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Ryan Stevedoring Co. v. Pan-Atlantic Steamship Corp.
350 U.S. 124
SCOTUS
1956
Check Treatment

*1 RYAN STEVEDORING CO., INC. PAN-

ATLANTIC STEAMSHIP CORP. Argued No. 4. 3-4, 1955; equally March affirmed divided Court, April 11, 1955; granted, May rehearing 16, 1955; reargued 11-12,

October January 9, 1955. Decided *2 petitioner. for cause the argued Schwarts A. Sidney Ash. Edward was brief the him on With respondent. for cause the argued Behrens J. Edward Lawson. H. Charles brief on the himWith Leavenworth 948, S. 348 U. Court, of leave special By amicus States, as the United cause the argued Colby were brief him With affirmance. curiae, urging Attorney General Sobeloff, Assistant General Solicitor Marcuse. Herman Sweeney and A. Burger, Paul opinion the delivered Burton Mr. Justice of liability the toas questions two presents case This a reimburse stevedoring contractor a contractor’s the of to one latter the paid in himby received injuries account on longshoremen first 1. The shipboard. on employment of his course Harbor and Longshoremen’s whether is question a precludes Act1 Compensation Workers’ is whether The second liability. asserting such entering without contractor, where exists per- contracts indemnity, agreement express into long- and operations stevedoring form unsafe contractor’s by the are caused injuries shoreman’s hereafter reasons For cargo. ship’s stowage negative in the question first answer we stated, affirmative. second Corpora- Steamship Pan-Atlantic respondent, In Canton the SS. operated corporation, Delaware tion, a seq. 901 et C. amended, S.U. § seq., as et 1 44 Stat. in Victory the American coastwise trade under a bareboat charter. As evidenced letters, but without a formal stevedoring express contract an indemnity agreement, respondent secured, for year, agreement peti- tioner, Ryan Stevedoring Co., Inc., corpora- an Alabama tiоn, perform all operations required by respondent coastwise its service. Pursuant to that contract, petitioner loaded the Victory Canton at George- town, South Carolina, with cargo. mixed This included pulpboard, such used making corrugated paper paper bags, shipped in rolls 4 feet wide and 3 to 5 feet long. Petitioner stowed some of these rolls side-by-side on the floor of Hatch 3No. and “nested” others above them by placing upper rolls troughs between the lower ones. To immobilize rolls, *3 was necessary to secure or “chock” the bottom tier with wedges or with pieces miscellaneous of wood known as “dunnage.” There is little evidence as to what place took when the rolls were stowed at Georgetown but it was the uniform practice petitioner’s longshoremen to stow such cargo under the immediate direction of their hatch fore- men, while respondent’s cargo supervised officers the load- ing ship entire and had authority to reject unsafe stowage.

A days few later, July on 20, in navigable water at a pier in Brooklyn, New York, petitioner engaged in unloading these rolls. While one of petitioner’s Brooklyn longshoremen, Palazzolo, Frank in working was Hatch 3,No. roll, one weighing 3,200 about pounds, broke loose from the others, him struck violently and severely injured his leg. left There is no evidence that he negligent. On hand, the other it appears that the in rolls Hatch No.

3 had been insufficiently secured when by peti stowed tioner in Georgetown. This is established by the absence proper wedges dunnage holding the in place rolls the time at of the accident. Longshoremen’s under carrier insurance

Petitionеr’s and furnished compensation $2,940 Palazzolo paid any all without $9,857.36, costing services medical him per- As Commissioner. Deputy by award formal respondent- sued the Palazzolo Act, of that by § mitted He York.2 of New Supreme Court which cargo, stowage unsafe claimed that the unseaworthi- either injuries, established his caused failing in shipowner’s negligence ship, or the ness or both. work, place safe him with a to furnish District States to the United the case removed filed York and of New District Eastern for the Court stipula- By petitioner. against complaint third-party tried shipowner was against case tion, Palazzolo’s $75,000. favor for his a verdict returned jury, disability for which or death (a) of a on If account “Sec. to such person entitled this Act payable under compensation is than the person other some compensation determines deputy elect, giving notice may damages, he is liable may pro Secretary Labor] [of such manner commissioner damages recover compensation or to such vide, to receive person. third such in a com- an award compensation under Acceptance of “(b) such operate as an shall deputy commissioner order filed pensation to com- person entitled right of the employer of all assignment person. against such third pensation to recover has carrier insurance insured and employer is “(i) Where *4 shall insurance carrier the compensation, payment of the assumed section.” employer under this rights of the subrogated to all be (i). (b) (a) 933 amended, C.S. 1440, 33 § as XJ. 44 Stat. 19, 44 see compensation, § an award secure procedure For C. 919. amended, S. 33 U. 1435-1436, § Stat. his payments from compensation accepting after longshoreman, A for his third-party tortfeasor may award, sue an without employer 446, 454-456. Porello, S. 330 U. v. Stevedores American injuries. shipowner for unsea may recover he permit, facts If the Hawn, 346 Pope Talbot & or both. negligence, worthiness, or for U. S.

128 judgment jury entered on the verdict. The District Court sum, petitioner’s above insurance carrier was to From the $12,797.36 reimbursed for the it had advanced because be injuries. of Palazzolo’s shipowner’s third-party

Also com- stipulation, plaint judge was submitted on the same record to the who presided had over Palazzolo’s case. He dismissed the Ill complaint. Supp. Appeals F. 505. The Court of judgment affirmed Palazzolo’s but reversed dismissal judgment and directed that third-party complaint of the Petitioner, 211 shipowner. be for the 2d 277. entered F. contends that the order re- stevedoring contractor, impleader suit is erroneous. versing dismissal application of the wide of the case and the con- Because expressed issues, that have been we flicting views 348 S. 813. The United States granted certiorari. U. in support filed a brief as amicus curiae in the oral 348 S. 948. The part argument. and took U. affirmed judgment equally Court, divided was restored to the docket for S. but the case U. Court, before a full S. 926. reargument U. question Longshoremen’s whether 1. The first Compensation precludes by ship- assertion it, liability contractor’s owner aof the contractor is also the where injured longshoreman. below question, although

Neither court discussed this petitioner presented argument it to them. Petitioner’s upon following provision Longshore- is based and Harbor Act: Compensation men’s Workers’ liability employer prescribed

“Sec. 5. The anof be cоmpensation] section shall exclusive and [for all other such place employer to the representative, his employee, legal wife, husband or

129 other- anyone kin, and next of dependents, parents, employer such damages recover to wise entitled injury or such admiralty on account law or at of pay- to secure fails employer if death, an except Act, an by this required compensation of ment in case representative legal or his ‍​​‌​‌​​​‌‌‌​​‌‌​​​​​‌‌‌​‌‌‌​​‌​​‌‌‌​​‌​‌​​‌​‌​‌‌‍employee, injured to claim may elect injury, from the results death to maintain or Act, under compensation damages on account admiralty for at or action law supplied.) (Emphasis . . .” or death. injury of such 33 § S. C. 1426, 44 Stat. U. make the is to provision of this purpose

The obvious its to to contribute employer of an liability statutory such liability exclusive еmployee’s compensation of or claiming under anyone or employee, its to employer injury or death his on account employee, through such employee, return, In arising employment. out given are through him, or claiming under and those com- form of an assured quo quid pro substantial their as a substitute regardless of pensation, fault, prescribes the Act hand, On the other claims. excluded pay compelled that is quo for a quid pro no full amount of for the against it obtained judgment damages.3 longshoreman’s excludes expressly 5 of the Act

Section entitled employee,” others, “to injury or [employee’s] of such “on account recover it excludes case, instant Therefore, death.” contractor, however, re has case, instant In the assuming quo quid pro from the ceived a contractual rеsponsibility for the resulting doring ance Bethlehem bray v. requirements, those Merryweather, Shipbuilding Corp. v. requirements. shipowner from the contractor’s including proper performance [1895] See 2 B. 640 Restatement, Q. Gutradt discharge of all of Co., (C. of foreseeable Contracts, A.). improper F. 2d latter’s §§ 769; Mow perform steve- 330; *6 liability longshore- contractor to its man, and to his on kin, long- account of the injuries. shoreman’s At time, same however, § expressly preserves to each a employee right to recover damages against persons.4 third preserves It thus right, Palazzolo has exercised, to recover damages shipowner from the present case. The Act nowhere expressly or limits a shipowner’s excludes right, a third person, to insure itself against such a liability either aby bond of indemnity, or the own agreement contractor’s save harmless. agreement Petitioner’s the instant case amounts to the latter for, as will be shown, it is a undertaking contractual the cargo stow “with safety” reasonable and thus to save the shipowner harm- less petitioner’s from failure to do so.

In the face of formal a bond of indemnity this statute clearly does not cut off a shipowner’s right to recover from a bonding company the reimbursement indemnitor, for good has consideration, expressly con- tracted to pay. Such springs from an inde- pendent contractual right. It is an action or on behalf of the employee and it is not one to recover dam- ages “on of” an employee’s account “injury or death.” It is a simple action to recover, under a voluntary and self-sufficient contract, a sum measured foreseeable damages occasioned to the shipowner by injury death of a longshoreman on its ship.

A like result occurs where a shipowner sues, for breach of warranty, supplier of defective ship’s gear that has caused injury or to a longshoreman death using it in the course of his employment on shipboard. And a like liability for breach contract accrues to a against a stevedoring contractor in any instance when the (a) swpra.

4 See 33 in note § on injury causes cargo stowage improper latter’s employees. its one of other than one to-some shipboard happens here loading contractor coincidence no makes longshoreman injured to be pro Compensation While principle. difference brought actions from stevedoring contractor tects tortious the contractor’s on еmployee account byit its has the contractor employee, injury to causing conduct consequences the full for relief ground logical no as voluntarily obligation, contractual independent its See properly. cargo load the shipowner, sumed *7 446; ello, 330 S. Por U. v. Stevedores Crawford American v. Brown 792-793; Talbot, 206 2dF. & Pope v. Rich v. United 16; Co., 2d 211 F. S. S. American-Hawaiian Stevedoring Arrow States United 688; F. 2d States, 177 329.5 Co., 2d 175 F. a tort upon not founded here is action shipowner’s

The owes contractor stevedoring any duty upon or grounded is complaint third-party employee. to its obli- consensual purely of its breach upon contractor’s 5 Compensation history of the legislative nothing in the is There of that interpretation interpretation. Our contrary calling Act Compensa York Workmen’s by of the New that supported also Aсt is the— provides that Act The latter it is modeled. upon which tion last prescribed compensation] “liability [for of an any other place of be exclusive shall preceding section husband, representatives, personal employee, his whatsoever, to such entitled anyone otherwise kin, or of or next dependents parents, of such on account otherwise or law damages, common at recover Com Laws, Workmen’s McKinney’s Y.N. .” . . . injury or death Law, 11. pensation § Corp., County 278 v. Westchester Lighting Co. Westchester See com- reached have courts state Other 2d 567. 175, N. E. Y.N. respective in their liability clauses exclusive as to parable results Law, Compensation Larson, Workmen’s Acts. Compensation (a). §§76.00-76.44

gation owing to the shipowner cargo stow the in a reasonably safe manner. Accordingly, shipowner’s action for indemnity on that basis is not barred Compensation Act.6

2. The other question whether, ‍​​‌​‌​​​‌‌‌​​‌‌​​​​​‌‌‌​‌‌‌​​‌​​‌‌‌​​‌​‌​​‌​‌​‌‌‍is in the absence agreement

express indemnity, con- obligated tractor to reimburse a shipowner for byit caused improper contractor’s stow- age cargo.

The answer to this is found the precise ground of the shipowner’s By action. hypothesis, its action is not based on a bond of indemnity such as it may purchase by way of insurance, may require of its stevedoring contractor, and which expressly undertakes to shipowner save the If harmless. did hold such an express agreement of indemnity here, it is disputed would be enforceable the indemnitor. On the other hand, action for indemnity here is not based merely on ground contractor each is responsible in some degree related for the tortious stowage cargo that caused injury Palazzolo. Such an action, brought without reliance *8 6We do not reach the issue exclusionary of the effect of the Com pensation upon right of comparable action of a under circumstances upon indemnity without reliance agree or service stevedoring ment of a contractor. See Brown v. American-Hawaiian Co., 16,18; S. S. 211 F. 2d States S. S. Co. v. Rothschild International Stevedoring Co., 253; Slattery 205 F. 2d Bros., v. Marra 186 F. 2d (N. statute); 134 J. United States v. Rothschild International Steve doring Co., 181; Liability 183 F. 2d American Mutual Ins. Co. v. Matthews, 322; 182 F. 2d Telegraph American District v. Kittle Co. son, 946; Compagnie 179 F. 2d McFall Beige, v. Maritime 304 N. Y. 314, 107 N. E. generally, 2d 463. Weinstock, Employer’s And see The Duty Indemnify Shipowners Damages for Recovered Harbor Workers, (1954). 103U. of L. Pa. Rev. 321 bald the present would undertakings, contractual upon ship- or the stevedoring contractor whether question for responsibilities respective of their owner, because burden of ultimate bear stowage, should unsafe has question That judgment. longshoreman’s injured relative of the in terms elsewhere widely discussed been dis- and those tort, parties of responsibility and second- primary of concepts with dealt have cussions Because conduct.7 tortious passive and active or ary upon peti- entirely relies case instant respondent ques- not meet we do obligation, contractual tioner’s or of indemnity of right a noncontractual tion right. such toAct Compensation relation con- a claim is not here also claim shipowner’s The con- Consequently, tortfeasor. a joint tribution v. Halcyon Lines to the decision led siderations See applicable. are not S. Corp., U. Ship Haenn F. Matthews, 182 Co. v. Liability Ins. Mutual American 2d uncontroverted petitioner’s holds here all perform

agreement ques- cargo where place time and at the operations necessarily includes agreement That loaded. tion was but rolls, pulp only to stow not obligation petitioner’s Competency safely. properly them to stow the service elements of are stowage inescapable safety quasi-contractual is obligation This undertaken. a noncon- out of arising in law implied obligation petitioner’s essence It is relationship. tractual work- warranty of petitioner’s is It stevedoring contract. manufacturer’s ato comparable service manlike v. supra; Co., S.S. v. American-Hawaiian Crawford Brown See supra; Beige, Compagnie Maritime Talbot, supra; McFall Pope & Dam Shipowners for Indemnify Duty to Employer’s Weinstock, The Workers, supra. by Harbor ages Recovered *9 warranty product. of the soundness its manufactured shipowner’s changed action is not one for simply breach of contract one for a tort re- because covery may turn upon performance the standard of the petitioner’s service.8 stevedoring

The Court of Appeals has stated that petitioner performance case is of its obli- gation to stow the rolls on board “in ship reasonably 2d, safe manner.” F. at 279. That court also has affirmed the decision of the District Court upon jury petitioner’s based the verdict of the im- proper stowage produced of the rolls either the unsea- worthiness of the or the ship, hazardous working condition shipowner’s which is the basis for the liability to Palazzolo. suggests that, Petitioner because the shipowner had an obligаtion supervise the stowage right and had a reject stowage cargo unsafe so, did not do recovery now should be barred from from the stevedor- ing any damage contractor of caused that contrac- tor’s uncorrected failure to stow the “in rolls a reason- ably safe manner.” Accepting the facts and obligations stated, above the shipowner’s present claim against the contractor should not thereby be defeated. What- ever may have been respective obligations injured contractor and longshoreman proper stowage of the cargo, it is clear that, as between themselves, contractor, war- as the rantor of its own services, cannot use the fail- ure to discover and correct the contractor’s own breach Q. Chicago, Co., See Union Stock Yаrds v.Co. B. & R. 196 U. S. 217; v. Co., supra; Brown American-Hawaiian S. S. v. Crawford Pope Talbot, supra, 792-793; Liability & at American Mutual Ins. Matthews, supra, 323-325; Co. v. States, supra; at Rich v. United Shipbuilding Corp. Co., supra; Mowbray Bethlehem v. Gutradt Merryweather, supra; Asphalt Paving Co., Dunn v. Uvalde 175 N. Y. 214, 67 N. E. 439.

135 failure to dis- warranty Respondent’s of as a defense. petitioner’s own breach of contract cover and correct breach.9 cannot here excuse that judgment Appeals, accordingly, The of the Court of Affirmed. Black, Justice, with whom The Chief Mr. Justice concur, and Mr. Justice Clark Douglas, Mr. Justice dissenting. Ryan Stevedoring

The is an petitioner, Company, employer subject Longshoremen’s to the and Harbor Compensation Act.1 5 of that Act Workers’ Section com- all pletely rights longshoremen abolished sue their employers injuries resulting negligence employees. or his Act substituted fоr employer old prescribed compensation tort remedies a schedule of injuries which employees’ or death was declared to be in place “exclusive and of all other of such em- ployer employee anyone to the . . and otherwise entitled . to recover from such at law or admi- ralty injury on account of such or death . . . .” I think holding today promises the Court’s breaks the Act made both employers employees. My requires view more detailed statement of the facts and circumstances appears of this case than opinion. the Court’s Palazzolo, employee Ryan, was stevedore, injured unloading cargo ship while on a owned respondent, Steamship Corporation. Pan-Atlantic As 33 Palazzolo elected to sue the by § authorized In accept compensation rather than award. his com- 9 Compagnie Cyprien Fabre, Navigation v. F. 2d See Berti de 397; Contracting Transportation Corp., 4 F. Co. v. Ocean Hastorf 584; Mowbray Merryweather, supra; 583, aff’d, 4 Boston 2d F. 2d v. Kendall, 232, Woven Hose Mass. 59 N. E. 657. Co. amended, 1 44 C. 901. Stat. 33 U. S. § solely due injury that his charged he plaint heavy rolls of a number manner negligent resulting unsea- or to pulp stowed, had been paper weighing One of these rolls the vessel. worthiness ‍​​‌​‌​​​‌‌‌​​‌‌​​​​​‌‌‌​‌‌‌​​‌​​‌‌‌​​‌​‌​​‌​‌​‌‌‍of posi- from its had broken loose pounds 3,200 about Palazzolo. The injured seriously tion and allegations negligence denying answered shipowner filed At the time the same unseaworthiness. stevedore, against Ryan, of its own complaint *11 had received was any injury Palazzolo that alleging in manner negligent attributable solely pulp. had stowed the rolls of employees the stevedore’s compel asked the cоurt to shipowner this basis the On shipowner any to reimburse the the stevedore against shipowner. obtain the might Palazzolo judgment shipowner was submitted against Palazzolo’s case shipowner’s claim for reimbursement jury; to a by by judge largely was tried stevedore jury. evidence and submitted to the The same issues in summary facts were these: in employees pulp The stevedore’s loaded the rolls Georgetown, Carolina, days South and four or five later unloaded employees different of the same stevedore them pursuant general in York. This was to a contract New perform to Ryan agreed under which had stevedoring along the Atlantic and Gulf coasts. services in memo- The terms of the contract were set out written and to prepared by shipowner agreed randums simple contained a stevedore. These memorandums аgreed compensa- for an agreement to do the circumstances, cost of the stevedore’s plus, tion some further from which it nothing insurance. There was Ryan would be under a possibly be inferred that could duty indemnify resulting losses To any negligent stowage by Ryan’s employees. longshoremen, and prevent injuries cargo, crew put props some kind of necessary customary pulp rolls against heavy under or supports or they time as are un- stationary them until such keep heavy, that a thick, testified loaded. Some witnesses special wedge shape, into a strong piece of lumber cut satisfactory support kind of under “chock,” is a called by one may, use “chocks” as testified rolls. Failure to “rampant.” to run permit the rolls ship’s officers, chocking, in addition to Other witnesses testified that placed that woodеn floors be between the safety required All that indiscriminate however, of rolls. layers agreed, wholly “dunnage” inadequate called are scraps of wood All but one witness who testified swore supports. injured broke loose and Palazzolo New the roll that “dunnage” under or it. nothing York had but ship’s officer who swore that he saw exception lone No one testified the rolls in New York. wedges under made they were floors were used that wooden testimony that There was shipowner. available flooring wooden never used chocks or looked for chocks had longshoremen York the that New *12 An officer of the ship. to found on the but none were be George- in ship he that was shipowner testified that being loaded; it was Carolina, South while town, rolls were and see that the duty to primary was his watch that watch; he did chocked; that stowed and properly that “gear”; ship’s of the part chocks were available that rolls; under the put dunnage, not chocks, he saw rolls without stow the been made to any attempt had stevedore; stop to the have tried he would using chocks and the mate officer the chief that “the stevedores in together the and work cooperate generally watch on Thus the cargo.” the stowage of in the overall stowage officer was suf- ship’s of the testimony uncontradicted representative that he as finding support to ficient in inway rolls the stowing in the joined ship actively the And other evidence York. at New they arrived which cargo arrived finding that the support sufficient was by chocks. unprotected York New jury by the the properly submitted issues were These that it could jury He told the judge charge. in his inway of the unseaworthy on account ship find the York. The issue thus in New were unloaded goods the which was Carolina stowage South around revolved sub- officers. The court ship’s actively supervised by among others, as questions, jury mitted proper equipment use had available for ship whether ship’s officers rolls and whether dangerous to stow these in South loading stowage negligent guilty of were $75,000. a verdict for gave Palazzolo jury The Carolina. shipowner’s indem- deciding judge found The trial ship’s that officer the stevedore nity claim ad- perform his properly “did not stowage present at the loading of and careful supervise the safe duty to mitted remedy the “authority to he had although vessel,” He Supp. 505, Ill F. or halt the work.” condition ship and findings2 that the and other from this concluded de- and therefore “joint-tortfeasors” were the stevedore shipowner. tо reimburse the to order stevedore clined adequate was that there Appeals held Court of jury’s finding that support evidence unseaworthy because ship was and that the negligent That court nevertheless rolls. defectively stowed of the had to reimburse the stevedore held trial jury and the despite findings for its loss the loss occurred because court ship’s officer “in the exercise that the The trial court also found the defective discovered and corrected” of reasonable care should have *13 only ship’s negligence found stowage Had this been the conditions. question considering of common-law might the be material it indemnity. indemnity. contractual But this Court relies on justified imposing Appeals of The Court negligence.3 stevedore verdict on the $75,000 the of payment “sole,” to the was injury Palazzolo’s due that ground em- of the stevedore’s negligence or “active” “primary,” injury the that suggestion court’s But ployees. of the ste- negligence due to the “sole” have been could opinion of the court’s part is answered vedore support evidence adequate that there was holding shipowner findings that trial court jury and “primary” words negligent. Use itself was Appeals of that the Court to indicate “active” seems and find cold look at this record it should believed ship’s or the employees the stevedore’s whether itself I negligence. of do type of this guilty were employees make such Appeals of should agree Court cryptic statements Appeals’ if the of And Court findings. be “primary” can considered “active” and “sole,” about I think court, the trial findings of any of the upsetting clearly aside as should be set Appeals’ action the Court of States, S. McAllister United U. erroneous. I detail because evidence some out the I have set that this beyond doubt think it almost shows verdict “on $75,000 being pay required company line employee received injuries to an of” account more $60,000 is at least This employee’s duties. Longshoremen’s pay have to under than it would submitted though question of was also unseaworthiness Even negligent wholly was depended upon there jury, whether testimony ship’s officer the undisputed stowage. Under negligence shipowner guilty of jury judge that the was had to find provide Moreover, shipowner failed to if the was. if the stevedore lumber, way or proper gear in the chocks case, or not. In this guilty negligence whether the stevedore was were one negligence and unseaworthiness therefore, the supply needed thing. if the failed samе And and the permissible been lumber, have way it would gear of chocks injuries. of Palazzolo’s “sole” cause this was the to find that *14 140 revolutionary Act was its field. It took

Act. That right employers sue their away longshoremen to. a fixed of com- negligence for and substituted schedule pensation injuries regardless Many of fault. workers compensation employers opposed scheme. The deplored get loss of their chance to ver- big workers tort Congress thought give dicts. But it best to them a more expensive recovery, though certain and less even far less in amount than tort might Many some recoveries be. employers preferred to take their chance on defeating employees’ damage system. suits under old tort of "liability idea without fault” was abhorrent them. Congress weighed conflicting employers interests of employees and struck what was cоnsidered to be a fair and constitutional balance.4 Injured employees thereby lost their to get large chance tort verdicts their employers, gained get but right though sure frequently recovery. a more modest 33 However, § did employees leave a chance to recover extra damages tort persons from third negligently injured who them. And Congress imposed while absolute on employers, they were also accorded counterbalancing advantages. They longer were no to be subjected to the hazards of large tort verdicts. Under no they circumstances were to be held liable to their employees own for more than the compensation clearly fixed in employers the Act. Thus given every were reason to believe they buy could their insurance and make other arrangements business bаsis of the limited Compensation Act liability. More than that, 33 of the provides § Act also compen- that for paid sation an employee an employer shall himself be reimbursed or indemnified out of any money collected as a result of an employee’s claim negligent injury by See Crowell v. 22, 37-42; Benson, 285 U. S. New York Central 188, Co. White, R. S.U. 201-202. Cf. Ives v. South Buffalo Co., 201 N. Y. R. 94 N. E. 431. here is result end But person.

third its because mulcted actually action. third-party prosecuted successfully employee negligence because imposed is thus Liability forbids. the Act This employees. employer’s other “contribu- indemnity,” "common-law called Whether *15 is result name, other any or “subrogation,” tion,” “on more to pay has employer the same. precisely said Congress than employee to his injury of” an account he should. had made here if the that course,

I agree, hold to this agreeing written, oral or contract, a liability indemnify the or to harmless ship- by caused employees injuries petitioner’s to for would the contract part, in whole or negligence owner’s obtained. been have indemnity could valid have been employers forbid does not Longshoremen’s For the indemnify to agreements independent make it to under support slightest there is I think But others. was any such contract that finding record for this in the was made allegation No such made. careful was shipowner’s counsel

complaint. And action that his trial course during stipulate in- common-law but on contract on a based was not may indemnity common-law recognize that I demnity.5 indemnity right of This shipowner]: for Behrens “Mr. [counsel indemnity rather of common-law right is a alleged Pan-Atlantic get such facts My question is how to provision. than a contractual your Honor. before summary judgment in Honor, was a motion there “Your correspondence exchange of was annexed by Ryan, to which case is a contract. Pan-Atlantic, which Ryan and between put be now should those documents question is whether “Now, the infer from your Honor will Honor, whether your or before in evidence contractual subject there no any on the proof the absence indemnity. agree stip- Ryan] we can : I think “Mr. Schwartz [counsel wrong a tort or people two commit arise where

sometimes wrongdoers As between person. hurts the same impose the total circumstances the courts will under some appar- wrongdoer, “active” liability “primary” deems to be ently meaning wrongdoer the court imposed plainly “on indemnity But so negligent. most em- wrongdoer or his negligence account of” recоvery by forbids ployees. expressly The Act such “on stevedoring company from a account” “anyone” longshoremen. one of common- injury Plainly, its indemnity should not be used fasten such law I liability stevedoring company. suppose on a it is for purports to find an actual con- this reason the Court indemnify and thus decides the case on an issue tract presented complaint neither nor considered trial court.

A genuine distinguished contract as from a imposed re- by law, “quasi-contract,” sometimes called a *16 quires agreement parties. mutual It is for this reason that the have frequently courts said that the cardi- nal interpretation rule of contracts is that the in- tention of parties should be ascertained and enforced.6 ordinarily And courts do not language stretch order to arrangement ulate between us that whatever contractual was made Ryan, any expressed pro- between Pan-Atlantic and did not contain indemnity, position vision for and it is Mr. Behrens' in this matter solely upon implied right indemnity, that his claim is over based implied in law. “Mr. Behrens: That is correct. stipulate pro-

“Mr. Schwartz: I will that there is no contractual ‍​​‌​‌​​​‌‌‌​​‌‌​​​​​‌‌‌​‌‌‌​​‌​​‌‌‌​​‌​‌​​‌​‌​‌‌‍indemnity. vision for satisfactory stipulate,

“Mr. Behrens: And I will so if that to your Honor. Very “The Court: well.”

6See, Bullus, Hill, g., 528, 534; e. Mauran 16 Pet. Canal Co. v. 15Wall. 99-100.

find person agreed indemnify that one has to another when the latter negligently Special hurts someone.7 cau tion should be in construing used as to im contracts so pose indemnity liability companies on engaged of writing indemnity business insurance.

I think there is not a shred of to support evidence Court’s inference that voluntarily stevedore agreed give up to limited which the Longshoremen’s deliberately designed to аfford. The Court finds nothing support such a except conclusion that agreed stevedore to do a stevedoring job. From that the implies Court it that was to do a good job. workmanlike From there it takes the step next should be more —which difficult than appears says be—and the steve- doring company agreed give also up immunity its under pay the Act and any judgments might be rendered in favor of the employees stevedore’s the ship- owner for its negligence. The precise scope of in- demnity which the Court finds the stevedore intended to assume is left in doubt. Are we to assume that the steve- agreed dore to an unlimited liability indemnity with- out regard to the comparative or qualitative proportions of negligence as between employees its employees and the shipowner? Are we even to assume that the steve- deliberately dore intentionally agreed to indemnify upon a finding court’s that the stevedore’s negligence “sole,” was the “primary,” or “active” cause injury? Findings of fact based on these standards are easy. never inAnd efforts formulate a common-law indemnity remedy courts groped themselves have con- *17 siderably in trying give meaning to the terms “primary” and “active.” an Is understanding of the dif- ferent nuances of “sole,” “primary” and “active” to be at- tributed to stevedoring companies in judicial rewriting of

7 See, g., e. Note, cases 8, collected in 175 A. L. R. 29-32. indemnity contracts? them to make so as contracts

work of a the existence determines this Court Surely before should the case coverage of its scope and contract could these issues court so to the trial back be sent The facts. hearing full after a determined be tried District Court tried in the were not issues been have never The issues Appeals. in the Court of Porello, 330 S. Stevedores, U. Inc. v. In American tried. hearing for a trial court a case to the remanded 446, we indemnity scope of a contract as to the evidence on is not even Here there it written. though was even a contract creating Before indemnify. oral contract did the course we to follow appropriate be might of Porello? rejecting phase Or is the Court Porello. Ceiling Refitting & Ship v. Haenn Halcyon Lines Cf. S.U. Corp., only deprives the here not Court’s action

Finally, the right of it makes the liability, limited of his employer a bar- parties from third recover employees to ways provides two 33 of the promise. ren Section damages from to obtain injured employee for an may elect emрloyee person: (1) The negligent third and sue employer from his statutory compensation waive If (2) damages. negligent person directly third employer compensation award employee accepts statutory assignee person third may sue the in excess employer all recovers claim, but employee’s paid be award must compensation amount of the make an able to Palazzolo was employee. over to the his his suit because bring own election case in the outcome of his financially interested him Palazzolo to sustain money advanced and therefore party case the third injury until his during his away all incentive could be tried. Court takes in the future. Hereafter employers to follow this course circumstances like this will stevedoring companies under *18 know that it decidedly advantage to their that no third- party actions be An brought. employer Ryan like will hereafter if know that he or employee prosecutes his a claim against a party third judgment obtains a the employee’s benefit, every dime of the will judgment paid by have to be the employer himself. Human nature and habits being they what are, employers will not be eager to against finance suits Injured themselves. long- shoremen are not ordinarily wealthy enough support to themselves without work pending the trial lengthy lawsuits. Yet if an employee accepts compensation a only employer award his can bring suit against person, third and the employer will not overly be anxious to sue himself. It suggested has been that we expect can protect employees the courts to under such In circumstances. other words, employee who hаs accepted compensation go must court to him- protect into self against employer his he goes before into court to protect party his claim a third who has negligently injured him. I Congress given cannot believe would have employers complete such if it had control over these suits thought everything employers could be held liable recovered. holding The actual effect of the Court’s is this: The employer assignee employee’s as an of an claim will know that if he a lawsuit, wins he loses lawsuit. This knowledge will not him a give yearning anxiety to file suit. though yields duty Even he to the call and files the lawsuit, might exceedingly he not be anxious write good complaint. might other pleadings His not be all lawyer Although zealous would desire. the em- pay must his be ployer judgment, opening will argument jury. And when last word is said made closing argument, will be who counsel persuades jury give knows that if he his client a pay his client will have to it. verdict Counsel will also happens if he the case know that lose his client will about brought affairs the state Such is be the winner. intended holding Court’s by very him to the subject would contract make a *19 abolished. had Congress that liability Court this disagreement been considerable There has our recent hold about three other courts among and Halcyon Sieracki, 85; 328 U. S. Skipping Co. ings, Seas 342 U. S. Corp., Ceiling Refitting & Ship v. Haenn Lines In Hawn, ‍​​‌​‌​​​‌‌‌​​‌‌​​​​​‌‌‌​‌‌‌​​‌​​‌‌‌​​‌​‌​​‌​‌​‌‌‍S. 406. 346 U. Talbot, Inc. v. &Pope and 282; position same in the a worker cases these each of unsea and negligence shipowner alleging a Palazzolo sued ship the against obtained were Judgments worthiness. shipowner that Halcyon case held owners. We of “contribu doctrine common-law not under could part to employers pаy employees’ injured tion” force The Sieracki shipowner. judgment In that & Talbot. Pope were reaffirmed Halcyon cases part of his to shift permit to refused case we argument employer on his injured person’s loss to Longshoremen’s was under employer, who that rejected injury. We contributed Act, negligently accepted it “would if that ground the contention employers who to protect purpose this frustrate [Act’s] liability by Act.” absolute to subjected are way today provides opinion The Court’s at U. S., and remedial change of words simple by under which can three former cases in our reached the results formulas and Palazzolo like Employees Sieracki be undermined. get to their cases impossible practically it will find And a in a court. persons tried third injuries against wholly a steve liability to to shift who wants He simplе method. by very so company can do doring intentionally stevedoring company allege that can him under circum indemnify to agreeing a contract made be allegation will case; like those in stances establishing the fact by simply automatically proved stevedoring company contracted do some work on ship; the result will be that is wholly deprived protection of limited which the Act was intended provide. And while this will be accomplished under the “contract,” really name of it will be achieved because the Court has announced as an principle absolute regard of law that without to whether a stevedoring company agree intends to it indemnify, has so if agreed agrees job. do a Thus indirection rights longshoremen employers recognized and their Sieracki, this Court in Halcyon, Pope & Talbot are taken In away. effect rejected. the Sieracki case is

I would reverse this case.

Case Details

Case Name: Ryan Stevedoring Co. v. Pan-Atlantic Steamship Corp.
Court Name: Supreme Court of the United States
Date Published: Jan 9, 1956
Citation: 350 U.S. 124
Docket Number: 4
Court Abbreviation: SCOTUS
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