EDMONDS v. COMPAGNIE GENERALE TRANSATLANTIQUE
No. 78-479
Supreme Court of the United States
June 27, 1979
443 U.S. 256
No. 78-479. Argued March 19, 1979—Decided June 27, 1979
Calvin W. Breit argued the cause for petitioner. With him on the briefs was C. Arthur Rutter, Jr.
Charles F. Tucker argued the cause for respondent. With him on the brief was John B. King, Jr.*
*Briefs of amici curiae urging reversal were filed by David R. Owen for Liberty Mutual Insurance Co.; and by Thomas D. Wilcox for the National Association of Stevedores.
Briefs of amici curiae urging affirmance were filed by Randall C. Cole-
Paul S. Edelman, Arthur Abarbanel, and Bernard M. Goldstein filed a brief for the Association of Trial Lawyers of America as amicus curiae.
MR. JUSTICE WHITE delivered the opinion of the Court.
On March 3, 1974, the S.S. Atlantic Cognac, a containership owned by respondent, arrived at the Portsmouth Marine Terminal, Va. Petitioner, a longshoreman, was then employed by the Nacirema Operating Co., a stevedoring concern that the shipowner had engaged to unload cargo from the vessel. The longshoreman was injured in the course of that work, and he received benefits for that injury from his employer under the Longshoremen‘s and Harbor Workers’ Compensation Act. 44 Stat. 1424, as amended,
A jury determined that the longshoreman had suffered total damages of $100,000, that he was responsible for 10% of the total negligence resulting in his injury, that the stevedore‘s fault, through a co-employee‘s negligence, contributed 70%, and that the shipowner was accountable for 20%.1 Following an established principle of maritime law, the District Court reduced the award to the longshoreman by the 10% attributed to his own negligence.2 But also in accordance with maritime law, and the common law as well, the court refused further to reduce the award against the shipowner in proportion to the fault of the employer.
The United States Court of Appeals for the Fourth Circuit, with two judges dissenting, reversed en banc, holding that the
I
Admiralty law is judge-made law to a great extent, United States v. Reliable Transfer Co., 421 U. S. 397, 409 (1975); Fitzgerald v. United States Lines Co., 374 U. S. 16, 20 (1963), and a longshoreman‘s maritime tort action against a shipowner was recognized long before the 1972 Amendments, see Pope & Talbot, Inc. v. Hawn, 346 U. S. 406, 413–414 (1953), as it has been since.6 As that law had evolved by 1972, a
We first held that the shipowner could not circumvent the exclusive-remedy provision by obtaining contribution from the concurrent tortfeasor employer. Halcyon Lines v. Haenn Ship Ceiling & Refitting Corp., 342 U. S. 282 (1952); Pope & Talbot, Inc. v. Hawn, supra; see Cooper Stevedoring Co. v. Fritz Kopke, Inc., 417 U. S. 106, 111–113 (1974). As a matter of maritime law, we also held that a longshoreman working on a vessel was entitled to the warranty of seaworthiness, Seas Shipping Co. v. Sieracki, 328 U. S. 85, 94 (1946), which amounted to liability without fault for most onboard injuries.10 However, we went on to hold, as a matter of con-
Against this background, Congress acted in 1972, among other things,11 to eliminate the shipowner‘s liability to the longshoreman for unseaworthiness and the stevedore‘s liability to the shipowner for unworkmanlike service resulting in injury to the longshoreman—in other words, to overrule Sieracki and Ryan. See Northeast Marine Terminal Co. v. Caputo, 432 U. S. 249, 260-261, and n. 18 (1977); Cooper Stevedoring Co. v. Fritz Kopke, Inc., supra, at 113 n. 6. Though admitting that nothing in either the statute or its history expressly indicates that Congress intended to modify as well the existing rules governing the longshoreman‘s maritime negligence suit against the shipowner by diminishing damages recoverable from the latter on the basis of the proportionate fault of the nonparty stevedore, 577 F. 2d, at 1155, and n. 2, the en banc Court of Appeals found that such a result was necessary to reconcile two sentences added in 1972 as part of
“In the event of injury to a person covered under this chapter caused by the negligence of a vessel, then such person, or anyone otherwise entitled to recover damages by reason thereof, may bring an action against such vessel as a third party in accordance with the provisions of section 933 of this title, and the employer shall not be liable to the vessel for such damages directly or indirectly and any agreements or warranties to the contrary shall
be void. If such person was employed by the vessel to provide stevedoring services, no such action shall be permitted if the injury was caused by the negligence of persons engaged in providing stevedoring services to the vessel.”
33 U. S. C. § 905 (b) .
The Court of Appeals described the perceived conflict in this fashion:
“The first sentence says that if the injury is caused by the negligence of a vessel the longshoreman may recover, but the second sentence says he may not recover anything of the ship if his injury was caused by the negligence of a person providing stevedoring services. The sentences are irreconcilable if read to mean that any negligence on the part of the ship will warrant recovery while any negligence on the part of the stevedore will defeat it. They may be harmonized only if read in apportioned terms.” 577 F. 2d, at 1155.
For a number of reasons, we are unpersuaded that Congress intended to upset a “long-established and familiar principl[e]” of maritime law by imposing a proportionate-fault rule. Cf. Isbrandtsen Co. v. Johnson, 343 U. S. 779, 783 (1952).
A
In the first place, the conflict seen by the Court of Appeals is largely one of its own creation. Both sides admit that each sentence may be read so as not to conflict with the other. The first sentence addresses the recurring situation, reflected by the facts in this case, where the party injured by the negligence of the vessel is a longshoreman employed by a stevedoring concern. In these circumstances, the longshoreman may sue the vessel as a third party, but his employer, the stevedore, is not to be liable directly or indirectly for any damages that may be recovered. This first sentence overrules Ryan and prevents the vessel from recouping from the
The second sentence of the paragraph is expressly addressed to the different and less familiar arrangement where the injured longshoreman loading or unloading the ship is employed by the vessel itself, not by a separate stevedoring company—in short, to the situation where the ship is its own stevedore.12 In this situation, the second sentence places some limitations on suits against the vessel for injuries caused during its stevedoring operations.13 Whatever these limitations may be, there is no conflict between the two sentences, and one arises only if the second sentence is read, as the Court of Appeals read it, as applying to all injured longshoremen, whether employed by the ship or by an independent stevedore. Nothing in the legislative history advises this construction of the sentence.14
Respondent insists that, even though the two sentences may deal with different business arrangements, problems still arise. If under the first sentence a third-party suit against the vessel is authorized when any part of the negligence causing the injury is that of the vessel, it is argued that suit against the vessel under the second sentence should be barred when any part of the negligence causing the injury is that of a coworker also providing stevedoring services to the vessel. Under this interpretation, the employee of the independent stevedore could recover from the ship where the stevedore was responsible for 99% of the negligence, though a ship‘s employee performing stevedoring services could not hold the vessel liable if his co-worker‘s negligence was the slightest cause of the injury.15 This is said to be preposterous and contrary to the legislative intent to treat the vessel that provides its own stevedoring services just like other shipowners when and if it negligently causes injury in its capacity as a shipowner and just like other stevedores when it negligently injures in the course of providing its own loading or unloading services.16
Aside from the fact that the problem suggested would arise only in the application of the second sentence, which is not involved in this case, the argument that the words “caused by the negligence of” in the two sentences must be given the same meaning and that they cannot have the meaning ascribed to them by petitioner‘s construction of the first sentence, logically leads to the conclusion that the injured
This leaves the question of the measure of recovery against a shipowner, whether or not it is doing its own stevedoring, when as shipowner it is only partially responsible for the negligence, but we are quite unable to distill from the face of the obviously awkward wording of the two sentences any indication that Congress intended to modify the pre-existing rule that a longshoreman who is injured by the concurrent negligence of the stevedore and the ship may recover for the entire amount of his injuries from the ship.
B
The legislative history strongly counsels against the Court of Appeals’ interpretation of the statute, which modifies the longshoreman‘s pre-existing rights against the negligent vessel. The reports and debates leading up to the 1972 Amendments contain not a word of this concept.17 This silence is most eloquent, for such reticence while contemplating an
C
Finally, we note that the proportionate-fault rule adopted by the Court of Appeals itself produces consequences that we doubt Congress intended. It may remove some inequities, but it creates others and appears to shift some burdens to the longshoreman.
As we have said,
Under this arrangement, it is true that the ship will be liable for all of the damages found by the judge or jury; yet its negligence may have been only a minor cause of the injury. The stevedore-employer may have been predominantly responsible; yet its liability is limited by the Act, and if it has lien rights on the longshoreman‘s recovery it may be out-of-pocket even less.
Under the Court of Appeals’ proportionate-fault rule, however, there will be many circumstances where the longshoreman will not be able to recover in any way the full amount of the damages determined in his suit against the vessel. If, for example, his damages are at least twice the benefits paid or payable under the Act and the ship is less than 50% at fault, the total of his statutory benefits plus the reduced recovery from the ship will not equal his total damages. More generally, it would appear that if the stevedore‘s proportionate fault is more than the proportion of compensation to actual damages, the longshoreman will always fall short of recovering the amount that the factfinder has determined is necessary to remedy his total injury, even though the diminution is due not to his fault, but to that of his employer.24
But the impact of the proportionate-fault rule on the longshoreman does not stop there. Under
Some inequity appears inevitable in the present statutory scheme, but we find nothing to indicate and should not presume that Congress intended to place the burden of the inequity on the longshoreman whom the Act seeks to protect.27 Further, the 1972 Amendments make quite clear that “the employer shall not be liable to the vessel for such damages directly or indirectly,”
II
Of course, our conclusion that Congress did not intend to change the judicially created rule that the shipowner can be made to pay all the damages not due to the plaintiff‘s own negligence does not decide whether we are free to and should change that role so as to make the vessel liable only for the damages in proportion to its own negligence. Indeed, some amici in support of respondent share the view that Congress did not change the rule but argue that this Court should do so. We disagree.
Though we recently acknowledged the sound arguments supporting division of damages between parties before the court on the basis of their comparative fault, see United States v. Reliable Transfer Co., 421 U. S. 397 (1975),30 we
Accordingly, we reverse the judgment below and remand for proceedings consistent with this opinion.
It is so ordered.
MR. JUSTICE POWELL took no part in the consideration or decision of this case.
MR. JUSTICE BLACKMUN, with whom MR. JUSTICE MARSHALL and MR. JUSTICE STEVENS join, dissenting.
The jury in this case found that the shipowner, the stevedore, and the longshoreman were each partially responsible
The Court holds that the shipowner, who was 20% negligent, must pay 90% of Edmonds’ damages. Edmonds, because of his comparative negligence, must absorb 10% of the damages himself. But the stevedore, who, the jury determined, was 70% at fault, will recoup its statutory compensation payments out of the damages payable to Edmonds, and thus will go scot-free.1
The Court does not, and indeed could not, defend this result on grounds of reason or fairness. Today‘s ruling means that concurrently negligent stevedores will be insulated from the obligation to pay statutory workmen‘s compensation benefits, and thus will have inadequate incentives to provide a safe working environment for their employees. It also means that shipowners in effect will be held vicariously liable for the negligence of stevedores, and will have to pay damages far out of proportion to their degree of fault. Nor does the Court suggest that its holding is compelled by the language or legis-
I
The Court begins with the proposition that, under the law maritime as it existed in 1972, the shipowner could not reduce its liability because of the comparative negligence of the stevedore: I am not entirely convinced. None of the decisions cited by the Court, ante, at 260 n. 7, stands for this proposition; the cases relied upon all concern the conceptually distinct problem—to which the Court has given varying answers—of whether there is a right of contribution among joint tortfeasors.2 I am willing to assume, however, for purposes of argument, that the Court has correctly stated the “traditional” admiralty rule.
The Court next states that Congress itself did not impose a rule of comparative negligence when it adopted
I cannot agree, however, with the Court‘s third proposition: that Congress intended to prohibit this Court from fashioning a rule of comparative negligence in suits for damages by a longshoreman against the shipowner. It is well established that courts exercising jurisdiction in maritime affairs have broad powers of interstitial rulemaking. As the Court stated in United States v. Reliable Transfer Co., 421 U. S. 397, 409 (1975), “the Judiciary has traditionally taken the lead in formulating flexible and fair remedies in the law maritime, and ‘Congress has largely left to this Court the responsibility for fashioning the controlling rules of admiralty law.’ Fitzgerald
The Court suggests that Congress, in enacting
“[T]he Committee does not intend that the negligence remedy authorized in the bill shall be applied differently in different ports depending on the law of the State in which the port may be located. The Committee intends that legal questions which may arise in actions brought under these provisions of the law shall be determined as a matter of Federal law. In that connection, the Committee intends that the admiralty concept of comparative negligence, rather than the common law rule as to contributory negligence, shall apply in cases where the injured employee‘s own negligence may have contributed to causing the injury. Also, the Committee intends that the admiralty rule which precludes the defense of ‘assumption of risk’ in an action by an injured employee shall also be applicable.” Id., at 12.
In other words, Congress specifically reaffirmed the admiralty law tradition in the 1972 Amendments, and intended that this Court would continue to resolve “legal questions which may arise in actions brought under these provisions” in accordance with that tradition.
In short, in this case, as in Reliable Transfer, 421 U. S., at 409, “[n]o statutory or judicial precept precludes a change in the rule [that the shipowner is fully liable for the concurrent negligence of the stevedore], and indeed a proportional fault rule would simply bring recovery [as between the steve-
II
I am also convinced that no injustice to injured longshoremen would result from a rule of comparative negligence. A rule of comparative negligence in no case would reduce the longshoreman‘s total award below his statutory workmen‘s compensation benefits.4 The rule of comparative negligence would affect only the relative proportion of statutory benefits and damages in the longshoreman‘s total compensation package. In the present case, for example, a rule of comparative negligence would mean the longshoreman would receive 20% damages and 80% statutory benefits, as opposed to 90% damages and 10% statutory benefits.
At first blush, it might appear that there is something unfair about reducing the total potential award of the longshoreman in this manner. But when the different purposes of the statutory compensation scheme and the third-party action for negligence are considered, it can be seen that this result is fully consistent with the policies of the statute. The LHWCA statutory compensation scheme, like other workmen‘s compensation plans, is based on a compromise. The longshoreman accepts less than full damages for work-related injuries. In exchange, he is guaranteed that these statutory benefits will be paid for every work-related injury without regard to fault. The third-party tort action, in contrast, embodies an element of risk. The longshoreman faces the prospect of an increased award, but also the possibility of receiving nothing if the shipowner is found not to have been negligent.
III
In sum, this case presents the relatively common situation where a statute is open to two interpretations, and the legislative history, although instructive as to the overriding purposes of Congress, provides no specific guidance as to which
