Admiralty Final Exam Outline – Hyde – Fall 2011



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§ 781)

  1. Venue is the District Court where the ship is and if it is outside territorial waters it is where the Π is.

  • Suits in Admiralty Act (SAA)

    1. Applies to cases (1) where the government vessels and cargo are involved and (2) in cases where if a private person or property were involved, a proceeding in admiralty could be maintained (§§ 742, 743)

    2. Has a 2 year Statute of Limitations

  • Defenses to Sovereign Immunity

    1. Discretionary Function Exception

      1. Government cannot be liable where it gave an agency discretion do something and they exercised discretion negligently

        1. Discretion

          1. Is there a statute, regulation, or even silence granting agency discretion

        2. Conduct has to be susceptible to public policy analysis

          1. Conduct of kind that would be evaluated (i.e. navigation aids)

      2. Meant to be in the discretion and policy decisions of the US

    2. Statute of Limitations Has Tolled while Agency Acts

  • General Average and Salvage

    1. General Average

      1. Definition

        1. Principle of law in which all parties in a sea venture PROPORTIONALLY share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency!

      2. Elements

        1. Peril must endanger both vessel and cargo

        2. There has to be a voluntary sacrifice

        3. A general peril had to have been avoided

        4. Vessel owner must have been free from fault or negligence

    2. Salvage

      1. Owner maintains right of possession (Owner has Salvage lien over property)

      2. The law is more generous to the salvager because of Public Policy

        1. We want people to help out saving people and ships

      3. Two Types

        1. Voluntary/Pure

          1. Elements that must be present for Voluntary Salvage

            1. Maritime Peril

              1. Peril to the vessel for which it needs assistance

            2. Voluntary Service Rendered

            3. Success in Whole or In Part

          2. The Blackwall

            1. Judicial set of criteria to determine what the measure of salvage will be

              1. Courts will look at your effort and determine the amount of salvage you should get based on elements of

                1. Degree of Danger salvage property is rescued from

                2. Salvage Property’s Value

                3. Risk incurred by the Salvors

                4. Salvor’s Promptness, Skill, and Energy

                  1. Degree of Skill used by the Slaver to save the vessel (property)

                5. Time and Labor

                  1. Statistical Time that took the salvage of the vessel

                6. Value of Salvor’s Propety at Risk

                  1. Value of the property that the salver put at risk to save other party’s property

            2. Another factor a Salvor can collect form is for preventing or minimizing damage to the environment

        2. Contractual

          1. Salvage negotiated ahead of time

            1. It doesn’t matter if anything of the vessel was saved at all

          2. Flagship Marine Services

            1. Implied Salvage Contract was created

              1. One party asked “what will you charge me” and the other answered “we will worry about it later”

                1. This constituted a contract for salvage and prohibited Flagship from recovering under the Voluntary/Pure Rule

  • Workers Injuries: Maritime Workers

    1. Longshoremen

      1. Northeast Marine

        1. Longshoreman  Have to be (1) doing at least quasi-traditional maritime activity (2) near or on navigable waters

          1. Situs Near or on Navigable Waters

          2. Status Doing Quasi-Maritime Activity

      2. LHWCA (Longshore and Harbor Worker’s Compensation Act)

        1. You get 1/3 to 2/3 of your working wage plus cure for medical expenses

          1. Way more than Jones Act Seaman ($22 a day)

        2. CANNOT sue an employer with LHWCA insurance

          1. The only party a longshoreman can sue is the owner of the vessel

            1. Owner CANNOT seek indemnification from the employer even though the employer has a maritime lien that encompasses medical and lost wages

        3. 905(b) Actions Against Third Parties

          1. Reynolds

            1. If you are a maritime worker and (1) your primary purpose is NOT to further the function of the vessel, and (2) you do not spend more than 40% of the time at sea then you are NOT a seaman

              1. If you are a maritime worker who is not a seaman then you are a longshoreman

          2. Hullinghorst Industries

            1. If your employee is considered a maritime employee (longshoreman) within the meaning of LHWCA then you are a company that employs longshoreman

          3. Three Duties of Ship Owner to Longshoremen – Scindia!

            1. Turnover Duty to Warn

              1. If there is a hidden problem that the average person would not be able to figure out, the ship owner must warn of this to make sure the charter knows about it

                1. Narrowly interpreted

                  1. Latent Defects and not Patent Defects are covered because Longshoreman is an expert.

            2. Active Operations/Control

              1. If the ship owner actively participates in managing the operations of the charter, then the ship owner has a duty to keep workers safe

            3. Duty to Intervene

              1. If the ship owner sees something unsafe happening or if the stevedore is going something that is unsafe, then the ship owner MUST stop it

  • Insurance

    1. Marine insurance should be governed by federal admiralty law provided that there is a well-settled applicable federal statute

    2. Hull Policy

      1. Protection against loss or damage to owner’s vessel, not for damages to third parties

      2. At the beginning of the policy the parties come to an agreement as to the value of the vessel

        1. The total value loss will be met if repairs pass the agreed amount

    3. P & I Policy Protection Indemnity

      1. Provides liability insurance for people when they come on the vessel

        1. Covers death, injury, collision, damage to other vessels, and certain shore-side installations, cost of wreck removal, and loss of cargo.

    4. LHWCA  Only protects the employer of longshoremen





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