Sammiline Co. v. Woods

Background

A longshoreman was injured while unloading a vessel after cargo had been stowed defectively by an independent stevedore. The federal appeals court in this case held that a vessel may be liable under § 5(b) of the Longshore and Harbor Workers’ Compensation Act based on duties described in Scindia Steam Navigation Co. v. De los Santos. That court also reaffirmed an older ruling that a common time charter clause does not shift operational control over cargo work to the charterer. The court acknowledged other appeals courts have reached different results.

Reasoning

The key question was whether a shipowner can be held responsible for injuries caused by defective stowage performed by an independent stevedore and whether standard time charter language transfers control over cargo operations to the charterer. The appeals court relied on Scindia duties and its prior decision in D/S Ove Skou to conclude vessels can be liable and that the charter clause does not transfer operational control. The court noted this view conflicts with the Third Circuit’s position and with Ninth and Second Circuit interpretations of charter clauses.

Real world impact

The Supreme Court denied review, so the appeals court’s rule stays in place and the circuit split remains unresolved. Longshoremen, shipowners, charterers, and stevedores may face different liability rules depending on where a claim is filed. Until the Supreme Court acts, inconsistent outcomes, shifting settlement incentives, and changes to contract drafting and insurance arrangements are likely.

Dissents or concurrances

Justice White dissented from the denial of review, joined by the Chief Justice and Justice Kennedy, saying he would grant review to resolve the conflicting appeals-court decisions.