Sawyer Brothers, Inc. v. Island Transporter, LLC
887 F.3d 23
1st Cir.2018Background
- Sawyer Brothers contracted Island Transporter to ferry three trucks (including a Mack crane truck owned by Sawyer Brothers) and drivers from Rockland to North Haven on December 11, 2014; rough seas caused two trucks to tip and strike the vessel's port bulwark.
- Passengers (Ryan and Ross Sawyer) escaped without physical injury; the Mack truck was ultimately declared a total loss by insurer.
- District court after a bench trial found Captain Morse negligent for failing to lash the Mack and the cement truck to D‑rings, awarded Sawyer Brothers replacement-cost damages for the Mack truck (less insurance recovery), lost profits, $5,025 for damaged plywood, and $100,000 ($50,000 each) for emotional distress.
- Island Transporter appealed, contesting negligence (foreseeability and rogue-wave defense) and all damage awards.
- First Circuit affirmed negligence and most damages, held (as an issue of first impression in the circuit) that maritime plaintiffs within the "zone of danger" may recover for negligent infliction of emotional distress (NIED); vacated panel damage award and remanded to correct that element.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Negligence/foreseeability of rough seas | Captain should have foreseen rough seas (Coastal Waters forecast and buoy data relevant) and lashed vehicles | Route lay within Penobscot Bay forecast (2–4 ft); Coastal Waters forecast irrelevant; incident was caused by unforeseeable rogue waves | Affirmed negligence: Coastal Waters forecast and buoy data were relevant; rogue‑wave claim rejected (credibility, video, buoy/forecast data) |
| Measure and proof of Mack truck damages (fair market vs replacement) | Market for comparable truck was thin; replacement cost was appropriate alternative measure | Court could determine fair market value (Island Transporter expert and Ryan Sawyer testimony) | Replacement cost used after finding fair market value not reasonably established; deduct insurance recovery; award affirmed |
| Salvage value / real party in interest | N/A (Sawyer Brothers retained standing) | Salvage value should reduce award; insurer was real party in interest | Salvage value was forfeited to insurer as condition of $80,000 insurance settlement; insurer paid only part of loss so Sawyer Brothers remained real party in interest; no further deduction required |
| NIED (standard and recovery) | Plaintiffs within zone of danger and suffered objectively determinable physical consequences -> recover | Court should require contemporaneous physical impact (more restrictive test) or deny physical‑consequence findings | Held: Plaintiffs within zone of danger may recover for NIED under general maritime law; district court did not clearly err on zone‑of‑danger or physical‑consequence findings; emotional distress awards affirmed |
Key Cases Cited
- Kermarec v. Compagnie Generale Transatlantique, 358 U.S. 625 (1959) (shipowner's duty of reasonable care to those lawfully aboard)
- Commercial Molasses Corp. v. N.Y. Tank Barge Corp., 314 U.S. 104 (1941) (carrier's duty to exercise due care in protection of goods)
- DiMillo v. Sheepscot Pilots, Inc., 870 F.2d 746 (1st Cir. 1989) (captain's duty includes monitoring weather; breach when nautical experience would condemn decision)
- Petition of the U.S., 418 F.2d 264 (1st Cir. 1969) (recognized NIED recovery under general maritime law; discussed physical‑impact and physical‑consequence concepts)
- Consol. Rail Corp. v. Gottshall, 512 U.S. 532 (1994) (zone‑of‑danger test applies to NIED claims under FELA)
- The Umbria, 166 U.S. 404 (1897) (limits on recovering speculative future profits for total loss of a vessel)
- Standard Oil Co. of N.J. v. S. Pac. Co., 268 U.S. 146 (1925) (market value as ordinary measure of damages; use comparable sales to determine fair market value)