Watters v. Harrah's Illinois Corp.

993 F. Supp. 667, 1998 A.M.C. 1757, 1998 U.S. Dist. LEXIS 5268, 1998 WL 178455
CourtDistrict Court, N.D. Illinois
DecidedApril 14, 1998
DocketNo. 97 C 8968
StatusPublished
Cited by5 cases

This text of 993 F. Supp. 667 (Watters v. Harrah's Illinois Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watters v. Harrah's Illinois Corp., 993 F. Supp. 667, 1998 A.M.C. 1757, 1998 U.S. Dist. LEXIS 5268, 1998 WL 178455 (N.D. Ill. 1998).

Opinion

MEMORANDUM OPINION AND ORDER

ALESIA, District Judge.

Before the court is defendant Harrah’s Illinois Corporation’s motion to dismiss Count III of plaintiff Peggy Watters’ complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). For the following reasons, the court grants defendant’s motion.

I. BACKGROUND

The complaint alleges the following facts which, for the purposes of ruling on this motion, are taken as true. Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct. 2229, 81 L.Ed.2d 59 (1984). On July 6, 1996, plaintiff Peggy Watters (‘Watters”) was working as a crew member for the Southern Star, a vessel owned, operated, and maintained by defendant Harrah’s Illinois Corporation (“Harrah’s”). While working on the boat on that day, Watters sustained injuries to her back and body.

On January 5, 1998, Watters filed a three-count complaint in this court. Count I is a claim for personal injury under the Jones Act, 46 U.S.C.App. § 688. Count II is a claim under general maritime law for unseaworthiness. Count III is a claim under general maritime law for maintenance and cure. Among other remedies, Count III seeks an award of “$100,000.00 for [Harrah’s] arbitrary and capricious refusal to pay maintenance and cure.”

In response to Watters’ complaint, Harrah’s filed an answer to Counts I and II and a motion to dismiss Count III. Harrah’s motion to dismiss Count III is premised on Harrah’s argument that a plaintiff should not be allowed to recover punitive damages in a maintenance and cure action.

II. DISCUSSION

A. Standard for deciding a Rule 12(b)(6) motion to dismiss

When deciding a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the court must accept all. factual allegations in the complaint as true and draw all reasonable inferences in favor of the plaintiff. Cromley v. Board of Educ. of Lockport, 699 F.Supp. 1283, 1285 (N.D.Ill.1988). If, when viewed in the light most favorable to the plaintiff, the complaint fails to state a claim upon which relief can be granted, the court must dismiss the case. See Fed.R.Civ.P. 12(b)(6); Gomez v. Illinois State Bd. of Educ., 811 F.2d 1030, 1039 (7th Cir.1987). However, the court may dismiss the complaint only if it appears beyond a doubt that the plaintiff can prove no set of facts in support of his claim that would entitle him to relief. Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957).

B. Punitive damages in a maintenance and cure action

The precise issue before the court is whether a plaintiff who sues a private party under general maritime law for willful failure to pay maintenance and cure can recover punitive damages.' Neither the Supreme Court nor the Seventh Circuit has ever directly addressed this issue. Similarly, the parties did not cite and the court could not find a case from the Northern District of Illinois which directly addresses this issue. Thus, this is a case of first impression in this district.

Although there exists no precedent binding on this court, there are several sources which provide guidance in deciding the issue. First, there are three Supreme Court cases [669]*669which are particularly relevant to this court’s decision. In addition, there are cases in other circuits which directly address the issue. The court will address these cases after a brief discussion on maintenance and cure liability in general.

1. Maintenance and cure liability

Under general maritime law, when a seaman becomes ill or injured during the period of his service, the shipowner is liable to the seaman for maintenance and cure. Aguilar v. Standard Oil Co. of N.J., 318 U.S. 724, 730, 63 S.Ct. 930, 87 L.Ed. 1107 (1943). “Maintenance” is “the payment by a shipowner to a seaman for the seaman’s food or lodging expenses incurred while he is ashore as a result of illness or accident.” Barnes v. Andover Co., 900 F.2d 630, 631 (3d Cir.1990). “Cure” is “the right to necessary medical services.” Guevara v. Maritime Overseas Corp., 59 F.3d 1496, 1499 (5th Cir.1995) (en bane).

The liability for maintenance, and cure “extends during the period when [the seaman] is incapacitated until he reaches the maximum medical recovery.” Vaughan v. Atkinson, 369 U.S. 527, 531, 82 S.Ct. 997, 8 L.Ed.2d 88 (1962). This liability is not predicated on the fault or negligence of the shipowner; rather, it is an incident of the marine employer-employee relationship. Aguilar, 318 U.S. at 730. The rationale for imposing such liability was summarized in Calmar S.S. Corp. v. Taylor as follows:

The reasons underlying the rule, to which reference must be made in defining it, are those enumerated in the classic passage by Mr. Justice Story in Harden v. Gordon, C.C., Fed.Cas.No. 6047: The protection of seamen, who, as a class, are poor, friendless and improvident from the hazards of illness and abandonment while ill in foreign ports; the inducement to masters and owners to protect the safety and health of seamen while in service; the maintenance of a merchant marine for commercial service and maritime defense of the nation by inducing men to accept employment in arduous and perilous service.

Calmar S.S. Corp. v. Taylor, 303 U.S. 525, 528, 58 S.Ct. 651, 82 L.Ed. 993 (1938).

2. Relevant Supreme Court decisions

The essential starting point in analyzing the issue of whether punitive damages are recoverable in a maintenance and cure action is an examination of relevant Supreme Court decisions. There are three, Cortes v. Baltimore Insular Line, 287 U.S. 367, 53 S.Ct. 173, 77 L.Ed. 368 (1932), Vaughan v. Atkinson, 369 U.S. 527, 82 S.Ct. 997, 8 L.Ed.2d 88 (1962), and Miles v. Apex Marine Corp., 498 U.S. 19, 111 S.Ct. 317, 112 L.Ed.2d 275 (1990), which affect this court’s ultimate decision. The court addresses each of these eases in turn.

a. Cortes v. Baltimore Insular Line, Inc.

The first Supreme Court decision pertinent to this court’s discussion is Cortes v.

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993 F. Supp. 667, 1998 A.M.C. 1757, 1998 U.S. Dist. LEXIS 5268, 1998 WL 178455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watters-v-harrahs-illinois-corp-ilnd-1998.