ALVIN B. RUBIN, Circuit Judge.
For the first time we consider the question: does a seaman whose at-will employment is terminated because he filed suit against his employer under the Jones Act, 46 U.S.C. § 688, have an action in admiralty for wrongful discharge? Concluding that an employer may not, with impunity, discharge a seaman in sheer retaliation for the seaman’s filing of a personal injury claim, we hold that the victim of this vengeance is entitled to maintain an action under the general maritime law to recover compensatory damages.
I.
Jerry Smith, a seaman employed by Atlas Off-Shore Boat Service, Inc., suffered an ankle injury while working aboard the M/V TROJAN, a vessel engaged in servicing offshore oil rigs. Smith was employed for two-week shifts followed by two weeks of leave time after which he would be called back to work by Atlas’s port captain. His injury occurred at the end of a two-week work shift. Six weeks later, although Smith was still suffering some symptoms, he asked his physician to declare him fit for duty so that he could return to work, and the physician did so.
Smith returned to work for Atlas on another vessel and worked a full two-week shift. During his subsequent leave, his attorney notified Atlas that Smith intended to file a personal injury claim. At the end of Smith’s leave, the Atlas port captain informed him that, unless he abandoned his personal injury claim, he could not return to work for Atlas. When Smith refused to drop the claim, the port captain terminated his employment.
Thereafter, Smith filed suit against Atlas alleging liability for negligence under the Jones Act and for retaliatory discharge, a claim presumably based on general maritime law. The suit was tried to the court. The judge awarded Smith $2,995, $1,495 for lost wages from the date of his injury to the date he returned to work, plus $1,500, as compensation for his pain and suffering. Determining that Smith had been intentionally and wrongfully discharged by Atlas because of his proposed personal injury suit, the judge awarded him $1,000 in punitive damages, thereby implicitly holding that an action for retaliatory discharge is cognizable in admiralty.
Smith appeals from that judgment, contending that the district court erred by failing to award him lost wages until the date of trial and future lost wages due for alleged permanent partial disability. He also contends that the awards for pain and suffering and punitive damages are inadequate.
Defending the amount of the damage award, Atlas contends on cross-appeal that the award of punitive damages for Smith’s discharge must be reversed because there is no maritime cause of action for wrongful discharge,
and, in the alterna
tive, that the amount of the punitive damages award is not inadequate. We deal first with the principal issue involved in this case, the viability in admiralty of a cause of action for retaliatory discharge.
II.
In the absence of a contractual provision specifying a definite term or voyage during which a seaman will be employed, the seaman’s employment is “terminable at will by either party.”
Findley v. Red Top Super Markets, Inc.,
188 F.2d 834, 837 n.1 (5th Cir.),
cert. denied,
342 U.S. 870, 72 S.Ct. 112, 96 L.Ed. 654 (1951). Although a seaman who signs on for a voyage or for a specific term of employment is afforded some protection upon discharge,
no such protection is available to the seaman whose employment is not for a term but continues only at his employer’s will. Finding no maritime jurisprudence addressing the issue whether a seaman whose at-will employment contract is terminated because he brings a personal injury action against his employer may maintain an action for wrongful discharge, we seek guidance in the nonmaritime common law dealing with termination of the at-will employment relationship.
At common law, an employer may discharge his at-will employee “for good cause, for no cause, or even for cause morally wrong, without being thereby guilty of legal wrong.”
This unbridled freedom has been relied on to disallow a cause of action
based on discharge because of the employee’s maintenance of a lawsuit against the employer,
Buysse v. Paine, Webber, Jackson & Curtis, Inc.,
623 F.2d 1244 (8th Cir. 1980), as well as termination due to the employee’s filing of a workman’s compensation claim,
Green v. Amerada-Hess Corp.,
612 F.2d 212 (5th Cir.) (applying Mississippi law),
cert. denied,
449 U.S. 952, 101 S.Ct. 356, 66 L.Ed.2d 216 (1980).
This employer latitude is said to be reinforced by the principle of mutuality of obligations: “if the employee is free to quit at any time, then the employer must be free to dismiss at any time.” Summers,
supra
note 3. at -484-85.
The mutuality of obligations rationale has both symmetry and logical appeal. It has, however, lost its once almost universal force.
Its application to the employment relationship has been criticized by commentators who claim that it is based on the false premise that the situation of the employer and employee in today’s society is equivalent.
A few courts, supported by the almost unanimous view of the commentators,
have refused to adhere to the traditional rule, finding little to recommend its continued application in instances in which the employer’s conduct undermines an important public policy.
Although the supporting policy has, in the majority of these cases,
been grounded in statute or jurisprudence,
at least one court has recognized a public policy evolved solely from contemporary social and economic developments.
Most of the cases recognizing a cause of action based on a discharge that offends public policy have grounded that action in tort,
while a few decisions have relied on an implied contract theory of recovery.
Whether grounded in tort or contract, the cause of action is based on the notion that the employer’s conduct in discharging the employee constitutes an abuse of the employer’s absolute right to terminate the employment relationship when the employer utilizes that right to contravene an established public policy.
III.
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ALVIN B. RUBIN, Circuit Judge.
For the first time we consider the question: does a seaman whose at-will employment is terminated because he filed suit against his employer under the Jones Act, 46 U.S.C. § 688, have an action in admiralty for wrongful discharge? Concluding that an employer may not, with impunity, discharge a seaman in sheer retaliation for the seaman’s filing of a personal injury claim, we hold that the victim of this vengeance is entitled to maintain an action under the general maritime law to recover compensatory damages.
I.
Jerry Smith, a seaman employed by Atlas Off-Shore Boat Service, Inc., suffered an ankle injury while working aboard the M/V TROJAN, a vessel engaged in servicing offshore oil rigs. Smith was employed for two-week shifts followed by two weeks of leave time after which he would be called back to work by Atlas’s port captain. His injury occurred at the end of a two-week work shift. Six weeks later, although Smith was still suffering some symptoms, he asked his physician to declare him fit for duty so that he could return to work, and the physician did so.
Smith returned to work for Atlas on another vessel and worked a full two-week shift. During his subsequent leave, his attorney notified Atlas that Smith intended to file a personal injury claim. At the end of Smith’s leave, the Atlas port captain informed him that, unless he abandoned his personal injury claim, he could not return to work for Atlas. When Smith refused to drop the claim, the port captain terminated his employment.
Thereafter, Smith filed suit against Atlas alleging liability for negligence under the Jones Act and for retaliatory discharge, a claim presumably based on general maritime law. The suit was tried to the court. The judge awarded Smith $2,995, $1,495 for lost wages from the date of his injury to the date he returned to work, plus $1,500, as compensation for his pain and suffering. Determining that Smith had been intentionally and wrongfully discharged by Atlas because of his proposed personal injury suit, the judge awarded him $1,000 in punitive damages, thereby implicitly holding that an action for retaliatory discharge is cognizable in admiralty.
Smith appeals from that judgment, contending that the district court erred by failing to award him lost wages until the date of trial and future lost wages due for alleged permanent partial disability. He also contends that the awards for pain and suffering and punitive damages are inadequate.
Defending the amount of the damage award, Atlas contends on cross-appeal that the award of punitive damages for Smith’s discharge must be reversed because there is no maritime cause of action for wrongful discharge,
and, in the alterna
tive, that the amount of the punitive damages award is not inadequate. We deal first with the principal issue involved in this case, the viability in admiralty of a cause of action for retaliatory discharge.
II.
In the absence of a contractual provision specifying a definite term or voyage during which a seaman will be employed, the seaman’s employment is “terminable at will by either party.”
Findley v. Red Top Super Markets, Inc.,
188 F.2d 834, 837 n.1 (5th Cir.),
cert. denied,
342 U.S. 870, 72 S.Ct. 112, 96 L.Ed. 654 (1951). Although a seaman who signs on for a voyage or for a specific term of employment is afforded some protection upon discharge,
no such protection is available to the seaman whose employment is not for a term but continues only at his employer’s will. Finding no maritime jurisprudence addressing the issue whether a seaman whose at-will employment contract is terminated because he brings a personal injury action against his employer may maintain an action for wrongful discharge, we seek guidance in the nonmaritime common law dealing with termination of the at-will employment relationship.
At common law, an employer may discharge his at-will employee “for good cause, for no cause, or even for cause morally wrong, without being thereby guilty of legal wrong.”
This unbridled freedom has been relied on to disallow a cause of action
based on discharge because of the employee’s maintenance of a lawsuit against the employer,
Buysse v. Paine, Webber, Jackson & Curtis, Inc.,
623 F.2d 1244 (8th Cir. 1980), as well as termination due to the employee’s filing of a workman’s compensation claim,
Green v. Amerada-Hess Corp.,
612 F.2d 212 (5th Cir.) (applying Mississippi law),
cert. denied,
449 U.S. 952, 101 S.Ct. 356, 66 L.Ed.2d 216 (1980).
This employer latitude is said to be reinforced by the principle of mutuality of obligations: “if the employee is free to quit at any time, then the employer must be free to dismiss at any time.” Summers,
supra
note 3. at -484-85.
The mutuality of obligations rationale has both symmetry and logical appeal. It has, however, lost its once almost universal force.
Its application to the employment relationship has been criticized by commentators who claim that it is based on the false premise that the situation of the employer and employee in today’s society is equivalent.
A few courts, supported by the almost unanimous view of the commentators,
have refused to adhere to the traditional rule, finding little to recommend its continued application in instances in which the employer’s conduct undermines an important public policy.
Although the supporting policy has, in the majority of these cases,
been grounded in statute or jurisprudence,
at least one court has recognized a public policy evolved solely from contemporary social and economic developments.
Most of the cases recognizing a cause of action based on a discharge that offends public policy have grounded that action in tort,
while a few decisions have relied on an implied contract theory of recovery.
Whether grounded in tort or contract, the cause of action is based on the notion that the employer’s conduct in discharging the employee constitutes an abuse of the employer’s absolute right to terminate the employment relationship when the employer utilizes that right to contravene an established public policy.
III.
We find the reasoning of these cases persuasive. The employer’s discharge of the at-will seaman-employee, while it is in essence a lawful act, should not be used as a means of effectuating a “purpose ulterior to that for which the right was designed.” Blades,
supra
note 3, at 1424. The employer should not be permitted to use his absolute discharge right to retaliate against a seaman for seeking to recover what is due him or to intimidate the seaman from seeking legal redress. The right to discharge at will should not be allowed to bar the courthouse door. Nor does the struggle affect only the employer and the seaman. To
permit the seaman’s discharge because he resorts to the courts may result in casting the burden of the employer’s reprisal in part on the public in the form of unemployment compensation or social security for the worker or his family.
The recognition of a cause of action in admiralty providing the seaman with relief from a discharge caused by his filing of a claim against the employer is particularly appropriate- in light of the admiralty court’s protective attitude towards the seaman.
The judiciary’s leading role in fashioning controlling rules of maritime law
and in reshaping old doctrine to meet changing conditions
makes the admiralty court peculiarly sensitive to the inequities inherent in the traditional rule. Moreover, this type of cause of action is not without federal precedent.
The maritime employer may discharge the seaman for good cause,
for no cause, or even, in most circumstances, for a morally reprehensible cause. We conclude, however, that a discharge in retaliation for the seaman’s exercise of his legal right to file a personal injury action against the employer constitutes a maritime tort.
The commentators suggest that judicial refusal to ameliorate the common law rule is based in part on the difficult factual questions and issues of proof inherent in the claim for retaliatory discharge.
We, therefore, set forth the precepts that guide their resolution. In order to prevail on the retaliatory discharge claim, the seaman must affirmatively establish that the employer’s decision was motivated in substantial part
by the knowledge that the seaman either intends to file, or has already filed, a personal injury action against the
employer.
The employer may, on the other hand, defeat the seaman’s action by demonstrating that the personal injury action was not a substantial motivating factor for the discharge.
The claim for retaliatory discharge may be joined with the seaman’s personal injury action under the Jones Act and, like the general maritime law cause of action for unseaworthiness, may be tried to the jury along with the Jones Act claim even in the absence of diversity.
The employer’s retaliatory discharge is properly characterized as an intentional tort, entitling the seaman to compensatory damages caused by the abusive firing, including the seaman’s expenses of finding new employment, lost earnings while the seaman seeks another position, and lost future earnings if the seaman’s new job provides less remuneration than that earned while the seaman was in the employ of the defendant.
In addition to these economic losses, the discharged seaman may be entitled to recover compensatory damages for mental anguish that he may suffer as a result of the wrongful discharge.
In determining the amount of compensatory damages to which the discharged seaman is entitled, the seaman’s duty to mitigate his losses by seeking new employment is also a consideration. Moreover, the seaman is not entitled to double recovery for any element of damages that is compensable both under his personal injury claim and the retaliatory discharge claim. For example, wages lost between the time of injury and the date the seaman undertakes new employment that are recoverable by the seaman on his Jones Act claim may not also be recovered on the claim for retaliatory discharge.
The employer should not, however, be further penalized by the inclusion of punitive damages in the seaman’s list of items recoverable. The additional deterrent effect such damages might produce,
see Protecting Employees, supra
note 9, at 1843, is insufficient to justify their imposition. In striking the balance between the employer’s right to have a free hand in the running of his business and the seaman’s interest in the unencumbered exercise of his legal rights, we conclude that, while the balance weighs in the seaman’s favor on the question of the recognition of the claim for retaliatory discharge, the scales tilt against the imposition of punitive damages.
But see Dyer v. Merry Shipping Co.,
650 F.2d 622 (5th Cir. 1981) (allowing punitive damages under the general maritime law cause of action for unseaworthiness, but expressly reserving the question whether such damages are recoverable under the Jones Act).
Thus, the seaman who is subjected to discharge in retaliation for filing a Jones Act claim is entitled to maintain an action, sounding in maritime tort, for abusive discharge if he is able to satisfy the burden of establishing that his personal injury claim was a substantial motivating factor for the discharge. The damages recoverable under that cause of action are those compensatory elements of damage for which the seaman is not compensated on his personal injury claim.
IV.
Smith sufficiently substantiated his claim of discharge in retaliation for his prospective filing of a personal injury claim under the Jones Act. The district court found that Atlas fired Smith upon his refusal to abandon his personal injury claim.
That finding is not clearly erroneous.
Moreover, Smith was apparently fit for seaman’s duty as of the date he returned to work for Atlas after the injury. Although the district court’s findings are not explicit on this point, when read in the context of the entire record, it is clear to us that the trial judge believed Smith to have suffered no permanent, debilitating after-effects from the ankle sprain.
That finding is also not clearly erroneous. Smith’s complete recovery is significant, not only in regard to the satisfaction of his burden of proof on the abusive discharge claim, but also with respect to his Jones Act claim for future lost wages. Because he was apparently not disabled to perform seaman’s duties, Smith is not entitled to recover, on his Jones Act claim, lost wages after his return to work subsequent to his injury. Thus, the district court’s award of lost wages is affirmed.
The award of $1,500 for pain and suffering, considering the nature of the injury, was not clearly inadequate and is also affirmed.
Thus, Smith received adequate compensation for his Jones Act claim.
24
On the claim for the wrongful discharge, the district court awarded only punitive damages. Because we consider such damages to be inappropriate for the retaliatory discharge cause of action we here recognize, that award must be reversed. However, there are other elements of compensatory damages, outlined above, recoverable under the abusive discharge cause of action to which Smith might be entitled if he can establish that he actually incurred those pecuniary and nonpecuniary losses. Thus, upon remand, the parties must be provided another opportunity to present evidence regarding the actual losses suffered by Smith due to the discharge. The district court should, in determining the appropriate amount of compensatory relief, consider whether Smith indeed could have obtained new employment as a seaman, or some other type of employment, the remuneration from which would have reduced his loss of wages. The seaman’s recovery should be diminished in the amount the district court determines that Smith could have mitigated his damages due to the. discharge.
V.
The cause of action we recognize is limited. It subjects the employer to liability for compensatory damages if, and only if, the seaman can establish that a substantial motivating factor in the employer’s decision to discharge him was the seaman’s personal injury action arising out of the employment relation. It does not prevent the employer from discharging the seaman for any or no reason, unless that reason is the seaman’s filing of a personal injury claim. Moreover, it does not permit the seaman to recover punitive damages or compensatory damages to which he is already entitled under the personal injury claim.
The barnacled rule permitting maritime employers to subject a seaman to retaliatory discharge with impunity has been scraped and reexamined for soundness in light of current conditions: This case demonstrates the need to protect the seaman, always subject to being beached for no reason, against discharge as a vindictive reprisal for seeking the protection of the legal system designed to afford him redress.
For these reasons, the judgment is AFFIRMED in part, REVERSED in part, and REMANDED for further proceedings consistent with this opinion.