Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co.

513 U.S. 527, 115 S. Ct. 1043, 130 L. Ed. 2d 1024, 1995 U.S. LEXIS 1622
CourtSupreme Court of the United States
DecidedFebruary 22, 1995
Docket93-762
StatusPublished
Cited by726 cases

This text of 513 U.S. 527 (Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co., 513 U.S. 527, 115 S. Ct. 1043, 130 L. Ed. 2d 1024, 1995 U.S. LEXIS 1622 (1995).

Opinions

Justice Souter

delivered the opinion of the Court.

On April 13, 1992, water from the Chicago River poured into a freight tunnel running under the river and thence into the basements of buildings in the downtown Chicago Loop. Allegedly, the flooding resulted from events several months earlier, when respondent Great Lakes Dredge and Dock Company had used a crane, sitting on a barge in the river next to a bridge, to drive piles into the riverbed above the tunnel. The issue before us is whether a court of the United States has admiralty jurisdiction to determine and limit the extent of Great Lakes’s tort liability. We hold this suit to be within federal admiralty jurisdiction.

[530]*530I

The complaint, together with affidavits subject to no objection, alleges the following facts. In 1990, Great Lakes bid on a contract with petitioner city of Chicago to replace wooden pilings clustered around the piers of several bridges spanning the Chicago River, a navigable waterway within the meaning of The Daniel Ball, 10 Wall. 557, 563 (1871). See Escanaba Co. v. Chicago, 107 U. S. 678, 683 (1883). The pilings (called dolphins) keep ships from bumping into the piers and so protect both. After winning the contract, Great Lakes carried out the work with two barges towed by a tug. One barge carried pilings; the other carried a crane that pulled out old pilings and helped drive in new ones.

In August and September 1991, Great Lakes replaced the pilings around the piers projecting into the river and supporting the Kinzie Street Bridge. After towing the crane-carrying barge into position near one of the piers, Great Lakes’s employees secured the barge to the riverbed with spuds, or long metal legs that project down from the barge and anchor it. The workers then used the crane on the barge to pull up old pilings, stow them on the other barge, and drive new pilings into the riverbed around the piers. About seven months later, an eddy formed in the river near the bridge as the collapsing walls or ceiling of a freight tunnel running under the river opened the tunnel to river water, which flowed through to flood buildings in the Loop.

After the flood, many of the victims brought actions in state court against Great Lakes and the city of Chicago, claiming that in the course of replacing the pilings Great Lakes had negligently weakened the tunnel structure, which Chicago (its owner) had not properly maintained. Great Lakes then brought this lawsuit in the United States District Court, invoking federal admiralty jurisdiction. Count I of the complaint seeks the protection of the Limitation of Vessel Owner’s Liability Act (Limitation Act), 46 U. S. C. App. § 181 et seq., a statute that would, in effect, permit the admi[531]*531ralty court to decide whether Great Lakes committed a tort and, if so, to limit Great Lakes’s liability to the value of the vessels (the tug and two barges) involved if the tort was committed “without the privity or knowledge” of the vessels’ owner, 46 U. S. C. App. § 183(a). Counts II and III of Great Lakes’s complaint ask for indemnity and contribution from the city for any resulting loss to Great Lakes.

The city, joined by petitioner Jerome B. Grubart, Inc., one of the state-court plaintiffs, filed a motion to dismiss this suit for lack of admiralty jurisdiction. Fed. Rule Civ. Proc. 12(b)(1). The District Court granted the motion, the Seventh Circuit reversed, Great Lakes Dredge & Dock Co. v. Chicago, 3 F. 3d 225 (1993), and we granted certiorari, 510 U. S. 1108 (1994). We now affirm.

II

The parties do not dispute the Seventh Circuit’s conclusion that jurisdiction as to Counts II and III (indemnity and contribution) hinges on jurisdiction over the Count I claim. See 3 F. 3d, at 231, n. 9; see also 28 U. S. C. § 1367 (1988 ed., Supp. V) (supplemental jurisdiction); Fed. Rules Civ. Proc. 14(a) and (c) (impleader of third parties). Thus, the issue is simply whether or not a federal admiralty court has jurisdiction over claims that Great Lakes’s faulty replacement work caused the flood damage.

A

A federal court’s authority to hear cases in admiralty flows initially from the Constitution, which “extend[s]” federal judicial power “to all Cases of admiralty and maritime Jurisdiction.” U. S. Const., Art. Ill, § 2. Congress has embodied that power in a statute giving federal district courts “original jurisdiction . . . of. . . [a]ny civil case of admiralty or maritime jurisdiction ... .” 28 U. S. C. § 1333(1).

The traditional test for admiralty tort jurisdiction asked only whether the tort occurred on navigable waters. If it did, admiralty jurisdiction followed; if it did not, admiralty [532]*532jurisdiction did not exist. See, e. g., Thomas v. Lane, 23 F. Cas. 957, 960 (No. 13902) (CC Me. 1813) (Story, J., on Circuit). This ostensibly simple locality test was complicated by the rule that the injury had to be “wholly” sustained on navigable waters for the tort to be within admiralty. The Plymouth, 3 Wall. 20, 34 (1866) (no jurisdiction over tort action brought by the owner of warehouse destroyed in a fire that started on board a ship docked nearby). Thus, admiralty courts lacked jurisdiction over, say, a claim following a ship’s collision with a pier insofar as it injured the pier, for admiralty law treated the pier as an extension of the land. Martin v. West, 222 U. S. 191, 197 (1911); Cleveland Terminal & Valley R. Co. v. Cleveland S. S. Co., 208 U. S. 316, 319 (1908).

This latter rule was changed in 1948, however, when Congress enacted the Extension of Admiralty Jurisdiction Act, 62 Stat. 496. The Act provided that

“[t]he admiralty and maritime jurisdiction of the United States shall extend to and include all cases of damage or injury, to person or property, caused by a vessel on navigable water, notwithstanding that such damage or injury be done or consummated on land.” 46 U. S. C. App. §740.

The purpose of the Act was to end concern over the sometimes confusing line between land and water, by investing admiralty with jurisdiction over “all cases” where the injury was caused by a ship or other vessel on navigable water, even if such injury occurred on land. See, e. g., Gutierrez v. Waterman S. S. Corp., 373 U. S. 206, 209-210 (1963); Executive Jet Aviation, Inc. v. Cleveland, 409 U. S. 249, 260 (1972).

After this congressional modification to gather the odd case into admiralty, the jurisdictional rule was qualified again in three decisions of this Court aimed at keeping a different class of odd cases out. In the first case, Executive Jet, supra, tort claims arose out of the wreck of an airplane that collided with a flock of birds just after takeoff on a do[533]

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Bluebook (online)
513 U.S. 527, 115 S. Ct. 1043, 130 L. Ed. 2d 1024, 1995 U.S. LEXIS 1622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jerome-b-grubart-inc-v-great-lakes-dredge-dock-co-scotus-1995.