Atlantic Sounding Co., Inc. v. Townsend

496 F.3d 1282, 2007 A.M.C. 2009, 28 I.E.R. Cas. (BNA) 611, 2007 U.S. App. LEXIS 20078, 2007 WL 2385928
CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 23, 2007
Docket06-13204
StatusPublished
Cited by31 cases

This text of 496 F.3d 1282 (Atlantic Sounding Co., Inc. v. Townsend) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Sounding Co., Inc. v. Townsend, 496 F.3d 1282, 2007 A.M.C. 2009, 28 I.E.R. Cas. (BNA) 611, 2007 U.S. App. LEXIS 20078, 2007 WL 2385928 (11th Cir. 2007).

Opinions

EDMONDSON, Chief Judge:

In this interlocutory appeal, Plaintiffs-Appellants Atlantic Sounding Co., Inc., and Weeks Marine, Inc. (“Plaintiffs”) appeal the district court’s denial of Plaintiffs’ motion to strike Defendant-Appellee Edgar L. Townsend’s (“Defendant”) request for punitive damages. The district court concluded that it was bound by our prior panel decision in Hines v. J.A. LaPorte, Inc., 820 F.2d 1187 (11th Cir.1987), which permits a seaman to recover punitive damages when an employer arbitrarily and willfully refuses to pay maintenance and cure. Plaintiffs contend that Hines was abrogated by Miles v. Apex Marine Corp., 498 U.S. 19, 111 S.Ct. 317, 112 L.Ed.2d 275 (1990), in which the Supreme Court concluded that recovery for non-pecuniary loss in the wrongful death of a seaman was not available under general maritime law. We conclude that our prior decision in Hines remains binding law in this Circuit; therefore, we affirm.

On 5 July 2005, Defendant, a seaman and crew member of the Motor Tug Thomas, allegedly slipped and landed shoulder first on the steel deck of the vessel, injuring his shoulder and clavicle. According to Defendant, Plaintiffs advised him that they would not provide him with maintenance and cure, which covers medical care, a living allowance, and wages for seamen who become ill or are injured while serving aboard a vessel.1 Plaintiffs then filed this [1284]*1284suit for declaratory relief on the question of their obligations in this matter.

Two days later, Defendant filed suit against Plaintiffs pursuant to the Jones Act, 46 U.S.C. § 688, and general maritime law, alleging negligence, unseaworthiness, arbitrary and willful failure to pay maintenance and cure, and wrongful termination. He then filed the same claims as counterclaims to the declaratory judgment action and sought punitive damages on his maintenance and cure claim. The district court later consolidated the two actions.

Plaintiffs moved to strike or to dismiss Defendant’s request for punitive damages. Plaintiffs contended that, under Miles, neither the Jones Act nor general maritime law provides a cause of action against an employer for non-pecuniary damages. The district court denied Plaintiffs’ motion, concluding that it was bound by our rule in Hines. The district court later denied Plaintiffs’ motion for reconsideration of the issue, but certified the question for review on interlocutory appeal.

Whether punitive damages may be recovered in maintenance and cure actions is a question of law that we review de novo. See Tucker v. Fearn, 333 F.3d 1216, 1218 n. 2 (11th Cir.2003). The central question here is whether we may depart from our prior ruling in Hines, based on the Supreme Court’s intervening decision in Miles; we conclude that we may not.

Under our prior panel precedent rule, a later panel may depart from an earlier panel’s decision only when the intervening Supreme Court decision is “clearly on point.” Garrett v. Univ. of Ala. at Birmingham Bd. of Trustees, 344 F.3d 1288, 1290-92 (11th Cir.2003) (concluding that an intervening Supreme Court decision did not “implicitly overrule” a pri- or circuit decision because the cases dealt with different issues and were not “clearly inconsistent”). The Supreme Court reminds us that “[tjhere is, of course, an important difference between the holding in a case and the reasoning that supports that holding.” Crawford-El v. Britton, 523 U.S. 574, 118 S.Ct. 1584, 1590, 140 L.Ed.2d 759 (1998). So, that the reasoning of an intervening high court decision is at odds with that of our prior decision is no basis for a panel to depart from our prior decision. As we have stated, “[ojbedience to a Supreme Court decision is one thing, extrapolating from its implications a holding on an issue that was not before that Court in order to upend settled circuit law is another thing.” Main Drug, Inc. v. Aetna U.S. Healthcare, Inc., 475 F.3d 1228, 1230 (11th Cir.2007) (concluding that the Supreme Court’s determination that the time requirement in Fed.R.Crim.P. 33 was not jurisdictional did not “relieve[ ] us from the obligation to follow our prior panel decisions holding that the requirements of Appellate Rule 5 are jurisdictional”); see also Smith v. GTE Corp., 236 F.3d 1292, 1303 (11th Cir.2001) (“[W]e categorically reject any exception to the prior panel precedent rule based upon a perceived defect in the prior panel’s reasoning or analysis as it relates to the law in existence at that time.”); Fla. League of Prof'l Lobbyists, Inc. v. Meggs, 87 F.3d 457, 462 (11th Cir.1996) (“[W]e are not at liberty to disregard binding case law that is so closely on point and has been only weakened, rather than directly overruled, by the Supreme Court.”).

In Hines, a panel of this Court determined that, in an action for maintenance and cure, “both reasonable attorney’s fees and punitive damages may be legally awarded in a proper case”—that is, upon a showing of a shipowner’s willful and arbitrary refusal to pay maintenance and cure. Hines, 820 F.2d at 1189. In [1285]*1285reaching this conclusion, we relied mainly on four cases: Vaughan v. Atkinson, 369 U.S. 527, 82 S.Ct. 997, 8 L.Ed.2d 88 (1962); Complaint of Merry Shipping, Inc., 650 F.2d 622 (5th Cir. Unit B 1981); Holmes v. J. Ray McDermott & Co., 734 F.2d 1110 (5th Cir.1984); and Robinson v. Pocahontas, Inc., 477 F.2d 1048 (1st Cir.1973). We started with the proposition that Vaughan “permitted a seaman to recover reasonable counsel fees when the shipowner’s default in the duty to provide maintenance and cure was willful and persistent.” Hines, 820 F.2d at 1189.2 We then noted that we had previously concluded in Merry Shipping that “punitive damages [were] recoverable under general maritime law upon a showing of a shipowner’s willful and wanton misconduct in a death action.” Id. And we noted that the Fifth Circuit had extended the Merry Shipping rule to maintenance and cure actions in Holmes and that the First Circuit also allowed punitive damages in similar circumstances. Id. While stating that Vaughan was not dispositive because it considered only attorney’s fees, we decided to follow the Fifth Circuit in adopting the reasoning of Mem/ Shipping

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Bluebook (online)
496 F.3d 1282, 2007 A.M.C. 2009, 28 I.E.R. Cas. (BNA) 611, 2007 U.S. App. LEXIS 20078, 2007 WL 2385928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-sounding-co-inc-v-townsend-ca11-2007.