Richard Carroll v. Protection Maritime Insurance Co., Ltd.

512 F.2d 4, 1975 A.M.C. 1633, 1975 U.S. App. LEXIS 16020
CourtCourt of Appeals for the First Circuit
DecidedFebruary 19, 1975
Docket74-1309
StatusPublished
Cited by33 cases

This text of 512 F.2d 4 (Richard Carroll v. Protection Maritime Insurance Co., Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard Carroll v. Protection Maritime Insurance Co., Ltd., 512 F.2d 4, 1975 A.M.C. 1633, 1975 U.S. App. LEXIS 16020 (1st Cir. 1975).

Opinions

COFFIN, Chief Judge.

Plaintiffs, seamen and commercial fishermen, appeal the dismissal of their complaint against defendants, the marine protection and indemnity insurers of fishing vessels on which plaintiffs work.1 Plaintiffs assert that because they have in the past brought personal injury actions against their employers, they are now being denied employment through the practices of defendants. The defendants are alleged to have “listed” plaintiffs, i. e., to have notified vessel owners that some of the plaintiffs (“class A”) would not be covered by defendants’ insurance policies and that others (“class B”) would be covered, but at much higher rates. Since marine insurance was not, allegedly, readily available elsewhere, vessel owners were forced to discharge or refuse employment to plaintiffs. Defendants’ alleged purpose was to reduce insurance claims and cost of settlements, and, accordingly, to reduce operating costs enabling defendants to sell marine insurance at an artificially low rate. The intended result was not only the discharge of plaintiffs from existing jobs and inability of plaintiffs to obtain new jobs, but a conspiracy in restraint of trade.

This basic set of allegations is distilled from a “Further Amended Complaint” of fifty pages and twelve counts which need not be summarized in any detail. It suffices to say that the complaint embraced several theories; a maritime cause of action for tortious interference with plaintiffs’ contractual and advantageous business relations — within admiralty jurisdiction, 28 U.S.C. § 1333; a cause of action for conspiring to violate the anti-trust laws — within federal question jurisdiction, 28 U.S.C. § 1331; and a cause of action within diversity jurisdiction, 28 U.S.C. § 1332.

The district court held (1) that admiralty jurisdiction was lacking, there being, no allegation of tortious activity occurring on navigable waters; (2) that diversity jurisdiction was lacking, two of the defendants being citizens of the same state as plaintiffs; and (3) that plaintiffs lacked standing to sue for antitrust law violations, their interest as employees of vessel owners being too remote and their injury too indirect.

We first address the question whether a cause of action for tortious interference with a seaman’s present or [6]*6prospective employment against the insurer of the seaman’s employer is within admiralty jurisdiction. That the allegations in the complaint before us adequately describe a tort is clear. E. g., Pino v. Trans-Atlantic Marine, Inc., 358 Mass. 498, 265 N.E.2d 583 (1970); A.L.I. Restatement of Torts 2d, § 766. Any question as to privilege would be a matter of defense, see Prosser, Law of Torts (Fourth ed.), § 130, at p. 953, and is not suggested by the complaint, which alleges a knowing and intentional interference without just cause.

The critical issue is that of admiralty jurisdiction. The black letter law as to maritime torts is familiar lore:

“Determination of the question whether a tort is ‘maritime’ and thus within the admiralty jurisdiction of the federal courts has traditionally depended upon the locality of the wrong. If the wrong occurred on navigable waters, the action is within admiralty jurisdiction; if the wrong occurred on land, it is not.” Executive Jet Aviation, Inc. v. City of Cleveland, 409 U.S. 249, 253, 93 S.Ct. 493, 497, 34 L.Ed.2d 454 (1972).

See also Victory Carriers, Inc. v. Law, 404 U.S. 202, 205 n. 2, 92 S.Ct. 418, 30 L.Ed.2d 383 (1971).

Before we examine whether or not the locality rule recognized by Executive Jet Aviation and its ancestors precludes admiralty jurisdiction in such a case as this, we observe that if it does, it would be on the basis of tradition alone and not reason or policy. For a contract for services between a seaman and a vessel owner is at the heart of maritime relationships. Kossick v. United Fruit Co., 365 U.S. 731, 735, 81 S.Ct. 886, 6 L.Ed.2d 56 (1961). Suit for breach of such contract lies in admiralty. There is no apparent reason or policy for requiring a seaman who wishes to sue both his employer for breach and a third party who provoked the breach to proceed in different courts. Not only would such a requirement result in piecemeal, bifurcated litigation, but the admiralty goal of uniformity in dealing with maritime matters would be frustrated. Seamen’s rights against those who tortiously interfere with their seagoing employment would vary from port to port or state to state. Fears of open-ended expansion of admiralty jurisdiction through recognition of causes like that alleged here would not seem well founded. The essential maritime nexus would be not only present but dominant. Finally, since the tort, as here applied, by definition involves the disruption or foreclosing of a seagoing relationship, the impact is of necessity a maritime one wherever the act of interfering may have taken place. The locale of the act is irrelevant to the harm done. Indeed, no contrary policy or rationale has been noted by appellee or the district court, who relied solely on the time honored formulation of the locality rule relating to maritime torts.

Executive Jet Aviation established a “locality plus” rule in reaction to the absurdities inherent in predicating admiralty jurisdiction on the locality rule as the sole test. In so doing, it added, significantly, we think:

“another indictment of that test is to be found in the number of times the federal courts and the Congress, in the interests of justice, have had to create exceptions to it in the converse situations — i. e., when the tort has no maritime locality, but does bear a relationship to maritime service, commerce, or navigation.” 409 U.S. at 259, 93 S.Ct. at 500.

The Court referred to O’Donnell v. Great Lakes Dredge & Dock Co., 318 U.S. 36, 63 S.Ct. 488, 87 L.Ed. 596 (1943) where it sustained the judicial “application of the Jones Act ... to injuries to a seaman on land, because of the seaman’s connection with maritime commerce”, id., and to Gutierrez v. Waterman S. S. Corp., 373 U.S. 206, 83 S.Ct. 1185, 10 L.Ed.2d 297 (1963), where the doctrine of unseaworthiness was similarly applied. Id., at 260, 83 S.Ct. at 500. More pertinently, the Court cited the Second Circuit precursor of Gutierrez, Strika v. Netherlands Ministry of Traffic, 185 [7]*7F.2d 555 (1950), where Chief Judge Hand, in dealing with a longshoreman’s action against a shipowner for injury suffered on land, based on breach of the implied warranty to furnish seaworthy equipment — a tort, recognized the challenge to maritime jurisdiction.

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Bluebook (online)
512 F.2d 4, 1975 A.M.C. 1633, 1975 U.S. App. LEXIS 16020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-carroll-v-protection-maritime-insurance-co-ltd-ca1-1975.