and actions seeking to partition ownership
Ownership
Ownership is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties. The concept of ownership has...
of a ship. However, the vast majority of maritime actions, such as suits for damage to cargo
Cargo
Cargo is goods or produce transported, generally for commercial gain, by ship, aircraft, train, van or truck. In modern times, containers are used in most intermodal long-haul cargo transport.-Marine:...
, injuries to seamen, collisions between vessels
Ship collision
Ship collision is the structural impact between two ships or one ship and a floating or still object such as an iceberg. Ship collisions are of particular importance in marine accidents...
, wake
Wake
A wake is the region of recirculating flow immediately behind a moving or stationary solid body, caused by the flow of surrounding fluid around the body.-Fluid dynamics:...
damage, and maritime pollution cases may be brought in either federal court or state court by virtue of the savings to suitors clause.
In federal courts in the United States, there is generally no right to a jury trial
Jury trial
A jury trial is a legal proceeding in which a jury either makes a decision or makes findings of fact which are then applied by a judge...
in admiralty cases. However, Congress has created some limited rights of jury trial in seamen's personal injury actions brought under the Merchant Marine Act of 1920 (the Jones Act) where a jury trial is otherwise permitted. In state courts, the right to trial by jury is determined by the law of the state
State law
In the United States, state law is the law of each separate U.S. state, as passed by the state legislature and adjudicated by state courts. It exists in parallel, and sometimes in conflict with, United States federal law. These disputes are often resolved by the federal courts.-See also:*List of U.S...
where the case is brought. Consequently, admiralty cases brought in state courts can be tried before a jury.
Applicable law
A state court hearing an admiralty or maritime case is required to apply the admiralty and maritime law, even if it conflicts with the law of the state, under a doctrine known as the "reverse-Erie doctrine." The Erie doctrineErie doctrine
In United States law, the Erie doctrine is a fundamental legal doctrine of civil procedure mandating that a federal court in diversity jurisdiction must apply state substantive law....
, derived from Erie Railroad Co. v. Tompkins
Erie Railroad Co. v. Tompkins
Erie Railroad Co. v. Tompkins, 304 U.S. 64 , was a decision by the Supreme Court of the United States in which the Court held that federal courts did not have the judicial power to create general federal common law when hearing state law claims under diversity jurisdiction...
, directs that federal courts hearing state actions must apply state law. The "reverse-Erie doctrine" directs that state courts hearing admiralty cases must apply federal admiralty law. This distinction is critical in some cases.
For instance, U.S. maritime law recognizes the concept of joint and several liability
Joint and several liability
Where two or more persons are liable in respect of the same liability, in most common law legal systems they may either be:* jointly liable, or* severally liable, or* jointly and severally liable.-Joint liability:...
among tort
Tort
A tort, in common law jurisdictions, is a wrong that involves a breach of a civil duty owed to someone else. It is differentiated from a crime, which involves a breach of a duty owed to society in general...
feasors, while many states do not. Under joint and several liability, where two or more people create a single injury or loss, all are equally liable, even if they only contributed a small amount. A state court hearing an admiralty case would be required to apply the doctrine of joint and several liability even if state law does not contemplate the concept.
Limitation of shipowner's liability
One of the unique aspects of maritime law is the ability of a shipowner to limit its liability to the value of a ship after a major accident. An example of the use of the Limitation Act is the sinking of the RMS Titanic in 1912. Even though the Titanic had never been to the United States, upon her sinking the owners rushed into the federal courts in New YorkNew York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
to file a limitation of liability proceeding. The Limitation Act provides that if an accident happens due to a circumstance which is beyond the "privity
Privity of contract
The doctrine of privity in the common law of contract provides that a contract cannot confer rights or impose obligations arising under it on any person or agent except the parties to it....
and knowledge" of the ship's owners, the owners can limit their liability to the value of the ship after it sinks.
After the Titanic sank, the only portion of the ship remaining were the 14 lifeboats
Lifeboat (shipboard)
A lifeboat is a small, rigid or inflatable watercraft carried for emergency evacuation in the event of a disaster aboard ship. In the military, a lifeboat may be referred to as a whaleboat, dinghy, or gig. The ship's tenders of cruise ships often double as lifeboats. Recreational sailors sometimes...
, which had a collective value of about $3,000, and the "pending freight," bringing the total to about $91,000. The cost of a first-class, parlor suite ticket was over $4,350. The owners of the Titanic were successful in showing that the sinking occurred without their privity and knowledge, and therefore, the families of the deceased passengers, as well as the surviving passengers who lost their personal belongings, were entitled to split the $91,000 value of the remaining lifeboats and pending freight.
Another example was when Transocean filed in the U.S. District Court for the Southern District of Texas in 2010 to limit its liability to just its interest in the Deepwater Horizon
Deepwater Horizon
Deepwater Horizon was an ultra-deepwater, dynamically positioned, semi-submersible offshore oil drilling rig owned by Transocean. Built in 2001 in South Korea by Hyundai Heavy Industries, the rig was commissioned by R&B Falcon, which later became part of Transocean, registered in Majuro, Marshall...
which it valued at $26,764,083. This was in the wake of billions of dollars liabilities resulting from the Deepwater Horizon oil spill
Deepwater Horizon oil spill
The Deepwater Horizon oil spill is an oil spill in the Gulf of Mexico which flowed unabated for three months in 2010, and continues to leak fresh oil. It is the largest accidental marine oil spill in the history of the petroleum industry...
that followed the sinking.
The theory behind the Act was that a shipowner who properly equipped and crewed a ship shouldn't be liable for something that happens when the ship is out of his control. Modern ships are seldom out of the control of their shoreside owners, but the Act remains a viable protection to them.
The Limitation Act doesn't just apply to large ships. It can be used to insulate a motorboat owner from liability when he loans his boat to another who then has an accident. Even jet ski
Jet ski
Jet Ski is the brand name of a personal watercraft manufactured by Kawasaki Heavy Industries. The name is sometimes mistakenly used by those unfamiliar with the personal watercraft industry to refer to any type of personal watercraft; however, the name is a valid trademark registered with the...
owners have been able to successfully utilize the Limitation Act to insulate themselves from liability.
Cargo claims
Claims for damage to cargo shipped in international commerce are governed by the Carriage of Goods by Sea ActCarriage of Goods by Sea Act
The Carriage of Goods by Sea Act is a United States statute governing the rights and responsibilities between shippers of cargo and ship-owners regarding ocean shipments to and from the United States. It is the U.S. enactment of the International Convention Regarding Bills of Lading, commonly...
(COGSA), which is the U.S. enactment of the Hague Rules. One of its key features is that a shipowner is liable for cargo damaged from "hook to hook," meaning from loading to discharge, unless it is exonerated under one of 17 exceptions to liability, such as an "act of God
Act of God
Act of God is a legal term for events outside of human control, such as sudden floods or other natural disasters, for which no one can be held responsible.- Contract law :...
," the inherent nature of the goods, errors in navigation
Navigation
Navigation is the process of monitoring and controlling the movement of a craft or vehicle from one place to another. It is also the term of art used for the specialized knowledge used by navigators to perform navigation tasks...
, and management of the ship. A shipowner is generally entitled to limit its liability to $500 per package, unless the value of the contents is disclosed and marked on the container. The ability to treat an ocean shipping container
Shipping container
A shipping container is a container with strength suitable to withstand shipment, storage, and handling. Shipping containers range from large reusable steel boxes used for intermodal shipments to the ubiquitous corrugated boxes...
as a package has enabled shipowners to effectively limit their liability to $500 per container, even though the value of the cargo inside container can be over one thousand times that amount. This practice has resulted in substantial and continuing litigation in the United States. The statute of limitations
Statute of limitations
A statute of limitations is an enactment in a common law legal system that sets the maximum time after an event that legal proceedings based on that event may be initiated...
on cargo claims is one year.
Personal injuries to seamen
Seamen injured aboard ship have three possible sources of compensation: the principle of maintenance and cure, the doctrine of unseaworthiness, and the Jones Act. The principle of maintenance and cure requires a shipowner to both pay for an injured seaman's medical treatment until maximum medical recovery (MMR) is obtained and provide basic living expenses until completion of the voyage, even if the seaman is no longer aboard ship. The seaman is entitled to maintenance and cure as of right, unless he was injured due to his own willful gross negligence. It is similar in some ways to workers' compensationWorkers' compensation
Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence...
. The doctrine of unseaworthiness makes a shipowner liable if a seaman is injured because the ship, or any appliance of the ship, is "unseaworthy," meaning defective in some way. The Jones Act allows a sailor, or one in privity to him, to sue the shipowner in tort for personal injury or wrongful death, with trial by jury. The Jones Act incorporates the Federal Employers Liability Act
Federal Employers Liability Act
The Federal Employers Liability Act , 45 U.S.C. § 51 et seq. , is a United States federal law that protects and compensates railroaders injured on the job.-Background:...
(FELA), which governs injuries to railway workers, and is similar to the Coal Miners Act. A shipowner is liable to a seaman in the same way a railroad operator is to its employees who are injured due to the negligence of the employer. The statute of limitation is three years.
Not every worker injured onboard a vessel is a "seaman" entitled to the protections offered by the Jones Act, doctrine of unseaworthiness, and principle of maintenance and cure. To be considered a seaman, a worker must generally spend 30% or more of his working hours onboard either a specific vessel or a fleet of vessels under common ownership or control. With few exceptions, all non-seamen workers injured over navigable waters are covered instead by the Longshore and Harbor Workers' Compensation Act, , a separate form of workers' compensation.
See also
- Dock (maritime)Dock (maritime)A dock is a human-made structure or group of structures involved in the handling of boats or ships, usually on or close to a shore.However, the exact meaning varies among different variants of the English language...
- General averageGeneral averageThe law of general average is a legal principle of maritime law according to which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency...
- PierPierA pier is a raised structure, including bridge and building supports and walkways, over water, typically supported by widely spread piles or pillars...
s - PiracyPiracyPiracy is an act of robbery or criminal violence at sea. The term can include acts committed on land, in the air, or in other major bodies of water or on a shore. It does not normally include crimes committed against persons traveling on the same vessel as the perpetrator...
- Prize (law)Prize (law)Prize is a term used in admiralty law to refer to equipment, vehicles, vessels, and cargo captured during armed conflict. The most common use of prize in this sense is the capture of an enemy ship and its cargo as a prize of war. In the past, it was common that the capturing force would be allotted...
- ShippingShippingShipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
- WharvesWharfA wharf or quay is a structure on the shore of a harbor where ships may dock to load and unload cargo or passengers.Such a structure includes one or more berths , and may also include piers, warehouses, or other facilities necessary for handling the ships.A wharf commonly comprises a fixed...