Williams v. Kingston Shipping Company, Inc.

925 F.2d 721
CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 26, 1991
Docket89-2188
StatusPublished
Cited by6 cases

This text of 925 F.2d 721 (Williams v. Kingston Shipping Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Kingston Shipping Company, Inc., 925 F.2d 721 (4th Cir. 1991).

Opinion

925 F.2d 721

1991 A.M.C. 1802

Daniel C. WILLIAMS, Plaintiff-Appellant,
v.
KINGSTON SHIPPING COMPANY, INC., a New York Corporation,
Defendant-Appellee,
and
Apex Marine Corporation, a New York Corporation; Avon
Steamship Company, Inc., a New York Corporation, Defendants.

No. 89-2188.

United States Court of Appeals,
Fourth Circuit.

Argued June 4, 1990.
Decided Feb. 7, 1991.
As Amended Feb. 26, 1991.

James Joseph Nolan, Jr., Pierson, Pierson & Nolan, Baltimore, Md., for plaintiff-appellant.

Peter Joseph McNamara, Ober, Kaler, Grimes & Shriver, Baltimore, Md. (argued) (Richard R. Jackson, Jr., Ober, Kaler, Grimes & Shriver, Baltimore, Md., on the brief), for defendant-appellee.

Before PHILLIPS and WILKINSON, Circuit Judges, and BUTZNER, Senior Circuit Judge.

BUTZNER, Senior Circuit Judge:

Daniel C. Williams, a seaman, appeals a district court order granting Kingston Shipping Company's motion to reduce the attorney's fees previously awarded to Williams following his successful suit against Kingston for maintenance and cure. The district court initially awarded Williams an attorney's fee in the amount of $49,104. However, in response to Kingston's motion under Federal Rule of Civil Procedure 59(e), the district court reduced the fee by 75%, awarding a fee of $12,276. Because we believe that the district court's first allowance was correct and the second allowance was based on a faulty legal premise, we vacate the judgment and remand the case with directions to reinstate the first allowance.

* Williams served on the S.S. CAPRICORN, an oil tanker owned by Kingston. He suffered injuries inflicted by a shipmate. Kingston failed to provide maintenance and cure to Williams as required by maritime law, and Williams filed suit. He alleged four claims: count 1, negligence based on the Jones Act; count 2, a Jones Act claim based on respondeat superior; count 3, unseaworthiness; count 4, failure to pay maintenance and cure under general maritime law.

The district court granted Kingston summary judgment on the Jones Act claims because they were filed after the expiration of the statute of limitations. The remaining claims were heard by a jury, which found that Kingston had willfully and arbitrarily refused to pay maintenance and cure and its refusal aggravated Williams's illness, leaving him permanently disabled. The jury awarded him $162,088, of which $150,000 was damages for aggravation. Kingston prevailed on the unseaworthiness claim. On appeal, we upheld the summary judgment and the final order which the district court entered on the verdict. Williams v. Kingston Shipping Co., 859 F.2d 151 (4th Cir.1988) (unpublished).

In the present appeal, Williams seeks an attorney's fee of $67,487.86, representing one-third of his recovery plus interest in accordance with the contingency fee contract he made with his attorney. Alternatively, he seeks reinstatement of the judgment awarding a fee of $49,104. Kingston argues that the district court "did not abuse its discretion in awarding Williams $12,276 as reasonable attorney's fees in collecting maintenance and cure awards totaling $12,088."

II

Maintenance and cure provide a seaman who becomes ill or injured in the service of his ship lodging, board, and medical expenses until he reaches maximum recovery. The shipowner's willful, arbitrary failure to pay maintenance and cure gives rise to damages that include a reasonable attorney's fee. Vaughan v. Atkinson, 369 U.S. 527, 82 S.Ct. 997, 8 L.Ed.2d 88 (1962).

Contrary to the position asserted by Kingston, a lawyer's services in pursuing a complete remedy for a wrongful denial of maintenance and cure is not limited simply to the collection of funds for lodging, board, and medical expenses. "[F]ailure to give maintenance and cure may give rise to a claim for damages for the suffering and for the physical handicap which follows." Vaughan, 369 U.S. at 530, 82 S.Ct. at 999. In Cortes v. Baltimore Insular Line, 287 U.S. 367, 371, 53 S.Ct. 173, 174, 77 L.Ed. 368 (1932), the Court said: "If the failure to give maintenance and cure has caused or aggravated an illness, the seaman has his right of action for the injury thus done to him, the recovery in such circumstances including not only necessary expenses, but also compensation for the hurt."

A text summarizes the precepts of Vaughan and Cortes as follows:

The penalties for arbitrary or capricious failure to pay maintenance are money damages for any prolongation or aggravation of the physical injury suffered by the seaman; and for expenses incurred by the injured seaman; and for expenses incurred by the injured seaman to hire a lawyer to prosecute his claim for maintenance.

1B Benedict on Admiralty Sec. 54, 4-92 (7th ed. 1989) (derived from jury instructions furnished by Judge Alvin B. Rubin of the Fifth Circuit).

III

There is precedent in this circuit for awarding reasonable attorney's fees for successfully prosecuting a claim for maintenance and cure by giving effect to the contingent fee agreement without an analysis of the hours counsel spent on the case. For example, on remand of Vaughan, the contingent fee contract stipulated fees of 50%. The district court, reviewing all aspects of the case, determined that a fee of 45% was fair and reasonable and assessed the fee as damages. Vaughan v. Atkinson, 206 F.Supp. 575, 579 (E.D.Va.1962); accord Jordan v. Norfolk Dredging Co., 223 F.Supp. 79, 83 (E.D.Va.1963) (33 1/3% of recovery); see also Hurte v. Socony-Mobil Oil Co., 221 F.Supp. 885, 889-90 (E.D.Mo.1963) (33 1/3% of recovery).

Nevertheless, we reject Williams's contention that the district court erred by not awarding him a fee of 33 1/3% of his recovery on the basis of his contingent fee contract. The key to the attorney's fee component of a maintenance and cure award is reasonableness. Strictly speaking, the fee award in admiralty is an element of damage whose source is judicial precedent, not a fee-shifting statute. Fee-shifting statutes, however, also mandate that the award be reasonable. See, e.g., 42 U.S.C. Sec. 1988 (awards in civil rights cases). Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 1939, 76 L.Ed.2d 40 (1983), prescribes as the starting point for determining a reasonable fee in civil rights cases, the number of hours reasonably expended, multiplied by a reasonable hourly rate. This method of determining a fee has become known as the lodestar approach. The principles for determining a reasonable fee in civil rights cases are therefore appropriate for determining a reasonable fee in admiralty. The result is likely to reflect more precisely than a contingency fee the nature and extent of counsel's services. See Blanchard v.

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