CEH, Inc. v. FV "Seafarer" (ON 675048)

153 F.R.D. 491, 1994 U.S. Dist. LEXIS 3082, 1994 WL 76513
CourtDistrict Court, D. Rhode Island
DecidedMarch 10, 1994
DocketC.A. No. 92-0389L
StatusPublished
Cited by23 cases

This text of 153 F.R.D. 491 (CEH, Inc. v. FV "Seafarer" (ON 675048)) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CEH, Inc. v. FV "Seafarer" (ON 675048), 153 F.R.D. 491, 1994 U.S. Dist. LEXIS 3082, 1994 WL 76513 (D.R.I. 1994).

Opinion

MEMORANDUM AND ORDER

LAGUEUX, Chief Judge.

This matter is now before the Court on defendants’ appeal from the Memorandum and Order of United States Magistrate Judge Robert W. Lovegreen granting plaintiffs’ Motion to Compel response to their interrogatories. In his Memorandum and Order dated May 13, 1993, Magistrate Judge Lovegreen held that plaintiffs have a claim under general maritime law for punitive damages based upon allegations of willful, reckless and malicious misconduct of the individual defendants, and that plaintiffs need not establish a prima facie claim for punitive damages prior to discovering information regarding defendants’ financial status. For the reasons stated below, the Order of the Magistrate Judge is affirmed. '

BACKGROUND

During the period May 23 through June 14, 1992, plaintiffs owned lobster pots, trawls and associated fishing gear which was located in the Atlantic Ocean and allegedly properly marked. Defendant Doyle was the owner of defendant F/V “Seafarer” which was captained by defendant Niles and/or defendant [493]*493Smith. During the relevant time period, defendants are alleged to have conducted dragging operations in the same location as plaintiffs’ equipment, thereby damaging and/or destroying the equipment. Plaintiffs seek compensatory damages for the value of the equipment and for loss of income. In addition, plaintiffs seek punitive damages from the individual defendants, contending that the alleged damage to their gear resulted from the “intentional, willful, malicious and grossly reckless action” of the defendants.

Plaintiffs bring this action based on admiralty and maritime jurisdiction and pursuant to 28 U.S.C. § 1333. There is no statutory or unseaworthiness claim.

Defendants argue that they should not be required to answer interrogatories seeking discovery of their assets, net worth and general financial status for two reasons. First, defendants contend that plaintiffs cannot recover punitive damages under general maritime law, relying on Miles v. Apex Marine Corp., 498 U.S. 19, 111 S.Ct. 317, 112 L.Ed.2d 275 (1990). Second, defendants contend that their financial status cannot be discovered without a prima facie showing by plaintiffs of facts sufficient to support a punitive damages claim.

DISCUSSION

I. Availability of Punitive Damages Under General Maritime Law

Defendants appeal the holding of Magistrate Judge Lovegreen that punitive damages are available under general maritime law in the circumstances of this case since there is no personal injury claim or claim of unseaworthiness. Plaintiffs’ general maritime law theory is that defendants willfully and maliciously damaged their property.

The question on this appeal of the Magistrate Judge’s Order is the effect of the Supreme Court’s decision in Miles v. Apex Marine Corp., 498 U.S. 19, 111 S.Ct. 317, 112 L.Ed.2d 275 (1990), on the recoverability of punitive damages under general maritime law. Plaintiffs argue that Miles did not decide that punitive damages are not recoverable under any circumstances in a maritime claim and, thus, should not be extended to bar such awards where the plaintiffs have not asserted any statutory claim. Defendants’ contrary reading is that Miles has limited the remedies available under all general maritime law theories to those which the Jones Act, 46 U.S.C.App. § 688, allows.

Punitive damages have long been awarded under general maritime law against defendants who engage in “lawless misconduct” that amounts to “gross and wanton outrage.” The Amiable Nancy, 16 U.S. (3 Wheat.) 546, 558, 4 L.Ed. 456 (1818). The District of Rhode Island, relying in part on the authority of The Amiable Nancy, long ago recognized the concept of punitive damages in admiralty for willful and malicious actions. The Seven Brothers, 170 F. 126 (D.R.I.1909). Prior to Miles, the First Circuit allowed punitive damages in an action under general maritime law for willful and arbitrary refusal to pay maintenance and cure.1 Robinson v. Pocahontas, Inc., 477 F.2d 1048 (1st Cir. 1973). The Fifth Circuit followed this line of authority in Holmes v. J. Ray McDermott & Co., 734 F.2d 1110, 1118 (5th Cir.1984). See also Morales v. Garijak, Inc., 829 F.2d 1355, 1358 (5th Cir.1987). Additionally, in In re Merry Shipping, Inc., 650 F.2d 622, 625-26 (5th Cir.1981), the Fifth Circuit held that, even if punitive damages are barred under the Jones Act, they are recoverable under the general maritime law of unseaworthiness if the shipowner’s breach of duty reveals the requisite bad state of mind.

In Miles, the Supreme Court addressed whether a deceased seaman’s surviving, non-dependant parent could recover loss of society damages in a wrongful death action brought under the Jones Act and general maritime law. In considering the remedies available for the wrongful death of a seaman, the Miles Court noted that in the Death on the High Seas Act (“DOHSA”), 46 U.S.C.App. §§ 761-767, Congress specifically limited the damages recoverable in a wrongful death case arising on the high seas to the “ 'pecuniary loss sustained by the persons for whose benefit the suit is brought.’ ” • Miles, [494]*494498 U.S. at 31, 111 S.Ct. at 325 (quoting 46 U.S.C.App. § 762) (emphasis deleted). Further, Miles concluded that while the Jones Act, unlike DOHSA, does not on its face limit the scope of recoverable damages, Congress similarly restricted the relief available in Jones Act wrongful death cases to pecuniary damages by incorporating into the- Act the substantive recovery provisions of the Federal Employer’s Liability Act (“FELA”), 45 U.S.C. § 51, including its damages limitation. Miles, 498 U.S. at 32, 111 S.Ct. at 325. While FELA ambiguously stated that employers are liable in “damages” for the injury or death of one protected under the Act, 45 U.S.C. § 51, FELA had been consistently interpreted as providing recovery only for pecuniary loss. Miles, 498 U.S. at 32, 111 S.Ct. at 325 (citing Michigan Cent. R.R. Co. v. Vreeland, 227 U.S. 59, 69-71, 33 S.Ct. 192, 195-96, 57 L.Ed. 417 (1913)). The Miles Court concluded that since the “Vreeland gloss on FELA” was firmly rooted when Congress enacted the Jones Act, and since Congress incorporated FELA unaltered into the Jones Act, “Congress must have intended to incorporate the pecuniary limitation on damages as well.” Miles, 498 U.S. at 32, 111 S.Ct. at 325.

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Bluebook (online)
153 F.R.D. 491, 1994 U.S. Dist. LEXIS 3082, 1994 WL 76513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ceh-inc-v-fv-seafarer-on-675048-rid-1994.