The U.S. Fifth Circuit Court of Appeals recently overturned a decision by the Western District of Louisiana to dismiss a plaintiff’s demand for economic losses arising from a maritime tort for failure to satisfy the physical damage requirement of the economic loss rule, as set forth in the decision Louisiana ex. rel. Guste v. M/V TESTBANK , 752 F. 2d 1019 (5th Cir. 1985)(en banc), cert. denied , 477 U.S. 903 (1986). Under general maritime law, there can be no recovery for economic loss without physical damage to or an invasion of a proprietary interest. Robbins Dry Dock & Repair Co. v. Flint , 275 U.S. 303 (1927). In Catalyst Old River Hydroelectric Limited Partnership v. Ingram Barge Co. , 639 F.3d 207 (5th Cir. 2011), the Fifth Circuit addressed the issue of whether a physical invasion of a proprietary interest and preparations to mitigate further damages are sufficient to satisfy the economic loss rule under general maritime law. In December 2007, two tug and barge units collide...
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