Great Lakes Dredge & Dock Co. v. Lynch

173 F.2d 281, 1949 A.M.C. 986, 1949 U.S. App. LEXIS 3741
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 21, 1949
DocketNo. 10789
StatusPublished
Cited by11 cases

This text of 173 F.2d 281 (Great Lakes Dredge & Dock Co. v. Lynch) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great Lakes Dredge & Dock Co. v. Lynch, 173 F.2d 281, 1949 A.M.C. 986, 1949 U.S. App. LEXIS 3741 (6th Cir. 1949).

Opinion

MARTIN, Circuit Judge.

Martin T. Lynch instituted an action under the Jones Act, Title 46 U.S.C.A., § 688, against the Great Lakes Dredge & Dock Company in the Court of Common Pleas of Cuyahoga County, Ohio. He sought recovery of $100,000 damages for personal injuries, embracing amputation of his left leg above the knee and alleged permanent impairment of his right knee. At the time of his injury, Lynch was in the employ of the defendant as a fireman and linesman on board the tug “James A. Dubbs”, a vessel owned and operated by the defendant and then afloat on the Cuyahoga River. In his petition, Lynch charged that his injuries were solely, directly and proximately caused by the negligence of the defendant, its agents and servants.

In its answer filed in the state court action, the Great Lakes Dredge & Dock Company denied the plaintiff’s allegations of negligence, and averred that his injuries were caused solely by his own negligence. In the alternative, he was charged with contributory negligence. The answer asserted that the accident was occasioned without the privity or knowledge of the defendant, and that the damages claimed greatly exceed the value of its interest in the tug and the freight pending. The benefit of the limited liability statutes of the United States was invoked, with the claimed consequence that Lynch would not be entitled to recover an amount in excess of defendant’s interest in the tug, upon the conclusion of the voyage during which the accident occurred, and any freight then pending.

After it had answered in the court of common pleas, the Great Lakes Dredge & [282]*282Dock Company filed on January 22, 1948, in the United States District Court for Northern Ohio', a petition for exoneration from and limitation of liability, seeking therein an injunction restraining further prosecution by Lynch of the state court action brought against it. On the same date, the petitioner filed an appropriate affidavit fixing the value of the tug at $6,500, and an ad interim stipulation of a surety company agreeing to respond in that amount, with interest, to any final decree rendered against the Great Lakes Dredge & Dock Company.

In accordance with customary practice, the district judge forthwith entered an order appointing a commissioner to receive proof of claims, directing the issuance and publication of a monition, and staying and restraining all suits, actions or proceedings against the Dredge and Dock Company, and more especially the pending action brought by Lynch against it in the state court. The petition, order and monition were duly served upon the proctor for the respondent Lynch, who, on February 27, 1948, filed a motion to dismiss the petition for exoneration; or, in the alternative, either to dissolve the restraining order, or to stay .and suspend the application of the stay order and monition, pending final judgment in the action instituted in the Court of Common Pleas of Cuyahoga County. Three weeks later, Lynch filed an answer, but directed attention therein to his pending motion.

On July 26, 1948, the United States District Court ordered that the injunction in its order of January 22, 1948, be modified so as to permit the prosecution by Lynch in the court of common pleas of his pending action against the Great Lakes Dredge & Dock Company. From that order, this appeal was taken by the Great Lakes Dredge & Dock Company.

The appellant seeks to make decision here turn upon the answer to the question, thus put: “Can a restraining order of an Admiralty Court in a Limitation of Liability Proceeding pending therein be modified by motion of a claimant in a one-claim case, thereby allowing the right to limitation of liability to be determined in a state court, when in both the admiralty proceedings and the state court proceedings such claimant is contesting the vessel owner’s right to limitation of liability and also the limitation value of the ship involved?” If that were the real issue presented on this appeal, appellant would prevail, for the answer would plainly be “No.”. See, for example, Larsen v. Northland Transportation Co., 292 U.S. 20, 54 S.Ct. 584, 78 L.Ed. 1096.

We think, however, the appellee has made it clear that he admits that the admiralty court has exclusive jurisdiction in respect to limited liability and, in the instant case, has retained it. Through his proctors, he expressly agrees to litigate in the admiralty court the issue of limited liability should he obtain a favorable judgment in the common pleas court of Ohio, but insists that he has the right to proceed under the Jones Act with his state court action, grounded on the negligence of appellant.

He seeks to obtain a jury verdict and a judgment thereon in the state court; and, should he recover an amount in excess of $6,500, he is willing to have the issue of whether the judgment must be remitted to the value of the tug and pending freight determined by the United States District Court in the exoneration and limited liability proceeding instituted therein by appellant after the appellee had brought his action under the Jones Act in the Court of Common Pleas of Ohio.

While his motion for stay of the restraining order against the state court action was pending and before the district court had ruled thereon, his proctor stated in a letter of April 22, 1948, to the assistant chief clerk of the United States District Court, for intended transmission to the district judge, that Lynch was willing to file a statement with the district court that he “waives any claim of res judicata relative to the issue of limited liability and based on any judgment he may obtain in the State Court Action.” In this letter, it is made obvious that appellee chooses to follow the procedure approved by the Second Circuit Court of Appeals in Petition of Red Star Barge Line, 2 Cir., 160 F.2d 436. The letter states further: “If the District Court sees fit to grant a stay of the restraining order for the purpose of the Common Pleas [283]*283Court trial, it would then be in order for the defendant to file an amended answer, omitting the defense of limitation, in order that the record there will be free from any such issue, its legal rights in that respect being fully protected in the District Court.”

In the state court pleadings, the defendant, and not the plaintiff Lynch, brought in the limited liability issue. The petition of the plaintiff therein did not challenge the exclusive jurisdiction of the United States District Court to determine that issue. Nor did the petition of the plaintiff in the state court make mention of “unseaworthiness” of the tug, or that the defendant company had “privity or knowledge” of the negligence which caused his injuries. The cause of action set forth by the plaintiff was based entirely upon negligence. This brought the case within the direct scope of the Jones Act.

We consider the opinion of the Second Circuit in Petition of Red Star Barge Line, 2 Cir., 160 F.2d 436, 438, supra, directly in point and are in accord with its reasoning.

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173 F.2d 281, 1949 A.M.C. 986, 1949 U.S. App. LEXIS 3741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-lakes-dredge-dock-co-v-lynch-ca6-1949.