Reed v. the Yaka

373 U.S. 410, 83 S. Ct. 1349, 10 L. Ed. 2d 448, 1963 U.S. LEXIS 2419
CourtSupreme Court of the United States
DecidedMay 27, 1963
Docket509
StatusPublished
Cited by442 cases

This text of 373 U.S. 410 (Reed v. the Yaka) 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
Reed v. the Yaka, 373 U.S. 410, 83 S. Ct. 1349, 10 L. Ed. 2d 448, 1963 U.S. LEXIS 2419 (1963).

Opinions

Mr. Justice Black

delivered the opinion of the Court.

Petitioner, a longshoreman, filed a libel in rem in a United States District Court against the steamship Yaka to recover for injuries he sustained while engaged in loading the vessel. The Yaka’s owner, Waterman Steamship Corporation, appeared as claimant of the ship but brought in as an additional defendant petitioner’s employer, Pan-[411]*411Atlantic Steamship Corporation, which at the time of’ the accident was operating Waterman’s ship under a bareboat charter and whose negligence Waterman alleged caused petitioner’s injury. The district judge found that at the time of the injury petitioner was in the ship standing on a stack of rectangular, wooden, pallets used in loading the vessel and that the sole cause of the injury was a latent defect in one of the planks of a pallet,' which caused it to break. The judge held that the defective pallet supplied by- Pan-Atlantic rendered Waterman’s Yaka unseaworthy and that therefore petitioner could recover against the ship. But since the defective pallet was furnished by Pan-Atlantic, the trial judge went on to hold that it must make Waterman whole because of an indémnity clause in the bareboat charter agreement. 183 F. Supp. 69. The Court of Appeals for the Third Circuit reversed the judgment, holding that neither Waterman nor Pan-Atlantic could be held personally liable for the unseaworthiness and that a libel in rem against a ship could not be sustained unless there was an underlying personal liability to support the in rem action. 307 F. 2d 203. Having previously reserved in Guzman v. Pichirilo, 369 U. S. 698, 700 n. 3 (1962), the question of whether personal liability is essential to the liability of a ship, we granted certiorari. 371 U. S. 938.

In determining that there was no underlying personal liability for the unseaworthiness of the vessel, the Court of Appeals held that (1) Waterman, the actual owner, could not be made to respond in damages because the unseaworthiness of its ship arose after it had been demised under bareboat charter to Pan-Atlantic,1 and (2) Pan-[412]*412Atlantic could not. have been held personally liable in damages to petitioner for the unseaworthiriess because Pan-Atlantic was petitioner’s employer under the Longshoremen’s and Harbor Workers’ Compensation Act,2 and, while that Act permits actions for damages against third persons,3 it provides that compensation liability of an employer under the Act is exclusive and in place of all other liability on his part.4

We find it unnecessary to decide whether a ship may ever be held liable for its unseaworthiness where no personal liability could be asserted because, in our view, , the Court of Appeals erred in holding that Pan-Atlantic could not be held personally liable' for the unseaworthiness of the ship which caused petitioner’s injury.

Pan-Atlantic was operating the Yaka as demisee or bareboat charterer from Waterman. Under such arrangements full possession and control .of the vessel are delivered up to the charterer for a period of time.5 The ship is then directed by its Master and manned by his crew; it makes his voyages and carries the cargo he chooses. Services performed on board the ship are primarily for his benefit. It has long been recognized in the law of admiralty that for many, if not most, purposes the bareboat charterer is to be treated as the owner,6 generally called owner pro hac vice. We have no doubt, and indeed Pan-Atlantic admits,7 that, barring explicit statutory exemption, the. bareboat charterer is personally liable for [413]*413the unseaworthiness of a chartered vessel,8 and that this liability will support a libel in rem against the vessél.9 Since the unseaworthiness of the Yaka is no longer in dispute, the only question is whether the Longshoremen’s Act prevents recovery by petitioner for Pan-Atlantic’s breach of its warranty of seaworthiness.

In Seas Shipping Co. v. Sieracki, 328 U. S. 85 (1946), we held that a shipowner’s warranty of seaworthiness extended to a longshoreman injured while loading the ship, even though the longshoreman was employed by an independent contractor. In doing so, we noted particularly the hazards of marine service, the helplessness of the men to ward off the perils of unseaworthiness, the harshness of forcing them' to shoulder their losses alone, and the broad range of the “humanitarian policy” of the doctrine of seaworthiness, which we held not to depend upon any kind of contract. 328 U. S., at 93-95. We further held that the Longshoremen’s' and Harbor Workers’ Act was not intended to take away from longshoremen' the traditional remedies- of the sea, so that recovery for unseaworthiness could be had notwithstanding the availability of compensation. • Ten years later, in Ryan Stevedoring Co. v. Pan-Atlantic S. S. Corp., 350 U. S. 124 (1956), we were faced with the question of whether a shipowner’who was forced to pay damages to a longshoreman injured by the unsafe storage of cargo could "recover indemnity from the stevedoring company for whom the longshoreman worked. Even in the absence of an indemnity provision, the Court held that the stevedoring company was liable over to the shipowner because it had promised to store the.cargo safely. The Court was not convinced by. arguments that its result made the eco[414]*414nomic burden of the longshoreman’s recovery fall on the stevedoring employer contrary to the purpose of the Act. Thus, there can be no doubt that, if the petitioner here had been employed to do this particular work by an independent stevedoring company rather than directly by the owner, he could have recovered damages for his injury from the owner who could have then under Ryan shifted the burden of the recovery to petitioner’s steve-doring employer. Yet the Court of Appeals held, and Pan-Atlantic would have us hold, that petitioner must be completely denied the traditional and basic protection of the warranty of seaworthiness simply because Pan-Atlantic was not only the owner pro hac vice of the ship but was also petitioner’s employer. In making this argument, Pan-Atlantic has not pointed and could not point to any economic difference between giving relief in this case, where the owner acted as his own stevedore, and in one in which the owner' hires an independent company. In either case, under Ryan, the burden ultimately falls on the company whose default caused the injury. Pan-Atlantic relies simply on the literal wording of the statute, and it must be admitted that the statute on its face lends support to Pari-Atlantic’s construction. But we cannot now consider the wording of the statute alone. We must view it in the light of our prior cases in this area, like Sieracki, Ryan, and others, the holdings of which have been 'left unchanged by Congress. In particular, we pointed out several times in the Sieracki case, which has been consistently followed since,10

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Bluebook (online)
373 U.S. 410, 83 S. Ct. 1349, 10 L. Ed. 2d 448, 1963 U.S. LEXIS 2419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-the-yaka-scotus-1963.