U.S. Supreme Court Makes an Injured Seaman’s Right to Punitive Damages a Reality in Maintenance and Cure Lawsuits
On June 25, 2009, the US Supreme Court issued its opinion on the rather limited question presented for its review in Atlantic Sounding Co., Inc., et al. v. Edgar Townsend: whether an injured seaman may recover punitive damages for his employer’s willful failure to pay maintenance and cure. According to the 5:4 majority opinion, the answer is yes.
We would recommend that those readers who may be unfamiliar with maritime law jurisprudence review the following blogs for background information on the Jones Act, and the Doctrines of Unseaworthiness and Maintenance and Cure.
As of date of this blog, only the Slip Opinion as been published. This blog will be updated in the future with actual citation page references once the complete citation becomes available.
In Atlantic Sounding Co., Inc. v. Townsend, the owner of a tugboat advised a crewman injured aboard the tugboat, that it would not provide maintenance and cure. See 496 F. 3d 1282 (CA11 2007). The tugboat owner subsequently filed an action for declaratory relief regarding their obligations with respect to maintenance and cure. The injured seaman then filed his own lawsuit against the vessel owner under the federal Jones Act alleging negligence and unseaworthiness, and arbitrary and willful failure to pay maintenance and cure, and wrongful termination. The Plaintiff also had filed similar counterclaims against the vessel owner in the declaratory action judgment, seeking punitive damages for the denial of maintenance and cure. Id. at 1283-1284
The vessel owner in Atlantic Sounding moved to dismiss the injured seaman’s punitive damages claim. The 11th Circuit of Appeals affirmed the district court’s ruling that punitive damages were available in an action for maintenance and cure under the U.S. Supreme Court’s decision in Hines v. J.A. Laporte, Inc., 820 F. 2d 1187, 1189 (CA 11 1987). Atlantic Sounding, Slip Op. at 1284.
Due to a conflict among the circuits concerning the availability of punitive damages under maintenance and cure actions, the U.S. Supreme Court granted certiorari. In a 5 to 4 decision issued on June 25, 2009, the Court held that injured seaman may recover punitive damages for his employer’s willful failure to pay maintenance and cure. Atlantic Sounding Co., et al. v. Townsend, 557 U.S. 2009, Slip Op. at 1. Justice Clarence Thomas delivered the opinion of the Court.
The majority opinion first noted that “[p]unitive damage awards have long been an available remedy at common law for wanton, willful, or outrageous conduct” to establish that punitive damages are “nothing new” in American Jurisprudence. Punitive damages are intended to compensate the injured or damaged party above and beyond compensatory damages for particularly egregious conduct on the part of the defendant.
Justice Thomas’ opinion included a review of the long history behind the development of maritime common law jurisprudence during the 1800s and pointed out that in 1893, the High Court in Lake Shore & Michigan, Southern R. Co. v. Prentice, 147 U.S. 101, 108 (1893) had held that “[t]he general rule that punitive damages were available at common law extended to claims arising under federal maritime law.” Atlantic Sounding, Slip Op. at 5.