Raymark Industries, Inc. v. Bath Iron Works Corp.

Background

In No. 85-1246, an asbestos manufacturer was sued in state products-liability litigation by the widow of a shipyard worker who worked at Bath Iron Works. The manufacturer sought contribution from the shipyard and raised several legal theories, including relying on section 5(b) of the Longshoremen’s and Harbor Workers’ Compensation Act, which can allow contribution claims when employer torts are involved. The First Circuit issued rulings limiting the reach of section 5(b).

Reasoning

The central question was whether section 5(b) covers only torts that fall within admiralty jurisdiction — in everyday terms, whether the injury or activity is closely enough tied to maritime work to count. The First Circuit read Executive Jet’s maritime "nexus" test to require that close connection and concluded ship construction did not meet that test. The court thus limited when contribution under section 5(b) is available. The Fifth Circuit had reached a different result.

Real world impact

Because the Supreme Court refused to hear the appeals, the First Circuit’s rule stands in those cases and the split between circuits persists. That outcome affects asbestos makers trying to shift costs to shipyards, shipyards defending contribution claims, and the United States in cases where it is sued as vessel owner or employer. This decision is a denial of review, not a final national ruling, so the law could change if the Court later takes the issue.

Dissents or concurrances

Justice White dissented from the denial and said he would have granted review to resolve the conflict between circuits over how broadly section 5(b) applies. He noted the direct disagreement between the First Circuit and the Fifth Circuit and urged the Court to settle the question.