Marine Solution Services, Inc. v. Horton

70 P.3d 393, 2003 A.M.C. 1566, 2003 Alas. LEXIS 41
CourtAlaska Supreme Court
DecidedMay 16, 2003
DocketS-9916, S-9935
StatusPublished
Cited by12 cases

This text of 70 P.3d 393 (Marine Solution Services, Inc. v. Horton) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marine Solution Services, Inc. v. Horton, 70 P.3d 393, 2003 A.M.C. 1566, 2003 Alas. LEXIS 41 (Ala. 2003).

Opinion

OPINION

FABE, Chief Justice.

I. INTRODUCTION

Thomas Horton suffered compound fractures in both legs while moving a barge from Pickworth Dock in Anchorage. Horton sued Marine Solution Services, the owner of the vessel and the company for which he served as president and chief executive officer, for unseaworthiness under traditional maritime law and for negligence under the Jones Act. A jury returned a verdict for Horton and awarded him $1,184,878.85. Marine Solution Services appeals several of the jury instructions, focusing on whether Horton was an employee and seaman entitled to a remedy under the Jones Act and whether The Pennsylvania rule applies. Horton appeals both the reduction of the jury award and the interest on the award.

Although we affirm the majority of the challenged superior court rulings, we conclude that Horton may be entitled to the five percent enhancement of prejudgment interest and that postjudgment interest shall accrue at 10.5 percent. On these two issues, we reverse and remand for a corrected judgment.

II. FACTS AND PROCEEDINGS

A. Factual History

Marine Solution Services, Inc. (MSS) is a closely held corporation in the business of commercial diving, marine contracting, marine services, and vessel operations. Thomas Horton is the president, chief executive officer, and general manager of MSS. His mother, Gerda Horton, is the secretary. Gerda Horton is also the majority shareholder of MSS. Together they are the only officers and directors of MSS. Thomas Horton and his mother also own another company together called Horton Marine. Thomas Horton owns fifty-one percent of the stock, while Gerda Horton owns forty-nine percent. They are the only officers and directors of that corporation as well.

In the late afternoon of September 18, 1995, an attorney for Chugach Electric Association telephoned Horton and informed him that Chugach Electric had taken possession of Pickworth Dock. The attorney demanded that Barge 204 be removed from Pickworth Dock or the vessel would be seized. Horton agreed to move the barge at the next high tide, which would be at 8:80 a.m. on the morning of September 19. Horton then made a radio call to Steve Adams, the MSS employee working as skipper of the tug SOLUTION, and told him of the plan to tow the barge from Pickworth Dock at high tide that morning. Horton said that he would be assisting in the operation.

Horton arrived at the dock at approximately 8:00 a.m. and was taken to Barge 204 aboard a skiff. At the front of the barge are two "Panama chocks," which are two large pipes in the shape of an inverted letter "U," welded to the deck. When the barge is being towed, the tow lines generally are run through the Panama chocks so that the lines do not come loose or sweep across the deck as the tug turns. Adams and Gerald Wal *400 lace, the engineer on the SOLUTION, secured a tow line to the barge, but did not pass it through the Panama chocks, and the tug SOLUTION began towing Barge 204 away from the dock.

Horton, who was aboard the barge, noticed that the SOLUTION and the barge were headed for the North Star Dock and a barge tied to it. A collision seemed imminent. Horton sprinted to the forward part of the barge in an attempt to signal Adams, who was navigating the SOLUTION, to tow farther offshore to avoid an accident. Adams noticed Horton's actions and also saw that the tug and barge were drifting toward the dock. After the starboard engine died and was restarted, Adams gave the engines full power. This sudden movement in a different direction jerked the towline taut and it snapped across the deck. Horton was standing between the towline and the steel weath-erwall, so that when the line swept across the deck it smashed Horton's legs against the weatherwall. Horton suffered compound fractures in all four bones just above the ankles in both legs.

Horton's legs were severely injured and had to be reconstructed. In addition to the fractures, Horton claims associated nerve, vascular, muscle, and skin injuries. Horton apparently still suffers from chronic pain and depression, and now walks with a pronounced limp.

B. Procedural History

This case originally consisted of two separate lawsuits. Horton filed his complaint against MSS in May 1997. He set forth five causes of action: (1) unseaworthiness; (2) negligence and breach of the duty of care under the Jones Act; (8) maintenance, cure, and unearned wages; (4) failure and refusal to provide adequate medical attention; and (5) negligence under the doctrine of respon-deat superior. The first four causes of action were based on the assertion that Horton was a seaman. The fifth cause of action was raised in the event that the trial court determined Horton was not a seaman and therefore not entitled to the relief set forth in the first four causes of action. Horton requested maintenance, cure, unearned wages, compensatory damages, attorney's fees and costs, and interest.

In September 1998 Horton filed a second lawsuit against Steve Adams, the MSS employee operating the tug SOLUTION when Horton was injured. Horton asserted only one cause of action, negligence, for failure to ensure a safe towing arrangement, failure to warn, failure to maintain a proper lookout, and a general failure to act reasonably under the cireumstances. Horton requested compensatory damages, attorney's fees, costs, and interest. The two lawsuits were consolidated in August 1999.

In August 1999 MSS moved for summary judgment as to Horton's first four causes of action on the grounds that he is not a seaman and therefore not entitled to claims for Jones Act negligence, a warranty of seaworthiness, or maintenance and cure. MSS also moved for summary judgment on Horton's fifth cause of action for common law negligence, arguing that the Alaska Workers' Compensation Act (AWCA) provided Horton's exelusive remedies. Horton moved for partial summary judgment as to the liability of MSS because, Horton alleged, MSS was in violation of at least two statutory requirements when Horton was injured. MSS cross-moved for summary judgment on the issue of liability on the basis that Horton "is president, chief executive officer, general manager, director, and forty nine percent owner of [MSS]," and any negligence of MSS is imputed to Horton. Adams also moved for summary judgment on the ground that Horton is a seaman and therefore not able to bring a claim against a fellow employee, 1 and that even if Horton were not a seaman, his exclusive remedies are under the Longshore and Harbor Workers' Compensation Act. 2 Superi- or Court Judge Brian C. Shortell denied all motions, except that of Adams, who was granted summary judgment.

*401 Trial against MSS began on December 7, 1999. The jury found that Horton was a seaman and therefore able to maintain Jones Act claims. The jury found for Horton on all claims except those related to his diabetes, but concluded that he was fifteen percent at fault. Horton was awarded $186,000 in cure, $175,000 for past damages, and $1,155,000 for future damages. The trial court reduced the amount of cure by the medical bills that MSS had already paid.

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Bluebook (online)
70 P.3d 393, 2003 A.M.C. 1566, 2003 Alas. LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marine-solution-services-inc-v-horton-alaska-2003.