Burch v. United States

163 F. Supp. 476, 1958 U.S. Dist. LEXIS 2909
CourtDistrict Court, E.D. Virginia
DecidedJanuary 28, 1958
DocketNo. 7766
StatusPublished
Cited by5 cases

This text of 163 F. Supp. 476 (Burch v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burch v. United States, 163 F. Supp. 476, 1958 U.S. Dist. LEXIS 2909 (E.D. Va. 1958).

Opinion

WALTER E. HOFFMAN, District Judge.

By his amended libel in personam filed pursuant to the provisions of the Suits in Admiralty Act, 46 U.S.C.A. §§ 741-752, and 50 U.S.C.A.Appendix, § 1291(a), libellant seeks a decree for compensation from February 3, 1955, for the balance of his life, in accordance with the rate schedules established by the United States Employees’ Compensation Act, 5 U.S.C.A. §§ 751-791, 793, under the authority of Public Law 449, 78th Congress, 50 U.S.C.A.Appendix, § 1292(c). It is conceded that libellant is, and has been since February 3, 1946, totally and permanently disabled. He is, and has been for these years, confined to a wheel chair.

The background of this case involves no substantial issue of fact. On February 3, 1946, libellant was employed by the United States through the War Shipping Administration as a Junior. Assistant Purser at a salary of $195 per month on board the S. S. Mesh Knot, a merchant vessel owned and operated by the United States and husbanded by Lykes Bros. Steamship Company in its capacity as general agent. While engaged in the course of his duties, libellant boarded a motor launch to go ashore for the purpose of procuring clearance papers to enable the S. S. Mesh Knot to sail to Baltimore for the purpose of loading war materials to be transmitted to Germany. During the process of launching the lifeboat, it gave way, falling approximately 30 feet, striking the water, and causing the injuries to libellant.

Libellant secured the services of an able and experienced attorney, specializing in the field of admiralty, to represent his interests. After some negotiations, a settlement in the sum of $15,616.50 was agreed upon between the parties on October 31, 1946. The sum of $616.50 represented advances and wages paid to libellant during hospitalization; the actual settlement check issued by Lykes Bros. Company, Inc., being in the sum of $15,000. The United States carried a Marine P. and I. policy and all negotiations for settlement were with counsel for the underwriters. While the settle[479]*479ment check was issued by Lykes Bros., the United States admittedly paid the premium on said marine risk policy. There is some suggestion that the release is not valid because not executed in the presence of the Shipping Commissioner, but it is obvious that there is no merit to this contention.

It is urged that the aforesaid sum of $15,000 constitutes an “insurance benefit” which has now been exhausted under the provisions of Public Law 449, 50 U.S.C.A.Appendix, § 1292(c), reading in part as follows:

“The Administrator, War Shipping Administration, is also authorized to make payments, in accordance with rate schedules provided by the United States Employees’ Compensation Act, to a master, officer, or member of the crew of, or any persons transported on, a vessel owned by or chartered to the Maritime Commission or the War Shipping Administration or operated by, or for the account of, or at the direction or under the control of the Commission or the Administration, for permanent total or partial disability as long as such disability resulting from causes related to the war effort whether heretofore or hereafter arising exists; such payments to commence if and when insurance benefits provided by the War Shipping Administration for such person shall have been exhausted.” (Emphasis supplied.)

From the foregoing it will be noted that Congress has prescribed certain conditions precedent to the payment of supplemental benefits provided for therein. Such prerequisites as may be applicable to this case are:

(1) The disability must result from “causes related to the war effort”, and

(2) The supplemental payments are to commence “if and when” insurance benefits provided by W. S. A. for libellant herein have been exhausted. Such language presupposes a prior allowance of insurance for libellant’s benefit.

It was not until July 28, 1955, that libellant submitted his claim for such supplemental benefits under Public Law 449, although this law was in existence at the time of libellant’s injury on February 3, 1946.

With the advent of World War II, it soon became apparent to Congress that protection should be afforded to officers and members of crews employed by the United States through the War Shipping Administration. Accordingly, in 1943, Congress enacted what is now codified as 50 U.S.C.A.Appendix, § 1291, granting to such individuals all of the rights, benefits, exemptions, privileges, and liabilities, under law applicable to citizens of the United States employed as seamen on privately owned and operated American vessels. Claims for death, injuries, illness, maintenance and cure, loss of effects, detention or repatriation, or claims arising therefrom not covered by the foregoing, were permitted to be enforced under the Suits in Admiralty Act, 46 U.S.C.A. §§ 741-752, if said claims were administratively disallowed in whole or in part.

In this setting the Court is requested by libellant to find:

(1) That libellant’s original claim for injuries sustained on February 3, 1946, was cognizable under the Second Seamen’s War Risk Insurance Act as a “cause related to the war effort”, as contrasted with an ordinary “marine risk” for which an action was maintainable under 50 U.S.C.A.Appendix, § 1291(a).

(2) That the $15,000 paid to libellant on October 31, 1946, constituted “insurance benefits” within the meaning of the Act, or

(3) That if the entire $15,000 is not construed to be “insurance benefits”, then $5,000 thereof should be interpreted as such, as this is the amount that libellant would have been entitled to receive as a lump sum benefit (8 F.R. 3455, 3458' at 12(a) (3)) under the provisions of the Second Seamen’s War Risk Insurance policy, and further that the $10,000 paid by the marine underwriters should be first exhausted, thereby making the ex[480]*480haustion date of the $5,000 occur on or about February 3, 1955, and within two years prior to the institution of this suit, and

(4) That libellant could not file a claim until after the exhaustion of the entire $15,000, as the allowance of such a claim would be tantamount to permitting a double recovery which was expressly prohibited in Petition of Panama Transport Co., D.C., 102 F.Supp. 721, and

(5) That the time for instituting an action under the Suits in Admiralty Act did not commence to run until libellant’s administrative claim filed on July 28, 1955, was disallowed in February, 1956.

If there is any principle of law essentially well settled, it is that an action under the Suits in Admiralty Act, 46 U.S.C.A. § 745, may be brought only within two years after the cause of action arises. This is not a statute of limitations which may be tolled, but constitutes a restriction upon the basic jurisdiction conferred upon the court to entertain an action against the United States. Williams v. United States, 4 Cir., 228 F.2d 129, certiorari denied 351 U.S. 986, 76 S.Ct. 1054, 100 L.Ed. 1499, rehearing denied 352 U.S. 860, 77 S.Ct. 26, 1 L.Ed. 2d 71; Engel v. Davenport, 271 U.S. 33, 46 S.Ct. 410, 70 L.Ed. 813. Furthermore, the two-year period runs from the date of injury rather than from the administrative disallowance of the claim. McMahon v. United States, 342 U.S. 25, 72 S.Ct.

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163 F. Supp. 476, 1958 U.S. Dist. LEXIS 2909, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burch-v-united-states-vaed-1958.