Jones v. Reagan

748 F.2d 1331, 1985 A.M.C. 944
Court of Appeals for the Ninth Circuit·Decided December 4, 1984·No. No. 83-4309·Published·Cited by 20 cases

Opinion

BOOCHEVER, Circuit Judge:

The plaintiffs, a class of merchant seamen who have been declared permanently not fit for duty because of physical ailments or injuries, challenge sections 986 and 988 of the Omnibus Budget Reconciliation Act of 1981, which terminated the seamen’s right to free medical care in government facilities. The seamen contend that the termination of care violates equal protection, due process, the separation of powers, contract law and equity. In addition, the seamen argue that the Act’s one-year extension of medical care to certain hospitalized seamen establishes an irrational classification in violation of equal protection. The district court granted summary judgment for the government. We affirm.

FACTS

The facts are uncontested. The plaintiffs are a class of merchant seamen, numbering approximately 5,000, who experienced illness or injury in the course of their duties prior to October 1, 1981, and as a result were declared permanently not fit for duty. Under maritime law, the seamen were entitled to “maintenance and cure” from the owners of their ships. “Maintenance” is a living allowance that permits the seaman to obtain housing and food while he recovers, G. Gilmore & C. Black, The Law of Admiralty § 6-12, at 305 (2d ed. 1975); “cure” is payment for medical care, see Calmar Steamship Corp. v. Taylor, 303 U.S. 525, 527-28, 58 S.Ct. 651, 652-53, 82 L.Ed. 993 (1938).

Since 1798, the federal government has provided free medical care for such seamen in hospitals and clinics operated in recent times by the Public Health Service. Admiralty courts routinely have taken judicial notice of the free medical care and have denied awards against the shipowners for medical services available at government expense. See Calmar Steamship, 303 U.S. at 531, 58 S.Ct. at 654 and cases cited.

In 1981, Congress enacted the Omnibus Budget Reconciliation Act of 1981, Pub.L. No. 97-35, 95 Stat. 357 (1981) (hereinafter the “Budget Act”), a comprehensive appropriations bill that adjusted the eligibility requirements and amounts budgeted for a large number of federal programs. Among its other provisions, the Budget Act ordered the closure and transfer to nonfed-eral control of the Public Health hospitals and clinics. Section 986 of the Act terminated the right of outpatient seamen to obtain free medical care in the facilities after October 1, 1981, while section 988 allowed continued free care for a maximum of one additional year for inpatient seamen hospitalized prior to October 1. Id. §§ 986, 988, 95 Stat. at 603, 604.

DISCUSSION

I. Separation of Powers

The seamen contend that the Budget Act unconstitutionally usurps judicial powers in two ways. First, the Act frustrates remedies previously granted to seamen because the courts, in making awards to them, re[1335]*1335lied on the government’s continued provision of free medical care, and laches now bars action against shipowners. Second, the Act legislates beyond congressional ad-, miralty jurisdiction.

A. Frustration of Judicial Remedies

The seamen assume that closure of the Public Health facilities leaves them without a remedy against the shipowners because of laches. Whether laches would bar relief against individual shipowners is not squarely before this court because the seamen have not brought suit against any of the owners, and the owners have not intervened. Consequently, for purposes of this action, we need only determine whether, as the seamen argue, laches automatically must bar relief against the owners as a matter of law. The seamen cite no authority for the applicability of laches. Their assumption, however, underlies the entire constitutional attack on the Budget Act, and therefore warrants close examination.

Courts typically use an analogous state statute of limitations as a guide to the running of laches in admiralty cases. G. Gilmore & C. Black, The Law of Admiralty § 9-79, at 768-69 (2d ed. 1975). The equities of the parties on the facts of each case, however, must be considered as well. Where the delay is excusable and there has been no prejudice to the other party, mere passage of time poses no bar to relief. Gardner v. Panama R. Co., 342 U.S. 29, 31, 72 S.Ct. 12, 13, 96 L.Ed. 31 (1951) (per curiam). Some courts balance the inexcusability of delay against prejudice. “A weak excuse might suffice if there has been no prejudice; an exceedingly good one might still do even when there has been some.” Larios v. Victory Carriers, Inc., 316 F.2d 63, 67 (2d Cir.1963); see also Fidelity & Casualty Co. of New York v. C/B Mr. Kim, 345 F.2d 45, 50 (5th Cir. 1965).

Although we do not decide the issue, we suspect that Congress’ termination of the seamen’s long-standing free medical care would qualify as an “exceedingly good” excuse for the seamen’s delay in suing the shipowners. In Gardner, supra, a somewhat similar congressional amendment of a law tolled laches. The plaintiff in Gardner was injured by the Panama Railroad, and filed a timely suit against the United States under the Federal Tort Claims Act. While the suit awaited trial, however, Congress amended the Act to exclude government liability for the railroad’s negligent acts. In response, plaintiff immediately filed an in personam libel against the railroad, this time ten months after the running of the analogous statute of limitations. The Court held that laches did not bar plaintiff’s action against the railroad because her delay was caused by Congress, not by her own fault. Gardner, 342 U.S. at 31, 72 S.Ct. at 13.

In addition, the passage of time in the instant case may have caused the shipowners little prejudice because the facts necessary to the seamen’s claims for “cure” in most cases already have been established. At oral argument, counsel for the seamen conceded that virtually all of the class members were awarded maintenance allowances from the shipowners some time ago. The same facts establish the seamen’s rights to cure. For both allowances, the seamen must prove that their illness or injury occurred while they were “within the service of the vessel” or answerable to the call of duty. 1B Benedict on Admiralty § 42, at 4-7, § 43 at 4-9, 4-10 (7th ed. 1983); see also Farrell v. United States, 336 U.S. 511, 516, 69 S.Ct. 707, 709, 93 L.Ed. 850 (1949).

Other courts have allowed actions for maintenance and cure to proceed in a variety of analogous situations despite substantial delays, where the delay was excusable or little prejudice to the defendant resulted. See, e.g., Sobosle v. United States Steel Corp., 359 F.2d 7, 12 (3d Cir. 1966) (laches not automatically a bar where plaintiff’s nine-year refusal of treatment was not voluntary); Fidelity & Casualty Co. of New York v. C/B Mr. Kim, 345 F.2d at 51-52 (ten-month delay excusable where defendant knew of the injury from the beginning); Taylor v. Crain, 195 F.2d 163, 165 (3d [1336]*1336Cir.1952) (delay of 5 years justified where ship’s captain promised plaintiff continued employment if he did not sue and threatened to have him blacklisted if he did); Loverich v. Warner Co., 118 F.2d 690, 693 (3d Cir.), cert. denied,

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Jones v. Reagan
748 F.2d 1331 (Ninth Circuit, 1984)