AMERICAN COMMERCIAL BARGE LINE COMPANY v. Roush
AMERICAN COMMERCIAL BARGE LINE COMPANY v. Roush
Opinion
The plaintiffs American Commercial Barge Line Company and American Commercial Barge Line LLC (hereinafter jointly referred to as "ACBL") sued Allen Chase Roush for indemnification for "maintenance" and "cure" payments ACBL had made to its employee Roy Hester. ACBL made those payments to Hester because Hester, who had been a passenger in an automobile driven by Roush, was injured in an accident while en route to his vessel. Roush moved to dismiss the action, arguing that Alabama law did not recognize a right of indemnity for maintenance and cure payments in the absence of a contractual or statutory right. The trial court granted that motion. ACBL appeals. For the reasons discussed below, we reverse and remand.
On October 27, 1999, ACBL filed this action against Roush, alleging that Roush had negligently or wantonly caused the automobile accident in which Hester was injured. Further, ACBL alleged that it had not been at fault in any way in regard to the automobile accident and, thus, it argued that it was entitled to indemnification from Roush for the amount of the maintenance and cure payments it made to Hester.
Roush moved the trial court to dismiss the action, arguing that Alabama law did not recognize a cause of action for indemnification of maintenance and cure payments. In addition, Roush argued, even if Alabama law did recognize such a cause of action, ACBL's action was barred by the statute of limitations because ACBL had filed it more than two years after the date of the accident. The trial court dismissed the action. ACBL appealed.
An initial question we must address concerns the body of law applicable. In short, is this case governed by maritime law or by the law of Alabama? ACBL argues that this case is governed by maritime law, and we agree.
We note that at least one court has held that maritime law does not apply in a similar situation. In Jones v. Waterman Steamship Corp.,
"There is less reason to follow the Third Circuit in its assumption that the indemnity action is not a maritime law question and that state law applies. The maintenance and cure action is of course maritime and will be governed by maritime law no matter in what court it is pursued. The indemnity action seems closely enough related to be equally considered as maritime: indeed only the Third Circuit in the Waterman opinion has ever suggested that it was not."
Gilmore and Black, supra, § 6-8, p. 319 (footnotes omitted). Gilmore and Black also note that at least one court has implicitly rejectedWaterman's conclusion that state law applies. See Gilmore and Black, p. 319 n. 89, citing Richardson v. St. Charles-St. John the Baptist Bridge Ferry Auth.,
Our holding in Sheffield v. Owens-Corning Fiberglass Corp.,
Id. at 447."Although the claims of the plaintiffs against the shipowners for Jones Act negligence and unseaworthiness are not at issue in this appeal, it is undisputed that federal law governs those claims. It follows, therefore, that federal maritime law also governs the indemnity claims of the shipowners against [third-party defendants.] Vaughn v. Farrell Lines, Inc.,
937 F.2d 953 ,956 (4th Cir. 1991) (where the `underlying tort claims from which the indemnity claim is derived . . . are maritime tort claims,' the `"indemnity claim arising therefrom is similarly a maritime claim"'); White v. Johns-Manville Corp.,662 F.2d 243 ,247 (4th Cir. 1981); Swogger v. Waterman S.S. Corp.,151 A.D.2d 100 ,546 N.Y.S.2d 80 *Page 729 (1989); T. Schoenbaum, Admiralty and Maritime Law § 4-15, at 146 (1987) (`There is admiralty jurisdiction over controversies involving contribution and indemnification if jurisdiction exists over the underlying primary cause of action')."
This indemnity action arises out of the shipowner's payment of maintenance and cure to the injured seaman, Hester. Therefore, in light of this Court's analysis in Sheffield, and in light of the other authorities discussed above, we conclude that maritime law applies in this case. But see Diamond Blue Charter, Inc. v. Wolfin,
State courts have concurrent jurisdiction with federal courts over cases involving maritime law, and when a maritime action is brought in a state court the state court must apply the principles of maritime law.Continental Cas. Co. v. Canadian Universal Ins. Co.,
We recognize that there is not complete agreement among the federal circuit courts that have considered the question whether a shipowner may be awarded indemnification against a third-party tortfeasor who is not bound by any kind of contractual relationship with the injured seaman or the shipowner. The United States Court of Appeals for the Ninth Circuit has held that a shipowner does not have a right of indemnification in such a situation. United States v. Gallagher,
Despite the Ninth Circuit's conclusion, we believe the better analysis to be that applied by the United States Courts of Appeals for the Second and Fifth Circuits. The Fifth Circuit has held that a "shipowner may recover those payments from a third-party whose negligence partially or wholly caused the seaman's injury." Bertram v. Freeport McMoran, Inc.,
With regard to the question whether ACBL's indemnification claim is barred by the statute of limitations, we note that in an action seeking indemnification the limitations period does not begin to run until liability has become fixed. See Central Rivers Towing, Inc. v. City ofBeardstown,
REVERSED AND REMANDED.
Hooper, C.J., and Cook, Brown, and Johnstone, JJ., concur.
Lyons, J., recuses himself.
Reference
- Full Case Name
- American Commercial Barge Line Company and American Commercial Barge Line LLC v. Allen Chase Roush.
- Cited By
- 10 cases
- Status
- Published