Fanoli v. Sea-Land Services, Inc.

598 A.2d 911, 251 N.J. Super. 443
CourtNew Jersey Superior Court Appellate Division
DecidedOctober 30, 1991
StatusPublished
Cited by5 cases

This text of 598 A.2d 911 (Fanoli v. Sea-Land Services, Inc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fanoli v. Sea-Land Services, Inc., 598 A.2d 911, 251 N.J. Super. 443 (N.J. Ct. App. 1991).

Opinion

251 N.J. Super. 443 (1991)
598 A.2d 911

JOHN FANOLI AND MOLLI FANOLI, HIS WIFE, PLAINTIFFS-RESPONDENTS, CROSS-APPELLANTS,
v.
SEA-LAND SERVICES, INC., DEFENDANT-APPELLANT, CROSS-RESPONDENT.

Superior Court of New Jersey, Appellate Division.

Argued October 15, 1991.
Decided October 30, 1991.

*444 Before Judges BILDER, STERN and KEEFE.

Joseph T. Stearns argued the cause for appellant, cross-respondent (Kenny & Stearns, attorneys; Joseph T. Stearns, of counsel and on the brief).

Richard M. Winograd argued the cause for respondents, cross-appellants (Joseph A. Ginarte, attorney; Richard M. Winograd, of counsel and on the brief).

The opinion of the court was delivered by BILDER, J.A.D.

*445 This is a personal injury case arising under the Longshore and Harborworkers' Compensation Act, 33 U.S.C.A. 901 et seq. Defendant Sea-Land Services, Inc. appeals from a judgment entered in favor of plaintiffs following a jury verdict which found defendant negligent, the injured plaintiff, John Fanoli (hereinafter "plaintiff"), free of negligence and awarded damages of $900,000 to John and $350,000 to his wife, plaintiff Molli Fanoli. The judgment included prejudgment interest of $176,655.26. Plaintiffs cross-appeal the reduction of Molli's award to $50,000.

Sea-Land operates sea-going vessels from a terminal facility at Port Elizabeth which it also owns and operates. To furnish relief to members of the crews while ships are at Port Elizabeth, Sea-Land maintains shore gangs which relieve shore leave crew members and carry out such maintenance and other duties as they are directed to do on board ship. Plaintiff was employed as a member of a shore gang.

On the morning of June 27, 1986 plaintiff was injured while attempting to board the S.S. Chesapeake Trader, a barge owned by Sea-Land. Access to the barge was provided by a straight aluminum ladder which had been laid against the side of the barge from the dock below. The accident occurred when the ladder slipped to the side from its position at the top edge of the barge causing plaintiff and the ladder to fall to the pilings below. Plaintiff collected compensation from Sea-Land as his employer pursuant to § 904 of the Act and also instituted the instant negligence action against Sea-Land as owner of the barge pursuant to § 905(b) of the Act. Plaintiff does not deny defendant is entitled to a credit for the compensation payments pursuant to § 933 of the Act. The judgment appealed from gives such a credit.

In its brief, defendant described the appeal as involving "exclusively" issues of law and statutory interpretation; alleges the issues are controlled exclusively by federal law, more *446 particularly the Act; and concedes that plaintiff was a harbor worker within the meaning of the Act. Prior to the trial, before the summations, defendant abandoned a contention that plaintiffs' claim was barred by the negligence of fellow servants.

On appeal, defendant contends the Act bars this negligence suit against plaintiff's employer; that there is no right to prejudgment interest with respect to this federally created cause; that there can be no recovery for loss of society with respect to this federally created cause; and that plaintiffs had no right to a jury trial.

I.

An understanding of the Act is a necessary foundation to an understanding of defendant's contentions.

As its title shows, the Act is a workers' compensation act. It substitutes no-fault compensation, § 904,[1] for a right to sue, § 905(a).[2] On appeal, defendant contends the exclusivity provisions *447 of § 905(a), which make compensation an employee's exclusive remedy against his employer, bars plaintiff's claim. Plaintiff, on his part, contends the claim is authorized by § 905(b) which permits an employee to sue a vessel owner (here, the owner of the barge) for negligence.

On this score both parties seem to agree that the real legal issue is whether § 905(b) permits an employee to sue the vessel's owner when that owner is also the employee's employer.

§ 905(b) in relevant part provides:

In the event of injury to a person covered under this chapter caused by the negligence of a vessel, then such person ... may bring an action against such vessel as a third party in accordance with the provisions of section 933 of this title, and the employer shall not be liable to the vessel for such damages directly or indirectly and any agreements or warranties to the contrary shall be void. If such person was employed by the vessel to provide stevedoring services, no such action shall be permitted if the injury was caused by the negligence of persons engaged in providing stevedoring services to the vessel.

Section 905(b) did not exist prior to 1972. In that year, in response to what the House Committee on Education and Labor described as a long overdue need for change, House Committee Report to the 1972 Amendments, H.R.Rep. No. 1441, 92d Cong, 2d Sess., reprinted in [1972] U.S.Code Cong. & Admin.News, p. 4698 et seq. at 4698, the Act was amended so as to increase the benefits under the Act and eliminate the absolute liability which attached to shipowners under the then existing doctrine of seaworthiness. We resist the temptation to recite the history of the Act, Seas Shipping Co. v. Sieracki, 328 U.S. 85, 66 S.Ct. 872, 90 L.Ed. 1099 (1946), Ryan Stevedoring Co., Inc. v. Pan-Atlantic *448 S.S. Corp., 350 U.S. 124, 76 S.Ct. 232, 100 L.Ed. 133 (1956), and the 1972 amendment, all of which has been thoroughly set forth at length in the cases to be cited, and limit ourselves to noting that section 905(b) substituted a negligence concept for the strict liability concept of seaworthiness with respect to claims against vessels and insulated the vessels against claims by longshoremen where the injury was caused by another longshoreman, i.e. the vessel is no longer liable for injuries which are really the fault of the stevedore. H.R.Rep. No. 1441, supra.[3]

Prior to the 1972 amendment as a result of the Supreme Court decisions in Sieracki (vessels liable as third parties for injuries suffered by longshoremen as a result of unseaworthiness, a no-fault liability, even if the condition was created by the stevedore) and Ryan Stevedoring Co. (vessel liable under Sieracki doctrine could obtain indemnity from the stevedore), the exclusivity provision of Section 905(a) (then the entire section 905) was rendered largely nugatory because the stevedore found itself liable to its employee for compensation benefits under section 933 and again for admiralty seaworthiness action awards as a result of its indemnification liability to the vessel. And in 1963 in Reed v. The Yaka, 373 U.S. 410, 83 S.Ct. 1349, 10 L.Ed.2d 448 (1963) the Supreme Court held that such admiralty actions could be brought even when the employer and the vessel owner were the same, i.e. the stevedore owned the vessel.

As already noted the 1972 amendment clearly substituted negligence principles for the absolute liability of the unseaworthiness doctrine and abrogated the Sierecki doctrine. Relevant to this appeal is the question of whether it abrogated the *449 Reed rule.[4] Although presented as novel, we find that the U.S.

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598 A.2d 911, 251 N.J. Super. 443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fanoli-v-sea-land-services-inc-njsuperctappdiv-1991.