Guay v. American President Lines, Ltd.

184 P.2d 539, 81 Cal. App. 2d 495, 1947 Cal. App. LEXIS 1089
CourtCalifornia Court of Appeal
DecidedSeptember 16, 1947
DocketCiv. 13406
StatusPublished
Cited by20 cases

This text of 184 P.2d 539 (Guay v. American President Lines, Ltd.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guay v. American President Lines, Ltd., 184 P.2d 539, 81 Cal. App. 2d 495, 1947 Cal. App. LEXIS 1089 (Cal. Ct. App. 1947).

Opinion

PETERS, P. J.

Plaintiff, Harry W. Guay, brought this action against defendant, American President Lines, Ltd., to recover damages for personal injuries sustained as a result of the asserted negligence of defendant and its employees. The injuries occurred while plaintiff was employed as an able-bodied seaman on board the vessel “Sea Corporal,” a *500 merchant marine ship owned by the United States and operated by the defendant under contract as “General Agent” of the United States War Shipping Administration. The action was brought under the Jones Act (46 U.S.C.A. § 688), which statute grants to seamen the right to sue their employers in actions such as these. The cause proceeded to trial before a jury and a general verdict was rendered for plaintiff in the sum of $15,000. Prom the judgment entered on this verdict defendant appeals.

At the threshold of this appeal we are met with the contention that no cause of action here existed against this defendant because, so it is asserted, plaintiff was the employee of the United States War Shipping Administration and not the employee of defendant, and admittedly the employer-employee relationship must exist to warrant an action under the Jones Act. During the war the United States marshalled practically all of the vessels of our merchant marine for war service. Those vessels were acquired, owned, or requisitioned by the Government and operated by various companies under several different types of contracts, and the control over such vessels placed under the jurisdiction of the Administrator of the War Shipping Administration. In some cases the War Shipping Administration built and owned the vessels, while in other cases it requisitioned the vessels and operated them under various types of charter agreements. In the present case the United States and the defendant entered into an agreement designated as “Contract WSA-224,” wherein the defendant is designated as the “General Agent” of the United States to manage and conduct the business of vessels assigned to it by the United States. That contract provides, among other things, that the General Agent shall procure the master of the vessel, subject to the approval of the United States; that such master shall be an agent and employee of the United States, with full control in respect to the navigation and management of the vessel; that the General Agent shall procure the men needed to man the vessel through the customary channels used by commercial operators and on terms prevailing in the services in which the vessels are to be operated; that the officers and members of the crew shall be subject only to the orders of the master; that all persons shall be paid in the customary manner with funds provided by the United States. After providing for the compensation *501 of the General Agent and for the reimbursement of the General Agent for certain expenditures, the agreement provides: “To the extent not recovered from insurance, the United States shall also reimburse the General Agent... without limitation, [for] all disbursements for or on account of wages, . . . loss of personal effects, maintenance, cure, vacation allowances, damages or compensation for death or personal injury . .. required to be paid by law.”

The defendant argues that under such a contract Guay was not an employee of it, but was an employee of the United States, that it was a mere agent of the United States, and, as such, not liable under the Jones Act. This precise point has been decided adversely to the contentions of defendant by the United States Supreme Court in Hust v. Moore-McCormack Lines, 328 U.S. 707 [66 S.Ct. 1218, 90 L.Ed. 1534]. Inasmuch as we are here concerned with a federal statute the interpretation of that court is conclusive.

In the Hust case the plaintiff was injured while performing his duties as seaman aboard a Government-owned ship operated by the defendant under a contract identical to the one here involved. The action, as here, was brought under the Jones Act. The complaint, as. in the instant case, alleged that Hust was the employee of the agent and was injured through its negligence. The trial court found, for plaintiff. The Oregon Supreme Court (176 Ore. 662 [158 P.2d 275]) held, in accordance with defendant's arguments made on this appeal, that, as a matter of law, Hust was an employee of the United States and not an employee of the operating agent, and concluded that an injured seaman had no cause of action under the Jones Act against the operating agent. This holding was reversed by the United States Supreme Court in a four to three decision. The majority opinion was written by Mr. Justice Rutledge and concurred in by Justices Murphy, Douglas and Black. In addition to concurring in the main opinion, Mr. Justice Douglas, joined by Mr. Justice Black, wrote a special concurring opinion in which it was urged that the operating agent was not only the "employer ’ ’ of the seamen under the Jones Act, but was also the “owner pro hac vice” of the vessel. Mr. Justice Reed wrote a dissent in which Justices Frankfurter and Burton joined. The then Chief Justice had died before the arguments in the case were concluded. Mr. Justice Jackson did not participate.

*502 The majority opinion discusses at some length the history and rationale of the Jones Act, and points out how that statute was passed for the purpose of affording seamen adequate protection in situations where such protection was theretofore deemed inadequate. The court then stated (p. 719) : “Now it is argued that this favored position was altogether inverted when the government took over control of the entire merchant marine under its war powers in 1942. For it is maintained and the Oregon Supreme Court has held, in effect, that this transfer stripped seamen of many, if not all, of their protections, including the remedy under the Jones Act, for the duration of the war and six months. ’ ’

The court then discusses at some length the injustices, inconsistencies and complexities that would arise if the views of the Oregon court were adopted, and then stated (p. 722) : “We may assume that Congress could authorize so vast a disturbance to settled rights by clear and unequivocal command. It is not permissible to find one by implication.”

After some discussion of the Suits in Admiralty Act (46 U.S.C.A. § 741), under the terms of which seamen in the position of Hust are permitted to sue the United States under rules substantially different from those applicable in an action brought under the Jones Act, and after holding that the conferring'of that right was not intended to affect rights under the Jones Act, the court continued (p. 723):

“We are told, however, that the Jones Act applies by its specific terms only in the presence of the relation of employer to employee, to give the latter a remedy for the employer’s negligence; and, since the effect of the General Service Agreement was to make the seaman technically an employee of the United States, the necessary result was to remit him exclusively to the Suits in Admirality Act for remedy to enforce the substantive right given by the Jones Act.
“The premise is not controlling.

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Cite This Page — Counsel Stack

Bluebook (online)
184 P.2d 539, 81 Cal. App. 2d 495, 1947 Cal. App. LEXIS 1089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guay-v-american-president-lines-ltd-calctapp-1947.